Bangladesh likely to sign 25-year deal to import power from Nepal

Bangladesh officials have agreed to sign a 25-year agreement to import 40 megawatts of electricity from Nepal.

In a report on Sunday, Nepalese newspaper Kathmandu Post said both countries have reached an understanding on all technical and commercial aspects of the deal, apart from tariffs to be charged on the electricity.

Quoting an official of Nepal Electricity Authority (NEA), 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.

Existing power prices in Bangladesh can be used as a reference to fix the tariff, the report added.

The proposed deal will be formalised after a tripartite agreement between Nepal, India and Bangladesh on the transmission of electricity from Nepal to Bangladesh using Indian territory.

Bangladesh will have to pay transmission charges and service fees directly to the Indian nodal agency for cross-border power trade. These charges will be levied as per India’s open access rules as mentioned in the draft of the proposed power purchase sale agreement.

The report said Bangladesh and Nepal have decided to request India to permit power trade through the high-voltage Baharampur-Bheramara cross-border transmission line.

During the energy secretary-level joint steering committee meeting held in Bangladesh in last May, Bangladesh and Nepal agreed to sign a tripartite deal among 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.