Bangladesh Approves Proposal to Import 40MW of Hydroelectricity from Nepal

On Tuesday, the 'Cabinet Committee on Government Purchase' in Bangladesh approved a proposal to import 40 megawatts of hydroelectricity from Nepal. This proposal, submitted by the Power Division of the Bangladesh Power Development Board (BPDB), was among the 15 proposals endorsed by the Cabinet Committee, which is chaired by Finance Minister Abul Hassan Mahmood Ali, according to the National News Agency of Bangladesh.

Secretary of the Cabinet Division (Coordination and Reform), Md Mahmudul Hossain Khan, informed reporters that the BPDB would import the electricity under a five-year tripartite agreement involving the Nepal Electricity Authority (NEA), NTPC Vidyut Vyapar Nigam Limited (NVVN) India, and the BPDB. The power will be traded at a rate of 8.17 Bangladeshi Taka (approximately Rs 9.30) per unit.

The electricity will be delivered to a 400kV substation in Muzaffarpur, India, with Bangladesh covering the transmission charges for using the Indian infrastructure. While the final agreement date between Nepal and Bangladesh has not been set, it is expected to coincide with a potential visit by Bangladeshi Prime Minister Sheikh Hasina to Nepal, according to Khan.

The tripartite agreement was initially agreed upon during a meeting of the energy secretary-level joint steering committee in May 2023. In February, Bangladesh sent a draft Request for Proposal (RfP) to Nepal, which responded with a proposed tariff and detailed plans for power delivery.

The two countries finalized the trading amount during the SAARC Energy Centre’s secretary-level meeting held in Singapore from February 23 to 26, 2024.