The Hongkong and Shanghai Banking Corporation (HSBC) will finance the country’s first ever satellite Bangabandhu 1.
Thales Alenia Space, a French aerospace manufacturer and work order winner of Bangabandhu Satellite Implementation Project, has arranged this financing through a one-to-one discussion.
Bangladesh Telecommunication Regulatory Commission (BTRC) signed a Tk2,967 crore agreement with Thales Alenia Space on November 11, 2015.
The HSBC will be the major financier while the local City Bank will provide the rest of the amount to construct this dream project of the current government.
An important meeting will be held in this regard at the BTRC office in the capital. High officials of Thales Alenia and the Bangabandhu Satellite project director will take part in the meeting with BTRC Chairman Dr Shahjahan Mahmood.
Dr Shahjahan Mahmood told the Dhaka Tribune that Thales Alenia arranged the financier but the government would have to pay off the loan.
“We hope this proposal would be better compared to that of other proposals. In spite of the fact we will have a discussion over the matter as far as our interest is concerned.”
An official of the commission said there is a pressure from the government end to expedite the project.
According to the BTRC’s provision if the country’s first-ever Bangabandhu Satellite Project misses its installation deadline, Thales will have to pay compensation.
An official of the BTRC said the government had incorporated the provision as it wanted quick implementation of the project.
Thales Alenia has already embarked on the Bangabandhu Satellite Project so that they can complete the job within two years as per the government requirement.
On October 20 the Cabinet Purchase Committee approved the tender proposal in favour of Thales as all other participants were non-responsive during the bidding process.
Once the satellite is launched into orbit, it will eventually help the country save $14m annually. The government can also earn by renting the satellite.
Bangladesh has already signed a deal with Russia-based Intersputnik to take out a lease on an orbital slot worth $28m.
In June last year, four international companies – Great Wall Industry Corporation of China, MDA Corporation of Canada, Thales Alenia Space, and Orbital ATK from USA – participated in the tender process of the installation and post-installation support services for launching the country’s first-ever satellite.
Though the MDA Corporation had the lowest bid of $222.75m, it could not win the tender because of some inconsistencies in the price it quoted.
Considering all facts, the committee reportedly selected the Thales Alenia Space, the second-lowest bidder that offered $248m for the project.