Bangladesh moves ahead for 40MW power from Nepal
Bangladesh has sent a draft Request for Proposal to Nepal Electricity Authority asking the NEA to propose tariff
Nepal and Bangladesh have advanced towards finalising a tariff for the export of 40 megawatts (MW) of electricity from Nepal, reports The Kathmandu Post.
Once the two sides agree on a tariff to be charged, Nepal, Bangladesh and India are expected to sign a tripartite agreement under which Nepal exports power to Bangladesh for the first time.
When Prime Minister Pushpa Kamal Dahal visited India in May-June last year, Delhi had promised to facilitate the export of 40MW electricity to Bangladesh, as per a report of The Kathmandu Post published on 20 January.
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With Indian territory between Nepal and Bangladesh, it is necessary for both sides to take India on board in the energy trade.
"Bangladesh has sent us a draft request for proposal (RfP) in which we propose the tariff that we want to levy," said Nepal Electricity Authority (NEA) Managing Director Kul Man Ghising, as reported by the Nepali media outlet.
NEA officials said while both sides have reached consensus on nearly all aspects related to the export of 40MW of electricity, negotiations on the tariff remain the only pending matter.
They said that once Nepal proposes a tariff, bilateral negotiation would begin on the issue.
The decision on the proposed tariff might take 10 to 15 days, said Ghising. NEA officials also mentioned that other terms and conditions would be agreed upon in the RfP between the two sides. The draft RfP was received earlier this week, as confirmed by NEA officials.
Pradeep Kumar Thike, deputy managing director who oversees power trade at the NEA, told the Kathmandu Post that bilateral agreement on power trade has so far been in the form of a memorandum of understanding. With the RfP, understanding will be formalised in concrete terms and conditions.
Nepal and Bangladesh reached an agreement last year to work towards the export of 40MW of power. However, the realisation of the plan has been delayed as negotiations between the two sides remain inconclusive. Nepal anticipates exporting power in the upcoming wet season, considering the possibility of needing to import power from India during the winter, as is typically the case for the country.
The Kathmandu Post reports that as a friendly gesture, Nepal plans to offer a reasonable tariff for the government-to-government deal. "A reference can be the existing electricity price in Bangladesh," Ghising told The Post earlier.
The report quoted Bangladesh Ambassador to Nepal Salahuddin Noman Chowdhury's recent statement, "Currently, Bangladesh produces around 25,000MW of electricity against the demand of over 30,000MW. If Nepal gives us 3,000–4,000MW of power right now, we can consume all the supply."
