KATHMANDU: Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has announced that a historic trilateral power trade agreement will soon be signed between the Nepal Electricity Authority (NEA), Bangladesh Power Development Board (BPDB), and India’s NTPC Vidyut Vyapar Nigam (NVVN). The deal will allow Nepal to export electricity to Bangladesh using Indian transmission lines during the monsoon season, marking a significant step in power trade between the two nations.
During a meeting on Sunday between Minister Khadka and Bangladesh’s Ambassador to Nepal, Salahuddin Noman Chowdhury, the two leaders discussed various aspects of energy cooperation between Nepal and Bangladesh. Minister Khadka highlighted Bangladesh’s support in developing Nepal’s hydropower production, trade, and transmission infrastructure.
Nepal holds immense hydropower potential, while Bangladesh faces increasing energy demand, making the collaboration between the two countries crucial, Khadka emphasized.
The upcoming meetings at the secretary and joint-secretary levels between Nepal and Bangladesh are expected to yield significant decisions regarding the construction of large hydropower projects, agreements with India on cross-border transmission lines, and the initiation of electricity trade. Minister Khadka expressed optimism that these discussions would be fruitful.
Progress has also been made toward signing a joint venture agreement between the NEA and the BPDB for the construction and development of the 680 MW Sunkoshi Reservoir Hydropower Project. Minister Khadka stated that the Bangladeshi embassy would continue to facilitate the necessary actions for this joint venture.
Bangladesh is set to advance its energy cooperation with Nepal by soon finalizing an agreement to purchase 40 MW of electricity, as confirmed by Ambassador Chowdhury. He also mentioned that Bangladesh has been achieving high agricultural productivity using innovative irrigation methods and offered support to introduce this technology to Nepal.
Although all terms, including pricing, have been finalized for the sale of 40 MW of electricity to Bangladesh, the final agreement has yet to be signed. Initially, the agreement was set for July 29, but political developments in Bangladesh delayed the process. Discussions are now ongoing, with plans to sign the agreement in September and commence electricity sales in October and November, according to the Ministry of Energy.