Nepal, Bangladesh agree to sign 25-year power sale deal

    Originally Published in The Daily Star on 10 July 2023

    Officials from Kathmandu and Dhaka have agreed to sign a long-term agreement for the export of 40MW electricity from Nepal to Bangladesh, a Nepal Electricity Authority office bearer said.

    Even though the two sides are yet to negotiate the tariff to be charged on the electricity, the duration of agreement has been settled. This will ensure a long-term market for Nepal’s electricity in Bangladesh.

    “We have agreed to sign a 25-year power sale agreement with Bangladesh,” Kul Man Ghising, managing director of NEA, told the Post. “It is in line with our proposal to the Bangladeshi side.”

    The understanding with Bangladesh is similar to the long-term inter-governmental power trade agreement initiated with India during Prime Minister Pushpa Kamal Dahal’s visit to the southern neighbour from May 31 to June 3.

    According to Prabal Adhikari, power trade director at Nepal Electricity Authority, the Bangladeshi side had earlier responded to Nepal’s proposal stating that it would prefer a five-year agreement with an option of renewal, citing the uncertainty over the power sector’s evolution.

    But according to Ghising, Bangladesh finally agreed to a 25-year deal, which is yet to be signed. “Except tariff, we have reached an understanding on all other issues,” Ghising said.

    The understanding will be formalised once Nepal, India, and Bangladesh sign a tripartite agreement on power sale from Nepal to Bangladesh using the Indian territory.