What is the reliability of govemment/public support? It is important to determine the likelihood of a sustained government commitment to the program until completion or commercial return. Possible competition for funds would come from both other space programs and the successful development of other large scale energy sources (e.g. nuclear fusion). This analysis may impact both the program's degree of reliance on public funds, and the management structure (see below). What is the time scale for funding requirements, and how may this be optimized? How do funding sources change with different program phases? The time scale funding questions address the evolving needs of the project and the involvement of the funding parties. Within program schedule constraints, a degree of financial flexibility exists which may be optimized. For example, not all debt needs be incurred at the beginning of the program. What is the program schedule and how does it impact cost? The complexity and potential for large overruns on a project of this nature makes it imperative to exercise the greatest care in establishing its initiation date, phasing, and duration. This issue is important in all cases, but particularly so for demonstrations and early commercial opportunities, where the project's funding might depend heavily on fast initiation and development. Management and Organization What management structure should be implemented? This question aims at establishing the convenience of managing the project(s) through intergovernmental agreements (IGAs), industrial consortia, or through the creation of semi- autonomous organizations (e.g. Intelsat, Eumetsat), and to what extent the management structure should follow past experiences. In this context, additional questions on the allocation of decisionmaking, power and economic incentives for parties involved, and a possible balance between these two benefits must be adressed. For example, commercial enterprises might be left wi th less weight on the hierarchy relative to their participation, but with more share of profit. Innovative structures, reflecting the international character of the project and other peculiarities may be considered. How do the incentives for government investment impact management issues? Government may choose to support the program on the basis of future financial return (national prosperity), environmental benefits, and other concerns. Understanding government motivation will have an impact on program management structure and the organization to best capitalize on the nature of the support. 2 Demonstration-Specific Issues Cost of the demonstration program What is the cost of the desired demonstration program? In order to decide what will be achieved, it is essential to assess the amount of money available for the demonstration program. This will be imponant to define the specific goals that can be achieved with the demonstration model and the dates of completion. How can the demonstration programs be optimized for the acquisition of funding sources? Specific strategies used to finance the demonstration program may be different than the ones used for the commercial or full scale program. At this point, the test may not be financially viable, but may serve as a step in the development of further uses. It may therefore require a particular financial structure and sources of financing. Goals of the demonstration program Should the demonstration program concentrate initially on early commercial uses before demonstrating large-scale space to Eanh power technologies?
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