ICAO PKD Implementation Financing Requirements May 18, 2004

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

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

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 – 2 nd 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

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

Cash Flow Assumptions Fees based on country size: – 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%

Fee Assumptions Initial setup 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

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

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

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