A tripartite agreement was signed on Thursday to sell electricity produced in Nepal to Bangladesh. With the agreement, the way to deliver 40 megawatts of electricity to Bangladesh through India has been opened. A tripartite agreement has been made because electricity from Nepal has to be delivered to Bangladesh via India. Electricity produced in Nepal was previously sold only in India.

Nepal Electricity Authority Executive Director Kulman Ghising, India's NTPC Electricity Trading Corporation (NVVN) Chief Executive Officer (CEO) Renu Narang and Bangladesh Power Development Board (BPDB) Chairman Mohammad Rizaul Karim signed the agreement. It will take time to start the export of electricity. In the presence of Energy, Water Resources and Irrigation Minister Deepak Khadka, State Minister Purna Bahadur Tamang and Bangladesh Interim Government Water Resources Minister Syeda Rizwana Hasan, the 'Power Sale Agreement (PSA)' was signed in Kathmandu.

Officials from all three countries have said that the tripartite agreement is historic. Energy Minister Khadka said that the tripartite agreement has proved to be a milestone for Nepal's energy sector. Bangladesh Water Resources Minister Hasan also said that the electricity agreement with Nepal is a milestone in South Asian electricity cooperation. The government of Bangladesh aims to provide clean and reliable energy at reasonable prices to every citizen. As mixed energy is being used in Bangladesh, we are trying to increase the share of renewable energy," she said. "The current tripartite

agreement has helped in this." Water Resources Minister Hasan mentioned that Nepal's hydropower is a suitable source for Bangladesh. She also said that she is confident that there will be more cooperation between Nepal, India and Bangladesh in the coming years. Executive Director of Electricity Authority Ghising responded that a line of energy trade has been drawn in the South Asia region due to collective commitment. 

The authority has an agreement to sell electricity to Bangladesh for 5 months of the rainy season, i.e. from 15 June to 15 November every year, according to which 144,000 megawatt hours of electricity will be exported in 5 months. According to the authority, the rate of 6.40 US cents per unit will generate 92 million 16 thousand US dollars in 5 months. Nepal is the first to sell electricity in dollars. There is a possibility that electricity will be exported to Bangladesh this year. As the electricity produced by the 25 MW Trishuli and 22 MW Chilime hydropower project built through its subsidiary company, which was built with Indian subsidies, is about to be exported to Bangladesh, these projects are yet to receive further approval from the Indian government. "It may take 10/15 days to complete the process of selling electricity to Bangladesh," Ghising, executive director of the authority, said, "We will sell electricity even for one day this year."

Electricity from Nepal will be exported to Bangladesh through the Dhalkebar-Muzaffarpur 400 kV transmission line. For that, the electricity meter will be in Muzaffarpur. Therefore, the authority will have to bear the technical leakage of the transmission line from Dhalkebar to Muzaffarpur. According to Ghisingh, executive director of the authority, Bangladesh will bear all the taxes and charges including transmission line charges, leakages, trading margin taken by NVVN after the Muzaffarpur point.

Electricity will reach Bangladesh through Behrampur (India)-Bhedamara (Bangladesh) 400 kV transmission line from Muzaffarpur through India's transmission line. "When you reach the border of Bangladesh, the price of electricity is about 7.6 cents per unit," Ghising said. 

The agreement to export electricity from Nepal to Bangladesh became possible after 6 years of homework. Nepal and Bangladesh signed a memorandum of understanding on energy cooperation on 075 July 25. After various stages of meetings and discussions, the Economic Affairs Committee of the Council of Ministers of Bangladesh approved in principle the proposal to import 40 MW of electricity from Nepal on December 6, 2023 (December 20 last year). After that, BPDB called for bids on January 1 (16th January 2008) to purchase electricity produced from Nepal for a period of five years according to the tripartite agreement between the entities of Bangladesh, India and Nepal. The authority submitted the tender documents with the electricity rates to be sold in the prescribed format in the second week of January.

There was a meeting between the authority's team and the bid evaluation committee under BPDB in Dhaka on February 10. Nepal proposed electricity price of 6.70 US cents per unit. No agreement was reached in the meeting after Nepal maintained its position that it would not provide electricity at a price lower than that sold to India. But later in the bilateral discussions held during the SAARC Energy Secretary level meeting organized by the World Bank in Singapore, Bangladesh agreed to purchase electricity at 6.40 US cents. The Committee on Public Procurement (CCGP) of the Cabinet of Bangladesh approved the price of electricity to be imported from Nepal on May 29. Then BPDB informed the Authority on June 23 of its intention to accept the bid. After the authority agreed to it, BPDB sent the draft agreement. 

The authority sent a letter to BPDB on June 26 with an invitation, setting a date for the agreement on July 13. In the first week of July, BPDB sent a letter to the authority asking for the suspension of the contract after the students protested against the government in Bangladesh. After the protests escalated, the then Prime Minister Sheikh Hasina resigned and left the country. Then there was confusion in the electricity purchase and sale agreement. But the agreement was reached after the head of the interim government of Bangladesh, Mohammad Yunus, said that the process of importing electricity from Nepal would be continued. What happened before the

electricity sales agreement?

075 July 25 : Signing of memorandum of understanding on energy cooperation between Nepal and Bangladesh, agreement to form secretary and joint secretary level mechanism

075 November 17-18 : First meeting of secretary and joint secretary level energy mechanism, 500 MW from Upper Karnali consent to carry 

078 August 28-29 : Nepal Electricity Authority and Bangladesh Power Development Board are entrusted with the necessary preparations for electricity trade at the secretary level and co-secretary level meeting

079 August 8-9 : 40-50 through Bhedamara in Bangladesh Decision to export megawatts, decision to request NVVN for tripartite electricity purchase and sale agreement

080 May 3rd week : Prime Minister Pushpa Kamal Dahal's commitment to facilitate the export of 40 megawatts of electricity to Bangladesh during his visit to India

080 November 20 story -break: The proposal to import 40 megawatts of electricity from Nepal has been approved in principle by the Economic Affairs Committee of the Cabinet of Bangladesh  January 080

: Draft proposal request to Nepal Electricity Authority to propose tariffs by Bangladesh February 080

: Proposal submitted by the authority to Bangladesh February 10

: Bid under the Authority's team and Bangladesh Power Development Board (Bid) Talks between the evaluation committee 080 February 11-14

: During the SAARC secretary-level meeting in Singapore, Nepal and Bangladesh agreed on the price during the secretary-level 'sideline' discussion 081 June 29

: Electricity imported from Nepal by the Cabinet of Bangladesh Acceptance of the price 081 Asar 23

: Intimation of intention to accept the bid to the authority 081 Asar 26

: Authority's letter to BPDB with an invitation to negotiate on 13 July 081 Asar

: After the student movement broke out Bangladesh's letter to immediately suspend the agreement 081 October 2

: Proposal to India and Bangladesh to make an agreement on October 17  081 October 9