The White House has given the go-ahead for the US Export-Import Bank to consider whether to provide a US$125.9m loan to state-owned Vietnam Post and Telecommunications Groups (VNPT) for the funding of Vinasat-2, which has already been launched.
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The White House has given the go-ahead for the US Export-Import Bank to consider whether to provide a US$125.9m loan to state-owned Vietnam Post and Telecommunications Groups (VNPT) for the funding of Vinasat-2, which has already been launched.
Built by Lockheed Martin and launched in mid-May by Arianespace, the communications satellite is Vietnam’s second spacecraft.
In November 2010, VNPT secured a VND1.09 trillion (US$56m) loan from the government-controlled Vietnam Development Bank to cover about 20% of the total cost of Vinasat-2, estimated to be at least US$280m at the time. But an earlier statement from VNPT had calculated that the project could cost up to US$350m.
The Ex-Im loan would therefore cover almost half of the price of the satellite, in an unusual example of back financing.
But under the Ex-Im Bank Charter, a presidential determination, that loans of more than US$50m to Marxist-Leninist countries are in the national interest, is required.
A spokesperson for the Ex-Im Bank also explained that because the loan is over US$100m, it will need to be referred to Congress for comments before the bank’s board can approve it.
Plans for the Vinasat-2 satellite were first revealed in mid-2009 with the intention of complementing Vinasat-1, which was launched in 2008.
Vinasat-1, the country’s first ever satellite, has reportedly now reached full capacity because of an increase in demand for satellite services.
Vinasat-2 carries 24 Ku-band transponders covering Vietnam, Cambodia, Thailand and Laos from the 131.8E orbital position.
