Nepal’s Energy Minister To Visit Dhaka Today: Bangladesh To Invest In 500 MW Hydropower Project

Bangladesh plans to jointly develop a reasonably sized, around 500 MW, storage hydro project in Nepal by both governments. It will open access to Nepal’s hydroelectricity potential, which is estimated at around 46,000 MW.

The meeting with Nepalese minister is also envisioned to make a joint equity investment by both governments which depicts half of the productions will be exported to Bangladesh

“On Wednesday, we shall submit our open proposal to Nepal’s energy minister. However, tomorrow morning I shall also sit with the Indian high commissioner in this connection, as we feel that ultimately it would be a tripartite show,” state minister for power and energy Nasrul Hamid told yesterday.

In order to make the discussions fruitful, the Power Division has formed a 12-member committee.

“Though it will take another decade to implement the mega hydro-power project in Nepal, Bangladesh has listed its name as a ‘club member’ for such an initiative, given the country’s limited primary fuel resources. This has finally opened a window for obtaining low-cost electricity,” the state minister said.

“Bangladesh initiated these moves to ensure the country’s energy security by meeting its growing demand for electricity since 2012. However, we know that right now, we shall not see any visible result, but we need to start the bilateral talks as the three countries are now ready to move forward to improve the livelihoods of the people in this region,” the state minister added.

“Our plan is to sign a memorandum of understanding (MoU) on the exchange of power between the two countries. At the same time, we need to explore the modes of exchange, investment and infrastructure for this purpose,” Hamid said.

The Power Division will launch formal talks with Nepal on August 6.

Bangladesh plans to tap Nepal’s hydro-electric potential by creating an open market so that it can purchase the power at competitive prices.

According to a Power Division, Radha Kumari Gyawali will visit the Bheramara high voltage direct current (HVDC) substation, through which Bangladesh is importing 500 MW of electricity from India. Bangladesh is planning to invest in Nepal’s hydro power, both in the private and public sectors which will create an opportunity to establish an open market for energy purchases.

A tripartite meeting will be organized between Bangladesh, India and Nepal to establish a power transmission corridor from India.

Recently, the Nepalese government identified the proposed Upper Marsyangdi-II as one of its National Priority Projects, which is being facilitated by the Investment Board of Nepal. “The International Finance Corporation (IFC) will support Bangladesh in investing in this project in terms of providing funding and technical support,” the official said.

According to the Power Sector Master Plan (PSMS), Bangladesh is to import 7000 MW electricity. Nepal alone can provide a lot more electricity than the estimated quantity. Importing hydropower or investing in Nepal is more cost-effective than oil-based power production.