A joint secretary-level meeting of Nepal and Bangladesh has proposed to construct one of the two major projects in a joint venture. Bangladesh wants to import a total of 9,000 MW of electricity from Nepal by 2040. Bangladesh, which is looking for resources to address the growing demand for energy, is keen to invest with Nepal in both the public and private sectors.
A meeting of the Joint Working Group of Energy Joint Secretaries of the two countries has decided to recommend one of the Khimti Shivalaya and Sunkoshi III hydroelectric projects for the joint venture.
During the visit of the former Minister for Energy, Water Resources and Irrigation Barshaman Pun to Bangladesh, Bangladesh had proposed to Nepal for the construction of a reservoir project at the government level. According to the same proposal, the ministry had formed a technical committee for the study. During the visit of the President of Bangladesh and the Minister of State for Energy to Nepal, it was proposed to build a hydropower project jointly or in a single investment.
The study committee formed by the Ministry of Energy, Water Resources and Irrigation had proposed Arun IV, Kimathanka Arun, Sunkoshi III, Khimti Shivalaya, and one other project of Province No. 1. On the basis of the same proposal, a joint secretary-level meeting of the two countries today decided to propose to invest at the government level one of the 683 MW Sunkoshi III and Khimti Shivalaya projects whose total capacity has not been determined yet.
According to the details, the study work of Sunkoshi III has reached the final stage. Similarly, a preliminary study has shown that the capacity of Khimti Shivalaya is around 1,500 MW. As the construction of the project at that capacity will affect the Khimti project of 60 MW capacity currently being operated by Himal Power, it seems appropriate to construct in the joint venture at an average of 650 MW.
Joint Secretary and Spokesperson of the Ministry of Energy Madhu Kumar Bhetuwal informed that the meeting discussed issues related to energy sector exchange, joint investment, exchange of knowledge gained by each other in the field of energy. He said that the meeting of energy secretaries of the two countries to be held on Tuesday will take the necessary decision. This is the third meeting of the joint secretary level and secretary-level committee between the two countries.
Bangladesh has already agreed to purchase a total of 500 megawatts of electricity from the Upper Karnali Hydropower Project. The process of the 900 MW project to be constructed by the Indian company Grandhi Mallikarjun Rao (GMR) has not progressed. The work of Upper Karnali has not started even when the physical progress of the Arun III Hydropower Project is approaching 50 percent.
Similarly, if the necessary infrastructure is ready, India’s transmission system needs to be used to export 200 MW of electricity from Nepal to Bangladesh immediately. For that, there needs to be a tripartite understanding between Nepal, Bangladesh, and India. Before that, Nepal needs to build a transmission system to reach the Indian border, while Bangladesh needs to make similar preparations.
An agreement had already been reached to hold talks for a tripartite understanding diplomatically. Although such an understanding was reached at the Energy Secretary level meeting of Nepal and India, the tripartite meeting could not be held.
Similarly, in the long run, the issue of building a dedicated transmission line using Indian land from Nepal’s border has also been discussed. For the time being, legal, technical, and diplomatic discussions on the use of the Indian broadcasting system are necessary. Bangladesh, which is in search of energy resources, has already proposed to build the project in collaboration with Nepal’s private sector. Officials from the Independent Power Producers Association of Nepal (IPPAN) are also being discussed by the private sector in Bangladesh.
The private sector has also proposed to build the project in joint venture with the private sector of Bangladesh, said IPA Vice President Mohan Kumar Dangi. The private sector of Bangladesh has also invested in Nepal Power Exchange Limited established on behalf of the private sector for electricity trade.
An agreement was reached between Nepal and Bangladesh on July 3, 2008, for the purpose of initiating bilateral cooperation in the field of power development. The MoU was signed between the then Minister of Energy Barshaman Pun and the Minister of State for Energy of Bangladesh Nasrul Hamid. The agreement stipulates that the bilateral interests will be enhanced through bilateral economic and trade cooperation, power generation, grid connectivity, renewal of energy efficiency, and development of energy and hydropower.
Immediately after the agreement, the then Energy Minister Pun visited Bangladesh in August 2075 and urged the Bangladesh government and the private sector for joint investment in the energy sector. Similarly, the MoU includes encouraging the entrepreneurs of the two countries to cooperate and invest in the power sector and to cooperate at the regional and sub-regional levels for the development of the hydropower sector in South Asia.
The first meeting of the Secretary and Joint Secretary level committee was held on November 3, 2008, and the second meeting was held on July 25, 2008. The third meeting is expected to address issues ranging from exploring investment possibilities to joint project construction.
