RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/110 
15 May 2009 
 (09-2387) 
Committee on Budget, Finance and Administration  
  
 
REPORT OF THE MEETING HELD ON 11 MAY 2009 
 
 1. The WTO Committee on Budget, Finance and Ad ministration met on 11 May 2009 under the 
chairmanship of Ambassador Marie-Claire Swärd Capra (Sweden).  The terms of reference and 
composition of the Committee are set out in documen t WT/L/44/Rev.1.  The agenda contained in 
document WTO/AIR/3360 was adopted with one item under ‘Other Business’. 
I. ADMINISTRATIVE UP-DATES AND PROG RESS REPORTS AS AT 30 APRIL 2009 
A. WTO
 BUDGET AND FINANCE REPORT (CRP(09)06) 
2. A member of the Secretariat presented the situation regarding Members' contributions as at 
30 April 2009 showing that CHF 99 million of th e assessed CHF 183 million had been received and 
that 68 Members or 44 per cent of the Membership had no outstanding balance.  Payments received from Observers represented 40 per cent of the total assessment of CHF 0.8 million.  With respect to 
Members under Administrative Measures, it was reported that 23 Members were currently under Administrative Measures, comprised of two in Cate gory II, four in Categor y III and 17 Members in 
Category IV (Inactive). 
3. The cash situation showed that the WTO held  CHF 99 million on its bank accounts, including 
the working capital fund and extra-budgetary funds .  Though the cash situation was considered 
adequate, 54 per cent of the assessed contributions  were received as at 30 April 2009 versus 
70 per cent in 2008.  This marked a slowdown in the rate of receipts which could adversely affect the 
Organization in the latest part of the year if recei pts were to remain at this level.  An additional 
CHF 31 million would have to be received in the month of May to place the Organization on the same 
footing as in 2008. 
4. The budget performance as at 30 April 2009 did not show any specific area of concern.  
Actual staff costs were in line with the budget.   The higher implementation rates in selected budget 
sections could be explained by the specific commi tment approach used to capture the related 
expenditure.  
B. E
XTRA -BUDGETARY FUNDS REPORT (CRP(09)07) 
5. The Committee was informed that, as at 30 Apr il 2009, taking into account the funds brought 
forward from 2008, total funds available stood at CHF 16 million.  The amount of CHF 3.7 million of contributions had been pledged by Germany, th e Netherlands and the European Communities and 
should be received shortly.  Therefore, CHF 4.3 milli on were still needed to be contributed in order to 
reach the CHF 24 million target figure.  It was added that the 31 March benchmark for having 
75 per cent in the bank had been missed and that it was unlikely that the 30 June benchmark for 
having 100 per cent of the annual target, i.e. CHF 24 million would be met.  However, the Secretariat 
was confident that, if the pledged contributions were  received shortly and if some more contributions 
from the regular donors materiali zed, funds would be sufficient to  implement the 2009 activities 
smoothly.  Spain announced a contribution of EUR 350,000 for the technical cooperation in Latin 
America and the Caribbean and Denmark held ou t prospects of pledging some CHF 1.2 million. WT/BFA/110 
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  C. HUMAN RESOURCES REPORT (CRP(09)08) 
6. Members were informed that the WTO salary scale had been adjusted following the result of 
the 2009 salary survey with the two comparator s, the UN and the Coordinated Organizations, 
weighted at 70 and 30 per cent, respectively.  The survey resulted in a grade-weighted difference of 
1.5 per cent between the WTO and the comparator s.  However, the payroll-weighted average 
difference between the WTO and the comparators was calculated at only 1.3 per cent.  Consequently, 
according to the methodology stating that the estimat ed impact of the payroll must not exceed the 
payroll-weighted difference, the scale adjustment in  terms of estimated increase to the payroll was 
limited to 1.3 per cent.  It was added that, through this adjustment, the Director-General had sought to 
maintain the competitiveness of the WTO salaries in all grades in relation to the competitors. 
7. The Committee was presented with an update on the level of temporary assistance contracts 
within the Organization.  The Human Resources and the Administration and General Services 
Divisions had developed a procedure for exercising mo re effective control over the level of temporary 
assistance.  The Committee was also in formed that there were currently  15 vacancies at various stages 
of the recruitment process. 
D. WTO  PENSION PLAN REPORT (CRP(09)09) 
8. The Secretary to the WTO Pension Plan explaine d that the last meeting of the Management 
Board had been exclusively devoted to a discu ssion of alternative ways of funding and/or 
administering death and disability benefits payable under the Plan.  Presentations of two companies 
had been heard, after which the Management Board had decided to resume its consideration of the 
item at a future meeting on the basis of a legal opinion on the outsourcing of death and disability 
coverage.  The Committee was informed that th e Management Board scheduled to meet on 
12 May 2009 and would be embarking on an Asset Optimization Exercise. 
E. BUILDING PROJECT REPORT (CRP  (09)10) 
9. Members of the Secretariat updated the Committee on the three stages of the building project 
using various images/models to illustrate the various  developments.  Consider ing the high profile this 
project received from the press, it was evident that mo re efforts had to be made by the Secretariat to 
inform the general public about the WTO and the Ce ntre William Rappard.  In this context, the 
Secretariat informed the Committee that the WT O was planning to organize an 'Open Day' on 
20 September 2009, whereby more information would be made available to the general public on the 
WTO headquarters, its work, planned development and the building project. 
10. The first stage of the renovation, comprising all the floors of half of the South-wing except for 
the restaurant, had started in Marc h and should be finished in October 2009.  The restaurant would 
only be renovated at the end of the renovation proj ect when the restaurant of the new building would 
be available. 
11. The second stage of the renovation would start in  October 2009 and take about six months.  In 
June 2010, the third stage was planned with the c onstruction of the conference centre in the South 
courtyard.  The last stage, which was planned to  begin in March 2011, included the works in the 
North courtyard.  The construction of the new build ing should start in January 2011 in order to be 
completed at the end of 2012 with the security  fence around the WTO premises being planned for 
completion by the end of that year.  
12. The member of the Secretariat further reca lled that the project was financed by a 
CHF 70 million grant of the Swiss Confederation, of which CHF 40 million would be used for the 
renovation of the CWR, and an interest-free loan by the Swiss Confederation to the WTO amounting 
to CHF 60 million for the intra-muros works and th e construction of the new building.  It was  WT/BFA/110 
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  emphasized that these amounts represented the cost limit and that all tenders  would be established 
within these limits. 
13. There was a risk of a referendum at city leve l as well as at cantonal level and a procedure for 
calling a referendum at city level had already b een begun.  The deadline for the collection of 
signatures was 26 May and the eventual referendum could take place in autumn 2009.  If the Geneva 
population voted against the de-zoning of the land, the project could be delayed for at least one year.  
There would also be a risk of a referendum on the cantonal level, where the population could again 
oppose the decision of the General Council of the Canton.  These obstacles could delay the finalization of the project and also have financial consequences as the rent for the building on Chemin 
des Mines amounting to CHF 3 million per year  would need to continue to be paid. 
14. Throughout the period of potential municipal a nd cantonal referendums, the steps being taken 
both in Berne regarding the message to the Federal Chambers and in Geneva to secure the building 
permit would proceed in parallel so that both processes could be completed in time for the vote on the de-zoning law and the protection of the lakeside. 
15. Ambassador Alexandre Fasel of the Swiss Department of Foreign Affairs re-assured 
Members of Switzerland's full commitment at all leve ls of government to this project.  In accordance 
with article 5.4 of the memorandum of understanding , Switzerland would cove r any additional rental 
costs arising from any delay caused by the legisla tive process (e.g. referendums).  He further added 
that, although a referendum might si gnal opposition to a project, it was often used to seek and obtain 
more information or certain concessions.  The Am bassador re-affirmed that the ecological and 
economical requirements of this project were of the highest standards.  On the construction of the new 
building, he pointed out that building permits issued by the cantonal authorities could not be 
challenged by popular referendums. 
16. The Committee took note of the recent devel opments with the Chair thanking the Swiss 
Ambassador and the Secretariat for their extensiv e explanations of the various elements of the 
process.     
F. P
ARKING SITUATION AT THE WTO  REPORT (CRP  (09)11) 
17. In reply to concerns raised by Members regard ing the current parking situation at the WTO, 
the Secretariat provided information and suggestions  on the management of parking spaces.  Members 
were informed that before the start of the renova tion, out of a total of 693 parking spaces, 102 spaces 
had been reserved for delegates at the CWR Park ing and 428 spaces had been available to both 
delegates and staff at the Sécheron Parking located  250 m from the CWR.  Due to the renovation of 
the CWR building, delegates' spaces at the CWR Pa rking were currently reduced to 48, whereas the 
428 spaces to be shared between delegates and staff re mained the same.  The future parking situation 
would include 200 spaces located in the undergr ound parking of the new WTO annex building 
available to delegates and staff as well as the 428 spaces at the Sécheron car park. 
18. With respect to several proposals by Members in  order to address the current difficult parking 
situation, the Secretariat outlined that since 1 Ja nuary 2009, suppliers and contractors no longer had 
access to the CWR car park except for delivery.  Th e possibility of short-term  delegate parking was 
envisaged, and the exit problem from the Sécher on car-park would be discussed with the Swiss 
Authorities in order to find an adequate solution.  The suggestion of additional street parking spaces 
close to the CWR would need to be studied w ith the host country.  Preferential treatment for 
ambassadors without a driver would be difficult to  manage as it could not be accurately anticipated. 
19. Additional options presented by the WTO included the installation of an electronic indicator 
board in order to communicate the availability of spaces in real time and the encouragement of WTO 
staff to make greater use of public transport by negotiating a preferential rate with the local public WT/BFA/110 
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  transport operators and/or subsidizing the cost.  On  the latter, two Members could not support the idea 
of cost subsidies. 
20. It was generally accepted that parking had b ecome an ever increasing problem and that 
different ways and means would have to be found to persuade staff not to use their private car to get 
to work.  It was also proposed to improve the facilitie s for bicycle users.  The Secretariat informed the 
Committee that the bicycle facilities had been im proved and that it took note of the different 
suggestions and concerns expressed by the Members and that they would be  updating the Committee 
on their efforts to seek an acceptable solution.  
21. The Committee took note of the various reports. 
II. ACTUARIAL POSITION OF THE WTO PENSION PLAN – RECOMMENDATIONS 
BY THE MANAGEMENT BOARD (WT/ BFA/W/179 AND WT/BFA/W/179/CORR.1) 
22. The Chair recalled that the WTO Pension Plan  (WTOPP) Management Board proposal, first 
tabled in November 2008, had last been discu ssed at the Committee's meeting on 17 March 2009, 
where some Members indicated that they could support the Management Board’s recommendations, other Members asked for more information on the assumptions of the consulting actuary and on trend 
lines, and one Member indicated that a higher retir ement age could be considered on its own merits, 
separately from the actuarial position of the Pensio n Plan.  The Chair informed the Committee that 
following the CBFA  March meeting she had held consultations with inte rested parties on the 
Management Board proposal.  The consu ltations had not achieved consensus.  
23. The Chair invited Members to state thei r positions under the item of the agenda. 
24. Two Members could not join a consensus on the recommendations and informed the 
Committee that whilst they would support an increase  in the retirement age, they could not join the 
consensus on the increased contribution
1 element of the adjustment.  Th is in their opinion contravened 
the conditions on which they had agreed to the withdrawal of WTO from the United Nations Joint 
Staff Pension Fund (UNJSPF) in 1998.  They had joined the consensus on that decision the 
understanding that future corrections of actuarial deficits would be met only from sources other than 
contributions from the regular budget.  
25. The Chair of the WTOPP Management Board recalled that 3.4 per cent of the required 
4.6 per cent correction to the contribution rate w as being met by the increase in the retirement age, 
with the remainder being funded through increased c ontributions.  He added that all the technical 
studies had been conducted at the WTOPP Manageme nt Board level with expert advice, and the 
recommendation had been adopted by consensus.  Fu rthermore, the Board had been entrusted by the 
General Council with fiduciary responsibility for the ma intenance of the actuarial balance of the Plan. 
26. The Chair noted that no consensus could be r eached at the present meeting and proposed to 
defer the item to the next CBFA-m eeting.  She concluded that furt her consultations would in the 
meantime be conducted with interested parti es, reminding Members of  the need to move 
expeditiously on this topic.  
III. IMPLEMENTATION OF IPSAS (WT/BFA/W/183) 
27. The Committee was informed that the introduc tion of the International Public Sector 
Accounting Standards (IPSAS) was the response to a global trend in order to provide public sector 
organizations with best practice standards and ha d also been recommended by the External Auditor 
since 2007.  IPSAS would provide organizations with  a more realistic picture of their financial 
                                                      
1 Funded through 1/3 staff contributions and 2/3 employers contributions.  WT/BFA/110 
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  performance, and facilitate more efficient planning , management and decision making.  Additionally, 
IPSAS promoted transparency and comparability of financial information over time and among 
organizations. 
28. In November 2007, an IPSAS Steering Committee, chaired by the Deputy-Director-General in 
charge of Finance had been established and the IPSA S project team had elaborated a detailed project 
plan including the introduction of IPSAS for the 2012 reporting period.  The most significant impacts 
of these new standards were in relation to employee benefits and property, pl ant and equipment.  The 
required resources for the implementation of IPSAS were estimated at 1983 internal man days and 
CHF 645,000, primarily for IT consulting services.  The project plan was designed to limit the 
budgetary resources required by relying on existing st aff when possible.  The project plan approved 
by the Director-General in April 2009 was now being submitted to the Committee for its 
endorsement.  The Committee approved the following  recommendation: 
The Committee recommends to the General Council that the WTO begin the process of  
implementing the International Public Sector Ac counting Standards (IPSAS) with the objective 
of issuing IPSAS compliant financial statements for the 2012 reporting period.  
IV. MEMBERS UNDER ADMINISTRATIVE  MEASURES (WT/BFA/W/184) 
29. The Committee was informed th at the Gabonese Republic had accepted a payment scheme to 
liquidate its outstanding contributions in arrears over a period of 3 years, starting in 2010.  The 
outstanding balance as at 31 December 2008 of CH F 352,246 would be cleared through three annual 
and equal instalments.  The Chair congratulated the Gabonese Republic for th eir commitment to clear 
their outstanding contributions.  The Comm ittee approved the following recommendation: 
In accordance with the decision of the Gen eral Council of 15 May 2006, the Committee on 
Budget, Finance and Administration recomme nds that the General Council suspend the 
application of the administrative measures fo r the Gabonese Republic, which agrees to, and 
undertakes to abide by, a schedule of instalment payments aimed at liquidating all arrears over 
a period of three years starting on 1 January 20 10.  The payments must be received no later 
than 31 December of each year, failing which the administrative measures will be reinstated.  
30. The Committee was informed that a Working Gr oup to review Administrative Measures with 
respect to outstanding contributions would be set up and that the Chair would be holding consultations 
with respect to its Chairmanship .  The mandate of the Working Group would be to review the 
Administrative Measures applicable to Members w ith outstanding contributions and consider the 
outstanding dues from Observers.  Members interest ed in joining the Working Group were invited to 
contact the Chair. 
V. OTHER BUSINESS 
A. PREPARATION  FOR  AN INFLUENZA  PANDEMIC 
31. The Secretariat informed the Committee that the WTO’s Crisis Management Team (CMT) 
had reviewed and adapted the established procedur es to handle an A(H1N1) influenza pandemic.  
32. The next meeting of the Committee will take place on Thursday 9 July at 10 a.m. 
 
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