Bangladesh officials have agreed to sign a 25-year agreement to import 40MW of electricity from Nepal.
This talks on agreement was initiated during the visit of Nepal Prime Minister Pushpa Kamal Dahal to India from May 31 to June 3, Kathmandu Post, a prominent media outlet in Nepal, reported citing the Nepal Electricity Authority.
The Kathmandu Post wrote that the agreement with Bangladesh is similar to the intergovernmental power trade agreement with India.
According to the report, the electricity price was deliberated upon by the two parties, and they reached a mutual agreement regarding the contract duration.
The report said the Nepalese side plans to offer a “good tariff as a good gesture” as the deal will be a government-to-government one.
According to the report, the existing power prices in Bangladesh can serve as a benchmark for determining the tariff.
Despite the ongoing negotiations regarding the tariff for electricity, the duration of the agreement has been finalized, guaranteeing a long-term market for Nepal's electricity in Bangladesh.
As per the draft of the proposed power purchase sale agreement, Bangladesh will be required to directly pay transmission charges and service fees to the Indian nodal agency for cross-border power trade. These charges will be imposed in accordance with India's open access rules.
According to the report, Bangladesh and Nepal have jointly decided to seek India's permission for power trade using the high-voltage Baharampur-Bheramara cross-border transmission line.
The proposed agreement will be finalized through a tripartite agreement between Nepal, India, and Bangladesh, concerning the transmission of electricity from Nepal to Bangladesh utilizing Indian territory.
In a meeting held in Bangladesh in May of last year at the energy secretary level, Bangladesh and Nepal reached an agreement to sign a tripartite deal involving the Bangladesh Power Development Board (BPDB), NEA, and NTPC Vidyut Vyapar Nigam Ltd (NVVN) of India.
After signing of the deal, NVVN will enable power export from Nepal to Bangladesh.
