By Nepal Desk

Recently, the South Asian countries Bangladesh and Nepal intended to have a trade that suits the interest of both countries. In this regard, Bangladesh is seeking and willing to import Nepal’s electricity and proposed to supply it to Nepal during the dry season. Nepal and Bangladesh discussed the power trade, and investment in 2 hydel projects.

The Bilateral power trade and attracting Bangladeshi investment in Nepal’s two hydropower projects will be the agenda for discussions during the next high-level bilateral meeting expected to take place between the two countries in July.

Nepal will host the fourth meeting of the joint working group and joint steering committee between the two countries in Kathmandu. Although Nepal proposed to hold the meeting in late June, the Bangladeshi side has wished to convene the meeting in late July. Electricity export and import will be high on the agenda in the context to promote regional energy connectivity.

During the third bilateral meeting of the joint working group and joint steering committee held in September last year, the two countries had agreed to develop a dedicated transmission line by taking India on board.

As per the Joint Vision Statement on Power Sector Cooperation released in early April during Prime Minister's visit to Delhi, Nepal and India agreed to expand cooperation in the power sector by incorporating other partner countries under the Bangladesh, Bhutan, India, and Nepal Initiative (BBIN) framework, subject to mutually agreed upon terms and conditions between all involved parties.

In this way, India seeks to sway multilateral forums such as BBIN and BIMSTEC for its regional interests. BIMSTEC is the short form for the Bay of Bengal Initiative for Multi-sectorial Technical and Economic Cooperation.

Currently, there are cross-border transmission lines between Nepal and India and India and Bangladesh. However, there are no trilateral arrangements for electricity trade. And India has already expressed its support to the idea of transmission interconnectivity among BIMSTEC member countries.

During the third BIMSTEC Energy Ministers’ Meeting held in Kathmandu in April, member countries approved the establishment of the BIMSTEC Grid interconnection Coordination Committee to implement its agenda.

The Memorandum of Understanding (MOU) for the establishment of the BIMSTEC Grid Interconnection has been signed in this regard. Bangladesh has already agreed to import 500MW of electricity from the 900MW Upper Karnali Hydropower Project. Indian Company GMR has received the construction license to develop this project.

Bangladesh has also proposed Nepal buy Bangladeshi power in the winter, and this would also be the topic of debate during the proposed bilateral meeting. Meanwhile, the two countries will also discuss developing two storage-type hydropower projects—683MW Sunkoshi-3 Hydropower Project and Khimti Sivalaya Hydropower Project with Bangladeshi investment.

When the two sides held a virtual meeting in September last year, they had agreed to work together to explore the possibility of developing the Sunkoshi-3 Hydropower Project with Bangladeshi investment.

As per the ministry’s press statement last year, the Bangladeshi side was supposed to send a team to conduct field visits at the proposed site of the Sunkoshi-3 Hydropower Project by December last year. The project site straddles Ramechhap and Kavrepalanchok districts.

Its feasibility study has been completed but its Environment Impact Assessment Report has not yet been approved by the Ministry of Forest and Environment. Authorities have, however, yet to determine the capacity of the proposed Khimti Sivalaya Hydropower Project to be developed in Dolakha and Ramechhap districts. In the ongoing feasibility study, its capacity might be in the range of 1100MW to 1720MW.

The power trade and cooperation between both countries will promote regional cooperation on energy in the context of the Nepal, and Bangladesh agreements. This will usher in a new era of prosperity and advancement in the South Asian Region.