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Europe Daily Bulletin No. 10244
Contents Publication in full By article 27 / 33
GENERAL NEWS / (eu) eu/galileo

€194 million contract signed - Tajani denies extra costs

Brussels, 26/10/2010 (Agence Europe) - As planned, the European Commission announced on Tuesday 26 October that a fourth contract, out of a total of six, would be signed on procurement of full operations capability for Galileo, Europe's global navigation satellite programme (see EUROPE 10242). On that occasion, Industry Commissioner Antonio Tajani strongly denied reports in the press which stated there were extra costs for the Galileo project amounting to €20 billion.

The contract signed on Tuesday, which will lead to the initial deployment and provision of Galileo services in 2014, is estimated at €194 million. It was signed by the European Space Agency (ESA) on behalf of the European Commission. The market attributed to SpaceOpal GmbH covers the industrial services needed to help ESA operate satellites and ground infrastructure. SpaceOpal GmbH is a joint venture founded by the German aerospace centre (DLR GfR) and the Italian company Telespazio S.p.A. The other members of the SpaceOpal team come from different European member states.

The procurement for Galileo's full operational capability is divided into six contracts. In January 2010, three contracts were awarded to ensure system engineering support, satellites and launchers. The two remaining procurement contracts, for the completion of the ground mission infrastructure and the ground control infrastructure, will be awarded in early 2011. Galileo is expected to become operational in 2014 and will provide three initial services: - the Open Service (free), the Public Regulated Service, and the Search and Rescue Service.

According to a report from the German government on European Commission forecasts cited by The Financial Times Deutschland, the Galileo project could cost €22.2 billion, including extra costs of nearly €20 billion. Antonio Tajani has said he does not know where these figures come from. “These figures are exorbitant, unimaginable”, he said, adding: “We remain at the figure fixed, €3.4 billion, and an evaluation of possible extra costs will be made when the last parts are attributed”. (O.L./transl.jl)

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