First Galileo contracts awarded

The European Commission has announced the first contracts in the development of an EU GPS satellite system, with the first services forecast to begin operation from 2014.

The Galileo project aims to develop a network of 30 satellites that will give EU countries an independent GPS network – currently most devices in the region use the US GNSS system.

The €85m contract for system support services has been awarded to Italian firm ThalesAleniaSpace. It covers the industrial services needed to support the European Space Agency for the integration and operation of the Galileo system. This includes assembly, system engineering, and in-space testing.

OHB System AG of Germany won the €566m contract for the first 14 satellites, with the provision of the first satellite in July 2012. One satellite is expected every 90 days thereafter, with the last one scheduled to be delivered in March 2014.

The remaining satellites will be procured in subsequent work orders, either from OHB or EADS-Astrium GmBH depending on who wins the tender.

French firm Arianespace won the €397m contract for launch services. The contract covers the launch of five Soyuz launchers, each of which will carry two satellites. The first launch is scheduled for October 2012, followed by four to five launches per year.

The contract also contains options for either two additional Soyuz launches carrying two satellites or one Ariane 5 carrying four satellites.

The remaining three procurement contracts, for the ground mission infrastructure, the ground control infrastructure and the operations should be awarded by mid-2010.

Antonio Tajani, European Commission vice-president in charge of transport, said:

"With this and the upcoming awards for the remaining procurement packages, we are concluding a critical phase of the Galileo programme. We can now focus on the actual rollout and demonstrate to European citizens that Europe’s own satellite navigation system is firmly underway."

The Galileo scheme came close to being scrapped in 2007 when private companies pulled out.

EU member-states had to agree to fund the entire project from the public purse – about £5bn. The full cost to the UK taxpayer is unkown, though it is expected to be around £1bn.

UK firm Surrey Satellite Technology Limited (SSTL) were part of the OHB consortium, but other UK firms Logica and Inmarsat will be aggrieved to have lost out on such lucrative contracts.

Lord Drayson, science & innovation minister, said:

"This is great news for Surrey-based satellite manufacturer SSTL and the British space industry. The contract for 14 satellites will provide approximately €236m of work for SSTL and cement their position as key player in this booming industry."