Administrative environment for the SESAR programme

1
Administrative environmentfor the SESAR programme

• Patrick Ky Executive Director - SJU
• Ukraine, 25-26 June 2009

2
REMINDER
Created by the European Union Council Reg.
N219/2007
EUROPEAN COMMISSION
EUROCONTROL
THE INDUSTRY public-private partnership
700 mio
700 mio
700 mio
3rd founding member
2 founding members

• The SJU is set up to manage the activities of the
  development phase has a legal personality and
  hence has its own budget governed by specific
  financial rules.

3
A TRULY PUBLIC-PRIVATE PARTNERSHIP

• The SESAR JU
• A strong Public-Private Partnership
• The European Community and EUROCONTROL as
  Founding Members 15 Members representative of
  36 entities
• Budget EUR 2.1 billion
• Contributions
• European Community Cash Contribution
• EUROCONTROL In-Kind and Cash Contributions
• Members In-Kind and Cash Contributions
• The value of Cash Contribution corresponds to 5
  of the total In-Kind Contribution net of
  Co-Financing
• In-kind contributions are planned to be
  co-financed at max 50 of the Eligible Costs
  accepted by the SJU, in the limit of the amount
  established in each respective Membership
  Agreement
• In-Kind Contribution means the contribution
  (efforts, use of assets, services) to RD and
  management activities

700 m
700 m
EUROPEAN COMMUNITY
EUROCONTROL
MEMBERS
700 m

• Public-Private Partnership
• Innovation from private sector
• Public commitment and financial stability

4
The SJU governance

• The governance of the SESAR Joint Undertaking is
  ensured by the Administrative Board and the
  Executive Director.
• The Administrative Board is chaired by the
  representative of the Community, Mr Daniel
  Calleja, Air Transport Director in the
  Commission's DG TREN.
• The Administrative Board is composed of
  representatives of
• the members of the SJU
• the military
• the civil users of airspace
• the air navigation service providers
• the equipment manufacturers
• the airports
• the bodies representing staff in the air traffic
  management sector
• scientific institutions and the scientific
  community.

5
The Budget authority

• The SJU Budget and Annual Accounts are adopted by
  the Administrative Board on a proposal from the
  Executive Director
• The European Court of Auditors is the external
  auditor of the SJU
• The European Parliament, upon a recommendation
  from the Council, gives a discharge to the
  Executive Director on the implementation of the
  budget

6
Financial principles for the SJU

• Sound financial management
• economy, efficiency, effectiveness
• Internal Control System
• definition of mission, objectives, annual and
  multi-annual plans
• separation of functions (authorising officer vs
  accounting officer)
• delegation of authority
• processes and procedures
• monitoring, supervision, reporting
• corporate risk management
• Internal Audit and External Audit
• General Accounting and Budget Accounting
• Public procurement  and its principles

7
Working with SESAR

• 4 possible levels of participation
• Member of the SESAR Joint Undertaking (up to 50
  funding)
• Subcontractor to one of the Members (up to 100
  funding)
• Contractor to the SJU (50-75-100 funding)
• Associate member (50 funding)

Page 7
8
Member of the SESAR JU

• Any public or private undertaking or body
  including those from third countries that have
  concluded at least one agreement with the
  European Community in the field of air transport.
• Any request for accession shall be addressed to
  the Executive Director, who shall transmit to the
  Admin Board. The AB shall decide whether to
  authorise negotiations. If authorisation is
  given, the ED shall negotiate the conditions of
  accessions and submit them to the AB.
• In deciding whether or not to authorise
  negotiations, the AB shall in particular take
  into account
• Documented knowledge and experience in ATM
• The contribution expected for the execution of
  the ATM Master Plan
• The financial soundness
• Potential conflicts of interest

9
Rights and Obligations of Members

• Each Member undertakes to work together with the
  others Members and individually in a cooperative
  and open manner so as to perform the Programme,
  under the following principles
• commitment to deliver the Programme in order to
  achieve the overall ATM Master Plan deliverables
  as updated
• timely performance of all obligations under the
  MA and the MFA
• prompt notification of any significant
  information, risk, fact, problem or delay likely
  to affect the Programme
• delivery of Deliverables, information and reports
  necessary to perform obligations under the MA and
  the MFA, in light of Good Industry Practice
• compliance with all applicable laws and
  regulations, in particular EU competition laws,
  the state aid framework and the SJU code of
  conduct
• ownership of IPRs arising from the task carried
  out in the Programme and access rights to the
  SJUs IPRs
• promotion of the overall Communitys and SJUs
  interest .

10
Initial Membership timeline

• A Call for expressions of interest was launched
  by the EC on behalf of the SJU on 27th June 2007
• 26 expressions of interest received on 15th
  September 2007
• 15 applicants recommended to the SJU
  Administrative Board on 12th October 2007
• 4 entities ( AT-ONE, ONERA, ESA, ICAI) not
  selected to be part of the initial core group,
  but recommended for membership at a later stage.
• Negotiations with the SJU from 12th October 2007
  to 1st December 2008
• Invitation for a Best and Final Offer on 17th
  December 2008
• Approval of membership by the Board of 12th June
  2008

Page 10
11
Annual report 07-08 with transparent information
downloadable on www.sesarju.eu
12
Initial Core group of members
NORACON
13
TWO AGREEMENTS ! (1/2)

• SESAR is a Public-Private Partnership
• governed through 2 types of agreements, signed by
  the SJU and each Member in June 2009
• 15 Bilateral Membership Agreements (MA)
• 1 Multilateral Framework Agreements (MFA)
• A specific agreement between the SJU and
  EUROCONTROL governs the role and the contribution
  of EUROCONTROL
• Why 2 types of agreements?
• MA to define the bilateral relationship between
  the SJU and each Member
• MFA to establish the rules of the game to
  achieve together (SJU, EUROCONTROL and the
  Members) the Programme objectives in the spirit
  of trust, fairness and reciprocity

14
TWO AGREEMENTS ! (2/2)

• Bilateral
• Define
• the legal relationship membership of each
  Member
• the general principles of the participation to
  the SJU as a Member
• the detailed contribution as accepted by the SJU
  Administrative Board (Schedule 2)

• Multilateral
• Defines
• the rules of the game between the SJU,
  EUROCONTROL and the Members for the
  implementation of the Work Programme
• the contribution to the Work Programme and its
  future developments

15 Membership Agreements (MAs)
Multilateral Framework Agreement (MFA)
SJU
SJU
Each member
MEMBERS
EUROCONTROL
Page 14
15
Sub-contractor to a Member

• A third party engaged by a Member to carry out
  any of that Members tasks in relation to the
  Programme
• Subcontracting principles
• Best value for money
• Transparency and equal treatment
• Full responsibility of the Member for the
  performance of the obligations subcontracted to a
  third party
• Promotion of participation of SMEs and Research
  Organisations

16
Rights and obligations of a sub-contractor

• paid 100 by the contractor
• The Subcontractor shall fully comply with the
  requirements of the MFA and the relevant MA
• the Subcontractor shall have no access to any
  other Members and/or the SJUs Foreground or
  Background save to the extent strictly necessary
  for the performance of its obligations under the
  subcontract and upon prior written consent, not
  unreasonably withheld or delayed, of the owner of
  the Background or Foreground

17
Contractor to the SJU

• On a number of activities, the SJU may decide to
  organise a separate procurement process, either
  directly or through EUROCONTROL.
• Specific open calls for tenders were organised
  for airspace users, for consultancy and legal
  services, for communication support, etc
• Open calls for tenders will be launched
• WP E (long term and innovative research) July
  2009
• WP 11 (Airlines/Flight Wings operations)
  September 2009
• Other specific activities on an ad hoc basis

18
Associate Member of the SJU

• A number of organisations may have an interest in
  building a partnership with the SJU, without
  becoming a full member.
• The SJU will propose for the September AB meeting
  the notion of associate member, which will in
  particular address the questions of rights (in
  particular for participation in the work
  programme) and obligations (notion of conflict of
  interest).

19
Next Steps

• A second round of membership will be launched in
  2010-2011.
• It will aim at complementing the initial group in
  terms of technical/ geographical coverage if
  needed.
• A call for expression of interest for Associate
  Members will be launched end of 2009-beginning of
  2010, pending the position of the Admin Board.
• Specific activities (e.g. validation activities
  on given city pairs of portions of airspace) can
  be performed with a wider scope than initial
  membership, through ad-hoc arrangements.

20
Thank you for your attention
www.sesarju.eu