Nepal and Bangladesh have signed a Memorandum of Understanding (MoU) paving the way for cooperation in energy and power development sector. The issue was being discussed for long.
The talks regarding the possibility of cooperation between the two countries made progress after the formation of new government, and finally culminated with the signing of the MoU on August 10.
No much progress had been made earlier though Bangladesh had long been wishing to cooperate with Nepal in power and energy sector. The issue gained momentum mainly after Nepal and India signed energy trade agreement in 2014.
Minister for Water Resources and Irrigation Barsha Man Pun and Bangladeshi State Minister of Power Nasrul Hamid on Friday signed the MoU which is a major and important step for bilateral energy cooperation between the two sides.
Minister Pun deserves credit for showing special interests on this issue right after assuming the post. The agreement has laid the groundwork for broader cooperation in electricity production, grid connectivity, energy expertise, and renewal of energy.
Bangladesh has been willing to invest in a few hydroelectricity projects in Nepal. There have been some studies and discussions at government level towards that end. However, the issues had not make a concrete progress due to lack of bilateral agreement.
Definitely, the agreement has created a positive environment for Bangladesh to invest in Nepal’s hydropower sector. More importantly, both government and private sector of Bangladesh have been showing interests to invest in Nepal. Bangladesh, which currently produces 16,000 megawatt electricity, needs to double its power production by 2030. It seems impossible to meet the future power demands internally. Nepal is looking for market to sell its surplus electricity. Therefore, the agreement was signed at the perfect time.
Bangladesh has reckoned energy as the key to maintain seven percent economic growth. Presently, Bangladesh has been purchasing 1200-megawatt electricity from India and its demand is still growing. Bangladesh government has set a target to purchase 5000-megawatt electricity from Nepal, India, Bhutan and Myanmar by 2030. Bangladesh government has a plan to increase its power purchase to 9000-megawatt by 2041.
The support and assistance of India is indispensable for energy cooperation between Bangladesh and Nepal. Bangladesh has already held discussions with India’s high political level. Bangladesh Prime Minister Seikh Hasina, during her India visit in April 2017, had urged Indian Prime Minister Narendra Modi to facilitate in energy cooperation between Nepal and Bangladesh.
However, India has not given its response regarding the issue. According to the agreement between Bangladesh, Bhutan, India and Nepal (BBIN), India should support in that. The issue has been regularly discussed at BBIN meeting.
Along similar lines, Bangladesh has showed willingness to invest in a few hydropower projects. But India’s support is essential for building the transmission lines. As a member of Saarc BBIN, India has to lend support for energy cooperation between Nepal and Bangladesh.
For this, Nepal and Bangladesh government should hold serious discussions. They should not delay in taking forward the necessary process while implementing the current agreement. India needs to show its magnanimity for regional energy cooperation.
