Bangabandhu Satellite: A financial blackhole

The Bangabandhu-1 satellite, once hailed as a flagship project of the Awami League government, has become a significant financial burden on the state. Initially estimated at Tk 29.68 billion, the project was approved by former Prime Minister Sheikh Hasina in 2014, despite reservations from the planning commission. The project's final cost was reduced to Tk27.65 billion, with the government securing a term loan of Tk14.06 billion and EUR 155 million from HSBC for a 12-year period.

Since its launch in May 2018 via SpaceX's Falcon 9 rocket, the satellite has failed to generate the expected revenue. Bangladesh Satellite Company Limited (BSCL), formed to operate Bangabandhu-1, has not deposited any funds to the state exchequer. Meanwhile, the Bangladesh Telecommunication Regulatory Commission (BTRC) is responsible for paying HSBC approximately $8.5 million every six months. By April 2023, BTRC had paid $101.7 million in 12 instalments, with $64 million still outstanding, due by 2028.

The sharp 40 per cent depreciation of the Bangladeshi taka against the dollar in recent years has exacerbated the debt burden. The BTRC now faces annual payments of Tk19 million to Tk 20 million. With the satellite's operational lifespan set to end by 2033, the clock is ticking for Bangladesh to recover its investment. Industry insiders predict that the project is set to lose over Tk 15 billion in revenue.

Despite efforts to sell satellite capacity to international markets-including Indonesia, the Philippines, and various SAARC nations-Bangladesh has struggled to secure these deals. As a result, satellite capacity remains underutilised, with only 59 per cent of C-band frequencies and 25 per cent of Ku-band frequencies sold. Ultimately, the heavy financial burden of the Bangabandhu-1 project is being passed onto the people.

Praramvika Chowdhury Payel

Student of North South University

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