Astrium Services PPP : An Innovative Way for Governmental Outsourcing

Transcription

1 Astrium Services PPP : An Innovative Way for Governmental Outsourcing Rome 28th May 2009

2 Astrium: part of EADS, a global leader in aerospace and defence EADS Airbus Airbus Military Eurocopter Astrium Defence & Security Aug-08 - P 2

3 ASTRIUM SERVICES Astrium s activities are based in three key areas Astrium Space Transportation Astrium Satellites Astrium Services The European prime contractor for civil and military space transportation and manned space activities A world leader in the design and manufacture of satellite systems At the forefront of satellite services in the secure communications, Earth observation and navigation fields Aug-08 - P 3

4 One Stop Shop Service Provider Astrium Services TELECOM SERVICES Services to national MoDs and NATO The unique one-stopshop provider for commercial and military bands services SECURE SATCOM SYSTEMS Systems and Ground Segments to MoDs The UK leader for space secure communications systems & ground segments EARTH OBSERVATION Services to governmental and commercial users The European leading provider of geoinformation products and services NAVIGATION Services to governmental and professional users A start up in the development of satellite navigation applications Aug-08 - P 4

5 One Stop Shop Service Provider Full range Telecommunications Services Secured, resilient end-to-end communications Own satellite fleet (Skynet-4 & -5) in UHF and X-band Secured Satcom Systems Network Systems and Terminals Navigation High Precision Positioning Value-added services as a key for navigation applications Earth Observation Data and Services Exclusive satellite fleet (plus reseller terms) Unique High Resolution optical & radar datasets and operational added value services capabilities Aug-08 - P 5

6 100% Paradigm (since 2003) Provider of all satellite services for UK MoD Prime contractor for UK Skynet system Focal point for third party sales Welfare services & customer support for the Armed Forces 100% GPT (since 2007) Saudi Arabia National Guard telecom services operator 100% Infoterra Provision of geo-information products and services: Infoterra present in Ge, Fr, UK, Sp and Hungary. 100% Imass (Since 2008) Provision of practical and integrated software solutions for public safety, utilities and manufacturing design sectors. 75% MilSat Services (Since 2006) Provider of the German Bundeswehr s satellite communications system SatcomBW Step 2 100% 82% 15% London Satellite Exchange (since 2006) Commercial satellite capacity management company SPOTIMAGE World leading supplier of EO imagery (SPOT family, FORMOSAT 2, KOMPSAT 2, Envisat, etc) Hisdesat (since 2001) Spanish military satellite operator Aug-08 - P 6

7 Main Projects Skynet 5 Secure military satellite communications services SATCOM Bw Step 2 Dedicated secure satellite communications YAHSAT Complete system delivery to UAE GPT Telecom infrastructure provision and maintenance for the Saudi Arabia National Guard TerraSAR-X Exclusive commercial exploitation rights held by Infoterra GmbH ASTEL S One-stop-shop for the French MoD PASSEREL Welfare telecommunications services for Economat des Armées for French troops overseas Telcomarsat Deployment of a VSAT network on 54 ships of the French navy and upgrade of teleport infrastructures Aug-08 - P 7

8 Public Private Partnership (PPP) Today, MODs and Governments are focussing on core tasks and competencies Growing public infrastructure needs...but decreasing budget headroom Prioritisation of resources Transfer of risk Definition of PPP: Alternative procurement scheme: Service Provision rather than Asset Purchase Long term partnership between Public and Private Sector: Efficiency gain through Life Cycle Management. Private financing, Shifting of risks to Private Sector - In the UK, 15% of all Government spending in Public Services, incl. 53 MoD Projects, are PPP Efficiency gain generally between 10-15% - Other Countries starting to use PPP or service approaches (Germany, Spain, France, ) Aug-08 - P 8

9 Challenges of PPP How to compare apples with pears? Valuation of a PPP: Net present value (NPV) of payments Taking into account the risks on the full life cycle (PSC: Public Sector Comparator) Payments indexed on performance Key success factors of a PPP: Detailed definition of needs Optimal risk transfer Alignment of objectives But also other Challenges: Political will to outsource? Critical project size; time to closure Separation between Investment- and Operative budgets Finding the right private partner (with appropriate Customer focus, Defence Industry know-how, financial backing) A challenge for the Public and Private sector Overall Cost (Net Present Value) Operations Contract Negotiations Financing Cost Risk Assets Asset Procurement Operations Contract Negotiations Financing Cost Risk Mangmnt incl. Insurance Assets (optimized life cycle cost) PPP (Unique Client) Same capability for less Pooling Total Cost for Anchor Client (including benefit of risk transferred to private partner) PPP (incl. 3 rd Parties) Aug-08 - P 9

10 SKYNET 5 Contract Secure military communications services Paradigm provides end-to-end, tariff based, resilient, secure communications services to the MoD and other third party users The services provided are: - Cost-effective, survivable, secure - Guaranteed and give continuity of service - Benchmarked - Provided through a long-term one-stop-shop provisioning arrangement with the private sector and: - Support allied interoperability - Exploit civil and military technologies - Not necessarily satcom exclusive Second largest UK MOD PPP contract: above 3B Aug-08 - P 10

11 Paradigm supports the full range of Military SATCOM Assets SKYNET 5 REACHER Large SKYNET 4 REACHER Medium REACHER RM Airborne Terminals X Band SCOT fits, (inc SKYNET 5 upgrades) UHF TACSAT INMARSAT A/B Submarines (INMARSAT, UHF, SHF and EHF terminals) 2 x UK SGS Oakhanger, Colerne + NCS Corsham 2 x SGS (Germany) Rheindahlen, Gutersloh Cyprus, Falklands Interim REACHER Medium Transportables Dagger Vehicle-mounted Patrol Manpack UHF TACSAT Military Communications over Commercial SATCOM Bearers 40 Satellite Access Cabins >1000 Iridium & Globalstar terminals 24 million minutes per annum Iraq (Op SYNERGY), Balkans Aug-08 - P 11

12 Skynet 5 PFI - 5 years after : a success story Services delivered and tested in hostile operations (Iraq, Afghanistan,...) Monthly metrics achieved (based on 200 indicators) Value for money service regularly benchmarked by the UK MoD Industrial milestones achieved on time and according to performances required Skynet 5 system launched and delivered on time and on budget Ground segment renovated Flexibility, reactivity, innovation of PPP to meet MoD new requirements (Texlink, IDS, Synergy network,...) Services for third parties : NATO : 15 year contract with F and IT Other European (NL, P, F...) and non European countries (USA, Canada, Australia ) Aug-08 - P 12

13 Advantages for customers Precise definition of the need and of the project, through dialog Cost reduction through Life Cycle project Management Risk transfer to Private Sector + tight risk management Third Party revenues Smooth payment profile; Reduced public debt Capability delivered on time, on budget, to specification End-to-End service guarantee, flexibility of services Better performance due to performance incentive Pay for service, not for assets Maintenance and upgrades included Private sector experience and innovation: new solutions PPP: More value for Money! Aug-08 - P 13

14 Conclusions PPP Is an on-going trend in Europe Reduces and spreads the burden on public budgets Allows for a better allocation of risks Long term approach encourages investment, innovation and flexibility most often at no extra cost for the MoD Trust and partnership are key to successful PPP Considering the new political and budget contexts in both Italy and France, PPP or Service solutions could represent attractive choices for current and future programmes Aug-08 - P 14

15 Astrium Services: recognised Expertise and Success: Minister for Defence Procurement Award Infrastructure Journal - Deal of the Year Thompson Financial PPP deal of the Year Project Finance European Defence PPP of the Year Battlespace Businessman of the Year 2006 Best Securitisation of European Assets (Euroweek) Re-financing of the Year 2006 (Project Finance International) Aug-08 - P 15

16 Aug-08 - P 16 ANNEXES

17 New procurement context in Europe for Milsatcom: PPP, a new model for Defence In UK, Paradigm offers complete end-to-end services to the UK MOD In France, the Government has recently decided to investigate the project to establish a PPP, which would include the sale of the two Syracuse 3 satellites and the Sicral 2 French payload to a private operator Operator to acquire the constellation and become the provider of the French MoD in X Band secured satellite communications ; RFP expected soon In Italy, SICRAL 1B satellite co-financed by IT MoD and by Finmeccanica/Telespazio Telespazio entitled to commercialise SHF and UHF capacity Provides back-up Mission, Management & Control Centres at Fucino Teleport Aug-08 - P 17

18 New procurement context in Europe: PPP, a new model for Defence In Germany, the German Bundeswehr selected Astrium Services in 2006 to be the provider of its satellite communications system SatcomBW Step 2 (two satellites, using X-band and UHF) The satellite assets remain the property of the Defence Astrium Services is the operator of the control & mission facilities and anchor stations and provides additional services using commercial satellites (C and Kuband) In Spain, Milsatcom system and services are provided through a private Spanish company called Hisdesat which financed, launched and today operates Spainsat satellite (X-band) in Astrium Services owns 15% of Hisdesat Aug-08 - P 18

19 A Typical PPP Structure: The Paradigm Organisation UK MOD UK Customer Other Customers Concession agreement Lenders Finance Agreements Special Purpose Vehicle (SPV) Backing Shareholder Banks Construction Company Subcontracts Operating Company Aug-08 - P 19 Satellites

20 PFI Skynet 5 : First a Service Contract Paradigm is fully responsible for service provision End to end services : from in orbit capacity provision to end user training and terminal maintenance in theatre Service delivery commitment Paradigm assumes the risks to maintain these engagements until 2020 Payment according to usage and quality of service No service no pay principle Paradigm constantly adapts technical solutions to meet the customer requirements Aug-08 - P 20

21 SATCOMBw Step 2 Secure Communications for German Bundeswehr The MilSat Services JV with ND SatCom serving the German Armed Forces New satellite infrastructure (2 satellites) Ground network upgrade and extension Commercial satellite capacity provision TDL I I Aug-08 - P 21

22 TerraSAR-X Radar satellite financed under DLR/Astrium PPP Infoterra GmbH holds exclusive commercial exploitation rights for TerraSAR-X high resolution radar data PPP with DLR Technical features (1m resolution, high acquisition flexibility, rapid data delivery, ) designed to secure commercial success Customers from public and civil markets targeted Twin satellite constellation with TanDEM-X (developed under similar scheme) enables highly accurate digital elevation model generation (launch: 2009) TerraSAR-X was successfully launched June 2007 Aug-08 - P 22

23 PASSEREL Welfare services to French troops overseas Welfare telephone and internet services for more than 10,000 French troops based overseas Infrastructure entirely financed by Astrium Services End-to-end professional and welfare communications services Phone points and internet cafes for overseas bases - WiFi services Passerel intranet portal for information and credit top up for cards Operated via Astrium Services Teleport in Toulouse-24/7 support in French and English Aug-08 - P 23