Bangladesh Power Development Board Accepts NEA's Bid to Supply 40 MW of Electricity

The Bangladesh Power Development Board (BPDB) has formally accepted a bid from the Nepal Electricity Authority (NEA) to supply 40 megawatts of electricity produced in Nepal. In a letter sent on Monday, BPDB confirmed that NEA's proposal for the six-month monsoon period has been approved by the relevant authorities.

The tender for the purchase of 40 MW of electricity was called by BPDB on January 1, 2024, as part of a five-year agreement under the tripartite arrangement between entities in Bangladesh, India, and Nepal. Following BPDB’s evaluation, NEA's bid was accepted, and NEA is required to acknowledge this acceptance within 7 working days. Subsequently, BPDB will provide a draft power sale agreement, which must be finalized within 28 days.

Kulman Ghising, managing director of NEA, confirmed that preparations are underway to commence electricity export to Bangladesh this rainy season. He mentioned that all three parties have agreed on the draft of the tripartite electricity sales agreement, and the list of projects will be sent to India's Central Electricity Authority for approval. Initially, electricity from the 25 MW Trishuli and 22 MW Chilime hydropower projects will be exported to Bangladesh, as these projects have already received export approval in India.

The NEA will sell the electricity to Bangladesh at a rate of 6.40 US cents per unit, for the six-month monsoon period each year, from June 15 to November 15, over five years. The electricity will be transmitted through the Dhalkebar-Muzaffarpur 400 kV transmission line between Nepal and India, with the pricing point at Muzaffarpur. The electricity will reach Bangladesh via the Bahrampur (India)-Bheramara (Bangladesh) 400 kV transmission line. NEA will bear the technical transmission losses from Dhalkebar to Muzaffarpur, while Bangladesh will cover all taxes and fees beyond Muzaffarpur.

Ghising noted that the rate is reasonable and that the symbolic trade will pave the way for large-scale regional electricity trade in the future, opening new opportunities for NEA.