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Bangladesh writes to NEA for signing power purchase-sale agreement

Photo: ORF

Kathmandu:  The Bangladesh Power Development Board (BPDB) has sent a letter to the Nepal Electricity Authority (NEA) to sign an agreement for the sale and purchase of 40 MW of electricity produced in Nepal. 

The BPDP sent the letter for the agreement while sharing that the tender submitted by the NEA for the sale of 40 MW power for six months during the rainy season was approved by the concerned body, according to the NEA. 

As per the provision in the law, a trilateral agreement was signed between Bangladesh, India, and Nepal on January 1, 2024, for the sale of 40 MW of electricity produced in Nepal.  

The NEA had called for a tender for the purchase of power for five years as per this.  Sharing that the tender was approved by the concerned body by evaluating the documents related to the tender, the BPDP informed the NEA about the approval of the tender.  

The NEA has to send a written notice about the approval of the tender within seven working days after that the BPDP would provide a draft of the agreement regarding the sale of the power to the NEA.  

An agreement should be signed within 28 days after receiving the draft. An agreement would be signed between NEA, NTPC Vidyut Vyapar Nigam (VVN), India, and BPDP.

NEA Executive Director Kulman Ghising said works have been started to export power to Bangladesh from this monsoon season by completing all the remaining processes. 

“Since all the three agencies have agreed on the draft of the trilateral power trading agreement, the pact would be signed soon. After this, we will send a list of the projects to the Central Power Authority of India for its approval for exporting power to Bangladesh,” NEA Executive Director Ghising said.

According to Ghising, they are sending to the concerned authorities of India proposals for exporting electricity to Bangladesh for which approval has already been taken, as it would take time to get approval when proposals for power export from new projects are sent.

Minister for Energy, Water Resources, and Irrigation Shakti Bahadur Basnet has directed the NEA leadership before this to finalize the process required for selling power to Bangladesh. Minister Basnet is also the Chairman of the NEA Board of Directors.

NEA has made preparations for exporting to Bangladesh the power produced from the projects constructed with an Indian grant, and the electricity generated from the 25-megawatt Trishuli and the 22-Megawatts Chilime hydropower project constructed by its subsidiary company.

NEA will sell 40 megawatts of power to Bangladesh in six months (June 15 to November 15) every year at the rate of 6.40 US dollars per unit.

The NEA will receive the price of the electricity to be exported to Bangladesh via the inter-country Dhalkebar-Muzafarpur 400 kV transmission line at the Muzaffarpur point, India. This transmission line is the first inter-country transmission line between Nepal and India. This means the electricity meter of the power exported to Bangladesh would be installed at Muzaffarpur. It is stated that NEA will itself bear the cost of the technical leakage occurring on the transmission line from Dhalkebar to Muzaffarpur.

The electricity exported from Nepal will reach Bangladesh from Muzaffarpur via the Baharampur (India)-Bhermara (Bangladesh) 400 kV transmission line of India.