RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/W/147 
27 September 2006 
 (06-4590) 
Committee on Budget, Finance and Administration  
  
 
 
FINANCIAL PROGRESS REPORT ON 
SECURITY ENHANCEMENT PROJECT AT THE WTO 
AS AT 31 AUGUST 2006 
  
A. P
REFACE  
1. In 2004 the Committee on Budget, Finance and Administration (CBFA) examined the 
Security Enhancement Project at the WTO (Document CRP(04)22).    
2. This project entailed three phases: i) outsource part of the functions and services of the 
Security and Safety Section to an external provider, ii) renovate and modify the infrastructure of the 
premises to accommodate this new project (non- equipment expenditure), and iii) procure the 
necessary equipment to ensure an effect ive security system at the WTO.   
3. The implementation of the project is spread over five years.  Severance packages were offered 
to the regular security staff of the WTO in 200 5 and the adjustments to the infrastructure and 
equipment within the CWR building began in the sa me year.  Other parts of the project concerning 
modifications to the access and traffic flows were  deferred pending  required endorsement of, and 
coordination with, the Swiss authorities.  
4. Consequently, the project was financed throug h planned provisions to the regular budgets of 
the respective years, utilised to meet the expenditure of the particular year or to replenish the proposed 
Security Enhancement Operating Fund (SEOF), whic h had been set up in order to provide the more 
flexible system of funding required to cover the in frastructural/equipment costs.  The procurement of 
equipment for this project is financed throug h leasing arrangements whose repayment instalments 
would be paid for from the SEOF. 
5. In approving the 2005 budget, Members approved the re-deployment of resources to fund the 
outsourcing arrangements for the Enhanced Security  Project (Document WT/BFA/75).  The contract 
with the concerned provider commenced on 1 Augus t 2005.  The comparative costs of the two 
configurations as well as their cost neutrality  were presented to the CBFA in October 2005 
(Document CRP (05)28). 
6. A financial progress report which includes the budget and expenditure for each of these 
phases is presented separately.  WT/BFA/W/147 
Page 2  
 
  B. O
RIGINAL VERSUS ANTICIPATED BUDGET  
7. The original proposal for the Security Enha ncement Project was presented to the CBFA in 
2004 in document (CRP(04)22).  An anticipated a nd revised proposal, which includes the approved 
budgets for 2005, 2006 and 2007 is presented for comparison purposes.  The revisions for the 
years 2008 and 2009 are necessary to reflect the fi nal figures of the severance packages offered to 
regular staff.  
Budget evolution  
Proposed funding (CRP (04)22) Budget  
  Equipment Non-
equipment Human 
Resources Total EquipmentNon-
equipmentHuman 
Resources Total 
2004 100,000 366,000 709,500 1,175,500       0
                  
2005 330,000 789,000 686,300 1,805,300 330,000 789,000 709,500 1,828,500
                  
2006 330,000 0 288,800 618,800 430,000 366,000 135,200 931,200
                  
2007 330,000 0 305,600 635,600 330,000 0 213,500 543,500
                  
2008 330,000 0 256,500 586,500 330,000 0 106,200 436,200
                  
2009 330,000 0 170,300 500,300 330,000 0 15,200 345,200
                  
Total 1,750,000 1,155,000 2,417,000 5,322,000 1,750,000 1,155,000 1,179,600 4,084,600
(Approved budget in BOLD) 
C. HUMAN RESOURCES  
8. Severance packages were offered to six of the re gular security staff, and their contracts were 
terminated on 31 July 2005.  A seventh member of the regular security staff  was retained and 
assigned to different duties.  All the regular sta ff concerned were provided with severance packages 
which took into account age, length of service and proximity to retirement age of the staff member.  
9. The contracts of 17 temporary staff were term inated on 31 July 2005.  All temporary staff 
concerned were granted one month of pay in lieu of  notice for each year of service. Some of these 
were retained by the service provider either to c ontinue their employment under the new contract with 
the WTO or to be placed on other sites covered by the company. In addition, for all staff, unpaid 
overtime and days of accumulated untaken annual leave were also settled in accordance with the 
applicable rules. 
10. The approved budget for 2005 included an appropriation of CHF 709,5001 as the first 
instalment of the planned expenditure described in document CRP(04)22.  Since some of the 
severance packages included pension and insurance c ontributions to retirement, the overall budgetary 
impact will be spread over the number of years n ecessary for the individual to reach retirement age.   
 
                                                      
1 2004 instalment.  WT/BFA/W/147 
 Page 3 
 
 
  11. Under the security enhancement project, expe nditure for the severance packages of the 
security guards was initially estimated at CHF 2,417,000.  Expenditure up to 2009 is anticipated to amount to CHF 2,263,285, inclusive of pension and insurance contributions to retirement.  Excess 
expenditure in 2005 was absorbed by savings in the regular budget.  
Human Resource expenditure  
  Proposed funding 
(CRP(04)22) Budget 
Appropriations Expenditure/ 
Commitments 
2004 709,500     
2005 686,300 709,500 1,863,685 
2006 288,800 135,200 161,000 
2007 305,600 213,500 117,200 
2008 256,500 106,200 106,200 
2009 170,300 15,200 15,200 
Total 2,417,000 1,179,600 2,263,285 
 
D. SECURITY ENHANCEMENT OPERATING FUND (SEOF)   
12. As mentioned in paragraph 4, m odifications to the infrastructure of the premises as well as the 
procurement of equipment covering more than one financial year are funded from the SEOF. 
13.  Expenditure in 2005 under the SEOF amounted  to CHF 1,157,538.  This expenditure 
exceeded the allotment by CHF 38,538 as infrastructure costs exceeded the exp ected works for 2005.  
This over-spending has been carried forward to 20 06 and offset against the second instalment of 
CHF 796,000 in 2006.  
Statement of expenditure SEOF  
 
2005  CHF  
Initial Replenishment   1,119,000 
   
Section Items Expenditure 
Sect  2 Temporary Assistance Consultants 80,098 
Sect  4 Building Facilities Maintenance & Insurance / Renovation & Alterations 747,440 
Sect  5 Permanent Equipment Perm Equipment / Lease / Security 330,000 
  Grand Total 1,157,538 
 Balance carried forwar d to 2006 (38,538) 
 
2006  Balance brought forward (38,538) 
Replenishment  796,000 
   
Section Items Expenditure 
Sect  4 Building Facilities Maintenance & Insurance / Renovation & Alterations 8,100 
Sect  5 Permanent Equipment Perm Equipment / Lease /  Security 330,000 
  Grand Total 338,100 
 Balance as at 31 August 2006 419,362 
 WT/BFA/W/147 
Page 4  
 
  E. O
VERALL PROGRESS REPORT  
14. This project's human resource element has been covered under part C of this document.  Of 
the initial proposal on equipment and non-equipment installations the following aspects have been 
completed:  
(a) The  Central Safety and Security Post is  operational with appr opriate provision being 
made for the reception of the video surveillance system as well as the modification of 
the access area to senior management. 
(b) Fire protection equipment has been purchased and the fire detectors changed. 
(c) Both the internal security st aff and the outsourced staff have received the appropriate 
training with periodic updates regularly established. 
15.  In conjunction with the Task Force on Secur ity Matters, substantial progress has been made 
in the following areas with an anticipated implemen tation date schedule to be within the next six 
months: 
(a) The introduction of video surveillance came ras and their connection to the control 
post as mentioned in paragraph 14(a). 
(b) In accordance with the terms of reference,  work has commenced on the 'Accreditation 
and Registration Database'.  
16. Other than the preliminary preparatory work including studies, the following items remain 
pending: 
(a) Modifying all the entrances to the WTO prem ises to include turnstiles and modifying 
the Visitors' entrance to include x-ray equipment.  
(b) No modifications have been carried out  to the access areas to the CWR.  These 
modifications can only be carried out in conjunction with the Swiss Authorities and form part of the overall plan on the premises of the WTO. 
 
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