Possible Use of Joint Financing Concept

ICAO is dedicated to providing all interested parties, in particular Contracting States and the Regional Planning and Implementation Groups (PIRGs), with information and advice on joint financing matters and to study requests for joint financing on a case-by-case basis.

In this respect, because the new CNS/ATM systems have a capacity which frequently exceeds the airspace controlled by an individual State and because of the magnitude of the investments involved, joint financing-type arrangements would lend themselves well to the implementation of a number of CNS/ATM components in situations where it is, for example, very costly for a State to act alone or where an existing regional organization (ASECNA, COCESNA, EUROCONTROL, etc.) does not act on its behalf. Such components potentially would cover all the elements of CNS/ATM, in particular, ground earth stations (GES), communications satellite transponders and integrity monitoring, and satellite-based augmentation systems required in connection with the GNSS.

Other possible applications of the joint financing concept, where facilities and costs involved are beyond the needs of single State, include the development of cross-polar routes and calibration of ground aids.

A number of prerequisites are required for successful application of the joint financing concept:

• a clear description of the project and its objectives, which should be to facilitate (or make possible) the establishment of an air navigation facility or service, and to reduce the cost for each participant;
• a clear identification of the services to be jointly financed; 
• a clear definition of the responsibilities of the different partners who would agree to participate (in this regard involvement of IATA as representative of the users would be useful); 
• simplicity and flexibility of the arrangements which should be adapted to the circumstances of interested States and allow efficient implementation ("administrative agreements" to the extent possible); and 
• equitable recovery of costs, including administrative costs, through user charges, as well as consistency in general with the ICAO's Policies on Charges for Airports and Air Navigation Services​.