A groundbreaking agreement on electricity tariffs between Nepal and Bangladesh marks a pivotal advancement in their bilateral ties, ushering an era of energy collaboration. Ratified at a World Bank event in Singapore, the accord witnessed by the energy secretaries from both nations, encapsulates the spirit of mutual benefit and partnership.
The arrangement, a testament to the diligent efforts of the Nepal Electricity Authority (NEA) and the Bangladesh Power Development Board (BPDB), facilitated by Ambassador of Nepal to Bangladesh Ghanashyam Bhandari, enables the inaugural export of 40 MW of electricity from Nepal to Bangladesh.
Championed by NEA Managing Director Kulman Ghising and BPDB Chairman Mahbubur Rahman, the negotiations concluded with an agreement to transact in US dollars.
The tariff, set between Rs 8 and Rs 9 per unit, reflects the NEA’s initial proposition, equivalent to 6.25 to 6.5 US cents per unit. This pricing structure ensures competitiveness and financial feasibility for both nations, promoting a balanced, enduring energy trade relationship.
Nepal’s strategy to exploit its hydroelectric potential and export surplus electricity aligns with its aspirations for economic growth, exemplified by its electricity trade agreement with India. This strategic direction underscores Nepal’s dedication to contributing significantly to the South Asian energy matrix.
The commitment from Bangladesh to import 6,000 MW of electricity from its neighbors, reinforced by State Minister Nasrul Hamid’s assurance of an imminent pact with Nepal, signifies a critical juncture in regional energy collaboration.
The electricity tariff treaty between Nepal and Bangladesh transcends mere energy provision; it heralds a new chapter in regional stability and economic development.
This milestone paves the way for expanded economic collaboration, urging both countries to delve into cooperative ventures across various sectors.
Such joint endeavors promise to solidify a robust partnership, beneficial for the citizens of both Nepal and Bangladesh, and serve as a paragon of regional cooperation for South Asia.
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