PPP in the space sector
C. La Rocca
Italian Space Agency
Roma – 2 Dicembre 2011
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Summary
 Premises
 PPP models
 PPP experiences in the European satcom projects
 PPP experiences in ASI
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A precursor: Italcable
 Perhaps the first historical example of public-private cooperation 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 august 1921 Giovanni
Carosio, with the economical help of the italian emigrants in
Argentina, founds the Compagnia Italiana dei Cavi Telefonici
Sottomarini, with the aim to reach an agreement with the Italian
Government for setting up the first transatlantic cable
 In september of the same year, the agreement with the Italian
government is reached
 In 1941, after the fusion with Società Italo Radio, this public-private
company change its name in ITALCABLE
 The two enablers for the first time together: the ownership of the
infrastructure, and the permission to use it as a public resource
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Premises - 1
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Long duration of the relationship
between the public and the private
partners
Amplification of the project funding
capabilities
Risk distribution between the
partners
Cooperation terms defined in the
contract
Responsibilities, costs and risks
defined in the contract
Pubic interest and commercial goals
served – better results for the same
cost
Each party retains its own identity
and responsibility
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Premises - 2
 Trends:
 Increasingly used in infrastructure sectors
 Governments require alternative forms of infrastructure service
provision due to issues involving public funding, operational efficiency
and risk
 Some sectors abroad now mainly driven by PPP models
(road, utilities…)
 Complex contract models requiring significant coordination
efforts
 Some contractual models (e.g. BOOT – Build, Own,
Operate and Transfer) have gained more interest than
others and thus became standard models
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Premises - 3
1. Involved sectors
2. Involved countries
Current and pre-tender projects Europe
by Capital value
high
market development
curve
Stage III
UK
Australia
Ireland
Stage II
Netherlands
Italy
New Zealand
Sophistication
Greece
Portugal
Stage I
low
China
India
Slovakia
Latvia
Russia
Spain
France
Canada
US
Japan
Germany
Belgium
South Africa
Hungary
Denmark
Czech Republic
Mexico
Bulgaria
Finland
Poland
Brazil
Croatia
Albania
low
Activity
high
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PPP models - 1
• PPPs span a spectrum of
models that progressively
engage the expertise or capital
of the private sector:
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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 and
possibly temporary ownership of an
asset
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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
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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
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PPP experiences in the European satcom projects - 2

Other satellite projects
TerraSAR (GER)
EO
Alliance
Radarsat 2 (CAN)
EO
Design-BuildOperate
Galileo(EU)
Satnav
Concessione
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PPP experiences in ASI- 1
Italsat
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Italsat has been the first PPP program
handled by ASI: it included two Ka,
regenerative and OBS telco satellites,
launched in 1991 and 1996 respectively
The business model was a PPP precursor,
implemented by both ASI and Telecom Italia
ASI was responsible for space & ground
control segment development, F1
manufacturing and launch, and F2
manufacturing
Telecom Italia was responsible of F2 launch
and ground traffic segment development
Operations and services marketing were
under Telespazio / Telecom Italia responsibiity
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PPP experiences in ASI- 2
e-geos
• A company between ASI (20%) and
Telespazio (80%), being a leading
international player in the geo-spatial
business
• Offers a whole range of products and
services in the Earth Observation and in
the geo-spatial application domains,
based on both optical and radar
satellites as well as on aerial surveys
• Exclusive distribution of the CosmoSkyMed radar data on the commercial
market
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PPP experiences in ASI- 3
SIGMA
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New telco program, oriented towards
networking and broadcasting services, in Ka
and Ku band respectively, for the institutional
customers
Overcoming the digital divide: symmetrical
and asymmetrical connectivity for those areas
poorly (or not at all) served by the fiber
network. 100% coverage for the public
administration services
Disaster recovery in case of major outages of
the fiber network
Redundancy for mission critical and life critical
services
Theater telcos for peace keeping and peace
enforcement missions abroad
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PPP experiences in ASI- 4
ASITEL
• The vehicle PPP company recently
incorporated to implement the SIGMA
program
• Currently 100% owned by ASI. The
private partners will join shortly,
preserving the public majority
• The company will be responsible for
infrastructure investments (SIGMA), and
will maintain the ownership of the assets
• The company mission will be mainly to
grant first class telco services to
institutional and governmental entities