The government is negotiating hard with the financier Hong Kong and Shanghai Banking Corporation (HSBC) to launch the country's first ever satellite Bangabandhu 1 by 2017.
Under the ongoing negotiation, HSBC has offered to lend Tk3,000cr at an annual interest of 0.5% while Bangladesh Telecommunication Regulatory Commission (BTRC) wanted it at 0.2%.
The bank also proposed to pay back the entire loan amount by 10 years while BTRC asked HSBC to extend the payment period by two years more.
HSBC offered to pay 1.50% structuring and coordination fee but finally it was agreed at 1.45%.
The BTRC agreed to pay .38% as commitment fee while HSBC offered .42%.
HSBC has taken two weeks to evaluate the regulatory body's proposal. After that certain period Hong Kong based bank will inform the BTRC about their opinion.
Recently, BTRC and HSBC bank high-ups held several meetings at the Head office of the bank in the city to reach a consensus.
A high official of BTRC told the Dhaka Tribune all interest rates and condition of HSBC were too high to be agreed upon.
“We have opposed all condition and proposed to reduce all interest rates and relax their condition so that we can reach an agreement. Otherwise, the BTRC will find another financier to set up the country's first ever satellite Bangabandhu 1,” said the official.
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.
BTRC signed a Tk2,967cr agreement with Thales Alenia Space on November 11, 2015.
According to the BTRC 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.
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.
