Investments into creation of KazSat-2 to be recouped in 4 years

Investments into creation of KazSat-2 will be recouped in 4 years’ time, Meirbek Moldabekov, Vice Chairman of the Kazakhstan Space Agency believes. “The media have been speculating that this project has to do more with image-making (…) It is not the case”, he said in an interview for Liter newspaper. “Communications satellites are the most profitable space projects. They normally cover the expenses for their production three times (…) We expect that KazSat-2 will be operable for at least 12 years. The payback period will be about 4 years. Consequently, in summer 2015 it will start filling the state coffers”, he said. According to him, Kazakhstan pays about $34 million a year renting foreign satellites. “Now this amount could be used to finance the national space industry”. “Secondly, Kazakhstan has a vast territory. Own satellites is a must to secure stable TV signals all over its territory. (…) Moreover, the covered area will include Russia, north of China, Kyrgyzstan, Uzbekistan, some areas across the Caspian”. “Some might think that the project is excessively costly. KazSat-2 cost $115 million. But it is not expensive as compared to other space projects. If Kazakhstan had ordered the satellite not from Russia, it would have been more expensive. We will continue cooperation with the neighboring Russia. The contract for KazSat-3 has already been signed. It will be designed and constructed by Russia’s OJSC "Academician M.F. Reshetnev Information Satellite Systems" (ISS) (…) We expect the new satellite will hit the orbit late 2013 – early 2014”, Moldabekov believes.