RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/BFA/117 
16 July 2010 
 (10-3899) 
Committee on Budget, Finance and Administration  
  
 
REPORT OF THE MEETING HELD ON 12 JULY 2010 
 
 1. The WTO Committee on Budget, Finance and Administration met on 12 July 2010 under the 
chairmanship of Mr. Pasi-Heikki Vaaranmaa (Finla nd).  The terms of reference and composition of 
the Committee are set out in document WT/L/44/Re v.1.  The agenda contained in document 
WTO/AIR/3585/REV.1 was adopted. 
I. ADMINISTRATIVE UP-DATES AND PROG RESS REPORTS AS AT 30 JUNE 2010 
A. WTO
 BUDGET AND FINANCE REPORT (CRP(10)08) 
2. A member of the Secretariat presented the situation regarding Members' contributions as at 
30 June 2010 showing that CH F 130 million of the assessed CHF 188 million had been received and 
that 78 Members or 51 per cent of the Membership had no outstanding balance.  Payments received from Observers represented 61 per cent of th e total assessment of CHF 0.9 million.   
3. The cash situation showed that the WTO held CHF 108 million on its bank accounts, 
including the Working Capital Fund and Extra-Budget ary Funds.  It could be considered as sound.  
However, the interest rates on Swiss francs remained  very low.  The WTO continued to earn higher 
interest by leaving the cash balances on its bank accounts than holding short-term investments. 
4. The budget performance as at 30 June 2010 rema ined on schedule with half of the budget 
expensed or committed.  Financial risks continued to  exist in the area of dispute settlement, due to a 
high level of activity, and in the building project.  The Secretariat indicated that it would circulate in 
the coming weeks a provisional draft scale of cont ributions for 2011.  The provisional draft scale 
would provide Members with a more accurate estimate of the contributions for 2011 using 
international trade statistics for the period 2004-200 8 to determine each Member's share.  The final 
scale of contributions for 2011 should be approved by the Gene ral Council in December 2010.  
B. E
XTRA -BUDGETARY FUNDS REPORT (CRP(10)09) 
5. The Committee was informed that, as at 30 J une 2010, total funds available in the Doha 
Development Agenda Global Trus t Fund (DDAGTF) stood at CH F 21.9 million.  Expenditure 
amounted to CHF 17.4 million, leaving an availa ble balance of CHF 4.5 million.  These figures 
already included commitments of CHF 9 million for activities planned from July to December. 
6. The Internship Programme for Missions and the Netherlands Trainee Programme were briefly 
presented.  The Internship Programme for Missions  was available to Missions of LDCs and other 
small and vulnerable economies.  In terns under this Programme worked in their own country mission 
in Geneva for a period of 10 months, and could re present their country in the various bodies at the 
WTO.  Since 2001, a total of 66 officials had been recruited from 36 different countries.  The Netherlands Trainee Programme provided junior gove rnment officials an opportunity to learn about 
matters dealt with in the WTO.  They worked in the WTO Secretariat for a duration of ten months.  
Since 2005, a total of 73 trainees had been recruited from 54 countries. WT/BFA/117 
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  C. WTO
 PENSION PLAN REPORT (CRP(10)10) 
7. The Secretary to the WTO Pension Plan reporte d that Management Board had held several 
meetings to prepare and review the results of an i nvitation to tender for investment advisory services.  
After careful examination, the Board had selected a well established firm in Switzerland.  Once the 
contract negotiation was completed, the firm would assist the Board in implementing the recently 
revised investment strategy. 
D. BUILDING PROJECT REPORT  
8. A member of the Secretariat reported that the Secretariat had finalized the negotiation and 
signature of the contracts with the two general c ontractors selected for the intra and the extra-muros 
projects.  HRS, a large firm based in Zurich, ha d been awarded the contract for the intra-muros 
project.  The company selected for the extra-muros pr oject was Implenia, the largest construction firm 
in Western Switzerland.  Both firms had agreed on a fixed financial envelope  and schedule to realize 
the projects.  A penalty fee for late delivery was included in the agreements.  Some contractual adjustments would be necessary to take into account ch anges in materials or equipment.  The work on 
the intra-muros project was due to start that week .  The request for the building permit for the extra-
muros project had been deposited in the first week of July 2010. 
9. The Secretariat was also engaged in the review  of the infrastructure agreement between the 
WTO and the Swiss authorities.  This review had been made necessary by the significant changes in 
land property rights flowing from the building project .  The key issue was about the leasehold on the 
land on which the buildings were located.  The land currently occupied by the Centre William Rappard was subject to a 99-year lease.  This lease agreement had to be updated to include the new 
building footprint and to establish a new term for the lease.  Th e coverage of the maintenance costs 
for the Centre William Rappard and the new build ing also had to be discussed with the Swiss 
Authorities. 
10. Discussions with the Swiss Authorities on a closed security perimeter around the Centre 
William Rappard were continuing.  Responding to  a question from a Member, the Secretariat 
confirmed that the financing of th e perimeter should be borne by the Host country.  However, selected 
elements of the security project within the peri meter would need to be financed by the WTO. 
11. The City of Geneva would grant the WTO the fr ee use of the two small buildings formerly 
occupied by the Montessori school and the villa current ly occupied by the Crèche, but it would retain 
the ownership of these buildings.  Some refurb ishing would be necessary before the WTO could 
occupy those buildings.  The financing had still to be identified.  
12. The renovation was entering a new phase.  The link between the South and North wings was 
becoming difficult.  Members should expect to  face increasing difficulties as the building project 
progresses to the North Wing where most of the current conference rooms are located. 
13. The Committee was also further briefed on the more than 20 common facilities that will need 
to be equipped and furnished as part of the building project.  The number and quality of common 
areas available to Members and staff would be substantially improved.  Those common facilities 
included the South Courtyard Conference Centre, th e North Courtyard Atrium, the press centre, the 
North Wing meeting rooms, training rooms, the cafeter ia and the library to be relocated in the new 
building.  The CHF 130 million financing of the bu ilding project provided for the construction or 
renovation of conference rooms with floor coverings  and lighting.  However, the building project 
funding did not cover the furniture and equipment to  be installed.  For instance, all meeting rooms 
would need furnishing, sound systems, audiovisu al and interpretation equipment.  The North 
Courtyard Atrium would require equipment and fu rniture for a coffee shop, a document distribution  WT/BFA/117 
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  centre and seating areas.  The library and cafeter ia would be relocated to new spaces where new 
equipment and furniture would also be required.  The latest cost projection for equipping and 
furnishing all common areas was in the range of CHF 16-18 million.  The Members' Transition Operating Fund, specifically created for this purpos e in 2008, currently held CHF 8.1 million.  The 
Secretariat was considering several options to clo se the gap between the funding requirements and the 
funding currently available.  It might include th e use of savings generated in the regular budget, 
financial arrangements with external providers  such as the cafeteria operator and Members' 
sponsorship of specific facilities or equipment.  Members were invited to contact Deputy Director-
General Yerxa on sponsorship opportunities. 
14. The South Courtyard Conference Centre was pre sented in more detail.  Its polyvalent design 
would allow configurations as three rooms, two ro oms or one large room.  A request for proposal to 
identify a firm to manage the installation project w as currently being prepared.  A contract would be 
signed by October 2010 in order for the Centre to be ready for use one year later when the existing 
conference rooms in the North Wing would be renovated.. 
15. Members sought further detailed financial info rmation about the common facilities projects. 
II. SOUTH COURTYARD CONFERENCE  CENTRE (WT/BFA/W/205) 
16. The Secretariat presented a preliminary prop osal for the equipment of the new South 
Courtyard conference centre.  A detailed proposal would be presented to the Committee in September 
2010 once more precise costs estimates were  obtained through the tendering process.  
17. Members recognized the need to equip the ne w conference centre but requested a more 
detailed breakdown of the amount.  Se veral Members referred to the current difficult fiscal situation 
and expressed concern regarding further costs arising from the building project.  Suggestions to 
reduce  requirements or to seek options were made.  The Secretariat was also invited to absorb these 
expenditures through savings ge nerated in the regular budget. 
III. ADMINISTRATIVE MEASURES FOR INACTIVE MEMBERS 
18. A member of the Secretariat reported on the situation regarding Members under 
Administrative Measures.  At the end of J une 2010, 21 Members were under Administrative 
Measures, comprising three in Category I, two in Category II, one in Category III and 15 Members in 
Category IV (Inactive).   Since the last meeting of  the Committee, Senegal, who had previously been 
in Category III, had settled all its arrears and had been taken off the list of administrative measures.  
In the last 15 months, the total number of Memb ers under Administrative Measures in categories III 
and IV had been reduced by 8 or by 37 per cent.  The Director-General would continue to engage 
actively with Members with long outstanding arrear s.  The Secretariat was available to assist 
delegations in finding solutions. 
19. The Chair of the Working Group on Administ rative Measures updated the Committee on the 
progress achieved by the Working Group.  The Chair,  on behalf of the Work ing Group, first thanked 
the Director-General for his decisive engagement in  this area over the last few months.  The Working 
Group had met three times in the last six months  and was engaged in the process of drafting a 
proposed revised set of Administrative Measures.  This proposal would be essentially based on the 
existing measures. However the aim was to simplif y and facilitate their im plementation and improve 
their clarity.  The Working Group was also considering harmonizing a system of measures applicable 
also to Observers as previously  recommended by the External Auditor.  The Working Group would 
meet again in September.  In the meantime, the Ch air would continue his meetings with Members and 
Observers.  WT/BFA/117 
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  IV. REPORT OF DIVERSITY IN THE WTO SECRETARIAT 
20. In a joint statement, several Members welc omed the detailed response presented by the 
Secretariat at the last meeting of the Committee (WT/BFA/W/204) to the measures proposed by some 
Members in an earlier joint statement (WT/BFA/W/198) regarding diversity in the staff of the Secretariat. The positive reaction and, more importan tly, the swift, remedial action by the Secretariat 
demonstrated the importance placed by the Secretaria t and Director-General on the diversity issue. 
Their statement emphasized that the Committee ha d held constructive discussions on this topic. 
Considering the existing composition of the Secret ariat as demonstrated by its own report, the 
importance of diversity should cont inue to be highlighted. A diverse Secretariat would increase the 
relevance of the WTO, enhance the legitimacy of the multilateral trading system and strengthen its 
capacity to serve all its Members. Diversity and me rit could and should work hand in hand to reflect 
the Organization’s broad Membership  while ensuring the high quality of the Secretariat and its output. 
Steady and continuing improvement in diversity wo uld be expected and a ppreciated, although it was 
recognized that achieving diversity would be a long-term objective. 
21. One Member pointed out that the Secretariat's management has been working to increase the 
diversity of the Secretariat for almost 10 years with noteworthy success.  That Member applauded the 
fact that this had been accomplished while mainta ining the WTO's commitment to merit as the most 
important factor in hiring decisions and stressed  the importance of maintaining this approach. 
V. OTHER BUSINESS 
22. A Member enquired if the Secretariat could pr ovide within the online directory software a 
print option which would facilitate the possibility for Members to print themselves the Members' 
Directory which is not published anymore by the Secretariat. 
23. The next meeting was expected to take place in the second half of September 2010. 
 
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