Kathmandu — In a significant move to bolster regional energy cooperation, Bangladesh has decided to purchase 40 megawatts of electricity from Nepal. This landmark decision was made by the Public Procurement Committee under the Cabinet of the Government of Bangladesh on Tuesday. The agreed price for the electricity is 8.17 taka (9.27 Nepali rupees) per unit.
The agreement, spanning five years, is set to enhance the energy infrastructure and meet the growing electricity demands of Bangladesh. The electricity will be transmitted from Nepal to Bangladesh through Indian territory, necessitating a fee for the use of Indian land. According to Bangladeshi media outlet “The Daily Star,” this transit fee will be 0.0595 rupees per unit.
This deal is particularly advantageous for Bangladesh, as it secures electricity at a lower cost than what is currently purchased from Indian companies. Bangladesh’s long-term goal is to import 500 megawatts of electricity from Nepal. The transmission will occur via the Nepal-India Dhalkebar-Muzaffarpur cross-border transmission line and the India-Bangladesh Barampur-Vermara cross-border transmission line.
The initiation of electricity exports is contingent upon a tripartite agreement among the regulatory bodies of Nepal, India, and Bangladesh. While the date of this agreement is yet to be determined, the collaboration marks a pivotal step towards enhanced energy security and cooperation in South Asia.
The agreement promises not only to fortify bilateral relations between Nepal and Bangladesh but also to set a precedent for future energy collaborations in the region. As these nations work together to address their energy needs, this deal could pave the way for more integrated and sustainable energy solutions in South Asia.
