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Galileo Satellite Navigation System

Volume 686: debated on Tuesday 7 November 2006

asked Her Majesty's Government:

What costs have been incurred by the United Kingdom to date for the Galileo satellite navigation system; and what future cost is anticipated for the completion of the project.[HL8087]

The European Union (EU) and member states of the European Space Agency (ESA) jointly fund the development of Galileo. To date the UK's subscription to the ESA element of the programme has been €142 million. The EU's contribution to the design and development phase of Galileo is made from the EC budget and is estimated by the Commission to be €790 million. The UK makes its contributions to the EC budget as a whole and not to individual programmes within it. The UK's gross contribution to the EC budget is currently around 17 per cent, before abatement.

The deployment and operational phase of the project will be an EU public private partnership (PPP). The provisional budget in the draft Galileo financial regulation is €900 million. There are no reliable estimates of these total costs. An assessment will be presented to Council and Parliament as the budget authorities once the main elements of the contract have been agreed. This is expected in the next few months.

The ESA has recently published an additional call seeking further contributions from its member states for the European Geo-stationary Navigational Overlay Service (EGNOS), which is now integrated with Galileo.

The UK element would be €6 million, if the Government agree to contribute. The deadline for decision is 16 November.