ECGD-BACKED MICRO-SATELLITE DEAL TO HELP DISASTER RELIEF

12 Feb 2004 01:15 PM

An £8.75 million (GBP) micro-satellite built by Surrey Satellite Technology Ltd to produce images of natural disasters to aid relief work is about to reach its final orbital position this month, having received backing from the Export Credits Guarantee Department (ECGD).

ECGD - the UK' s official export credit agency - guaranteed a five-year £7.5 million (GBP) Royal Bank of Scotland Group (RBS) bank loan which was used by Turkish public sector company Tubitak-Bilten to help pay for the micro-satellite BILSAT-1 built by the UK exporter.

The micro-satellite is part of the Disaster Monitoring Constellation (DMC) led by Surrey Satellite Technology Ltd (SSTL) to aid international space co-operation. Alongside the existing three SSTL-built micro-satellites for organisations in the UK, Algeria and Nigeria, BILSAT-1 will help to produce fast, daily images of any location in the world to aid relief efforts when disasters such as earthquakes, flooding and volcanic eruptions have occurred.

Mike O'Brien, Trade Minister, said: "This was one of the first satellite deals supported by ECGD. Its successful completion helps to keep the UK at the forefront of developments in small satellite technology and play its part in aiding humanitarian work across the globe.

"ECGD continues to show how it can help UK exporters and investors compete for business right across the international business stage."

The micro-satellite BILSAT-1, working in conjunction with the other satellites in the DMC, has the unique ability to re-image anywhere on the Earth's surface within 24-hours. It is also carrying communications and science packages and is expected to reach its final orbital position by the middle of this month.

SSTL traditionally sells its products on a cash basis only. However, SSTL approached ECGD for export credit guarantee support when the buyer Tubitak- Bilten asked for credit facilities.

Sarah Parker, SSTL's Director of Finance, said: "SSTL is very grateful for the support given by ECGD throughout this project. Without their assistance we would not have been able to build this satellite."

Royal Bank of Scotland's Senior Director Structured Trade Finance Peter Litherland, added that the successful completion of the project was a prime example of the value of using export credits.

"Other forms of finance had been considered but ultimately ECGD's flexible approach provided SSTL with an acceptable solution that allowed the project to proceed," he said.

Once in position, BILSAT-1 - which was launched from the Plesetsk Cosmodrome in northern Russia in September 2003 - will also be used to carry out various functions including cartography and monitoring water tables and dust particles from the Sahara desert.

Weighing about 90 kg, BILSAT-1 was built under a technology transfer and training programme, whereby a team of engineers from Turkey spent 18 months at Surrey working alongside SSTL engineers. The contract supported by ECGD also included the construction of ground support equipment and related services.

NOTES TO EDITORS
1. ECGD, the Export Credits Guarantee Department, is the UK's export credit agency. A separate Government Department reporting to the Secretary of State for Trade and Industry, it has more than 80 years' experience of working closely with exporters, project sponsors, banks and buyers to help UK exporters of capital equipment and project-related goods and services. We do this by providing: - Insurance against non-payment to UK exporters;
- Help in arranging finance packages for buyers of UK goods by guaranteeing bank loans; and,
- Overseas Investment Insurance - a facility that gives UK investors up to 15 years' insurance against political risks.

2. More information on ECGD's products, along with other press releases, is available on its website www.ecgd.gov.uk

3. For further details on Surrey Satellite Technology Ltd visit its website www.sstl.co.uk

4. Tubitak-Bilten is the Turkish Scientific and Technical Research Council - Information Technologies and Electronics Research Institute, which is based at the Middle East Technical University. Visit the website www.bilten.metu.edu.tr/bilsat/en/root for further details.