European satellite navigation systems: implementation and exploitation 2014-2020

PURPOSE: adoption of a new financial and governance framework concerning the two European satellite radio navigation programmes, Galileo and EGNOS for the period 2014-2020.

LEGISLATIVE ACT: Regulation (EU) n° 1285/2013 of the European Parliament and of the Council on the implementation and exploitation of European satellite navigation systems and repealing Council Regulation (EC) No 876/2002 and Regulation (EC) No 683/2008 of the European Parliament and of the Council.

CONTENT: since the Galileo and EGNOS programmes are at an advanced development stage leading to systems in an exploitation phase, this Regulation aims to meet their needs, particularly in terms of governance and security, to satisfy the requirement for sound financial management and to promote the use of the systems.

The Galileo programme includes: (i) a definition phase which has been completed, (ii) a development and validation phase until 2013, (iii) a deployment phase which was launched in 2008 and is due for completion in 2020, and (iv) an exploitation phase which should be launched progressively from 2014-15 in order to have a fully operational system in 2020. 

The system established under the Galileo programme will be a civil system under civil control and an autonomous global navigation satellite system (GNSS) infrastructure.  It must:

·         offer an open service (OS), which is free of charge to the user and provide positioning and synchronisation information;

·         contribute to integrity-monitoring services aimed at users of safety-of-life applications in compliance with international standards;

·         offer a commercial service (CS) for the development of applications for professional or commercial use;

·         offer a public regulated service (PRS) restricted to government-authorised users, for sensitive applications;

·         contribute to the search and rescue support service (SAR) of the COSPAS-SARSAT system by detecting distress signals transmitted by beacons.

The EGNOS programme has been in the exploitation phase since its open service and 'safety of life' service were declared operational in October 2009 and March 2011 respectively.

The EGNOS system is a regional satellite navigation system infrastructure, monitoring and correcting open signals emitted by existing global satellite navigation systems, as well as the open service signals offered by the system established under the Galileo programme, when they become available.

EGNOS shall be provided within the Member States' territories geographically located in Europe as soon as possible. The geographical coverage of the EGNOS system may be extended to other regions of the world, in particular to the territories of candidate countries, subject to technical feasibility.

Financing: the Union shall finance the activities relating to Galileo and EGNOS programmes, without prejudice to any contribution from any other funding source.

The financial envelope is set at EUR 7 071.73 million in current prices for the period from 1 January 2014 to 31 December 2020, divided as follows:

·         for the activities relating to the completion of the deployment phase of the Galileo programme, EUR 1 930 million;

·         for the activities relating to the exploitation phase of the Galileo programme, EUR 3 000 million;

·         for the activities relating to the exploitation phase of the EGNOS programme, EUR 1 580 million;

·         for the activities relating to the management and monitoring of the Galileo and EGNOS programmes, EUR 561.73 million.

A maximum of EUR 100 million at constant prices will be used to finance activities relating to research and development of fundamental elements, such as Galileo-enabled chipsets and receivers.

Governance: public governance of the Galileo and EGNOS programmes shall be based on the principles of:

·         a strict division of tasks and responsibilities between the various entities involved, in particular the Commission, the European GNSS Agency and ESA, under the overall responsibility of the Commission;

·         strong control of programmes, including for strict adherence to cost and schedule by all the entities involved;

·         optimisation and rationalisation of the use of existing structures, in order to avoid any duplications of technical expertise.

The Commission shall have overall responsibility for the Galileo and EGNOS programmes. It shall manage the funds allocated under this Regulation and oversee the implementation of all programme activities, in particular with respect to their cost, schedule and performance. It shall ensure the security of the Galileo and EGNOS programmes.

For its part, the European GNSS Agency shall ensure through its Security Accreditation Board, the security accreditation and also the promotion and marketing of the services.

For the deployment phase of the Galileo programme, the Union should conclude a delegation agreement with ESA setting out the tasks of ESA in that phase, in particular as regards the design, development and procurement of the system. 

Public contracts: as the Galileo and EGNOS programmes will be, in principle, financed by the Union, public procurement under those programmes should comply with Union rules on public contracts and should aim, first and foremost, to obtain best value for money, control costs, mitigate risks, improve efficiency and reduce reliance on a single supplier.

Contracting authorities should, wherever appropriate, specify requirements relating to the reliability of supplies and of the provision of services.

In addition, they may, in the case of the purchase of goods and services of a sensitive nature, subject such purchase to specific requirements, particularly with a view to ensuring security of information. The total cost over the useful lifecycle of the product, service or work being tendered should also be taken into account.

Evaluation: by 30 June 2017, the Commission will present an evaluation report on the implementation of the Regulation.  The evaluation shall also address technological developments relating to the systems.

ENTRY INTO FORCE: 23/12/2013. The Regulation is applicable from 01/01/2014.

DELEGATED ACT: the Commission will adopt delegated acts laying down the high level objectives necessary to ensure the security of the Galileo and EGNOS programmes. The power to adopt delegated acts is be conferred on the Commission for an indeterminate period from 1 January 2014. The European Parliament or the Council may object to a delegated act within two months of notification of that act (which may be extended by two months.) If Parliament or Council raise objections, the delegated act will not enter into force.