The FBRK editorial team has obtained a document on key development directions for JSC "Republican Centre for Space Communications" for 2023-2028. We have decided to highlight the main areas and the planned expenditure within the budget of the MDIIAP RK for 2024-2026.
Previously, we published data on the costs of the MDIIAP RK for implementing space activities, according to information from the Republican Budget for 2023. For reference, the amount of planned expenditure in the main areas was approximately 114.8 billion tenge.
Specifically, for the development of 'e-government', infocommunication infrastructure and information security, around 105.4 billion tenge was allocated. Meanwhile, according to the draft budget of the MDIIAP RK, the total expenditure was adjusted and amounted to 109.7 billion tenge in 2023.
In 2024, it is planned to spend 112.4 billion tenge in this area, in 2025 – 93.3 billion tenge, and in 2026 – 90.3 billion tenge. As for other main areas, the MDIIAP RK draft budget includes spending only for 2024.
For instance, on applied scientific research in the field of space activities and information security in 2024, it is planned to spend just over 1 billion tenge, which is 568 million less than in 2023 – 1.58 billion tenge.
On ensuring the preservation and expanded use of space infrastructure in 2024, it is planned to spend 6.3 billion tenge, which is 566 million less than in 2023 – 6.8 billion tenge.
On the creation and commissioning of the 'KazEOSat-MR' medium-resolution Earth remote sensing space system in 2024, it is planned to spend 7 billion tenge, which is exactly 6 billion tenge more than in 2023 – 1 billion tenge.
Furthermore, in 2024, the creation of the 'Baiterek' space rocket complex based on a new-generation medium-class space rocket for launching unmanned spacecraft is planned. The amount of planned expenditure is 14.7 billion tenge.
Overall, according to the draft budget expenditure of the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan for all areas, it is planned to spend 208.6 billion tenge in 2024, 120.2 billion tenge in 2025, and 117.2 billion tenge in 2026.
In addition, the document states that the Republican Centre for Space Communications is working on the issue of connecting 504 hard-to-reach, sparsely populated rural settlements to broadband telecommunications via a satellite transport network.
A project is being implemented to provide broadband Internet access in 176 settlements based on the resources of the 'KazSat-3' space system. It is noted that 170 settlements are already connected to the Internet. The project implementation is planned to be completed by mid-October 2023.
The connection to the Internet of the remaining 328 rural settlements is planned to be carried out jointly with the international satellite operator SES. The document states that an agreement has already been reached with the company to implement this project.
Furthermore, the activities of JSC "NC "Kazakhstan Gharysh Sapary" are mentioned. It is stated that KGS has been providing state bodies and organisations with satellite imagery services since 2018 under the republican budget programme "Ensuring the preservation and expanded use of space infrastructure".
It is noted that in order to address sectoral tasks in agriculture, forestry, water management, animal husbandry, ecology, cartography, land cadastre, as well as tasks of law enforcement agencies, services for the creation and development of sectoral spatial data, specifically the results of space monitoring, are provided via developed sectoral geoservices.
However, the FBRK editorial team previously learned that Kazakhstan Gharysh Sapary, instead of taking imagery from its own satellites which are under its direct control, buys space imagery from a foreign supplier.
THE TRADE AND SPACE COMPANY "KAZAKHSTAN GHARYSH SAPARY"
We previously reported that JSC "NC "Kazakhstan Gharysh Sapary" concluded a contract with the Committee for Land Resources Management for the provision of aerial photography services to create digital agricultural land maps for the amount of 1.14 billion tenge.
We put forward the assumption that KGS does not take space images from its own satellites, but rather buys them from a foreign supplier. It was reported that the initial supplier of the images was a subsidiary of the Chinese China HEAD Aerospace Technology Co, which is under US sanctions.
In this regard, we approached a number of bodies, specifically the ARDFM, AZRK, AFM and the National Bank, requesting information on whether KGS had violated antimonopoly legislation in the field of competition protection and sanctions restrictions.
However, we never received a substantive response – our requests were either forwarded, or we were recommended to contact other departments ourselves.
Meanwhile, the CLRM asked KGS for appropriate clarifications, to which Kazakhstan Gharysh Sapary, citing the Law on Public Procurement, stated that they acted completely lawfully and saw no violations of legislation in this situation.
Furthermore, KGS noted that the contract with the CLRM required the provision of very high spatial resolution space images, which have no analogues in Kazakhstan, in the shortest possible time.
In this regard, JSC "NC "Kazakhstan Gharysh Sapary" sent requests for commercial proposals to global space system operators from France, the USA, China, Korea and India, as a result of which the proposal from HEAD Aerospace was deemed the most suitable.
However, according to our information, Kazakhstan Gharysh Sapary has still not settled with Ti-Tech Development Limited (a subsidiary of China HEAD Aerospace Technology Co), from which the images were purchased.
How the national operator will resolve this situation is unclear, as failure to pay would violate the terms of the contract with the foreign operator, while making payment carries the risk of breaching sanctions restrictions.
It is also worth recalling that the revenue of Kazakhstan Gharysh Sapary from contracts for Earth remote sensing space system services and scientific research services for 2022 amounted to approximately 3.6 billion tenge. This indicates that KGS has the funds available.
For its part, the FBRK editorial team is still awaiting a response regarding the legality of the transaction between JSC "NC "Kazakhstan Gharysh Sapary" and the Committee for Land Resources Management, now from the MDIIAP and the Committee for Internal State Audit of the Republic of Kazakhstan.