UNIDROIT Space Protocol: Workshop 9 February 2011
The Workshop addressed the proposed adoption of the UNIDROIT Space Protocol, its legal and commercial merits.
UNIDROIT Space Protocol Workshop Report
The following is an outline of the program. It was highly participatory, with discussion following several brief presentations.
PRACTITIONER AND INDUSTRY WORKSHOP
WEDNESDAY 9 FEBRUARY 2011
8:45 TO 13:00
FINANCING SPACE ASSETS: THE UNIDROIT SOLUTION EXAMINED
CONVENTION ON INTERNATIONAL INTEREST IN MOBILE EQUIPMENT: SPACE PROTOCOL
Funding the acquisition and operation of satellites and other space objects present the same
challenges as those associated with any high value equipment. In addition their location
outside any territorial jurisdiction adds to the complexity of the funding transaction. The
International Institute for the Unification of Private Law (Unidroit), in a departure from its
normal practice of harmonising the rules of national law on a given subject with a view to
promoting international commerce, has promoted a Convention on International Interests in
Mobile Equipment. The text of the Convention may be accessed at www.unidroit.org.
The Convention seeks to promote and expand the availability of asset-
based financing in respect of high-value mobile equipment normally moving from country
to country or beyond any national jurisdiction in the ordinary course of business.
The Convention has been applied to aircraft and rolling stock by means of protocols
relevant to those assets. Unidroit proposes the application of the Convention by means a
Space Protocol. The aim is to provide the creditor with greater legal certainty to facilitate
grant of assets based finance in respect of assets it may otherwise find difficult to repossess
or control. However, many in the sector have legitimate concerns about the Protocol and its
operation.
Several governments are in the process of reviewing and deciding whether to adopt the
Protocol. This Workshop examined the efficacy of the Space Protocol to achieve greater
availability and ease of funding for space projects. It explored the needs of operators,
financiers and insurers. Professor Roy Goode presented the Protocol
and outlined the obstacles to funding space equipment and the proposed solution. There was an examination of the legal basis for the Protocol in the context of the Convention, and its
perception by those directly affected by its operation.
Workshop participants discussed the issues from all relevant perspectives.
PROGRAMME OUTLINE
Chairman: Professor Sa’id Mosteshar
ISPL Director
8:45 – 9:30 Unidroit Perspective
The Perceived Problem, the Convention and Protocol, Solution Protocol
Proposes to Provides; Current status of UNIDROIT Process
Professor Roy Goode
9:30 – 10:00 Legal Issues
The Legal Structure, Purpose of the Convention, Protocol in the Context
of the Convention, Definitional Issues
Professor Sa’id Mosteshar
ISPL Director
10:00 – 10.45 Operators’ Perspectives
Satellite Operation Funding
Aarti Holla
Secretary General, European Satellite Operators’ Association
Ann Vandenbroucke
Manager – Regulatory and Policy Issues, Inmarsat; ISPL Faculty
10.45 – 11.15 Coffee
11:15 – 11:45 Potential Beneficiaries
Small Satellite Operator
Kumar Singarajah
Director of Regulatory Affairs, Avanti; ISPL Faculty
11:45 – 12:15 Finance Sector Perspective
Asset Finance and Project Finance
Wim N Steenbakkers
Director, Structure Finance Telecom & Media, ING Bank
12:15 – 12:45 Insurance Perspective
Impact on Insurance Availability and Premiums
Neil F Stevens
General Counsel, Space, Atrium Space Insurance; ISPL Faculty
Further information about the proposed Protocol is available on the UNIDROIT website.