FINAL REPORT: DEFINITIONAL MISSION TO AZERBAIJAN:
AZERCOSMOS – AZERSPACE-2 FEASIBILITY STUDY
August 07, 2013
Space Partnership International
9
Azerbaijan."
Parallel to these developments, on May 3, 2009, the
Azercosmos Open Joint Stock Company
(OJS Co), or Azercosmos, was established as the state-owned satellite operator for the country of
Azerbaijan. Functioning under the MCIT, Azercosmos is the key implementation arm of MCIT for
the state-mandated space program, and is responsible for the launch, operation, and
commercialization of telecommunications satellites serving the Republic of Azerbaijan. This
includes the delivery of satellite-enabled communication services and platforms to public and
private sectors, including broadcasting, broadband, government customers, and customers in other
countries.
To meet these objectives, Azercosmos already has in place plans to launch a low Earth orbiting
(LEO) satellite in the near future, as well as other telecommunications satellites in the coming
years.
Azercosmos Created in Response to National Telecommunications and Economic Strategy
Like its parent MCIT, the creation of Azercosmos can be attributed to changes in underlying
government policies, which have come to place high priority on information and communications
technology (ICT) as an engine of economic growth. Azerbaijan’s President recognizes that ICT has
rapidly evolved into a multibillion-dollar industry that contributes appreciably to the country’s
gross domestic product (GDP).
During our first interview, Rashad Nabiyev, Chairman of Azercosmos, stated that his organization
was established as part of a wider economic diversification plan citing:
(1)
State policy on diversification of the economy and prioritization of ICT as the second main
sector of the Azerbaijan economy after the
oil-gas industry
;
(2)
Determination that satellite technology is the best way to provide
connectivity and information
securely in
Azerbaijan; and
(3)
State-identified need to use satellites to build capacity and “contribute to closing the gap in the
global digital divide.”
2
Economic Diversity
The need to reduce economic dependency on Azerbaijan’s oil-gas revenues was addressed during
our visit with the U.S. Economic Advisor to Azerbaijan at the U.S. Embassy in Baku in April 2013.
These concerns are echoed by various reports and studies dating to 2011, which show that the
government will not be able to depend on stable revenues streams from oil exploitation due to the
drop in oil production. In 2012, President Aliyev revealed that Azerbaijan had lost $8 billion in
revenues due to an “unexpected decline” in oil extraction by BP,
3
and that Azerbaijan’s oil
production had fallen for a second straight year, to 43 million tons.
Regardless of whether this is an unexpected slump or a premature peak, the drop in oil extraction
2
Source: Azercosmos, 2013
3
BP is the largest investor in Azerbaijan and operator of both the Azeri-Chirag-Guneshli (ACG)
and Shah Deniz mega-fields. (source: http://platformlondon.org/2012/10/15/bust-up-between-
aliyev-and-bp-reveals-corporate-profits-and-vulnerable-economy/)
FINAL REPORT: DEFINITIONAL MISSION TO AZERBAIJAN:
AZERCOSMOS – AZERSPACE-2 FEASIBILITY STUDY
August 07, 2013
Space Partnership International
10
will mean lower oil revenues paid to the Azeri government, which translates to less budgetary
flexibility and greater limits on both social and defense spending.
Azercosmos Organization
Azercosmos has evolved as a relatively flat, non-hierarchical organization, which Contractor
believes is appropriate at its current state of development. Operations are conducted out of three
main locations: the Azercosmos headquarters in Baku, the primary ground control station outside of
the
capital city, and the backup ground control station in Nakhchivan.
Figure 1: Azercosmos Organizational Structure
Azercosmos Board Management, Accountability, and Transparency
The High Management Body of Azercosmos is the General Assembly of its shareholders. The
Management Board is a joint executive body which includes a chairman appointed by the President
of the Republic of Azerbaijan and two Deputy Chairmen appointed by MCIT. The Chairman of the
Management Board heads Azercosmos; however, the decisions of the Board are taken on the basis
of majority rule.
CHAIRMAN OF THE BOARD & CEO
Rashad Nabiyev
Chief Technical Officer (CTO)
Wesley Wong
Satellite & Ground Systems Development
Satellite Operations Group
Satellite Systems Group
Satellite Computer Systems Supervision Group
Flight Dynamics Group
Ground-Based Systems Services Group
Deputy to the Chairman
Corporate Governance Manager
Rovshan Rustamov
PR Manager
Nigar Madatli
Specialist: Confidential Affairs
Azer Karimov
Security Manager
Mahammad Yagubov
Risk Management Group
Elshan Abdullarev
Quality Assurance Group
LEO Satellite Systems Development
Hikmat
Hasanov
Legal Department
Ilgar Abdullayev
Corporate Finance Dept. (CFO)
Samaddin Asadov
Accounting Department
Agali Abasov
HR Department
lnara lbrahimkhalilova
Sales & Marketing Department
Firuz Sulmanov
IT Department
Rafail Zeynalov
Administrative Department
Adil Hasanov
Documentation & Translation
Rugiyya Hajiyeva
Service Personnel Group
