[SatNews] The Bangladesh government has green lighted a proposal to lease an orbital slot from Russia at a cost of Tk 2.19 billion to launch the nation’s first satellite, 'Bangabandhu'.

The Bangladesh Cabinet Committee on Government Purchase (CCGP), at a meeting with Finance Minister AMA Muhith, gave the nod on Wednesday. After the meeting, Cabinet Division Joint Secretary Mostafizur Rahman said the orbital slot at 119.1 degrees East would be leased from the Intersputnik International Organisation of Space Communication of Russia.

"Lease amount will be $28 million (Tk 2.19 billion). VAT and tax will be added to it. The government will meet the expenses,” Mostafizur said.

Executive Committee of the National Economic Council (ECNEC) at a meeting on September 16 gave the go-ahead to the nearly Tk 30 billion project that covers the manufacture and launch of the satellite and two ground stations. Of the total project cost, the government will provide a little over Tk 13.15 billion.

Bangladesh's first satellite will have 40 transponders to provide telecommunications and broadcast services. The project is likely to be implemented by June 2017 by Bangladesh Telecommunication Regulatory Commission. The U.S. firm Space Partnership International (SPI), as a consulting firm, has already started designing the satellite.

Under the project, two Earth stations will be established, one at Joydevpur in Gazipur and one at Betbunia in Rangamati.