FINAL REPORT: DEFINITIONAL MISSION TO AZERBAIJAN:
AZERCOSMOS – AZERSPACE-2 FEASIBILITY STUDY
August 07, 2013
Space Partnership International
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Azercosmos has established an internal audit service accountable to the Chairman. Independent
financial audits are carried out in accordance with the legislation of the Republic of Azerbaijan.
Azerspace-1 Satellite Program
In 2008, MCIT initiated the telecommunications satellite project
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for the Republic of Azerbaijan,
the scope of which included the creation of a domestic Azeri space industry and the launch of
telecommunications satellites into orbit. First steps to define new space policies for the emerging
space industry followed nine months later. In 2009, MCIT began the foundational work to create a
new
satellite organization, which formally came into existence in 2010.
MCIT required a functional orbital slot from which to provide coverage for its target national and
international markets. MCIT proceeded to submit the requisite orbital slot appropriation
applications with the International Telecommunications Union (ITU) to obtain its own orbital
slot(s). This entailed coordination of the Azeri satellite’s frequencies with those of neighboring
satellites to avoid interference to existing satellite networks—a process that can take up to three
years to finalize.
Approximately one year after it was created, control and operation of the telecommunications
satellite program was reassigned to the new Azercosmos entity.
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Azercosmos would continue to
operate under MCIT as the main executor of the program.
Azerspace-1 Cost and Financing
The cost of the Azerspace-1 program (including launch, satellite, insurance, and ground equipment)
was approximately $280 million USD. The award was split between U.S. and French space
industry participants. In 2011, the U.S. Export-Import Bank agreed to finance $110 million USD,
representing 85% of the value of the satellite, whose manufacturing contract was awarded to U.S.
prime contractor Orbital Sciences Corporation. The remaining 15% was paid for by Azerbaijan
government funds.
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The French company Arianespace was awarded the launch contract, and was
provided a similar loan through the French
export credit-financing agency, Coface.
Sources of Financing
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USD (millions)
U.S. Exim Debt for satellite
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Coface Financing for launch services
87
Azerbaijan Government Financing
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Azercosmos estimated that these loans would be paid back within
five to seven years,
based on
the Azerspace-1 projected service life of 15 years and anticipated take-up rate.
Azerspace-1 Orbital Slot
In order to meet Azerspace-1’s aggressive launch schedule, in parallel to the lengthy ITU process,
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By the President of the
Republic of Azerbaijan; by Presidential Order #27
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Chapter 4.1 (a amended b) Presidential Order # 1093 on September 13th, 2010)
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Source: Azercosmos, Website 07.14.11: http://azercosmos.az/media-center/press-
releases/azerbaijani-communications-and-it-ministry-agrees-on-terms-of-leasing-azerspace/
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Azercosmos
Summary of Business Plan