Landmark tripartite power trade deal signed between Nepal, Bangladesh, and India

KATHMANDU: In a historic development, Nepal, Bangladesh, and India have finalized a long-awaited landmark tripartite power trade agreement, enabling Nepal to export hydroelectricity to Bangladesh through India’s infrastructure. This crucial deal marks a significant milestone in regional energy cooperation, allowing Nepal to export 40 megawatts of power to Bangladesh during the rainy season.

The agreement was signed on Thursday in Kathmandu by Kulman Ghising, Executive Director of the Nepal Electricity Authority (NEA), Mohammad Rezaul Karim, Chairperson of Bangladesh’s Power Development Board, and Renu Narang, Chief Executive Officer of India’s NVVN, the nodal agency. The signing ceremony took place in the presence of Nepal’s Energy Minister Dipak Khadka and Bangladesh’s Minister for Forest, Environment, Climate Change, and Water Resources, Syeda Rizwana Hasan.

Delay Due to Bangladesh’s Political Turmoil

Originally set to be signed on July 28, the agreement was delayed due to protests in Bangladesh against the country’s quota system, which reserves jobs for relatives of war veterans. These protests led to the resignation and subsequent flight of former Prime Minister Sheikh Hasina on August 5, causing a temporary halt in the negotiations.

Key Details of the Agreement

Under the agreement, Nepal will provide power to India’s NVVN, which will then transmit the electricity to Bangladesh using India’s cross-border transmission infrastructure. The export will be carried out through the 400 KV capacity transmission line between Nepal and India.

The NEA is set to export 25 megawatts of electricity from the Trishuli Hydropower Project and 22 megawatts from the Chilime Hydropower Project, both of which have received approval from India for export. The power trade will commence within the next few days, starting from June 15 to November 15, during the monsoon season. A total of 144,000 megawatt hours will be exported, with the agreed price set at Rs 9.30 per unit.

Sunkoshi Hydropower Development in the Pipeline

In another key development, a secretary-level meeting between Nepal and Bangladesh’s joint directorate committee on Wednesday agreed to move forward with the development of the 680 megawatt Sunkoshi Hydropower Project-III. The project will be developed in partnership with Nepal, Bangladesh, and India under a joint venture company involving the NEA and Bangladesh’s Power Development Board.

This landmark deal marks a pivotal moment in South Asia’s energy cooperation, with far-reaching benefits for the region’s energy security and economic growth.