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Galileo Project

Volume 459: debated on Tuesday 1 May 2007

To ask the Secretary of State for Transport what his estimate is of the cost of the Galileo project. (133774)

In its Communication to the Council and Parliament of February 2004, which set out the components of the Galileo programme, the European Commission evaluated the costs of the current development and deployment stage as €3.2 billion. Subsequently, Vice-President Barrot stated in December 2006 that the overall financial exposure for the public side over the 20-year period of the public private partnership (PPP) concession contract would be around €8 billion.

Given the lack of progress in the concession contract negotiations, the March 2007 Transport Council has asked the Commission to consider alternative scenarios for taking the project forward. As with the PPP these alternative scenarios will be assessed for cost, risk and affordability.

Once the Council has taken a decision on these scenarios it is expected that the Commission will then bring forward a draft EC financial instrument on the funding of Galileo during 2007-13 for the Council and the European Parliament to ratify. There has been no political discussion of potential funding commitments for the public sector beyond 2013.