FINAL REPORT: DEFINITIONAL MISSION TO AZERBAIJAN:
AZERCOSMOS – AZERSPACE-2 FEASIBILITY STUDY
August 07, 2013
Space Partnership International
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3.2 PROJECT DESCRIPTION
The Contractor shall submit a description and history of the project, including, among other things,
host country Project Sponsor, sector, project location, source of raw materials, infrastructure
requirements, proposed technological approach, legal and regulatory framework (licenses,
permits, etc.), implementation schedule, economic fundamentals (estimated capital cost, life cycle
costs, expected revenues, etc.), and any other key variables or issues that the Contractor deems
critical as part of a thorough activity/project evaluation. The Contractor shall also provide a step-
by-step detailed explanation of how the project will be implemented following the recommended
USTDA-funded activity, and explain how the recommended USTDA activity supports the project
implementation process.
Introduction
USTDA retained the services of Space Partnership International (SPI) (Contractor) to assess and
justify whether or not USTDA should provide funding for a geostationary telecommunication
satellite feasibility study as requested by Azercosmos. The purpose of this
review was to provide an
independent recommendation to USTDA whether Azerspace-2 Satellite Project, proposed by
Azercosmos, meets USTDA's funding criteria and to recommend and prepare projects for potential
future grants.
SPI principals traveled to Azerbaijan for one week during April and May 2013 to meet with and
interview project stakeholders. In advance of the visit to Azerbaijan, SPI conducted interviews with
various companies and organizations in order to obtain insight into potential issues, opportunities,
key points of contact, and prior lessons learned from the various Azerspace-1 project phases:
business planning, financing, manufacturing, post-launch training, operations, and sales. Finally,
the pre-visit discussions allowed SPI to gauge U.S.-company interest in participating in the
Azerspace-2 program.
USTDA provides grants to foreign sponsors to support feasibility studies and technical assistance
that advances the implementation of projects which promise significant export potential for U.S.
companies, as well as supporting the development of regulatory bodies or other institutions that
help create a positive climate for private-sector infrastructure investment.
USTDA's core funding criteria include: (1) the contribution of the project to economic, social, and
environmental development objectives; (2) the commitment of the project sponsor to implementing
the project; (3) the relative priority of the project; (4) project size and potential U.S. export
opportunity; and (5) the likelihood of the project attracting implementation financing.
Most USTDA-reviewed projects typically generate U.S. export revenues below $10 million. Based
on the $120-million U.S. contract awarded to U.S.-based Orbital Sciences Corporation for the
construction of the Azerspace/Africasat-1a satellite, we expect potential export revenues for the
Azerspace-2 program to significantly exceed this $10 million threshold.
SPI researched the overall context in Azerbaijan to identify any critical economic, political,
technical, environmental, legal/regulatory, or resource-based activities—past, present, or future—
that could impact the viability of the Azerspace-2 project, i.e. cost, schedule, level of service,
sustainability, and the ability to promote a strong policy-based privatized telecommunications
industry in Azerbaijan.