Paradigm Signs 2 year Extension to Skynet 5 Contract and Orders a Third Skynet 5 Satellite
* Skynet 5 PFI service contract extension for military communications provides increased value for money to UK MoD
* Paradigm will procure a third spacecraft (Skynet 5C) from EADS Astrium
* This confirms Defence as a key growing market for EADS SPACE
Stevenage, 20 December 2005
Paradigm Secure Communications Ltd, a subsidiary of EADS SPACE Services, has today signed an amendment with the UK MoD to extend the 15 year Skynet 5 PFI service contract for military communications. The extension will provide the UK MoD with increased value for money through increased assurance and extended capability. A key feature of the extension is that Paradigm will order construction and launch of a third satellite, Skynet 5C, to be manufactured by EADS Astrium.
There is no cost increase to the MoD when comparing the common 15-year baseline periods of the old and the new deals. Savings from insurance costs and a cutting edge refinancing scheme are at the heart of the approach. A three-satellite constellation means better performance, more efficiency, longer services availability, with a concession period extended from 2018 to 2020.
Paradigm is also ordering the partial build of a fourth satellite, to be held in reserve. If required, in order to maintain the assurance strategy of having three satellites in orbit, the fourth satellite would be completed and launched in the event that any of the first three satellites were not successfully commissioned after launch. This new agreement will also provide the potential for other customers to benefit from increased coverage and capacity. Achieving the extension of the groundbreaking PFI service contract was facilitated by the true partnership approach built within the Skynet 5 ' Enterprise ' . This is the result of the creation of efficient working relationships and high levels of cooperation between MoD and industry teams.
The successful extension of the contract confirms EADS SPACE Services expertise in structuring and managing complex commercial and financial service agreements.
Skynet 5A is scheduled for launch in the second half of 2006 with 5B in 2007 and 5C in 2008. EADS Astrium has selected Arianespace for the first two launches.
Malcolm Peto, Managing Director of Paradigm Secure Communications said: "This extension takes the groundbreaking Skynet 5 PFI service contract to another level - not only will it provide increased assurance to the UK MoD through reduced risk and provision of a third satellite, but it will also provide greater value for money. This demonstrates our capability in day-to-day management of complex service contracts with innovative engineering commercial and financial structures whilst securing increased benefits for all our customers."
Eric Béranger, CEO of EADS SPACE Services, said: "Innovative thinking in collaboration with the UK MoD and cutting edge financing, has achieved an excellent win-win solution for all parties. This successful extension is a reflection of the expertise of our team, especially in the UK, and demonstrates the benefits of the collaborative approach with the UK MoD. Paradigm and EADS SPACE Services look forward to providing the benefits of military communications services to other countries, building on the successes we have already achieved with NATO and a number of other nations."
Notes to Editors:
Paradigm Secure Communications signed a £ 2.5bn contract with the Ministry of Defence (MOD) in October 2003 for the provision of military satellite communications services up to 2018. The programme, procured as a Private Finance Initiative (PFI), includes the funding for the next generation of UK Milsatcom capability. The Paradigm team, lead by Paradigm Secure Communications, includes EADS Astrium Ltd: the system provider, and Paradigm Services Ltd for full services delivery. Both Paradigm companies are part of EADS SPACE Services.
EADS SPACE SERVICES: Paradigm Secure Communications and Paradigm Services are part of EADS SPACE Services, which is committed to providing and developing satellite services in the area of telecommunications and navigation.
EADS Astrium is Europe's leading satellite system specialist. Its activities cover complete civil and military telecommunications and Earth observation systems, science and navigation programmes, and all spacecraft avionics and equipment.
EADS SPACE, a wholly owned subsidiary of EADS is dedicated to providing civil and defence space systems. Its activities are based on three main subsidiaries: EADS SPACE Transportation for launchers and orbital infrastructure, EADS Astrium for satellites and ground segment and EADS SPACE Services to develop satellite services. EADS is a global leader in aerospace, defence, space and related services. In 2004, EADS generated revenues of EUR 31.8bn and employed a workforce of more than 110,000.
Press contacts:
Sara White
Paradigm Secure Communications
Tel.: +44 (0) 1438 282245
Remi Roland
EADS SPACE (FR)
Tel.: +33 (0) 1 42 24 27 34
Jeremy Close
EADS SPACE (UK)
Tel.: +44 (0) 1438 77 38 72
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
