Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Public sector to finance building of Galileo

21.05.2007
The European Commissioner for Transport, Jacques Barrot, has said that the Commission will not give up on the Galileo project, which aims to provide Europe with a satellite radio navigation system to rival those of the US, China and Russia. The Commission has published a roadmap, outlining how the public sector will take full responsibility for the funding and piloting of the system's initial architecture.

Galileo is a joint European Commission-European Space Agency (ESA) initiative, and was to be financed through a public-private partnership.

Under the partnership, the public sector was to be responsible for funding the launch of Galileo's' first four satellites, while the private consortium would build the remaining 26 satellites. The planned network of 30 Galileo satellites is intended to beam radio signals to receivers on the ground, enabling users to pinpoint exact locations.

The drafting of the roadmap was prompted by the failure of the companies within the Joint Undertaking to agree on a single company structure for the running of the system. During negotiations, it became clear that the companies were reluctant to take on the design and market risk of system.

Mindful of the need to avoid any further delays and to maintain the tight schedule for implementation, the new roadmap proposes ending the current negotiations and 're-profiling' the current public-private partnership.

In the proposed new partnership, the public sector would take on the launching of the full set of satellites and ground segments, which would be directly overseen by the European Commission. ESA would continue to provide technical expertise.

'If the private sector is to play a role, it will be further down stream in the applications, so the idea is to re-profile this PPP [public-private partnership],' explained Jacques Barrot, at a press conference in Brussels on 16 May.

Mr Barrot denied claims that the reason for the deadlock with industry was due to concerns that Galileo would not be a profitable venture. 'Just because the consortium couldn't come up with a business plan, it doesn't mean that the system is not viable. He said that extensive research had been conducted which suggested that the system has a very promising market potential. 'If we hadn't a commercial project, we would not continue,' reasoned the Commissioner.

The roadmap proposes that the funding for building Galileo's initial structure, which is estimated to be €3.4 billion, are found by the public sector alone. With €1 billion already invested, the Commission is now exploring the possibility of securing the remaining funds from the Community budget or from Member States.

Mr Barrot pointed out that the new funding scenario would in fact save taxpayers' money. In the original public and private partnership, industry was requested to provide the financing of the infrastructure as a loan, and the public sector was then expected to repay this debt, plus debt interest and the return on equity each year. The construction and operating costs would therefore be lower in the new roadmap. 'It's the difference between buying a house outright or taking out a mortgage,' said Mr Barrot. 'We won't have to pay back the loan.'

The roadmap will be tabled at the next meeting of EU transport ministers, which is scheduled for early June. Agreement on financial aspects will be reached under a co-decision procedure.

Virginia Mercouri | alfa
Further information:
http://cordis.europa.eu/news

More articles from Information Technology:

nachricht Efficient time synchronization of sensor networks by means of time series analysis
24.01.2017 | Alpen-Adria-Universität Klagenfurt

nachricht Ultra-precise chip-scale sensor detects unprecedentedly small changes at the nanoscale
18.01.2017 | The Hebrew University of Jerusalem

All articles from Information Technology >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Scientists spin artificial silk from whey protein

X-ray study throws light on key process for production

A Swedish-German team of researchers has cleared up a key process for the artificial production of silk. With the help of the intense X-rays from DESY's...

Im Focus: Quantum optical sensor for the first time tested in space – with a laser system from Berlin

For the first time ever, a cloud of ultra-cold atoms has been successfully created in space on board of a sounding rocket. The MAIUS mission demonstrates that quantum optical sensors can be operated even in harsh environments like space – a prerequi-site for finding answers to the most challenging questions of fundamental physics and an important innovation driver for everyday applications.

According to Albert Einstein's Equivalence Principle, all bodies are accelerated at the same rate by the Earth's gravity, regardless of their properties. This...

Im Focus: Traffic jam in empty space

New success for Konstanz physicists in studying the quantum vacuum

An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...

Im Focus: How gut bacteria can make us ill

HZI researchers decipher infection mechanisms of Yersinia and immune responses of the host

Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Sustainable Water use in Agriculture in Eastern Europe and Central Asia

19.01.2017 | Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

 
Latest News

Breaking the optical bandwidth record of stable pulsed lasers

24.01.2017 | Physics and Astronomy

Choreographing the microRNA-target dance

24.01.2017 | Life Sciences

Spanish scientists create a 3-D bioprinter to print human skin

24.01.2017 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>