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PPP in the space sector. E. Saggese President of the Italian Space Agency Forum “ Cooperazione per la modernizzazione e l’innovazione ” Verona – 27, 28 Ottobre 2011. Summary. Premises PPP models PPP experiences in the European satcom projects PPP experiences in ASI

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ppp in the space sector

PPP in the space sector

E. Saggese

President of the Italian Space Agency

Forum “Cooperazione per la modernizzazione e l’innovazione”

Verona – 27, 28 Ottobre 2011

summary
Summary
  • Premises
  • PPP models
  • PPP experiences in the Europeansatcomprojects
  • PPP experiences in ASI
  • Perspectives for the cooperation with Russia
a precursor telespazio
A precursor: Telespazio
  • Perhaps the first historical example of public-private partnership in the modern telecommunication field
  • In Argentina,the news about the armistice at the end of the first world war reached our italian emigrants with delay, causing lot of disappointment
  • On the wave of that disappointment, in 1921 Giovanni Carosio, with a public subscription of the italianimmigrants in Argentina, founded the CompagniaItalianadeiCaviTelefoniciSottomarini
  • In 1961 the private Italcable decided to enter the satellite business even before the launch of the first telecomm satellite; to obtain the concession Italcable reached an agreement with the public RAI
  • The two enablers for the first time together: the ownership of the infrastructure and the permission to use it as a public resource
premises 1
Premises - 1

Long duration of the relationshipbetweenpublic and private partners

Amplification of projectfundingcapabilities

Riskdistributionbetweenpartners

Cooperationtermsdefined in the contract

Responsibilities, costs and risksdefined in the contract

Pubicinterest and commercial goalsserved – betterresults for samecost

Each party retainsitsownidentity and responsibility

premises 2
Premises - 2
  • Trends:
    • Increasinglyused in infrastructuresectors
      • Governmentsrequire alternative forms of infrastructure service provision due to issuesinvolving public funding, operationalefficiency and risk
    • Some sectorsabroadnowmainlydriven by PPP models (road, utilities…)
    • Complexcontractmodelsrequiringsignificantcoordinationefforts
    • Some contractualmodels (e.g. BOOT – Build, Own, Operate and Transfer) havegained more interestthanothers and thusbecame standard models
slide6

Premises - 3

Involved sectors

Involved countries

Currentandpre-tender projects Europe by Capital value

ppp models 1
PPP models - 1

PPPs span a spectrum of models that progressively engage the expertise or capital of the private sector:

At one end, there is a straight contracting out as an alternative to traditionally delivered public services, based on direct execution or labour

At the other end, there are arrangements that are publicly administered but within a framework that allows for private finance, design, building, operation, maintenance and temporary ownership

ppp models 2
PPP models - 2

Design – Build (DB)

Operate and Maintain Contract (O&M)

Design – Build – Finance – Operate (DBFO)

Build – Own – Operate (BOO)

Build – Operate – Transfer (BOT)

Build – Own – Operate – Transfer (BOOT)

Buy – Build – Operate (BBO)

Joint – Venture Operate (JVO)

Concessioning

ppp experiences in the european satcom projects 1
PPP experiences in the European satcom projects - 1
  • Satcom commercial market

Hylas (UK)

BOO Model

Alphasat (UK)

BO Model (BOO modified)

  • Military market

Skynet 5 (UK)

PFI

Satcom BW (Germany)

Service Contract

ppp experiences in the european projects 2
PPP experiences in the European projects - 2
  • Other satellite projects

TerraSAR (GER)

EO

Alliance

Radarsat 2 (CAN)

EO

Design-Build-Operate

Galileo(EU)

Satnav

Concessione

italsat

PPP experiences in ASI- 1

Italsat

The first PPP ASI program: itincludedtwo Ka telecommsats, launched in ‘91 and ‘96

The business model was a PPP precursor, implemented by both ASI and Telecom Italia

ASI wasresponsible for space & ground control segmentdevelopment, F1 manufacturing and launch, and F2 manufacturing

Telecom Italia wasresponsible of F2 launch and groundtrafficsegmentdevelopment

Operations and services marketing were under Telespazio / Telecom Italia responsibiity

e geos

PPP experiences in ASI- 2

e-geos

A company between ASI (20%) and Telespazio (80%), a leadinginternational player in the geo-spatial business

Offers a wholerange of products and services in the Earth Observation and in the geo-spatialapplicationdomains, based on bothoptical and radar satellites

Exclusivedistribution of the ASI Cosmo-SkyMed SAR satellite constellation data on the commercial market

sigma

PPP experiences in ASI- 3

SIGMA

New telcoprogram, for networking and broadcastingservices, in Ka and Ku band, for institutionalcustomers

Overcoming the digital divide: symmetrical and asymmetricalconnectivity for thoseareaspoorly (or notatall) served by the fiber network. 100% coverage for the public administrationservices

Disasterrecovery in case of major outages of the fiber network

Redundancy for missioncriticaland life criticalservices

Theater telcos for peacekeepingand peaceenforcementmissions

asitel

PPP experiences in ASI- 4

ASITEL

Vehicle PPP company recentlyincorporated to implement the SIGMA program

Currently 100% owned by ASI. The private partnerswilljoin shortly

The company will be responsible for infrastructure investments (SIGMA), and will maintain the ownership of the assets

The company missionwill be mainly to grant first classtelcoservices to institutional and governmentalentities

perspectives for italian russian cooperation
Perspectives for Italian Russian cooperation
  • The PPP approach, demonstrating its effectiveness in the Italian and European space sector, can well be exploited for a Russian – Italian cooperation in the fields of telecom, Earth Observation and satellite navigation
  • ASI already started a number of discussions with its Russian counterparts, in the field of satellite projects, fostering a PPP approach (e.g. the Arctica system, oriented towards Arctic observation and mobile airplanes satcom on polar routes)
  • ASI, based on its mission in Italy, can channelize the italian industry and investors towards PPPs with Russian public and private space sector, and viceversa