Kathmandu, August 12—Nepal and Bangladesh signed a memorandum of understanding (MoU) on cooperation in energy sector in the capital on August 10.
The MoU was inked by Nepali Minister of Energy, Water Resources and Irrigation Barsha Man Pun and Bangladeshi State Minister for Power, Energy and Mineral Resources Nasrul Hamid. This is expected not only to attract more investments from Bangladesh in the energy sector of Nepal but also facilitate the latter to export it surplus energy to the former in the future.
As per a statement issued by the Minister of Energy, Water Resources and Irrigation, the two sides agreed to promote partnership between public and private sectors of the two countries in the areas of power development, transmission and distribution. They also decided to make investment through joint venture companies in power sector and assist public and private sector entities from both the countries to execute power projects.
Moreover, Nepal and Bangladesh, according to the statement, will take measures to establish national and regional grid connectivity to smoothen their power trade. The two countries have to use power grid in India as they do not share border.
Since the power trade agreement (PTA) was signed with India in 2014, they have been engaged in promoting bilateral energy cooperation.