Proposal for a Council Decision on the agreement between the European Community, the European Space Agency and the European Organisation for the Safety of Air Navigation on a European contribution to the development of a Global Navigation Satellite System
Date: 1997-09-23
Institutions: European Commission
Subjects: Eurocontrol, air safety, air traffic, cooperation agreement (EU), satellite

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  23.09.1997 
COM(97) 442 final 

97/0231  (CNS) 

Proposal  for  a 

COUNCIL  DECISION 

on the agreement between the European Community, the European  Space Agency  and 
the European  Organisation  for the Safety  of Air Navigation on a European  contribution 
to the development of a Global Navigation Satellite  System 

(presented  by  the  Commission) 

Explanatory Memorandum 

'  " 

1. General Background 

ïn December 1994, the Council adopted a Resolution1 on the European contribution to a 
global  navigation  satellite  system  (GNSS).  This  Resolution  invited  the  Commission, 
inter  alia,  to  initiate  or  support  work  on  the  development  and  implementation  of  a 
European complement to existing systems and to carry out preparatory work for the next 
generation world-wide system (GNSS2) for civil use. 

Since the adoption of the Council Resolution, a number of actions have been carried out. 
One  of  these  actions  involves  the  drafting  of  a  Co-operation  Agreement2  with  the 
European  Space Agency  and EUROCONTROL  (contained  herein)  to  guarantee  a  co 
ordinated  approach  to  the  development  of  the  European  contribution  to  a  global 
navigation satellite system. 

Tnis agreement would set the backdrop for the implementation of the Action Plan for the 
achievement  of  the  effective,  safe  and  economic  use  of  satellite-generated  signals  for 
navigation. This plan is being prepared by the Commission  with support of a high level 
group  of  representatives  from  Member  States,  international  organisations,  users,  and 
industry  and  will  come  forward  in  the  Autumn.  Furthermore,  the  Council  and  the 
Parliament  also  adopted  Community  guidelines  for  the  development  of  the  Trans-
European Transport Network3 in June 96. These guidelines justify  Community action in 
the navigation and positioning sector. 

The above-mentioned  actions have led to the launching  of  a European  implementation 
programme  containing  a  regional  augmentation  to  the  US  Global  Positioning  System 
(GPS)  and  the  Russian  GLONASS.  This  augmentation  is  a  contribution  to  the  first 
generation  (GNSS1)  called  the  "European  Geostationary  Navigation  Overlay  Service" 
(EGNOS) and will be consistent with the local augmentations  implemented  for  specific 
requirements. Exploratory work for GNSS2 has also begun. 

The attached proposal  for  a Decision  is required to provide the means to implement a 
European contribution to a global system. In a situation of potential US dominance of the 
satellite  navigation  market,  the  agreement  will  help  to  protect  European  interests  and 
facilitate the realisation of the full potential of satellite based technology for navigation. 
It  would  also  facilitate  the  negotiation  of  international  agreements  at  political  and 
technical level to ensure interoperability  of regional  contributions to the system. In this 
vein, in the framework  of the New Trans-Atlantic Agenda, a working group has been set 
up  consisting  of  delegates  from  the  European  Union  and the  United  States  to  discuss 
GNSS. Regarding  cooperation with the Russian Federation,  a second working group is 
about to be set up in order to elaborate a joint approach for the implementation of GNSS. 

1 

2- 

Council Resolution  94/C379 of  19.12.94 

In accordance  with the Decision on the negotiating guidelines adopted by the Council on  17.6.96. 

3  O.J.  N°L228of9.9.1996. 

m 

The  agreement  also  provides  a  co-ordinating  mechanism  to  ensure  the  convergence-of 
the  various  efforts  required  to  meet  the  overall  objectives  for  system  development. 
Similarly, contact with other countries and regions of the world may be required in order 
to support GNSS  development. 

2. Coherence with other Community Policies 

The promotion of a navigation  and positioning network in Europe is a central part of the 
Community's  policy  to  ensure  the  full  integration  of  land,  sea  and  air  transport 
infrastructure  for  safe,  seamless,  economic  and  environmentally  friendly  navigation. 
Satellite navigation  is now becoming  a reality by virtue  of the.following  legislation  and 
Community actions: 

-  Council  Decision  of  25/2/92  on  radio  navigation  systems  for  Europe 
(92/143/EEC) 

- Communication  from  the Commission on a common policy  for  safe  seas  (COM 
(93)66  final); 

-  Council  Resolution  (94/C/379/02)  of  19  December  1994  on  the  European 
contribution to the development of a global navigation satellite system (GNSS); 

-  Communication  from  the  Commission  on  a  European  approach  to  satellite 
navigation services (COM (94) 248 final); 

-  Communication  from  the  Commission  to  the  Council  and  the  European 
Parliament on the European Union and Space (COM (96) 617 final); 

- Decision of the European Parliament and the Council on Community  Guidelines 
for  the  Development  of  the  Trans-European  Transport  Network  (1692/96/EC  of 
9/9/96); 

-  Council  Decision  of  21/6/96  authorising  the  Commission  to  negotiate  an 
agreement  between 
the  European  Space  Agency  and 
EUROCONTROL  on the European  contribution  to  a Global Navigation  Satellite 
System. (8414/96) 

the  Community, 

the  Community, 

The  agreement  between 
the  European  Space  Agency  and 
EUROCONTROL  for  the  European  contribution  to  GNSS  will  contribute  to  the 
achievement of Community  objectives, such as the completion of the internal market  and 
the  strengthening  of  economic  and  social  cohesion.  The  setting  up  of  a  satellite 
navigation  system,  should  also  help  improve  transport  safety  and  the  long  term 
sustainable  mobility  of  people  and  goods  throughout  Europe.  It  should  also  ensure  the 
creation  of an efficient  European  contribution  to a GNSS. The guidelines  for  the Trans-
European  Transport  network4  recognise  the  importance  of  implementing  a  navigation 
and  positioning  network  (Art.  17)  by  making  use  of  satellite  technology.  The 

op cit no 3 

Communication  on  Space  policy.5  also  underlined  the  strategic  importance  of  satelMte 
navigation  for  industry  and  identified  the  need  for  a  co-ordinating  structure  to  better 
associate available resources. 

3. Contents of the Proposed Agreement 

Article 1 

outlines  the  basic  objective  for  the  co-operation  agreement,  notably  to  be  the 
establishment  of  a  focal  point  for  all  activities  pertaining  to  satellite  navigation  and 
positioning in Europe. 

Article 2 

defines  GNSS  1  and  2  and  EGNOS.  These  definitions  are  expanded  in  the  technical 
annex to the agreement. 

' 

Article 3 

Breaks down the co-operation framework  into three level: 

•  co-operation  for GNSS 1; 

•  Co-ordination for the attainment of full  operational  capability; 

•  Liaison for GNSS2. 

Article 4 

outlines  the  role  and  scope  of  the  activities  to  be  carried  out  by  each  party  to  the 
agreement. 

Article 5 

describes  co-ordination  between 
establishment  of a Secretariat for technical support to European Tripartite activity. 

the  agreement,  mentioning 

the  parties 

to 

the 

Article 6 

describes  the  policy  of  the  three  organisations  regarding  the  management  of  GNSS 
information. 

Article 7 

describes the position of the three organisations regarding property rights. 

Article 8 

COM (96) 617  final 

provides a commitment  of the three parties to make the financial arrangements  necessary 
to implement the agreement. 

Article 9 

deals with contracting procedures. 

Article 10 

provides a mechanism for liability; 

Article 11 

considers applicable procedures in the case ôf force  majeur 

Article  12 

, 

-

describes the arrangements  for public relations activities. 

Article  13 

outlines the conditions applicable for the updating and amendment of the Agreement. 

Article  14 

outlines that the agreement is open to other potential  contributors 

Article  15 

describes the procedures applicable for  arbitration 

Article  16 

provides that annex one and two are an integral part of the agreement. 

Article  17 

outlines  the  timescales  for  the  agreement  and  the  conditions  for  termination  of  the 
Agreement. 

Annex 1 

set out the general scope of co-operation between the parties. 

Annex 2 

Gives a comprehensive outline of each party's contribution to the system. 

4.  Conclusions 

The  Commission  considers  that  the  draft  Agreement  is  acceptable  for  the  Community 
and meets its mandate. Accordingly, it proposes that the Council: 

•  approves the results of the negotiations 

•  decides to sign the Agreement and 

• 

initiates the procedures for its conclusion. 

It  therefore  presents  herewith  a  Draft  Council  Decision  concluding  the  Agreement 
between the European Community,  the European Space Agency  and EUROCONTROL 
on a European Contribution to the Development of a Global Navigation Satellite  System 
(GNSS). 

PROPOSAL FOR A COUNCIL DECISION CONCERNING 

THE AGREEMENT  BETWEEN THE EUROPEAN COMMUNITY, THE  EUROPEAN 
SPACE AGENCY AND THE EUROPEAN ORGANISATION FOR THE SAFETY OF 
AIR NAVIGATION 

ON A EUROPEAN CONTRIBUTION TO THE DEVELOPMENT  OF A  GLOBAL 
NAVIGATION  SATELLITE SYSTEM. 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 75 in conjunction  with Article 228 thereof, 

Having regard to the proposal from the Commission, 

Having regard to the Opinion of the European  Parliament, 

Having regard to the European  Space Agency  Council approval  of this Agreement  under 
article XTV of its Convention 

Having  regard  to  Measure  83/22  of  the  EUROCONTROL  Permanent  Commission 
pursuant to Article  11 of the EUROCONTROL  convention. 

Whereas the agreement between the European  Community,  the European  Space Agency 
and  the  European  Organisation  for  the  Safety  of  Air  Navigation  on  a  European 
contribution  to  the  development  of  a  global  navigation  satellite  system  should  be 
approved, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  agreement  between  the European  Community,  the European  Space Agency  and  the 
European  Organisation  for  the  Safety  of  Air  Navigation  on  a European  contribution  to 
the  development  of  a global  navigation  satellite  system  is hereby  approved  on behalf  of 
the European  Community. 

The  text  of  the Agreement  as well  as  the  technical  annexes  thereto  are  attached  to  this 
Decision. 

Article 2 

The  President  of  the  Council  shall,  on  behalf  of  the  Community,  deposit  the  act  of 
approval provided-for  in the agreement. 

Done in Brussels, 

For the Council 

DRAFT 

AGREEMENT 

between 

THE EUROPEAN COMMUNITY 

THE EUROPEAN SPACE AGENCY 

and 

THE EUROPEAN ORGANISATION 
FOR THE SAFETY OF AIR NAVIGATION 

on a 

EUROPEAN CONTRIBUTION 

to the development of a 

GLOBAL NAVIGATION SATELLITE SYSTEM 

\ 

The European  Community  (hereinafter  referred  to as "the EC") represented by 

and 

The  European  Space  Agency  established  by  the  Convention  of  the  European 
Space Agency opened for  signature in Paris on 30 May  1975 (hereinafter  referred  to 
as "ESA"), represented by its Director General, Jean-Marie Luton; 

and 

the  European  Organisation  for  the  Safety  of Air Navigation  established  by  the 
Convention  relating  to  Co-operation  for  the  Safety  of  Air  Navigation  of  13 
December  1960,  as  amended  by  the  Protocol  of  12  February  1981  (hereinafter 
referred  to  as  "EUROCONTROL"),  represented  by  its  Director  General,  Yves 
Lambert; 

(hereinafter  collectively referred  to as "the Parties") 

TAKING  NOTE that  studies  on navigation  by satellite are evolving from  research 
to  the  definition  of an operational  application  system and that these have reached  a 
sufficient  degree  of  maturity  for  a  European  contribution  to  a  global  navigation 
satellite system thereby enhancing the involvement of European industry in this  field; 

TAKING  NOTE  of  the  interest  expressed  by  European  Governments  in  a 
European  contribution  to  satellite  navigation  as  expressed  on  the  occasion  of  the 
European Civil Aviation Conference  meeting of  10 June 1994; 

HAVING  REGARD  to  the  Communication  from  the  European  Commission  on 
satellite navigation services of  14 June  1994, the European Parliament Resolution of 
13  November  1994,  the  Resolution  of  the  Council  of  the  European  Union  of  19 
December  1994  on  the  European  contribution  to  the  development  of  a  Global 
Navigation  Satellite  System  (GNSS), 
the  Council  of  the 
European  Union of  14 March  1995 inviting the European Commission to  contribute 
to the implementation of the Global Navigation Satellite System (GNSS  1) by taking 
all  necessary  measures  for  the  leasing  of  the  Inmarsat  III  transponders,  and  the 
Decision  by the  Council  of the  European  Union  and  the  European  Parliament  on 
23  July  1996  on  the  guidelines  for  the  development  of  the  Trans  European 
Transport  Network; 

the  Conclusion  of 

HAVING REGARD to ESA Council approval of this Agreement on 
Article XIV. 1 of the Convention of the European  Space Agency; 

under 

AO 

HAVING  REGARD  to  Measure  No.  83/22  taken  by  the  EUROCONTROL 
Permanent  Commission  on  31  January  1995,  pursuant  to  Article  11  of  the 
Convention relating to co-operation for the Safety  of Air Navigation  as amended  on 
12 February 1981; 

RECOGNISING  the  necessity  of  coordinating  further  their  activities  in  order  to 
ensure the credibility and effectiveness  of a European involvement in this domain, in 
particular  with  regard  to  the  development  of  a  satellite  navigation  system  using 
Inmarsat  III navigation payloads for which the Parties submitted  a proposal  entitled 
the  European  Geostationary  Navigation  Overlay  Service  (EGNOS)  which  was 
accepted  by  the  Inmarsat  Council  on  21  November  1994  and  also  on  15 
November  1995; 

HAVE AGREED  as follows: 

ARTICLE  1  - PURPOSE 

The purpose  of this Agreement is to establish co-operation between the Parties with 
a  view  to  providing  a  European  contribution  to  the  development  of  a  Global 
Navigation  Satellite  System.  This  concerted  effort  is  aimed  at  placing  Europe  in  a 
position  to  allow  provision  for  a  satellite  navigation  service  which  shall,  as  far  as 
practicable,  satisfy  the requirements  of civil users for  operational  use  independently 
of other means of radio navigation and positioning. 

ARTICLE  2 -  DEFINITIONS 

For the purpose of this!Agreement, the following  definitions  shall apply: 

Global Navigation  Satellite System  (GNSS) 

GNSS  is  a  satellite  based  world-wide  position,  velocity,  and  time  determination 
system  which  fulfils  on  a  permanent  basis  potential  user  requirements  for  civil 
applications. 

GNSS1 

GNSS1  is  an  initial  implementation  of  GNSS,  based  upon  the  existing  United 
States  of America  and Russian military  satellite navigation  systems, augmented  by 
civil systems, designed to provide the user with sufficient  independent  monitoring  of 
the whole system. 

M 

GNSS2 

GNSS2  is  a  world-wide  civil  navigation  satellite  system  to  be  internationally 
controlled and managed, which meets the requirements of all categories of users for 
position, velocity and time determination. 

European Geostationary Navigation Overlay Service (EGNOSÏ 

EGNOS is a European augmentation of existing satellite navigation and positioning 
systems, using geostationary satellites with the aim of enhancing the performance  of 
these  systems  over  Europe  and  providing  a  capability  over  the  whole 
geostationary broadcast areas. EGNOS is a European component of GNSSl. 

ARTICLE 3 - SCOPE 

The  scope  of  cooperation  between  the  Parties  is  covered  by  this  Agreement  and 
further  detailed in Annexes  1 and 2.  It covers the following activities: 

a) 

the  development  and  validation  of  an  operational  capability  of  a  European 
contribution  to  GNSSl,  using  existing  satellite  systems  and  any  appropriate 
augmentation to fulfil  users requirements ; 

b)  coordination  of  actions  of  each  Party  for  the  attainment  of  a  full  operational 

capability of GNSSl; 

c) 

in  parallel  with  GNSSl,  preparatory  work  for  the  definition  and  design  of 
GNSS2. 

ARTICLE 4 - CONTRIBUTIONS OF THE PARTIES TO GNSS-1 

The Parties  shall take the appropriate measures,  in accordance with  their  respective 
rules and procedures,  and  shall use their best  endeavours, to  contribute  in due time 
to GNSS-1 as specified  in Annex 2, as follows: 

a)  ESA  shall  contribute  through  the  implementation  of its  Advanced  Research  in 
-  Telecommunication  Systems  (ARTES)  Programme,  in  particular  Element  9, 
which  includes  the  technical  developments  of  EGNOS  and  its  operation  for 
testing and technical validation purposes. 

b)  EUROCONTROL  shall  provide  the  civil  aviation  user  requirements  and 
validate  the  resulting  system  against  these  requirements.  EUROCONTROL 
shall also  support  the European  efforts  to  ensure that  GNSS-1  is  operationally 
acceptable for civil aviation. 

sil 

c)  The EC shall contribute to the consolidation of the requirements of all users and 
to the validation of the resulting system against  such requirements,  in particular 
in  the  framework  of  its  TransEuropean  Networks  and  Research  and 
Development  actions,  without  prejudice  to  the  legislation  on  the  technical 
harmonisation  procedures  such  as those  on  aircraft  and  air traffic  management 
equipment. 

The EC  shall, in particular,  also provide for  the  establishment  of  EGNOS by 
taking  all  appropriate  measures,  including  the  leasing  of  geostationary 
transponders. 

ARTICLE 5 - WORKING ARRANGEMENTS  BETWEEN THE PARTIES 

5.1  To  ensure  progressive  development  of  their  co-operation,  a  Joint  Tripartite 
Committee  composed  of  the  Parties  is  hereby  set  up  with  the  objective  of 
monitoring  the  implementation  of this  Agreement  and  to  formulate  guidelines 
and  coordinate common  approaches towards the realisation  of this  Agreement. 
The  Joint  Tripartite  Committee  shall  meet  at  least  once  a  year  or  more 
frequently,  if necessary,  at the request  of one of the parties,  and  shall adopt  its 
own rules of procedure. 

5.2  The Joint  Tripartite  Committee  shall be assisted by a Secretariat  to  provide  the 
day-to-day  administrative  support  and,  upon  request,  organise  the  technical 
support.  The  Parties  undertake,  in accordance  with  their  respective  rules  and 
procedures, to contribute jointly to such administrative  support. 

5.3  The  Joint  Tripartite  Committee  shall  carry  out  the  tasks  specified  in  this 

Agreement,  by: 

a)  exchanging  information  on  the  progress  made  in  activities  related  to  the 
scope  of this Agreement  and exchanging relevant  documentation  and results 
emanating from the contributions of the Parties under this Agreement; 

b)  inviting  representatives  from  each  of  the  Parties  to  participate  in  meetings 

relating to those activities which form the basis of this Agreement; 

c)  exchanging  information  and  coordinating,  as  far  as  possible,  prior  to 
contacts  with  non-European  parties when  such  contacts  are  relevant  to  this 
Agreement; 

d)  formulating  proposals  towards  arrangements  necessary  for  the  future 

operational service of positioning and navigation; 

e)  submitting proposals for the organisation of the Secretariat  support. 

5.4  Any change or update of the technical contents  of Annexes  1 and 2 which have 
no  impact  on  the  scope  of  this  Agreement,  especially  on  its  financial  and 
operational  provisions,  may be approved  by the Joint  Tripartite  Committee,  by 
a unanimous  decision. 

^ 

ARTICLE 6 - EXCHANGE OF INFORMATION AND  DISCLOSURE 

6.1  Each Party shall exchange with the other Parties all information  at their  disposal 
which may be required  for  the implementation  of this Agreement,  subject  to  its 
own rules on exchange of information. 

6.2  Except  as  otherwise  provided,  no  Party  shall  disclose  any 

information 
exchanged  in  connection  with  this  Agreement  to  any  person  other  than  those 
employed  by  them  or  officially  entitled  to  handle  such  information  (including 
each  Party's  Member  States)  nor  use  it  for  commercial  purposes.  Such 
disclosure  shall extend  so far  only as may be necessary  for  the purpose  of this 
Agreement and shall be in strict  confidence. 

ARTICLE 7 - RIGHTS AND PROPERTIES 

7.1  Each  Party  shall,  in  accordance  with  its  own rules  and  procedures,  administer 
or  retain  the  property  and  commercial  rights  in  the  software,  equipment  and 
documentation which it has financed  and developed within the framework  of its 
own activities in implementing this Agreement. 

7.2  Specific  arrangements  between 

the  Parties  may  be  required  for 

joint 

developments made for the purpose of this Agreement. 

ARTICLE 8 - FINANCIAL ARRANGEMENTS 

8.1  Each Party  shall ensure that the appropriate financial  arrangements  are made in 
good  time and in accordance with its own procedures, in order  to  discharge  its 
own responsibilities under this Agreement and Annexes. 

8.2  Upon  completion of the EGNOS testing and technical validation,  new  financial 

arrangements shall be required to be in place. 

ARTICLE 9 - CONTRACT AUTHORITY AND PROCEDURES 

All contracts required for the implementation of this Agreement and which are let by 
one  Party  shall  be  let  in  accordance  with  the  normal  procedure  of  that  Party, 
without prejudice to Article 7.2 above. 

ARTICLE  10 - LIABILITY 

10.1  The Parties agree that, with respect to  activities undertaken  pursuant  to  this 
Agreement,  no  Party  shall  make  any  claim  against  the  other  Parties  with 
respect  to  injury  or  death  of  its  employees,  or  any  person  acting  on  its 
behalf,  or  with  respect  to  damage  of  any  kind  to  or  loss  of  its  property, 
caused  by  one  of  the  Parties,  whether  such  injury,  death,  damage  or  loss 
arises  through  negligence  or  otherwise,  except  in  the  case  of  gross 
negligence or wilful  misconduct. 

Ai\ 

10.2 

In  the  event  of  a  claim  from  a  third  party  resulting  from  the  Parties' 
implementation  of  their  respective  contributions  as  specified  in  Annex  2, 
each  Party  shall  only  be  liable  to  the  extent  that  the  claim  relates  to  that 
Party's contribution. 

10.3  The Parties  agree that  only the Party who  has  contracted  with  a third  party 
in the context of the execution of the contribution  of the Parties as  specified 
in Annex  2 will be liable for  any claims from  this third  party  resulting  from 
the contract in question. 

ARTICLE  11 - FORCE MAJEURE 

The  Parties  shall  not  be  considered  in  breach  of  this  Agreement  if  any  failure  to 
provide  their contributions hereunder arises from  or is caused by force  majeure. 

ARTICLE  12 - PUBLIC RELATIONS 

12.1  Each  Party  shall  undertake  to  coordinate  with  the  others  in  advance 
concerning  its  own  or  joint  public  relations  activities  related  to  subjects 
covered by this Agreement. 

12.2 

In all relevant media activities, the role of each Party in this Agreement  shall 
be clearly identified  and mentioned. 

12.3  The  detailed  arrangements  for  implementing  public  relations  activities 

foreseen under this Article shall be mutually agreed. 

ARTICLE  13 - AMENDMENTS 

13.1  This Agreement  shall  only be  amended  by unanimous  written  agreement  of 

the Parties. 

13.2  Should  any  Party  encounter  problems  in  the  course  of  its  respective 
contribution including financial  contribution, the Parties agree to  examine, in 
the  framework  of  the  Joint  Tripartite  Committee,  ways  of  achieving  the 
planned  contributions and review, to the extent necessary, the objectives  and 
the content of this Agreement. 

ARTICLE  14 - PARTICIPATION  BY THIRD PARTIES 

This Agreement  may be opened to the participation  of other  parties who  are able to 
contribute  to  the  fulfilment  of  the  tasks  under  this  Agreement.  Amendments  in 
accordance with Article  13 above shall then be made for that purpose. 

M 

ARTICLE  15 - SETTLEMENT OF DISPUTES 

15.1  Any  disputes  which  may  arise  between  the  Parties  relating  to 

the 
interpretation  or  application  of  this  Agreement  or  its  Annexes  shall  be 
submitted for direct negotiations within the Joint Tripartite Committee. 

15.2 

In  case  of  it  not  being  possible  to  settle  the  dispute  in  accordance  with 
paragraph  1,  any  Party  may  notify  the  others  of  the  appointment  of  an 
arbitrator;  the  other  Parties  must  then  appoint  their  arbitrator  within  two 
months. 

15.3  The  Joint  Tripartite  Committee  shall  appoint  two  additional  arbitrators  by 

unanimous decision. 

15.4  The arbitrators' decisions shall be taken by majority vote. 

15.5  Each  party  to  the  dispute  must  take  the  appropriate  steps  required  to 

implement the decision of the arbitrators. 

ARTICLE  16 - ANNEXES 

This  Agreement  contains  Annexes  1 and  2  which  form  an  integral  part  hereto. 
Article 5.4  above contains the procedure for updating of the Annexes. 

ARTICLE  17 - ENTRY INTO FORCE AND  TERMINATION 

17.1  This Agreement  shall enter into force  on the date of signature thereof by the 
Parties,  and  shall  remain  in  force  until  completion  of  the  activities  as 
specified  in Annexes  1 and 2 or until such time as this Agreement  is replaced 
by another cooperation  agreement. 

17.2  Notwithstanding  paragraph  1 above,  any Party  may, however,  terminate  the 
Agreement  upon  completion  of  the  EGNOS  technical  and  operational 
validation,  by  notifying  the  other  Parties  of  its  intention  six  months  in 
advance. 

17.3 

In  case  of  termination  of  the  Agreement  in  accordance  with  paragraph  2 
above, the Parties shall agree on all appropriate measures to be taken. 

Ad 

The  present  Agreement  is  signed  in  three  original  copies  in  the  Danish,  Dutch, 
English,  French,  German,  Greek,  Italian,  Finnish,  Portuguese,  Spanish,  Swedish 
languages, each of which is to be considered  equally authoritative for  purposes of 
interpretation. 

In witness whereof, the undersigned, having been duly authorised, sign 
this Agreement. 

Done at 

, on the day of, 

For the European Space Agency 

For the European Community 

Jean-Marie Luton, Director General 

For the European Organisation for the Safety of Air Navigation 

Yves Lambert, Director General 

A'y 

ANNEX  1 

1. 

Introduction 

The  scope  of  cooperation  between  the  Parties,  as  set  out  in  Article  3  of  this 
Agreement is detailed in the activities below. 

2.  European  Contribution  to GNSS-1 : Article 3 a) 

This contribution  involves the development  of augmentation  systems  to  the  current 
satellite  based  radionavigation  and  positioning  systems  in  order  to  meet  civil  user 
requirements  (land,  sea,  air,  and  other  non-transport  user  requirements)  over 
Europe and over the whole geostationary broadcast areas. 

It is composed  of the following  major  activities : 

-  Identification  of user requirements. 

-  Development,  testing,  technical  and  operational  validation  of  the  European 
Geostationary  Navigation  Overlay  Service  (EGNOS),  which  is  a  wide  area 
augmentation  of existing satellite based  radionavigation  and positioning systems, 
relying  on  the  use  of  geostationary  satellites,  providing  additional  satellite 
ranging capability, integrity and wide area differential  information  to users. 

-  Additional  augmentation  (e.g.  local  area  augmentation,  receiver  autonomous 

integrity monitoring, etc.). 

-  Development,  testing and validation of user equipment. 

-  Certification  of European GNSS-1 elements. 

A more detailed  description of the European contribution  to  GNSS-1  is provided  in 
Annex 2. 

3.  Transition  to a full operational  capability  of GNSS-1: Article 3 b) 

The  Parties  undertake  to  identify  mechanisms  to  accommodate  possible  further 
inputs  to  attain,  a  full  operational  capability  of  GNSS-1,  which  will  require  in 
particular additional space capacity. 

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4.  Preparatory Work for GNSS-2 : Article 3 c) 

The parties will liaise on preparatory work for the definition and design of GNSS-2, 
including studies for the preparation of an in-orbit demonstration to be undertaken 
in the time-frame  1997-2000.  Candidate system configurations  shall be studied  to 
subsequently identify  and initiate critical research and technology developments and 
carry-out early trials of selected GNSS-2 concepts. 

The preparatory work for GNSS-2 includes the following: 

-  Mission  definition  (identification  of  additional  user  requirements,  signal 

design requirements, demonstration system applications definition). 

-  System  definition  (system  options,  demonstration  system  design,  definition  of 

demonstration programme). 

-  Predevelopment activities in preparation of the GNSS-2 technology. 

-  Development  of  an  experimental  navigation  payload  and  the  performance  of 

system simulation tests and in-orbit flight demonstrations. 

-  GNSS-2  architectural  design  (design  of  a  complete  navigation  satellite  system 

including its logistic and operational aspects). 

* ' 

A'b 

ANNEX 2 

1. 

Introduction 

This Annex provides  a breakdown of the contributions of the Parties referred to in 
Article  4.  They  are  related  to  the  design,  development  and  implementation  of 
EGNOS  up to the completion of a first implementation phase involving the use  of 
at  least  two  geostationary  navigation transponders.  A  description  of EGNOS  is 
given below. 

The EGNOS  system is an augmentation  of existing  satellite-based  radio  navigation 
and  positioning  systems  using  geostationary  satellites  that  shall  enhance  the 
performance  of  these  systems  over  Europe  and  more  generally  over  the  whole 
geostationary broadcast area(s). 

By  using  navigation  transponders  on  geostationary  satellites  and  processing  data 
from  a network  of terrestrial  monitoring  stations,  EGNOS  shall  provide  additional 
satellite  ranging  capability,  service  integrity  and  Wide  Area  Differential  (WAD) 
correction  data.  The  aim  of  the  WAD  service  is  to  improve  the  accuracy  of 
existing  satellite-based  radio  navigation  systems,  in  particular  over  Europe. 
The EGNOS  system will improve the overall satellite navigation service availability. 

The EGNOS infrastructure  shall consist  of: 

-  Mission Control Centres (MCCs) 
-  Navigation transponders on geostationary  satellites 
-  Navigation  Land  Earth  Stations  (NLESs)  for  accessing 

the  navigation 

transponders 

-  Ranging and Integrity Monitoring  Stations (RIMSs) 
-  Upgraded RIMSs for accurate orbit determination  of the geostationary  satellites 

hosting the navigation transponders. 

-  A  network  of  reference  stations  for  verifying  the  integrity  of  the  WAD 
Simplified  REVISs  will  be  used  as 

corrections  computed  by  EGNOS. 
reference stations. 

2.  ESA  Contribution 

ESA  shall  contribute  through  the  implementation  of  its  ARTES  programme,  in 
particular, Element 9 thereof. 

In particular, ESA shall undertake the following  activities: 

-  EGNOS project  management 
-  Mission Analysis and System  Definition 
-  Early trials 
-  Test and  simulation 

QLO 

Ranging system development 
Integrity system development 
WAD system development 
Testing  and  technical  validation  of  EGNOS,  including  provisions  for  ground 
communications  and  MCCs  running  costs  during  the  testing  and  validation 
period. 

3.  EUROCONTROL  Contribution 

EUROCONTROL  shall  undertake,  in  the  context  of  its  satellite  navigation 
applications  activities and  in close cooperation with the International  Civil Aviation 
Organisation (ICAO),  the following : 

-  Provision of civil aviation user requirements. 

-  Operational  testing  and  validation  for  civil  aviation  GNSS-1  users.  This  shall 
include  static  ground  measurements,  dedicated  flight  trials  and  data  recording 
campaigns on commercial airliners. 

-  Support  to  the  European  activities  to  ensure  that  GNSS  is  operationally 
acceptable  for  civil  aviation.  This  work  shall  be  carried  out  with  the  widest 
cooperation  possible  within  the  civil  aviation  environment,  including  the  Joint 
Aviation Authorities (JAA). 

4.  EC Contribution 

The  EC  shall  undertake,  in  accordance  with  its  relevant  procedures  in  the  context 
of] the Trans-European Network  and the Framework Programmes  on Research and 
Development,  to contribute to the following tasks: 

-  Consolidation of user requirements relative to GNS S-1 ; 
-  Design,  development  and  support  of the  standardisation  effort  of  GNSS-1  user 
equipment,  for all types of application (maritime, civil aviation, land transport); 
-  Analysis  of  the  integration  aspects  in  the  user  vehicles,  in  preparation  of 

validation trials; 

-  Provision  of  at  least  two  satellite  links for  the  implementation  of  EGNOS  (in 
•particular  lease of AOR-E and  IOR Inmarsat  III transponders  and  of necessary 
facilities  in corresponding NLESs); 

-  Performance  of  trials  to  validate  user  requirements  and  user  equipment 

prototypes in operational conditions. 

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FINANCIAL STATEMENT 

1. 

TITLE OF OPERATION 

Agreement between the European Community, the European Space Agency  and the 
European Organisation for the Safety of Air Navigation on a European contribution 
to the development of a Global Navigation Satellite System (GNSS). 

2. 

BUDGET HEADINGS INVOLVED 

B2-702 
B2-704 

B5-700 

B6-7111 
B6-7161 

Specific measures, in particular in transport safety 
Establishment  and  development  of  a  common  sustainable  transport 
policy 
Financial support for projects of common interest in the trans-European 
transport network 
Telematics applications of common interest 
Transport (research programme) 

3. 

LEGAL BASIS 

Articles 74, 84(2) and 129c of the Treaty. 

Decision  No  1692/96/EC  of  the  European  Parliament  and  of  the  Council  of 
23 July 1996  on  Community  guidelines  for  the  development  of  the  trans-European 
transport network. 
Council  Regulation  (EC)  No 2236/95  of  18 September  1995  laying  down  general 
rules  for  the  granting  of  Community financial aid  in  the  field  of  trans-European 
networks. 
Council Decision of 23 November  1994 adopting a specific  programme for research 
and  technological  development,  including  demonstration,  in the  field  of  telematics 
applications of common interest (1994 to 1998). 
Council Decision  of  15 December  1994 adopting  a specific  programme for research 
and  technological  development,  including  demonstration,  in  the  field  of  transport 
(1994 to  1998). 

4. 

DESCRIPTION OF OPERATION 

4.1 

General  objective 

The  operation  proposed  must  allow  a  European  contribution  to  the 
development of a worldwide multimodal navigation satellite system. 

The  objective  of establishment  of a navigation  satellite  system is to  improve 
the  productivity  of  transport  systems  by  placing  at  the  disposal  of  users  a 
This  operation  therefore 
system  allowing  geographical  positioning. 

$%. 

contributes  to development  of sustainable  and  safe  mobility  for  persons and 
goods, one of the fundamental objectives of the common transport policy. 

The operation aims at conclusion of an agreement to ensure convergence  of 
the resources of the three organisations concerned. 

4.2 

Period covered and arrangements for renewal or extension 

1997-2000. 

5. 

CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 

Non-compulsory  expenditure 

5.2 

Differentiated  appropriations 

5.3 

Type of revenue involved 
Not applicable. 

6. 

TYPE OF EXPENDITURE 

Three types of expenditure are planned: 

,  ' 

-  subsidy for joint financing  with contributions from ESA and EUROCONTROL; 
- 
- 

research and development activities (framework  programme); 
feasibility  studies  (maximum  Community  contribution:  50%)  eligible  for 
financial  aid for the trans-European transport  network. 

7. 

FINANCIAL IMPACT 

7.1  Method of calculating total cost of operation (definition  of unit costs) 

7.2 

Itemised breakdown  of cost 

ECU million (current prices) 

Total 

N + 5 
and 
subs,  yrs 

0.7 
29.5 
1 
4 

35,2 

Breakdown 

1997 

1998 

1999 

2000 

Transport projects 
Feasibility studies 
Transport research 
Telematics research 

TOTAL 

0.7 
6.5 
1 
4 

12,2 

9 

9 

5 

5 

9 

9 

&> 

7.3 

Indicative schedule of  appropriations 

ECU million 

1997* 

1998* 

1999* 

2000* 

Total 

N + 5 
and 
subs,  yrs 

12.2 

9 

9 

5 

35.2 

' 

4.95 
3.25 
4 

4.5 
4 
0.5 

> 

4 
5 

12.2 

9 

9 

, 

2 
3 

5 

35.2 

Commitment 
appropriations 
Payment 
appropriations 
1997 
n+  1 
n + 2 
n + 3 
n + 4 
n + 5 and  subs, yrs 
TOTAL 

The definitive amounts are set by the budgetary authority each year. 

8.  FRAUD PREVENTION MEASURES 

The  operations  proposed  will  be  financed  by  the  R&D  framework  programme  and 
the trans-European  transport  network.  The fraud  prevention measures  provided  for 
by  these  instruments  will  apply.  Regulation  2236/95  laying  down  general  rules  for 
the  granting  of  Community  financial  aid  in  the  field  of  trans-European  networks 
includes  fraud  prevention  measures  (inspections,  reporting,  monitoring,  evaluation, 
etc.),  in  particular  Articles  12(4)  and  (5)  on  regular  on-the-spot  checks  by 
Commission  staff  and  Articles  15(5)  and  (7)  on monitoring  and  evaluation.  Similar 
measures exist for the R&D framework  programme. 

ELEMENTS  OF COST-EFFECTIVENESS ANALYSIS 

9.1 

Specific  and  quantified  objectives;  target  population 

The European contribution to the development  of a global navigation  satellite 
system  requires  substantial  resources  (see  Commission  communication 
COM(94)248  of  June  1994  on  satellite  navigation  services).  Cooperation 
between  the  three  organisations  concerned  by  the  Agreement  is  the  only 
means of ensuring this development  of primordial importance  to  Europe  (for 
socio-economic,  industrial and transport  safety  reasons).  Involvement  of the 
three  organisations  will  ensure  a 
total  budget  of  approximately 
ECU 200 million for the European project  between  1996 and 2000. 
The  principal  objective  can  be  subdivided  into  several  specific  objectives  to 
allow evaluation of the operation: 

%H 

- 

improving  the  efficiency  of  the  transport  system  (increasing  air  space 
capacity,  reducing  the  environmental  impact  of  transport,  monitoring 
consignments of dangerous substances, etc.); 

-  closer cooperation between the departments concerned  at European level; 

-  opening up new markets; 

-  making the European industry more competitive; 

-  providing  assistance  for  technological  development  in  the  space  sector 

(access to new satellite technology). 

9.2 

Grounds  for the  operation 

-  The  Community  contribution must be  seen in the context  of the  measures 
to  implement  the  guidelines  for  the  development  of  the  trans-European 
transport  network,  particularly  the  navigation  and  positioning  network. 
Organised  cooperation  on  the  resources  available  in  Europe  is  the  only 
means  of  ensuring  a  role  for  the  Community  in  the  development  of  a 
global navigation satellite system. 

-  Community  action will  allow  establishment  of  space  infrastructure  to  the 
benefit  of  Europe  as  a  whole:*Europe-wide  transmission  of  navigation 
signals  by  satellite  requires  a  project  on  this  scale.  Moreover  Council 
Resolution  378/94  of  19  December  1994  called  on  the  Commission  to 
prepare  proposals  along  these  lines.  The  Council  in  turn  adopted  a 
negotiating mandate in June 1996. 

9.3  Monitoring  and  evaluation  of the  operation 

The operation must be monitored  and  evaluated  on the basis of the  following 
criteria: 

- 

increase  in  air  space  capacity,  reduction  of  the  environmental  impact  of 
transport and monitoring of consignments of dangerous substances; 

interoperability  of navigation systems; 

-  access to new satellite technology; 
- 
-  making the European industry more competitive; 
-  opening-up  of  new  markets  (commercial  applications  for  navigation 

services). 

10.  ADMINISTRATIVE  EXPENDITURE  (PART  A  OF  SECTION  III  OF  THE  GENERAL 

BUDGET) 

The  administrative  resources  necessary  will  be  provided  by  an  annual  Commission 
decision  allocating  resources, taking account,  in particular,  of the additional  staff  and 
amounts granted  by the budgetary authority. 

#<r 

10.1 

Impact on number of staff 

Type of post 

Staff  allocated to management 
of the operation 

of which 

Duration: 4 
years 
(1997-2000) 

permanent 

temporary 

Officials  or 
temporary 
agents 

|  A 
|  B 
|  C 

Other resources 

TOTAL 

2.0 
1.0 
0.5 

3.5 

from existing resources 
within the DG or 
departments concerned 

from  supplementary 
resources 

2 
1 
0.5 

3.5 

In the case of supplementary  resources,  indicate the rate at which they will have  to be  provided 

10.2  Total financial  impact of the supplementary human  resources 

Amount 

Method of calculation 

(ECU) 

Officials 
Temporary  agents 
Other resources (indicate budget 
heading) 

TOTAL 

The  amounts  express  the total  cost  of  the  additional posts  over  the total  duration  of  the  operation  (if 
fixed)  or for  12 months  (if indefinite). 

The expenditure  on the human resources required for  the operation will be covered  by existing  resources: 
3.5 officials  (Titles Al,  A2, A4 andAS)  or ECU 350 000 per  year. 

10.3 

Increase in other operating expenditure as a result of the operation 

(ECU) 

Budget  heading  (number  and 
title) 

Amount 

Method of calculation 

TOTAL  ~ ~ ~ ^ ~ ~ ~ ~~ 

Estimated  expenditure  on missions, by redeployment of existing resources: Article  A-130: 
ECU  14 800 (6 missions inside the Community, 5 outside  [1997]). 

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ISSN 0254-1475 

COM(97) 442 final 

DOCUMENTS 

EN 

07  15  08 

Catalogue number  :  CB-CO-97-452-EN-C 

ISBN  92-78-24357-4 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

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