In July 2004, the European Global Navigation Satellite System Authority (GSA), became the licensing authority for the eight private undertakings within the then-planned public-private partnership. Yet in May 2007 the Commission concluded that the concession negotiations had failed as a result of unresolved disputes over shares of industrial work, a misjudgement that market risks could be transferred to the private sector, and unresolved questions about the transfer of design risks.
EP and Council agree in November 2007 to invest €3.4 billion in Galileo infrastructure deployment
In June 2007 the European Parliament adopted a resolution calling for the Galileo programme to be funded in full from the EU's budget. As the Budgetary Authority, Parliament and Council decided in November 2007 to finance Galileo's deployment phase entirely from Community funds. By investing €3.4 billion, the EU will become “the owner of all tangible and intangible assets created or developed under the programmes”. Member States, third countries or international organisations may provide additional funding. Several countries, including Canada, China, India, and Ukraine, have already signed co-operation agreements with the European Union on Galileo.
Competitive tendering for six Galileo infrastructure contracts
The compromise between EP and Council on the deployment of the Galileo infrastructure also stipulates public procurement rules. In order to ensure fair competition, infrastructure contracts will be split into six main packages (system engineering support, ground mission infrastructure completion, ground control infrastructure completion, satellites, launchers and operations) and additional work packages. The competitive tendering of all packages will take place in a single procedure and any one company or group may bid for no more than two of the six main work packages.
The amended regulation also takes up the suggestion, which the EP's Industry Committee made on 29 January 2008, to apply dual sourcing – i.e. using two different suppliers for one product. This procedure should prevent any possible abuse of dominance or long-term dependency on single suppliers. Another amendment taken up says that at least 40% of the total value of the activities must be subcontracted to companies which do not belong to the prime contractor of any of the main work packages.
Galileo Inter-institutional Panel
The compromise text on the deployment phase also foresees the establishment of a new inter-institutional framework. Given the uniqueness of the programmes and the Community’s ownership of the satellite radio navigation systems, Parliament, Council and Commission agreed to set up the Galileo Inter-institutional Panel (GIP) which will be composed of three representatives each of the Council and the Parliament, and one representative of the Commission. The GIP will follow closely the implementation of the GNSS programmes, the international agreements with third countries, and the preparation of the satellite navigation markets.
Launch of all 30 Galileo satellites by 2013
Following a successful launch of four Galileo satellites during the In-Orbit-Validation phase, the remaining 26 satellites will be placed in medium orbit to make the Galileo system fully operational from 2013.