RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/77 
17 May 2005 
 
 (05-1977) 
Committee on Budget, Finance and Administration  
  
 
 
REPORT OF THE MEETING HELD ON 17 MARCH 2005 
  
1. The WTO Committee on Budget, Finance and Administration met on 17 March 2005 under 
the successive chairmanships of Ambassador Henr ik Rée Iversen from Denmark and Mr Jan-Meinte 
Postma from the Netherlands.  The terms of refe rence and composition of the Committee are set out 
in document WT/L/44/Rev.1.  The agenda c ontained in document WTO/AIR/2526 was adopted. 
I. ELECTION OF CHAIRPERSON 
2. The Chairperson recalled that the Chairman of  the General Council had carried out informal 
consultations on the appointment of Chairpersons  to the various WTO standing bodies in accordance 
with the established guidelines for such officers.   On the basis of the understanding reached, 
Ambassador Iversen proposed that the Committee on Budget, Finance and Administration formally 
elect Mr Jan-Meinte Postma of the Netherlands as chairperson of the Committee by acclamation.  The Committee so agreed. 
3. Before handing over his chairmanship, Ambassador Iversen thanked all Members for their 
cooperation, and paid tribute to the Secretariat for its professional support. 
4. The elected Chairman assumed the Chair and thanked the Committee for its confidence and 
looked forward to a fruitful year in 2005. 
II. ADMINISTRATIVE UP-DATES AND PROGRESS REPORTS AS AT 
28 FEBRUARY 2005 
A. 
CASH SITUATION AND STATEMENT OF OUTSTANDING CONTRIBUTIONS  
B. CONTRIBUTIONS OF OBSERVER COUNTRIES TOWA RDS THE COST OF SERVICES PROVIDED BY 
THE SECRETARIAT  
C. HUMAN RESOURCES  
D. STATUS OF EXTRA -BUDGETARY CONTRIBUTIONS : 
 TECHNICAL ASSISTANCE ACTIVITY IN 2004 
 DOHA DEVELOPMENT AGENDA GLOBAL TRUST FUND  
E. WTO PENSION PLAN  
F. ORAL REPORT ON CONSTR UCTION OF NEW WTO ANNEXE  
G. ORAL REPORT ON SECURITY  AND SAFETY ENHANCEMENT  WT/BFA/77 
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 5. A member of the Secretariat presented the cash  situation, the statement of outstanding 
contributions from Members as at 28 February 2005, and a statement regarding the contributions of Observer countries towards the cost of services provide d by the Secretariat.  As at the reporting date, 
the total of funds available at CHF 60 million was slight ly lower by 7 per cent than at the same date in 
2003.  Contributions received from Members amou nted to CHF 74 million, while those from the 
Observers amounted to CHF 176,000.  The Capital Working Fund stood at CHF 9.1 million at 
28 February 2005.  Since the date of the report,  the following Members had made payments:  (i) 
Croatia, (ii) Cuba, (iii) Fiji, (iv) Mexico, (v ) Moldova, (vi) Philippines, (vii) Tunisia, and 
(viii) Uruguay.  In addition, the following Observers  had also made payments: (i) Azerbaijan, (ii) 
Bahamas, (iii) Ethiopia, and (iv) Tajikistan. 
6. A member of the Secretariat presented a Progress Report on Human Resources (CRP(05)05.  
He outlined the realignment of the Human Res ources Division which had taken into account the 
evolution of the organization, the need to stream line transactional functions and the requirements of 
the WTO staff to engage in more strategic/adviso ry services.  He also reported that an external 
consultant had been identified to provide an obj ective and informed evaluation of cases of long-term 
staff being subject to temporary assistance contracts.  With regard to the restructuring of the Security 
and Safety Section, he outlined the current st age of developments concerning guards on regular 
contracts and well as those on short-term contracts.  He provided information on the adjustment of the 
WTO salary scale on 1 January 2005 in accordance with the methodology wh ich had been approved 
by the General Council.  He reported that the a pplication of the methodology related to dependency 
allowances in the WTO had not resulted in any changes to the allowances.  He indicated that a Junior 
Professional Officer Programme was currently under c onsideration. In response to a question from a 
Member, another member of the Secretariat, referring to OFFICE(05)22, clarified the establishment of a new Doha Development Agenda Special Duties Division. 
7. Another member of the Secretariat presented documents WT/BFA/SPEC/126 and CRP(05)05.  
He drew the attention of the Members to the s ituation of the balances of the trust funds as of 
15 March 2005, (document WT/BFA/ SPEC/126) which could still be s ubject to minor changes as the 
accounts had not yet been technically closed. 
8. He highlighted that the DDAGTF was in the black at the moment with an uncommitted cash 
balance as at 15 March of CHF 1.2 million.  Nevertheless, the terms of reference of the DDAGTF require that 75 per cent of the target amount, i.e. CHF 18 million, must be in the bank by the end of 
March.  For this reason, Members of the Committee were asked to communicate with their capitals to 
urge that the un-paid pledges should be paid as soon as possible. 
9. A progress report on Pensions (CRP(05)05) was presented by a member of the Secretariat 
who indicated that the Management Board of the WTO Staff Pension Plan had concluded contracts 
with the managers selected to take charge of four  of the five new mandates included in the revised 
strategy.  The Board had also agreed to set up a wo rking group to establish a formal procedure to deal 
with requests for the determination of permanent pa rtial and total disability.  The attention of the 
Committee was drawn to the fact that the current th ree-year term of office of the Management Board 
would expire on 7 July 2005. 
10. With regard to the new annexe building for th e WTO, a member of the Secretariat provided 
an oral report and brief history of the project.  She indicated that it had been decided to construct the 
new annexe in view of the fact that the current WTO annexe only partially resolved the problem of 
office space.  The Swiss authorities had proposed one of  the last available plots of land in the area of 
international organizations, where the WTO woul d construct a building of some 10,000 square 
metres.  An international competition of architects was held and two projects were initially retained 
for further consideration.  Ultimately, it was decide d that the project named "Golden Eye" was better 
suited to the needs of the WTO and this choice was endorsed by the General Council upon  WT/BFA/77 
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 recommendation of the Committee on Budget, Finance and Administration.  The construction of the 
building would be entrusted to a general contractor which would be chosen on the basis of a call for 
tenders in the summer of 2005 and the beginning of construction was planned for the spring of 2006.  
In the autumn of 2005, the federal legislative bodies would be presented with a request to approve the 
necessary credit for the building, which w as scheduled to be completed in 2008. 
11. The Security and Safety Enhancement Programme was also the subject of a progress report, 
presented by a member of the Secretariat.  He indicated that the process of selection of service 
providers as well as the first phase of internal works ha d been started.  The timetable with regard to a 
service provider included the finalization of the terms of reference at the beginning of March,  mailing 
the terms of reference out in mid-March, evaluatio n of submissions through mid-April, meetings of 
the Contracts Committee and selection of the contr actor by end April, preparation by the service 
provider to be in a position to deploy its personnel on 1 August. 
12. With regard to infrastructure works, two proj ects were mentioned: the Central Security and 
Safety Post and the Senior Management office wing.  For the Central Post,. the terms of reference had 
been completed in February, and the project was under way with a desired completion date of end 
June.  Subsequently, the second phase of integrating technical equipment would start.  The work in 
the Senior Management office wing was planned to be completed by the end of July. 
13. With regard to other aspects of the Enhanc ement Programme, it was reported that questions 
surrounding (i) motor and pedestrian traffic access and circulation, and (ii) the transformation of the 
villa into the Reception and Identification Office,  we re under discussion with the relevant authorities.  
It was also noted that information had been subm itted to the Swiss authorities regarding mechanical 
protection of the periphery and the perimeter.   
14. The Committee took note of the various progress reports and the comments from the 
Members. 
III. INACTIVE MEMBERS 
15. Following the recommendation of the Prep aratory Committee of the World Trade 
Organization on the issue of Members in Category IV of the administrative measures, the Secretariat 
prepared a list of Members which have accumulated, as at 28 February 2005, three or more years of arrears up to and including the financia l year of 2004 (document WT/BFA/W/126). 
16. Subsequent to a discussion on the question of arr ears, it was decided that the list of Members 
in Category IV of the administrative measures shoul d include information regarding the length of time 
each Member had been in the specific category.  It was also decided that the Chairman of the 
Committee would undertake bi-lateral contacts, either  orally or in writing, with Members in this 
category, and in particular with non-LDC Members,  with a view to encouraging the payment of 
arrears.  He would report back to the Committee on the results of these contacts. WT/BFA/77 
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 17. Consequently, in accordance with paragr aph 7(b) of document PC/7, L/7578, the Committee 
recommends to the General Council that the following Members, under Category IV of the 
administrative measures since the year indi cated, be urged to liquidate their arrears : 
Antigua and Barbuda (1995) 
Burundi (1995) 
Central African Republic (1995) 
Chad (1995) Congo (1995) Côte d'Ivoire (2005) Democratic Republic of the Congo 
(1995) 
Djibouti (1995) Dominica (2004) Dominican Republic (1995) Gabon (2005) 
Gambia (1995) 
Guinea (1995)  Guinea-Bissau (1995) 
Malawi (2000) 
Mauritania (1995) 
Níger (1995) Nigeria (2005) Paraguay (2005) Peru (2005) 
Rwanda (1995) 
Sierra Leone (195) Solomon Islands (2003) Suriname (1995) Tanzania (2005) 
Togo (1995) 
Zambia (1995)  
IV. FINANCING THE TRAVEL EXPENSES OF LDC DELEGATES TO THE HONG 
KONG, CHINA MINISTERIAL CONFERENCE 
18. A member of the Secretariat presented the document WT/BFA/W/127 and recalled that it had 
become customary to facilitate the participation of LDC delegates at WTO Ministerial Conferences 
through the establishment of a trust fund for this purpose.  Provision was made in the estimated costs 
for one minister and two high officials, based on Business Class for the minister and Economy Class for the two other members of the delegation.  It was noted that the WTO Member hosting the conference covered the other costs associated with LDC delegations, such as accommodation and per 
diem  allowances.  
19. The estimated needs amounted to CHF 1.1 million for WTO Members and Observers.  Since 
CHF 107,000 remained available from the trust f und set up for the same purpose at the Cancún 
Ministerial Conference, a balance amou nting to CHF 993,000 will be required. 
20. The Committee  recommends to the General Council th at it urge interested donors to 
indicate to the Secretariat as soon as possible th e level of financial support they are prepared to 
provide . 
V. BIENNIAL BUDGET: AUDIT OF THE FIRST YEAR 
21. A member of the Secretariat presented the document CRP(05)06.  He recalled that the 
Committee had examined document WT/BFA/W/121 in 2004 which recalled the implications of the 
biennial approach for the audit of the WTO accounts.  It was noted in particular that the formal audit 
of the accounts by the External Auditor would be made at the completion of the biennium. 
22. In this context, the Secretariat suggested that, after the auditors had completed their 
examination of the accounts for the first year of  the biennium, a report would be prepared which 
would indicate: (i) the budgetary situation of each section in the WTO budget indicating the 
allocation, expenditure and final situation;  (ii) an  analysis of the results of the budgetary situation 
which would include information relating to signi ficant over and under expenditures on a section by 
section basis; (iii) whether the results of the first year of the biennium, which will be combined with 
those of the second year at the completion of the bi ennium, would have indicated an overall surplus or  WT/BFA/77 
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 deficit if the WTO had maintained an annual budget system;  and (iv) any comments which the 
auditors deemed useful to make 
23. Members of the Committee expressed the opinion that the interim audit of the first year of the 
biennium would provide useful information in the ex amination of the proposals for the next biennium. 
24. The Committee agreed with the approach outlined in CRP(05)06, it being understood that, as 
an initial experience, Members and the Secretariat could evaluate the usefulness of the information 
presented in the interim audit and discuss any measu res or adjustments which might be desired. 
 
POINT FOR DECISION:    Paragraphs 17 and 20 
 
 
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