Bangladesh writes to NEA for signing power purchase-sale agreement

KATHMANDU, JULY 9: 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 BPDB sent the letter, indicating that the tender submitted by the NEA for the sale of 40 MW of power for six months during the rainy season was approved by the concerned body, according to the NEA.

In accordance with legal provisions, 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 tenders for the purchase of power for five years. After evaluating the tender documents, the BPDB informed the NEA about the tender's approval.

The NEA must send written notice of the tender's approval within seven working days. Afterwards, the BPDB will provide a draft of the agreement for the sale of power to the NEA.

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

NEA Executive Director Kulman Ghising said that preparations have begun to export power to Bangladesh from this monsoon season by completing all the remaining processes.

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

According to Ghising, they are sending proposals for exporting electricity to Bangladesh to the concerned authorities in India, as approval has already been obtained. He mentioned that it would take time to get approval for new project proposals.

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

The NEA has prepared to export power to Bangladesh from projects constructed with Indian grants and the electricity generated from the 25-Megawatt Trishuli and 22-Megawatt Chilime hydropower projects, constructed by its subsidiary company.

The NEA will sell 40 megawatts of power to Bangladesh during the six months from June 15 to November 15 each year at a rate of 6.40 US dollars per unit.

The NEA will receive payment for the electricity exported to Bangladesh via the inter-country Dhalkebar-Muzaffarpur 400 kV transmission line at the Muzaffarpur point in India. This transmission line is the first inter-country transmission line between Nepal and India, meaning the electricity meter for the power exported to Bangladesh will be installed at Muzaffarpur. The NEA will bear the cost of 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)-Bheramara (Bangladesh) 400 kV transmission line of India.