Annexes to COM(2007)535 - Further implementation of the European satellite radionavigation programmes (EGNOS and Galileo) - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2007)535 - Further implementation of the European satellite radionavigation programmes (EGNOS and Galileo). |
|---|---|
| document | COM(2007)535  |
| date | September 19, 2007 |
Parliament has also examined the text at first reading and gave a generally very positive opinion of it on 5 September 2005. Like the Council it wished to see the EGNOS programme included in the proposal for a Regulation.
It should be pointed out that when the Commission adopted its proposal for a Regulation in July 2004 it was foreseen that the deployment and commercial operating phases of the Galileo programme would be the subject of a private-sector concession. In this context the financial participation of the European Community was to be limited to one-third of the cost of deployment of the system and to the payment of annual subsidies to the future concessionnaire during the first years of operation.
In the light of the difficulties that arose in the negotiations on the concession contract, the Transport Council of 22 March 2007 and the European Parliament asked the Commission, inter alia, to propose possible ways of guaranteeing the public financial commitments in the long term.
The Commission responded to the requests made by Parliament and the Council in its Communication of 16 May 2007. It asked them first of all to take note of the failure of the negotiations on the concession contract. To ensure a satisfactory continuation of the programme the Commission then made a few main proposals, in particular that the European Community should itself see to the deployment of the full Galileo constellation, whereupon the system could subsequently be operated by a public-private partnership.
The Commission pointed out that the new scenario proposed was the only one which could make possible the full implementation of Galileo by the end of 2012. It required a budget commitment of the order of €3.4 billion during the period 2007-2013, i.e. €2.4 billion more than the amount initially foreseen in the proposal adopted by the Commission on 14 July 2004. This substantial increase in the contribution from the Community budget was chiefly due to the European Community’s taking responsibility for the deployment of the entire system itself.
Following the Commission’s Communication, in June 2007 the Transport Council adopted a resolution in which it:
- concluded that the current concession negotiations had failed and should be ended;
- invited the Commission to continue with the implementation of a certifiable EGNOS, with the initial service availability by 2008;
- reaffirmed the value of Galileo as a key project of the European Union and supported the deployment of the Galileo system by the end of 2012;
- recognised that the implementation of a deployment of Galileo and EGNOS by the public sector would need additional public funding;
- requested the Commission to submit to it before September 2007 detailed proposals for the financing, for a procurement strategy by the public sector which would have to reflect progress made so far and the need for competitive tendering, for the involvement of the private sector during the operation and exploitation phase, and finally for a sound public sector management structure of the programme on the basis of a clear division of responsibilities between the Commission, the European Space Agency, the GNSS Supervisory Authority (GSA), the Member States and the Council.
Parliament likewise endorsed the proposals made by the Commission in its communication of 16 May 2007, in particular as regards Community funding of the programmes.
5.2. Value-added of Community involvement and coherence of the proposal with other financial instruments and possible synergy
The EGNOS and Galileo programmes are fully in line with the subsidiarity principle. Setting up satellite radionavigation infrastructures is quite beyond the financial and technical capacity of any Member State acting on its own, and these programmes, which are a good example of Community added value when its objectives and resources are clearly defined, are best conducted at Community level.
5.3. Objectives, expected results and related indicators of the proposal in the context of the ABM framework
EU satellite radionavigation policy aims to give the European Community two satellite radionavigation systems (GNSS): EGNOS and Galileo. Each of these two infrastructures consists of satellites and earth stations.
The proposals put forward by the Commission for amending its initial proposal for a Regulation take account both of the abandonment of the concession scheme for the deployment phase and of the various comments made by the European Parliament and the Council.
In the first place, the text now fully includes the EGNOS programme. It identifies this programme as one of the two pillars (with Galileo) of European satellite radionavigation policy, and clearly defines the two systems and programmes.
Secondly, the text makes possible full operation of the EGNOS system from 2009. It is important that financing of the exploitation of EGNOS, which includes all the elements necessary for its operation, its sustainability and its commercialisation, should be in the hands of the European Community from 2009 onwards. The exploitation of’ EGNOS could be the subject of a public service contract with the private sector up to 2013 and thereafter be integrated into the exploitation of Galileo.
Thirdly, the text proposed takes account of the abandonment of the concession scheme for the deployment of the Galileo programme and of the fact that responsibility for this phase has been fully assumed by the European Community for lack of any real commitment on the part of the private sector. It may be possible for the exploitation of the system to become the subject of service concessions contracts or of public service contracts with the private sector.
Fourthly, the text proposes to improve the public governance of the programmes in two ways:
- by providing for a strict division of responsibilities between the European Community (represented by the Commission), the European GNSS Supervisory Authority and the European Space Agency, and granting the Commission a leading role and the responsibility for the implementation of the programmes;
- by creating a Committee on European GNSS Programmes.
The following are the operational objectives and the action foreseen:
Operational objective 1 : The further implementation of the Galileo programme.
Action 1: Long lead items
This action consists in ensuring early procurement of the long lead items (satellite items which need to be procured in advance of the satellite production due to their limited availability in the market) compatible with the satellite production line(s), stemming from the full deployment contract negotiations. This action is time-critical for the overall planning of Galileo.
Action 2: Full satellites
The objective is to ensure that the results of the full deployment contract negotiation and the contract implementation are in line with the Commission's objectives for the Galileo programme. Full respect of Council decisions in the procurement policy as well as compatibility with international commitments will have to be thoroughly checked.
Action 3: Launchers
The objective is to ensure that the launch plan proposed by ESA is in line with the overall Commission policy, as well as the programme risk management policy and risks mitigation plans. Potential international cooperation may be put into perspective with this launch plan.
Action 4: Spare launcher and two satellite ground spares
See previous point with specific focus on risk mitigation included in the contingencies.
Action 5: Ground segment
The objective is to ensure that the results of the full deployment contract negotiation and the contract implementation is in line with the Commission's objectives for the Galileo programme. Full respect of Council decisions in the procurement policy as well as compatibility with international commitments will have to be thoroughly checked.
Action 6: Operations
The objective is to ensure that the results of the full deployment contract negotiation and the contract implementation are in line with the Commission's objectives and actions for the Galileo operations. Full respect of Council decisions in the future exploitation phase of Galileo will have to be thoroughly checked.
Action 7: System engineering
The objective is to ensure that the results of the full deployment contract negotiation and the contract implementation are in line with the Commission's objectives for the Galileo programme. Full respect of Council decisions as well as compatibility with international commitments will have to be thoroughly checked.
Operational objective 2 : EGNOS (single action).
The objective is to ensure that the actions performed by ESA and GSA concerning the upgrade of EGNOS, early operations and economic operator selection of EGNOS are in line with the Commission's objectives. Full respect of Council decisions as well as compatibility with international commitments will have to be thoroughly checked.
5.4 . Implementation arrangements
- The Commission draws up a multiannual work programme. The multiannual work programme and its revisions are adopted by the Commission in accordance with the procedure referred to in Article 14 of this Regulation.
- The European GNSS Supervisory Authority is accorded a general rule of assistance to the Commission. It also manages and monitors utilisation of the funds specifically allocated to it for the programmes by the European Community. These funds are placed at the disposal of the Supervisory Authority by a delegation agreement in accordance with Article 54(2) of Regulation (EC, Euratom) No 1605/2002 and the provisions of Regulation (EC) No 1321/2004.
- The European Space Agency, which has the technical know-how, will for its part be concluding a multiannual agreement with the European Community on the technical aspects of the implementation of the programmes and in particular the activities associated with the Galileo programme's deployment phase. In order to enable the Commission, representing the European Community, to exercise its control responsibilities fully, the agreement must include in particular the general conditions governing management of the funds entrusted to the European Space Agency and provide that contracts concluded under the agreement comply with the Community rules on public contracts.
- The Commission, on behalf of the EU as the owner of the system, has the responsibility, in particular, to ensure that the EU's political and international commitments and vision are implemented, determine and agree on the overall specifications and requirements for the system; and be able to monitor and control the strict adherence to such requirements throughout the construction, deployment, and exploitation phases. In this context,
1. the Commission will be advised by senior professionals coming from disciplines such as project management, space engineering, finance and technology marketing and acting as independent reviewers of the programme;
2. the Commission intends to put in place an appropriately structured and staffed Galileo team that provides the overall management, risk monitoring and management, reporting, and arbitrage of all the programme elements. The GSA and project management consultants, the latter put in place by means of (a) service contract(s), provide support to this effort, notably as concerns risk management monitoring and control, documentation control, participation in programme progress meetings, monitoring and reporting on progress, assist in the arbitrage of technical, cost, and schedule trade-offs;
3. Finally, the Commission may be supported by other experts and specialists. These experts have the task of advising the Programme Manager but shall not have executive powers. It provides a good opportunity to make full use of the expertise available at national level.
( Centralised management
( directly by the Commission (see 5.3)
( indirectly by delegation to:
( executive agencies,
( bodies set up by the Communities as referred to in Art. 185 of the Financial Regulation (GSA),
( international organisations (European Space Agency).
6. MONITORING AND EVALUATION
6.1. Monitoring system
The Commission draww up a multiannual work programme which sets out the actions funded, the Community contribution, the expected results and performance indicators. The multiannual work programme and its revisions are adopted by the Commission in accordance with the procedure referred to in Article 14 of this Regulation.
6.2. Evaluation
6.2.1. Ex-ante evaluation
Since 1999 the Commission has been producing a series of studies and Communications relating to the different aspects of the EGNOS and Galileo programmes (definition, costs/benefits, governance, PPPs, etc). All of these documents are available.
6.2.2. Terms and frequency of future evaluation
The Commission sees to the implementation of the programmes. To this end, every year at the time of presentation of the preliminary draft budget it will present a report on their implementation to the European Parliament and the Council.
In addition, a mid-term review will be made in 2010 to inform the European Parliament and the Council of the state of play with the EGNOS and Galileo programmes.
7. ANTI-FRAUD MEASURES
Under Article 15 of this Regulation, the agreements, financing agreements and any contract or implementing instrument resulting from them, expressly provide that the Court of Auditors and the European Anti-Fraud Office (OLAF) may if necessary carry out on-the-spot inspections.
8. DETAILS OF RESOURCES
8.1. Objectives of the proposal in terms of their financial cost
These amounts have to be expressed in terms of current prices, excluding technical and administrative assistance costs, and covering years 2007 to 2013 for a total of €3 378 million, €300 million of which is financed under the 7th RTD framework programme (Article 06 06 02 — Research related to transport (including aeronautics)
Commitment appropriations in € million (to three decimal places)
(Headings of objectives, actions and outputs should be provided) | Year 2008 | Year 2009 | Year 2010 | Year 2011 | Year 2012 | Year 2013 | TOTAL |
Year 2008 | Year 2009 | Year 2010 | Year 2011 | Year 2012 | Year 2013 |
Officials or temporary staff[33] (XX 01 01) | A*/AD | 15 | 20 | 20 | 20 | 20 | 20 |
B*, C*/AST | 6 | 6 | 6 | 6 | 6 | 6 |
Staff financed[34] by Art. XX 01 02 | 9[35] | 9 | 9 | 9 | 9 | 9 |
TOTAL | 30 | 35 | 35 | 35 | 35 | 35 |
8.2.2. Description of tasks deriving from the action
The programme scope compromises around €10 billion for procurement, operations, exploitation and R&D contracts. The proposed "Galileo Team", headed at Director level, will provide the overall management, risk monitoring as well as reporting and arbitrage of the programmes. In particular, it will execute the following tasks:
1. Institutional tasks
1.1. Reporting to Council and EP
1.2. Liaison with CoA
2. Operational tasks
2.1. Programme management reporting to new European GNSS Council
2.2. Oversight role in GSA Board
2.3. Overall programme and risk management, with assistance of an external advisory council
2.4. Oversight ESA procurement, management technical baseline and security requirements
2.5. Oversight EGNOS/Galileo operations/exploitation contracts (either directly or GSA oversight)
2.6. Oversight GSA activities performed on behalf of COM (R&D, others)
3. International negotiations (agreements and frequency/security matters)
4. Legal and financial issues
8.2.3. Sources of human resources (statutory)
Needs in terms of human resources shall be covered by the budget allocated to the managing DG in the framework of the annual budgetary allocation procedure.
( Posts currently allocated to the management of the programme to be replaced or extended
Statutory staff / officials : 8 AD + 3 AST
plus:
Contract agents: 1 of GF II
Seconded national experts (SNE): 2
( Posts pre-allocated within the APS/PDB exercise for year 2008
2 FTE – operation
14 FTE – research
( Posts to be requested in the next APS/PDB procedure (2009)
5 FTE
Posts to be redeployed using existing resources within the managing service (internal redeployment)
( Posts required for 2008-13 though not foreseen in the APS/PDB exercise of the year in question
8.2.4. Other administrative expenditure included in reference amount (XX 01 04/05 – Expenditure on administrative management)
€ million (to three decimal places)
Budget line (No and heading) | Year 2008 | Year 2009 | Year 2010 | Year 2011 | Year 2012 | Year 2013 | TOTAL |
1. Technical and administrative assistance (including related staff costs) |
Executive agencies |
Other technical and administrative assistance |
- intra muros[36] | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 21,000 |
- extra muros[37] | 1,500 | 1,500 | 1,500 | 1,000 | 1,000 | 1,000 | 6,000 |
Total technical and administrative assistance | 5,000 | 5,000 | 5,000 | 4,000 | 4,000 | 4,000 | 27,000 |
8.2.5. Financial cost of human resources and associated costs not included in the reference amount
€ million (to three decimal places)
Type of human resources | Year 2008 | Year 2009 | Year 2010 | Year 2011 | Year 2012 | Year 2013 |
Officials or temporary staff (XX 01 01) | 2,457 | 3,042 | 3,042 | 3,042 | 3,042 | 3,042 |
Staff financed by Art. XX 01 02 (auxiliary, SNE, contract staff, etc.) | 0,417 | 0,417 | 0,417 | 0,417 | 0,417 | 0,417 |
Total cost of human resources and associated costs (NOT included in the reference amount) | 2,874 | 3,459 | 3,459 | 3,459 | 3,459 | 3,459 |
Calculation – Officials or temporary staff / Staff financed by Article XX 01 02
a) Officials or temporary staff
The Commission's average annual staff cost, for both officials and temporary staff, amounts to €117 000/year (in 2008) including indirect costs (overheads) (21 statutory staff x €117 000 = €2 457 000 for 2008 and 26 statutory staff x €117 000 = €3 042 000 for the following years).
b) Staff financed by Article XX 01 02
The average annual cost of one SNE is €48 000/year (8 SNE x €48 000 = €384 000)
The average annual cost of one contract agent of FG II is €33 000/year.
The total annual cost of staff financed under Article XX 01 02 is therefore €417 000.
8.2.6. Other administrative expenditure not included in reference amount € million (to three decimal places) |
Year 2008 | Year 2009 | Year 2010 | Year 2011 | Year 2012 | Year 2013 | TOTAL |
XX 01 02 11 01 – Missions | 0,400 | 0,400 | 0,400 | 0,400 | 0,400 | 0,400 | 2,400 |
XX 01 02 11 02 – Meetings and conferences | 0,050 | 0,050 | 0,050 | 0,050 | 0,050 | 0,050 | 0,300 |
XX 01 02 11 03 - Committees [38] | 0,250 | 0,250 | 0,250 | 0,250 | 0,250 | 0,250 | 1,500 |
XX 01 02 11 05 - Information systems | - | - | - | - | - | - | - |
2. Total other management expenditure (XX 01 02 11) | - | - | - | - | - | - | - |
3. Other expenditure of an administrative nature (specify including reference to budget line) | - | - | - | - | - | - | - |
Total administrative expenditure, other than human resources and associated costs (NOT included in reference amount) | 0,700 | 0,700 | 0,700 | 0,700 | 0,700 | 0,700 | 4,200 |
[1] COM(2004) 477.
[2] European Parliament Resolution of 26 April 2007 on the Galileo concession contract negotiations.
[3] COM(2007) 261.
[4] European Parliament Resolution of 20 June 2007 on the financing of the European programme of satellite radionavigation (Galileo) under the Interinstitutional Agreement of 17 May 2006 and the multiannual financial framework 2007-2013.
[5] COM(2004) 477 final/2.
[6] Title 6 of the Budget.
[7] COM(2007) 534, 19.9.2007.
[8] OJ L 246, 20.7.2004, p. 1.
[9] COM(2004) 477, 14.7.2004, as amended by COM(2004) 477 final/2, 24.5.2006.
[10] OJ C […], […], p. […].
[11] OJ C […], […], p. […].
[12] OJ C […], […], p. […].
[13] ….
[14] COM(2001) 370, 12.9.2001.
[15] COM(2007) 212, 26.4.2007.
[16] OJ L 228, 23.9.1995, p. 1, as last amended by Regulation (EC) No 807/2004 of the European Parliament and of the Council (OJ L 143, 30.4.2004, p. 46).
[17] OJ L 246, 20.7.2004, p. 1, as amended by Council Regulation (EC) No 1942/2006 of 12 December 2006 (OJ L 367, 22.12.2006, p. 18).
[18] COM(2004) 477 final/2.
[19] Title 6 of the Budget.
[20] OJ L 248, 16.9.2002, p. 1.
[21] OJ L 390, 30.12.2006, p. 1.
[22] OJ L 312, 23.12.1995, p. 1.
[23] OJ L 292, 15.11.1996, p. 2.
[24] OJ L 136, 31.5.1999, p. 1.
[25] COM(2004) 477; COM(2004) 477 final/2
[26] Expenditure that does not fall under Chapter xx 01 of the Title xx concerned.
[27] €100 million is budgeted for 2007 under budget line 060210. However, the Commission will not be able to use it because the basic instrument will not be adopted during 2007. The Commission therefore intends to transfer this sum to the TEN-Ts in the form of commitment appropriations (with a forecast return to budget line 060210 in 2009), and make payment appropriations available via the omnibus transfer.
[28] Expenditure within Chapter xx 01 other than Articles xx 01 04 or xx 01 05.
[29] OJ C 139 of 14.6.2006, p. 1.
[30] Of the 35 posts, 21 are new while the other 14 already existed.
[31] COM(2004) 477.
[32] The amount of €895 million shown in this table includes the sum of €100 million in commitment appropriations intended for transfer in 2009 from budget line 06 03 03 – "Financial support for projects of common interest in the trans-European transport network" to budget line 06 02 10 – "Galileo Programme", this being pursuant to the transfer request which will be propossed by the Commission in 2007 (see also the footnote to the grey field in the table under point " 4.1.1. Summary of commitment appropriations (CA) and payment appropriations (PA) ").
[33] Cost of which is NOT covered by the reference amount.
[34] Cost of which is NOT covered by the reference amount.
[35] 8 SNE and 1 contract agent.
[36] Consultants via a contract, following a call for tenders (10 persons @ €1 450/person/day for 20 working days/month for 12 months + €20 000 for annual travel expenses.Supplementary qualified staff is required for: Galileo programme management / Financial/risk management / GNSS policy/international/reporting / ESA Procurement oversight / Ops/exploitation contracts oversight
[37] See 5.4a.
[38] "Committee for the European GNSS Programmes"