Europe's Galileo satellite navigation system has already run more than 400 million euros (513 million dollars) over budget in its first phase, the head of the group managing the project said on Monday.
The over run was due mainly to miscalculations for the costs of building and launching two test satellites, said Rainer Grohe, director of the Galileo Joint Undertaking.
The first satellite was sent into orbit in December while the second is due to head into space by the end of the year.
Grohe said improvements to the project's security system also added to the financial burden.
The spending brings to 1.5 billion euros the total cost of the first phase. Around 4.5 billion euros have been budgeted for the entire project, which will involve putting 30 satellites into orbit.
Europe hopes the Galileo project, scheduled to be up and running commercially by 2010, will rival the reigning GPS network from the United States.
Unlike GPS, which is controlled by the US military, Galileo will stay under civilian control, increasing the European Union's strategic independence.
The new system is expected to be more accurate than GPS, giving mariners, pilots, drivers and others an almost pinpoint-accurate navigational tool.
Source: Agence France-Presse
