Negotiations Between Nepal and Bangladesh on Electricity Sales Stalled

In a recent business negotiation held in Dhaka, the capital of Bangladesh, between Nepal Electricity Authority (NEA) and Bangladesh Power Development Board, led by Kulman Ghising, Managing Director of NEA, an agreement on the rate of electricity sales couldn’t be reached. The talks aimed at setting the rate for the sale of 40 megawatts of electricity from Nepal to Bangladesh.

Pradeep Kumar Thike, Deputy Managing Director at NEA, informed Onlinekhabar about the unsuccessful negotiation, stating that despite positive talks, both parties couldn’t agree on the rate.

While NEA proposed a rate of around 7 cents per unit for electricity export to Bangladesh, the latter proposed a reduction in that rate during the negotiation.

“We communicated that the rate quoted by us was ‘non-negotiable,’ but they needed to take it into consideration,” said Thike.

NEA emphasized its unwillingness to export electricity at a lower rate than what it currently exports to India, citing a recent agreement with India to export 200 megawatts of electricity at INR 5.25 per unit (Rs 8.50).

According to NEA, electricity generated from the 23 MW Trishuli and 19 MW Lower Modi hydropower projects was intended for sale to Bangladesh.

Previously, Bangladesh had approved the proposal to import 40 MW of electricity from Nepal. However, negotiations on the rate have now hit a roadblock.

Thike mentioned that Bangladeshi representatives have assured NEA to make a decision on the rate and establish a bilateral agreement within the next few weeks.

“Other aspects of the agreement between Nepal and Bangladesh have already been settled. The draft has been exchanged accordingly, and an agreement will be formalized as soon as the issue of rates is resolved,” Thike said.