The Tk32.48bn Development Project Proposal (DPP) for Bangabandhu 1, the first satellite of Bangladesh, is ready for being placed before the highest economic policymaking body of the country.
The proposal is likely to be tabled at a meeting of the Executive Committee of the National Economic Council (Ecnec) very soon.
The Bangladesh Telecommunication Regulatory Commission (BTRC) has already finalised the proposal from its end and would initiate buying “orbital slot” for the satellite once Ecnec gives approval.
The BTRC will purchase an orbital slot on 119 degree East from Intersputnik, a renowned Russian company, at a cost of $28m (Tk217.7bn) with a single lifetime of 15 years.
Initially, the BTRC applied for a slot on 102 degree East to the International Telecommunication Union (ITU). However, nearly 20 countries including the USA, Russia, France and Australia raised objections that their satellite communication would be disrupted if Bangladesh was given that slot.
“We will have to act fast after getting the Ecnec nod because a lot of time has already been wasted,” BTRC Chairman Sunil Kanti Bose told the Dhaka Tribune.
Out of the proposed DPP cost of Tk32.48bn, the government will bear Tk15.604bn from its own funds.
Of the Tk15.604bn, the government allocated Tk6.91bn in the previous fiscal, Tk3.49bn for the ongoing (2013-14) fiscal and the remaining Tk5.02bn for the next (2014-15).
The other half of the project cost that is Tk16.883bn, will be funded by a supplier’s credit from the Export-Import Bank of USA. That deal, however, is still to be finalised.
A BTRC official told the Dhaka Tribune: “It [the deal with the US bank] has not been finalised at the government level; but most of the communication is already complete.”
Earlier, the Export-Import Bank of USA sent a proposal to the government through the BTRC for funding the project at less than 2% interest.
The BTRC chairman also informed that two parties had been contacting the government expressing their interests in the satellite project.
“Great Wall of China met me last week. They have been showing interest for a couple of years. Russian Ambassador to Bangladesh Alexander A Nikolaev has said that a state-run company from his country is interested in the project,” Bose said.
He added that the government had decided to launch the satellite under Public-Private Partnership (PPP) scheme in order to ensure impeccable maintenance after the launch.
According to documents, the project commenced on July 1 this year and will end on June 30, 2016.
The telecom regulator has chosen Betbunia of Chittagong and the BTCL Staff College in Gazipur for setting up two earth stations for the satellite. There will also be a maintenance office at the BTRC building.
Sources said after purchasing the orbital slot for the Bangabandhu 1, the government would try to book two more slots in advance on 102 degree East and 69 degree East for launching two more satellites in the future.
The government has also reportedly shown interest in purchasing the 135 degree East slot from the ITU, although its location was far away from Bangladesh’s coverage.
“A single satellite will never be viable for business. We need to launch at least one more satellite getting benefitted and making profits,” Sunil Kanti Bose said.
Figures show that Bangladesh spends around $11m annually on satellite rents for running television channels, telephones and radio connectivity.
A successful launching of the satellite is likely to bring $50m annually by renting out the unused portion to neighbouring countries like Nepal, Bhutan and Myanmar.
Fifty countries in the world at present have satellites of their own. India and Pakistan are the only countries in the subcontinent with satellites. Sri Lanka is also in the middle of a process for launching one of its own.
Source: Dhaka tribune