(BRUSSELS) - The European Commission invited bids on Tuesday for contractors to participate in the construction of the European Union's much delayed Galileo satellite navigation network.

The 30-satellite network is meant to challenge the dominance of the US-built Global Positioning System (GPS), which is widely used in navigation devices in vehicles and ships. The EU aims to have it up in space by 2013.

Galileo's 3.4-billion euro (5.4-billion dollar) budget has been divided into six segments with contracts for satellites, launchers, computer programmes, ground stations, control stations and the system's operation.

"With Galileo, the European Union will buy a state-of the-art satellite navigation system which will increase economic efficiency and reduce congestion and energy consumption throughout the transport sector," EU Transport Commissioner Antonio Tajani said.

Contractors bidding for the work have until the European autumn to make offers. The winning contracts will be decided by the commission and the European Space Agency.

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