Astrium Services

Astrium Services
PPP : An Innovative Way for Governmental Outsourcing
Rome 28th May 2009
ASTRIUM SERVICES
Astrium: part of EADS, a global leader in
aerospace and defence
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EADS
Airbus
Airbus Military
Eurocopter
Astrium
Company Proprietary
Aug-08 - P 2
Defence
& Security
ASTRIUM SERVICES
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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
Company Proprietary
Aug-08 - P 3
ASTRIUM SERVICES
One Stop Shop Service Provider
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Astrium Services
TELECOM
SERVICES
SECURE SATCOM
SYSTEMS
EARTH
OBSERVATION
Services to national
MoDs and NATO
Systems and Ground
Segments to MoDs
Services to
governmental and
commercial users
The unique one-stopshop provider for
commercial and military
bands services
The UK leader for space
secure communications
systems & ground
segments
The European leading
provider of geoinformation products
and services
Company Proprietary
Aug-08 - P 4
NAVIGATION
Services to
governmental and
professional users
A start up in the
development of satellite
navigation applications
ASTRIUM SERVICES
One Stop Shop Service Provider
Full range Telecommunications Services
Secured, resilient end-to-end communications
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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
Company Proprietary
Aug-08 - P 5
ASTRIUM SERVICES
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
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(since 2007) Saudi Arabia National Guard telecom services operator
100%
Infoterra
100%
Imass
75%
Provision of geo-information products and services: Infoterra present in Ge, Fr,
UK, Sp and Hungary.
(Since 2008) Provision of practical and integrated software solutions for public
safety, utilities and manufacturing design sectors.
MilSat Services
(Since 2006) Provider of the German Bundeswehr’s satellite communications
system SatcomBW Step 2
100%
London Satellite Exchange
(since 2006) Commercial satellite capacity management company
82%
SPOTIMAGE
World leading supplier of EO imagery (SPOT family, FORMOSAT 2,
KOMPSAT 2, Envisat, etc)
15%
Hisdesat
(since 2001) Spanish military satellite operator
Company Proprietary
Aug-08 - P 6
ASTRIUM SERVICES
Main Projects
Skynet 5
TerraSAR-X
SATCOM Bw Step 2
ASTEL S
Secure military satellite communications
services
Exclusive commercial exploitation rights
held by Infoterra GmbH
This document is the property of Astrium. It shall not be communicated to third parties without prior written agreement. Its content shall not be disclosed.
Dedicated secure satellite communications
PASSEREL
YAHSAT
Welfare telecommunications services for
Economat des Armées for French troops
overseas
Complete system delivery to UAE
GPT
Telcomarsat
Telecom infrastructure provision and
maintenance for the Saudi Arabia
National Guard
Deployment of a VSAT network on 54 ships of
the French navy and upgrade of teleport
infrastructures
Company Proprietary
Aug-08 - P 7
One-stop-shop for the French MoD
ASTRIUM SERVICES
Public Private Partnership (PPP)
Today, MODs and Governments are focussing on core tasks and
competencies
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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, …)
Company Proprietary
Aug-08 - P 8
ASTRIUM SERVICES
Challenges of PPP
How to compare apples with pears?
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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
Overall Cost
(Net Present Value)
Operations
Pooling
Contract
Negotiations
Risk
Financing Cost
Assets
Risk Mangmnt
incl. Insurance
Assets
(optimized
life cycle cost)
Total Cost
for
Anchor Client
(including
benefit of risk
transferred to
private partner)
PPP
(Unique Client)
PPP
(incl. 3rd Parties)
Asset
Procurement
A challenge for the Public and Private sector
Company Proprietary
Aug-08 - P 9
Operations
Contract
Negotiations
Financing Cost
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)
Same capability
for less €
ASTRIUM SERVICES
SKYNET 5 Contract
Secure military communications services
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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
Company Proprietary
Aug-08 - P 10
ASTRIUM SERVICES
Paradigm supports the full range of
Military SATCOM Assets
SKYNET 5
REACHER Large
REACHER Medium
SKYNET 4
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REACHER RM
Interim REACHER
Airborne Terminals
Medium Transportables
‘Dagger’ Vehicle-mounted
X Band SCOT fits, (inc
SKYNET 5 upgrades)
UHF TACSAT
Patrol Manpack
2 x UK SGS
Oakhanger, Colerne
+ NCS Corsham
UHF TACSAT
INMARSAT A/B
Military Communications over
Commercial SATCOM Bearers
Submarines
(INMARSAT, UHF, SHF and EHF
terminals)
2 x SGS
(Germany)
Rheindahlen
, Gutersloh
• 40 Satellite Access Cabins
Cyprus,
Falklands
Company Proprietary
Aug-08 - P 11
• >1000 Iridium & Globalstar terminals
• 24 million minutes per annum
• Iraq (Op SYNERGY), Balkans
ASTRIUM SERVICES
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)
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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…)
Company Proprietary
Aug-08 - P 12
ASTRIUM SERVICES
Advantages for customers
Precise definition of the need and of the project, through dialog
Cost reduction through
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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!
Company Proprietary
Aug-08 - P 13
ASTRIUM SERVICES
Conclusions
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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
Company Proprietary
Aug-08 - P 14
ASTRIUM SERVICES
Astrium Services: recognised Expertise and
Success:
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Minister for Defence Procurement Award - 2004
Infrastructure Journal - Deal of the Year - 2003
Thompson Financial PPP deal of the Year - 2003
Project Finance European Defence PPP of the Year
Battlespace Businessman of the Year 2006
Best Securitisation of European Assets - 2006
(Euroweek)
Re-financing of the Year – 2006 (Project Finance
International)
Company Proprietary
Aug-08 - P 15
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ASTRIUM SERVICES
ANNEXES
Company Proprietary
Aug-08 - P 16
ASTRIUM SERVICES
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
This document is the property of Astrium. It shall not be communicated to third parties without prior written agreement. Its content shall not be disclosed.
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
Company Proprietary
Aug-08 - P 17
ASTRIUM SERVICES
New procurement context in Europe: PPP, a new
model for Defence
This document is the property of Astrium. It shall not be communicated to third parties without prior written agreement. Its content shall not be disclosed.
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 2006.
Astrium Services owns 15% of Hisdesat
Company Proprietary
Aug-08 - P 18
ASTRIUM SERVICES
A Typical PPP Structure: The Paradigm
Organisation
UK
Customer
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UK MOD
Other
Customers
Concession agreement
Lenders
Finance
Agreements
Special Purpose
Vehicle (SPV)
Backing
Shareholder
Banks
Construction
Company
Aug-08 - P 19
Satellites
Subcontracts
Operating
Company
Company Proprietary
ASTRIUM SERVICES
PFI Skynet 5 : First a Service Contract
Paradigm is fully responsible for service provision
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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
Company Proprietary
Aug-08 - P 20
ASTRIUM SERVICES
SATCOMBw Step 2
Secure Communications for German Bundeswehr
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The MilSat Services JV with ND SatCom serving the German
Armed Forces
TDL
New satellite infrastructure (2 satellites)
Ground network upgrade and extension
Commercial satellite capacity provision
Company Proprietary
Aug-08 - P 21
II
ASTRIUM SERVICES
TerraSAR-X
Radar satellite financed under DLR/Astrium PPP
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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
Company Proprietary
Aug-08 - P 22
ASTRIUM SERVICES
PASSEREL
Welfare services to French troops overseas
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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
Company Proprietary
Aug-08 - P 23