Azerbaijan plans to attract major insurer under Azerspace project

ICT Materials 19 April 2011 16:29 (UTC +04:00)

Azerbaijan, Baku, April 19 / Trend H.Valiyev /

The Azerbaijani Communications and IT Ministry plans to define an insurer for the country's first national satellite Azerspace by late 2011.

"Following the first phase, Azerbaijan is likely to announce a tender for insurance services. The world's largest insurers will be considered," a source said.

The country seeks to attract a foreign insurer due to local insurance companies' inability to take on such huge risks.

According to preliminary information, the terms and requirements will be prepared as of September.

The cost of producing Azerspace is $120 million. The cost of the satellite's launch into orbit is $93 million.

Azerbaijan's capital investment in the project is approximately 319 million manat; 127 million will be spent on operating costs. The payback period is six years, and the income will reach 176 million manat, Communications and IT Minister Ali Abbasov said earlier.

The income from the satellite will reach roughly 495 million manat. He added that the funds will be spent on the country's technological development.

"Azerspace is expected to launch in July-August 2012," Abbasov said. "Later, it is expected to to launch several more satellites."

Azerspace is designed to provide digital broadcasting, Internet access, data transmission, VSAT multi-service networks, and governmental communications. It will be equipped with 24 C-band transponders and 12 Ku-band transponders. The satellite will be placed in orbit at 46 degrees east longitude. The satellite's term is 20 years. Its service area will cover Europe, Central Asia and Africa.

The official exchange rate is 0.7918 manat to $1 on April 19.