International Lunar Conference

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1 International Lunar Conference Commercial Lunar Exploration & Development: Models of International Cooperation Toronto, September 19, 2005 Dr. Ramin Khadem Chairman, Board of Trustees of the International Space University Former Chief Financial Officer, Inmarsat Plc

2 Cooperation and Reciprocity Cooperation and reciprocity are fundamental ingredients for success, particularly so for global undertakings. Examples: the accord of the Universal Postal Union of 1874, where nation states agreed to deliver each others mail on a reciprocal basis. Many others in the fields of health, education, science and industry In many instances the whole is larger than sum of its parts! When an enterprise cooperates at an international level a Global multiplier comes into play. A global cooperative venture in space exploration will galvanize humanity into action and bring about its own multiplier impact.

3 How to get there? Despite the efforts of many dedicated people in the space industry over the last several decades, space remains the best kept secret; the vast majority of humanity are still unaware of the brilliant future that is in store for us. Mankind s very existence and habitat on earth may depend on supplemental sources of energy from space; creative and sustainable ways of utilizing such resources will allow for a plentiful supply for generations to come. ( Moonrush and other sources) The prospects of an ever advancing civilization, beyond our wildest dreams is possible, so long as we embrace an ethos of global governance, think strategically and act decisively.

4 Ethos of Global Governance First : In the words of a 19th century luminary: The earth is but one country and mankind its citizens. Otherwise said: The inhabitants of this planet are brothers and sisters facing common challenges that only together they can overcome so to progress as a family. Second : Those capable of contributing more effectively to our future progress, because of skill sets or ingenuity, ought to be rewarded and compensated for it. Otherwise said: The free enterprise model must be highly encouraged in pursuit of the common good.

5 Ethos (con t( con t) Third: Returns from space exploration require an enlightened perspective: IRR calculations must make allowance for global benefits that are difficult to value. Otherwise said: Believe in a global multiplier impact in space ventures, and be less focused on the payback period. Subsidiary point: Look beyond short term returns; a massive effort embarked upon now capturing the imagination of people, could engender such vitality to help set aside petty differences on earth, promote man s greater ambitions in mastering space and advancing his unique existence.

6 Spectrum of Possibilities Remain open minded on various models and be prepared to modify each, in light of circumstances. The spectrum ranges from fully public at one end to a fully private initiative at the other. Model 1: 1 Fully Public Model 2: 2 New International Cooperative Model 3: 3 Public/Private Partnership Model 4: 4 Fully Private Club of Space- faring nations Investors from all nations Private investment based on public commitments Club of private investors

7 Model 1: Club of Space-Faring Nations Club of space-faring nations committed to ongoing massive multi-year funding. Rules to allow emerging space nations to join in this Club. To ensure financial discipline, joiners to pay a fee based on net assets or other measure of accumulated value. U.S. Aldridge Commission s proposals highly appropriate and to be accommodated.

8 Model 2: International Cooperative Cooperatives with a commercial focus have had a successful track record (Intelsat, Eutelsat and Inmarsat). Provide an opportunity for all nations to play a role. Governance, funding and returns based on weighted ownership. Private/public companies to participate alongside government entities or be sole investor from a country. Will be perceived as an international initiative belonging to all nations/groups that are investing, thus promoting global branding & avoiding country labels. Interest of large investors safeguarded by simple or special majority while respecting minority positions.

9 Model 3: Private Public Partnership PPP combines traditional infrastructure funding of governments with risk capital of private sector. Governments to agree commitments to space together with a guaranteed minimum return to investing parties. Notable progress in various fields; in satellite arena: UK Paradigm/EADS Astrium providing Milsatcom capability. European Union Galileo undertaking, bids by a joint consortia backed by investor equity stakes and expected committed bank financing package. International legal framework required to provide full backing of space-faring nations to the PPP.

10 Model 4: Private Enterprise Success of X Prize/SpaceShipOne provides a huge boost. Can do private sector, does wonders when challenged and incentivized! Renewal of faith in prizes and private entrepreneurship thanks to Peter Diamandis! A well publicized international programme of mission to outer space with significant prize as a corner stone could galvanize efforts. Diverse private investors from various nations could come together in the pursuit of peaceful exploration of space.

11 Where to from here? Perhaps space tourism is the entry point for cooperative space ventures. But there are more substantive reasons to want to be in space. Choose an optimal platform amongst those discussed, or a hybrid one that provides maximum chance of success. As an example, an international cooperative, working alongside private entrepreneurs might work To allow rolling of interest into cooperative and to take a stake once certain milestones are triggered or success factors are met.

12 Conclusion The challenges faced are enormous and so are the opportunities and fruits of success. Space presents possible panacea to problems on earth, both for co-existence with one another and for the future survival of our race. A massive public education of potentialities offered by space exploration is essential, and must be embarked on. Though space is the common heritage of mankind, we must incentivize entrepreneurs to take risks while ensuring the common good is not compromized by a wild west land grab

13 Conclusion It is still not too late for well meaning individuals from all walks of life to find a common platform upon which to form a global enterprise to tackle the responsible discovery, exploration and sustainable exploitation of space for the common good of all mankind. We can get there if we subscribe to the ethos outlined earlier, courageously discard conventional approaches which have not served us well and adopt a new paradigm which looks to international cooperation and what is best for citizens of planet earth.

Thank you David (Johnstone) for your warm introduction and for inviting me to talk to your spring Conference on managing land in the public interest.

! 1 of 22 Introduction Thank you David (Johnstone) for your warm introduction and for inviting me to talk to your spring Conference on managing land in the public interest. I m delighted to be able to