Andrew Doyle/MUNICH
European transport ministers have delayed until April a decision on authorising development of the Galileo satellite navigation system. The move comes as a major disappointment to the European Commission (EC) and companies aiming to develop and fund the system, including Astrium-led Galileo Industries.
The ministers failed to resolve concerns over the role of the European Commission in the project, and asked for the financing concept and certain other aspects to be reviewed. The €3 billion ($2.8 billion) Galileo system is to be funded by a public-private partnership (PPP).
Although there is wide support among EC member states for Galileo, which would rival the US-controlled global positioning system, the EC's year-long definition studies have failed to resolve crucial issues concerning the PPP, system management and liability.
"Galileo Industries is very unhappy with the delay because it means we will hold up the development phase," says Astrium. "We need a decision next April because if it slips later and later it could become too expensive."
The consortium, which includes Astrium, Alcatel Space and Alenia Spazio, wants to move ahead with arranging private-sector participation in the funding of Galileo, and hopes to be the prime contractor in the project which is likely to comprise 30 medium earth orbit satellites.
Galileo Industries recently warned the EC transport commissioner, Loyola de Palacio, that it urgently needs a statement on the level of public funding to be provided and the likely contractual framework. It also wants an appropriate management structure to be put in place (Flight International, 12-18 December).
Source: Flight International
