Today.Az » Business » Azerbaijan's communication ministry discloses cost of launch of country 's first communication satellite
12 August 2009 [12:05] - Today.Az
Cost of Azerbaijan's first communication satellite Azerspace totals 163 million manat, Azerbaijan's communications minister Ali Abbasov said.

Abbasov said construction of the satellite will cost 87 million manat, 40 million manat will be spent to orbit the satellite. The satellite control center will cost 16 million manat but the rest 18 million manat will be spent on full insurance of new satellite.

Construction of the new the satellite will begin in September, 2009. The satellite is expected to be in orbit by late 2010 under the approved plan. The satellite will likely be launched from Baikonur cosmodrome (Kazakhstan).

Orbital Sciences Corp (USA) took the first place in the tender opened by the Ministry of Communications and IT to build Azerspace satellite. Space System / Loral inc (USA) took the second place but the French company Thales Alenia Space the third place.

French companies Thales Alenia Space and EADS/Astrium, U.S companies Orbital Sciences Corp and Space System /Loral inc, as well as Japanese and Russian consortiums - Sumitomo Corp. and ISS Reshetnev participated in the tender.

Participants' proposals were examined in accordance with essential requirements: stability and quality of equipment, life cycle of the satellite, use of the most advanced technologies, as well as cost of the proposal.

The Azerbaijani president charged the Cabinet of Ministers to work out a project of the state program for creation and development of space industry to give impetus to use high technologies in Azerbaijan.

The Communications and IT Ministry was charged to take appropriate measures necessary for launching telecommunication satellites (Azerspace) in orbit. The state plans include launching of two satellites into orbit. The first satellite is planned to be launched in 2011 and the second one in 2012. The project cost varies $100 to $170 million.

Successful implementation of the oil and gas strategy and flows of oil dollars in Azerbaijan  recently allowed Azerbaijan to implement global projects.

Existence of a national satellite will enable Azerbaijan to establish high-quality and reliable communications, television, as well as increase the number of channels. Azerspace Satellite will cover Europe and Asia that would enable Azerbaijan play the role of transit country in terms of broadcasting of channels. Moreover, launching of own satellites into orbit will be the first step in realization of prospective projects to turn Azerbaijan in a country with the space industry.

Azerbaijan has received a license from the International Telecommunication Union (ITU) to place Azerspace in geostationary orbit.

It is expected the project will be financed through public investments, then will shift to self-repayment at the initial stage. Term of exploitation of the satellite will be 15 years, payback period - about five years. Azerbaijan intends to use about 25 percent of resources of the satellite. The rest part will be offered to foreign operators.

/Trend Capital/

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