Bolivian President Evo Morales will visit China in March to conclude agreements for the space program, which has become possible because of the Chinese offer to fund the project on easy loan terms.

The construction and launch of the satellite -- Bolivia's first -- is expected to cost $300 million. Details of the financing and whether Bolivia will contribute any cash, if at all, are yet to be worked out.

Competition in the global space industry has intensified amid spare building and launch capacity and governments' need to claw back huge costs incurred in laying out space programs. Most of the programs, including that in China, were initiated for diplomatic and political ends, in most cases the Cold War, and now increasingly are driven by pragmatism and business needs.

Russia is in the race, too, to win international space contracts, and has been trying to persuade African, Latin American and Asian nations to buy its satellite build-and-launch technologies on soft credit terms.

In some respects, the strategies pursued by China and Russia are similar to those employed to expand the market for their military hardware, analysts said.

Bolivia's Minister for Public Works, Services and Housing Walter Delgadillo told the media his government would finalize a commercial arrangement with China to get the construction work started in time for a launch of the craft into orbit in 36 months.

Before Morales visits Beijing, a team of Chinese space scientists will visit La Paz for preliminary discussions on the satellite's configuration, orbital position and potential uses once the craft goes into orbit.

Bolivian Deputy Telecommunication Minister Roy Mendez outlined the project earlier and cited a central role for the China Great Wall Industry Corp., the Chinese company that acts as the sole agency for aerospace cooperation deals arranged by the Chinese government.

Beijing-based CGWIC is the chosen platform for international aerospace projects funded by the government as part of its diplomatic strategies, or secured as a major source of revenue.

Delgadillo said that Bolivia opted for China because the country "has a great proven technological capacity and can also extend soft loans."

Russian space agency Roscosmos, meanwhile, is aiming to secure a foothold in Africa through the African Resources Management microsatellite constellation project that is being developed by South Africa, Algeria and Nigeria.?

In 2008 Roscosmos launched 27 space projects that put 43 satellites into orbit. China carried out 11 launches and put 15 satellites into orbit. The United States put 18 satellites into orbit and the European Space Agency had six launches that put 11 satellites into orbit.

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