. /.  WORLD TRADE  
ORGANIZATION  WT/BFA/W/133 
7 July 2005 
 
 (05-3014) 
Committee on Budget, Finance and Administration  
  
 
NEW BUILDING - OMCII 
 
Financial implications
 
  
1. The Annex to WTO that is planned to be built in  the avenue de France will be the property of 
the WTO.  The reimbursement of the loan to the C onfederation will begin in the first year after the 
move.  For instance, if the move were to ta ke place in September 200 8, the WTO would being 
repayments on 1 January 2009. 
2. The reimbursement of the in terest-free loan over 50 years will be at a rate of 
(i) CHF 1 million annually for a CHF 50,000,000 loan, representing for each Member's contribution 
an annual increase of 0.6 percent in relation to its 2005 contribution and (ii) of 1.2 million annually, 
for a CHF 60,000,000 loan, re presenting for each Member's contribution an annual increase of 
0.72 percent in relation to its 2005 contribution. 
3. As the WTO will own the building, Members may d ecide to rent part of it to, for instance, 
another International Organization. 
4. The commercial price for administrative buildings  in this area currently ranges from CHF 450 
to CHF 600 per square meter per year.  The reimburse ment of a loan of CHF 60,000,000 at an annual 
rate of CHF 1.2 million francs for 15,000 square meters  of office space represents an annual cost per 
year and per square meter of only CHF 72.  This s hows that the offer is financially very attractive. 
5. It should be borne in mind that the land will not  be WTO property but belongs to the CFF.  It 
will be leased for 50 years free of charge to th e WTO, the ground rent being paid by FIPOI.  
According to FIPOI, after 50 years an agreement could probably be reached to buy the land from the 
CFF. 
6. Should WTO want to sell the building before th e completion of the reimbursement period of 
50 years, there would be two options:  Members might consider selling the building to another 
International Organization, or to FIPOI.  The rele vant terms and conditions have still to be defined 
since the mortgage contract has not yet been signed with FIPOI.  This will be one of the next steps 
once WTO has formally requested the extension of the loan to CHF 60,000,000 by the Confederation. 
7. FIPOI has a threefold mandate:  (i) to fi nd premises or sites for Intergovernmental 
Organizations wishing to establish or develop their activities in Geneva;  (ii) to provide finance on 
favourable terms for building headquarters for Interg overnmental Organizations;  and (iii) to advise 
and assist Intergovernmental Organizations on th e construction and maintenance of premises. 
8. FIPOI reports to the Federal Authorities (E xecutive and Parliament) through a Foundation 
Council "Conseil de Fondation" on all matters re lated to construction projects financed by 
Confederation loans in order to ensure that the funds are appropriately used.  The buildings are 
executed according to rules and procedures that are similar to those applied for the buildings of the 
Swiss Confederation.  These buildings have to meet  specific standards in terms of the unit cost per WT/BFA/W/133 
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 work place, architectural quality, functionality a nd comfort as well as energy consumption.  FIPOI's 
accountability with respect to the Swiss Authorities is particularly relevant in relation to decisions 
with financial implications.  Its role can be seen  as a skilled and impartial outside overseer of the 
financial management of the construction project. 
9. FIPOI owns eight buildings in Geneva, totalling some 165,000 squa re meters and estimated to 
be worth CHF 1 billion.  They include UNHCR,  the CICG, the Maison internationale de 
l'environnement, the Swiss Mission, the WTO main conference room and the underground car park at the Place des Nations.  FIPOI assists presently WHO-UNAIDS in the construction of their extension buildings (CHF 66 million) in Grand Saconne x, and has done the same recently for the 
Inter-Parliamentary Union, the ICRC and ECOGIA.  It is, therefore, an important player in the Swiss 
construction industry and has the capacity and the expe rtise to arbitrate and advise in the event of a 
dispute with the architects or the contractors during the works. 
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