Bangladesh Approves Import of 40 MW Hydropower from Nepal, Tripartite Agreement Pending

The Interim Government of Bangladesh has approved the import of 40 MW of hydropower from Nepal, a project initiated during the previous Sheikh Hasina-led administration in mid-June. Power, Energy, and Mineral Resources Adviser Muhammad Fouzul Kabir Khan greenlit the proposal on Monday, though concerns have been raised over transmission line charges imposed by India on the electricity import.

A tripartite agreement between Nepal, Bangladesh, and India is necessary for the power trade, but the process has faced delays due to changes in Bangladesh’s political landscape and complications with missing files. Initially expected to be signed in September, the agreement now faces further delays. Relevant institutions, such as Bangladesh Bank, the National Revenue Board, and the Financial Institutions Division, are still reviewing the proposal, with only the Economic Division providing feedback so far.

The price of electricity to Bangladesh, to be transmitted through the Dhalkebar-Muzaffarpur substation in India, has been set at 6.40 US cents (Rs 7.32) per unit. This cost includes a trading margin and transmission line charges, bringing the total to Rs 8.17 per unit. Payments will be made in both dollars and rupees, depending on the cost components. Bangladesh expects this agreement to enhance its cross-border trade, opening further opportunities for energy cooperation with Nepal and Bhutan.