The European Galileo satellite navigation system is facing 1.5 to 1.7 billion euros of extra costs, and will not be ready until 2017-18, according to a new report by the European Commission.
Since its inception the project has faced countless delays, the news means another three to four year delay to the expected availability of the European rival to the US-built GPS, which was originally expected to be ready in 2008. Moreover, the EC also acknowledges that the program will be unprofitable over the long term, running at an annual loss of 750 million EUR:
Last year, the European Court of Auditors criticised the project as ill-prepared and badly managed, and in January the Commission said it would be in operation in 2014.
The FTD also cited the report as saying the project will be unprofitable "over the long term", running at a annual loss of 750 million euros.
The project will cost taxpayers about 20 billion euros over the next 20 years in development, construction and operating costs, the paper said.