The telecommunications ministry has prepared a draft for the development project proposals (DPP) for Bangladesh’s first satellite Bangabandhu 1, projecting a total cost of Tk32.487bn, for the approval of the planning ministry.
The government will provide Tk15.604bn – 48.03% of the total cost – while the rest, Tk16.883bn, will come from a supplier’s credit of the Export-Import Bank of the USA, but this has not yet been finalised.
The Executive Committee of National Economic Council (Ecnec) in January 2012 approved the Tk30bn project, which will start on July 1 this year and aims to end by June 30, 2016, according to the draft DPP. Ecnec had initially set the timeframe for the project from July 2011 to June 2015.
Telecommunications Minister Sahara Khatun told the Dhaka Tribune that the government had instructed her to implement the project as soon as possible.
A source at the communications ministry on Wednesday said that a meeting of the ministry today (Thursday) might approve the draft DPP, a copy of which was obtained by the Dhaka Tribune.
Communications Secretary Md Abubakar Siddique earlier told the Dhaka Tribune that they received a proposal from the US bank through the Bangladesh Telecommunication Regulatory Commission (BTRC) and that the proposal was sent to the Economic Relations Division for approval.
The bank wrote to the BTRC recently, expressing interest in funding around Tk25bn for the project at an interest rate of less than 2%.
The draft says the BTRC will bear the whole amount of Tk15.604bn for the government. In fiscal year 2013-14, the government will allocate Tk3.49bn for the project, Tk5.2bn in 2014-15, and Tk6.91bn in the final year.
The Earth stations of satellite Bangabandhu 1 will be set up at Betbunia in Chittagong and the BTCL Staff College in Gazipur while a maintenance office will be established at the BTRC building at Ramna in the capital.
According to the Export-Import Bank’s proposal, the BTRC can choose any vendor from the USA, Canada and Europe.
Officials said the BTRC will have to spend $35m for the orbital slot for a single lifetime of 15 years.
“After signing the non-binding agreement, we are now in the second phase of finalising the deal with Sputnik,” said an official, requesting anonymity.
Meanwhile, the BTRC is also trying to get its own orbital slots on 102 degrees and 69 degrees east. It also expressed interest to the International Telecommunications Union for another slot on 135 degrees east although it is very far from Bangladesh’s range, an official of the project said.
According to the consultant of the satellite project, Bangladesh now spends around $11m annually on satellite rents for running television channels, telephones and radio stations.
If Bangladesh can successfully launch the satellite, it will earn $50m by renting out to other countries, such as Nepal, Bhutan, and Myanmar, every year.
“Although India has its own satellites, it can be a market for us, too,” an executive of the consulting firm, Space Partnership International, said.