Emma Kelly/LONDON
The Galileo satellite navigation system should receive its first €100 million ($88 million) in development funding when European Transport Council ministers meet this week. But Europe's version of the global positioning system may have to wait until December for a further grant of €450 million and full development go-ahead - a year later than originally planned.
The anticipated move to withhold full ministerial approval for Galileo comes despite the recent success of the European Commission (EC) in agreeing a memorandum of understand (MoU) with 10 European space companies for funds worth €200 million from now to 2005 - concerns about private sector finance was a major factor in a ministerial decision last December to delay a go-ahead decision until now.
Sources suggest, however, that the MoU - signed by companies thought to include Alenia Spazio, Alcatel Space, Astrium and Thales - is a "token gesture" to encourage ministers to approve Galileo. Despite signing the MoU, some companies continue to express concerns. Astrium, for example, says it is "fully committed", but has doubts about the programme timetable and the nature of the public-private partnership (PPP) expected to run Galileo. It is concerned that this could amount to private funding, but public control.
The EC has meanwhile agreed to "set up a structure" to implement Galileo, most likely as a PPP or "joint undertaking". Talks will begin with the MoU signatories following this week's Transport Council decision, details of which will go before the European Parliament in May. The Council is to consider the nature of Galileo services, a business plan and statutes for a PPP at a 27 June meeting.
Tenders will then be issued, with a PPP 'vehicle company' to be selected by November, leading to release of the €450 million funding in December.
Source: Flight International