1. ICAO PKD Implementation
Financing Requirements
May 18, 2004

2. Status
ICAO PKI Infrastructure Specification achieved – new Technical Report
ICAO Public Key Directory (PKD) required – TAG approval implies action
Detailed estimates and budgets available
Proposal for first phase in hand
Some funds potentially available from ICAO

3. Elements of the PKD Architecture – 2 sites, each with backup.
Secure communications with countries
Outsourced site/system IT operations.
ICAO staff for PKD operation & management
PKD certificate update
Due diligence review
Country support and liaison
One-time setup and annual subscription fees

4. PKD Operations - Assumptions
Year 0 (next 12 months) – implementation
Year 0 - first site installed in Montreal
Year 1 – 13 Visa Waiver nations sign up, plus USA and Canada
Year 1 – 2nd site installed remote from Montreal.
ICAO staffing in Years 0 and 1
Other VW nations in Years 2 & 3
No schedule assumptions for non-VW nations

5. Budget Highlights Full Implementation costs - $1.8M USD
Includes 2 sites & ICAO staffing
Annual operating costs - ~$800,000 USD
Includes outsourced IT management at 2 sites

6. Cash Flow Assumptions Fees based on country size: Cost of money = 10%
Scale 1 countries: <15M citizens
Scale 2 countries: 15M to 25M citizens
Scale 3 countries: 25M to 100M citizens
Scale 4 countries: >100M citizens
Cost of money = 10%

7. Fee Assumptions Initial setup fees: Participation fees:
Scale 1 - $50,000
Scale 2 - $50,000
Scale 3 - $100,000
Scale 4 - $150,000
Participation fees:
Scale 1 - $25,000
Scale 2 - $25,000
Scale 3 - $75,000
Scale 4 - $75,000

8. Spreadsheet Results Maximum negative cash flow = $1.6M USD
Some hedge required
Break-even in ops Year 4 (5 years hence)
Small operating margins thereafter
Very economical operation for all countries

9. Financing Options Grants? Country loans Commercial loans
Unlikely
Country loans
Only a few countries need participate
Commercial loans
Country guarantees?
Commercial financing
“Partnership” arrangements with industry

10. Conclusions PKD can be and must be done Inexpensive for all
ICAO is ready; must proceed NOW.
Immediate decisions necessary; specific country support requested.