The Azerspace satellite, image courtesy of Orbital Sciences
The Board of Directors of US Ex-Im (Export-Import Bank of US) has approved financing for the project through the intermediary bank BNP Paribas. Azerbaijani sources say the credit will be given for a period of 12 years, with 2-year grace term. "The signing of the tripartite loan agreement between the Azerbaijani government, US Ex-Im and BNP Paribas is expected in late May," the source emphasized.
Azerbaijan’s telecommunications satellite Azerspace is designed to render services of digital television and radio broadcasting, access to the Internet network, data transmission, creation of multiservice networks VSAT, and governmental communications. Azerspace will be equipped with 24 transponders of C range (frequency band 4 - 6 GHz) and 12 transponders of Ku range (frequency band 11-13 GHz). The satellite will be placed in orbital position of 46 degrees East. Service life of the satellite in orbit will be up to 20 years. The servicing zone of Azerspace will include the countries of Europe, Central Asia and Africa. Today, Azerbaijan spends annually millions of dollars on lease of transponders of foreign satellites for communication and television broadcasting. According to international practice, rent of six up to eight transponders costs approximately 9-10 million dollars a year. The national satellite launch will allow cutting these expenditures. In accordance with Ministry’s estimations volume of Azerbaijan’s capital investments for the project will make AZN 319 million, including AZN 127 million of operating expenses of the satellite. The project will repay the made investments in 5-7 years of operation. The volume of revenue to be received from the project of launch of national telecommunication satellite Azerspace will reach AZN 495 million. The profit will total AZN 176 million. The obtained income will be directed for technical development of the country. Launch of Azerspace satellite is scheduled for 2012.