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Section 1:
INTRODUCTION
The U.S. Trade and Development Agency (USTDA) has provided
a grant in the amount of
US$604,000 to Azercosmos Open Joint Stock Company (the “Grantee”) in accordance with a
grant agreement dated August 21, 2013 (the “Grant Agreement”). This project will focus on the
Azerspace-2 communications satellite project in Azerbaijan. The feasibility study (FS) will help
Azercosmos to assess the technical, economic, and financial feasibility for a second
communications satellite. The Grant Agreement is attached at Annex 4 for reference. The
Grantee is soliciting technical proposals from qualified U.S. firms to provide expert consulting
services to perform the Feasibility Study.
1.1 BACKGROUND
SUMMARY
Azerbaijan established its space program in 2009 with the aim of improving communications in
the country, diversifying the economy from oil and gas by establishing a satellite industry, and
contributing to bridging the global digital divide. As part of this program, Azercosmos was
created by the President of Azerbaijan that same year as the key implementation arm for the
mandated space program. As such, Azercosmos is responsible for the design,
implementation
and management of the current and planned satellite projects of the Republic of Azerbaijan.
Azercosmos has already launched and is operating its first satellite, the Azerspace-1
communications satellite. Azercosmos partnered with MEASAT Satellite Systems, the leading
satellite operator in Malaysia, to jointly operate this satellite, which has an orbital slot that covers
not only the entire territory of Azerbaijan,
but also the Caucasus, Central Asia and Europe, as
well as the Middle East, CIS region and Africa. This has allowed MEASAT to replace its aging
Africasat-1 communications satellite. Azerspace-1 was procured from Orbital Sciences
Corporation of Dulles, VA with financing from a loan of $116.6 million by the Export-Import
Bank of the United States (Ex-Im). The total cost of the project was greater than $200 million.
The satellite was placed into orbit on a French Arianespace rocket in early 2013 and has been
already commissioned for commercial satellite operations. Azercosmos controls
the satellite
from its modern ground control center in Baku, Azerbaijan. Azercosmos reports that it has
already contracted 40% of the capacity on Azerspace-1 and will have contracted 80% of capacity
within two years of launch. With the contracted capacity revenues Azercosmos expects to pay
back the Ex-Im loan within ten years, with the satellite slated to last approximately more than 15
years.
Although Azerspace-1 will meet immediate satellite telecommunications needs, the demand for
services is expected to grow. Furthermore, Africa, which is experiencing
considerable economic
growth and even higher need for telecommunications bandwidth, is a historically underserved
market for satellite coverage. In order to meet the expected future demand in Azerbaijan, the
region and Africa, the President of the Republic of Azerbaijan announced in 2012 the
commitment to launch a second communications satellite, Azerspace-2. Azerspace-2 will meet
this increased demand by using three different satellite frequency ranges, C-band, Ku-band and
Ka-band; Azerspace-1 only uses C-band and Ku-band.
By incorporating Ka-band, which is the
newest and the highest bandwidth frequency range available to communications satellites,
Azerspace-2 will be able to meet high data throughput needs. Furthermore with multipoint and
steerable beams, the satellite will be able to provide spot coverage, which increases the number
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of customers that can be served simultaneously, supports internet broadband access,
typically
reduces data transmission costs, and provides better performance. Azerspace-2 will allow
Azercosmos to be a full service satellite provider in its coverage area.
A background Definitional Mission Report is provided for reference in Annex 2.
1.2 OBJECTIVE
To assess the feasibility of launching a second satellite for Azercosmos Open Joint Stock
Company. The Terms of Reference (TOR) for this Feasibility Study are attached as Annex 5.
1.3
PROPOSALS TO BE SUBMITTED
Technical proposals are solicited from interested and qualified U.S. firms. The administrative
and technical requirements as detailed throughout the Request for Proposals (RFP) will apply.
Specific proposal format and content requirements are detailed in Section 3.
The amount for the contract has been established by a USTDA grant of US$604,000.
The
USTDA grant of $US604,000 is a fixed amount. Accordingly, COST will not be a factor in
the evaluation and therefore, cost proposals should not be submitted. Upon detailed
evaluation of technical proposals, the Grantee shall select one firm for contract negotiations.
1.4
CONTRACT FUNDED BY USTDA
In accordance with the terms and conditions of the Grant Agreement, USTDA has provided a
grant in the amount of US$604,000 to the Grantee. The funding
provided under the Grant
Agreement shall be used to fund the costs of the contract between the Grantee and the U.S. firm
selected by the Grantee to perform the TOR. The contract must include certain USTDA
Mandatory Contract Clauses relating to nationality, taxes, payment, reporting, and other matters.
The USTDA nationality requirements and the USTDA Mandatory Contract Clauses are attached
at Annexes 3 and 4, respectively, for reference.