Economy
Nepal-Bangladesh Power Sale Agreement Hits Impasse Over Tariff Negotiations
In a setback to the anticipated power trade between Nepal and Bangladesh, negotiations have hit a roadblock as Bangladesh pushes for a reduction in the prices quoted by the Nepal Electricity Authority (NEA).
The Kathmandu Post, citing sources from NEA officials and Nepal’s energy ministry, reported that Bangladesh is aiming to lower the quoted price through negotiations, leading to a temporary halt in the inaugural power trade between the two neighboring countries until a tariff agreement is reached.
An NEA official revealed, “After Nepal maintained that the quoted price was reasonable, the Bangladeshi side expressed the desire to engage in discussions with higher authorities.”
A recent delegation led by NEA’s executive director, Kul Man Ghising, visited Bangladesh in an attempt to resolve the disagreement. The exact tariff proposed by Nepal has not been disclosed, but NEA sources suggest it’s around 7 cents per unit.
“I heard that the Bangladeshi side aimed to negotiate the rate down to 5 cents per unit,” said an energy ministry official anonymously to The Kathmandu Post.
Previously, NEA’s Deputy Managing Director, Pradeep Kumar Thike, drew a comparison between Nepal’s proposed price and an Indian company’s payment for a medium-term power purchase agreement last year.
Despite the rate dispute leading to the delegation’s return to Nepal, NEA officials remain optimistic about reaching a consensus in future talks. Managing Director Pradeep Kumar stated, “They are ready to buy, and we are ready to sell. The talks have been positive, and we are hopeful for a final agreement in the upcoming meeting.”
The joint statement issued on February 22 emphasized both parties’ intent to expedite a power sale agreement, facilitating Nepal’s electricity export during the upcoming rainy season. NEA’s proposal aims to export 40MW of power from June 15 to November 15, with the agreement set for a five-year duration, utilizing cross-border transmission lines.
India has also agreed in principle to support the export of 40MW power from Nepal to Bangladesh. The three nations anticipate signing a tripartite deal upon reaching a tariff agreement, marking Nepal’s first-ever power export to Bangladesh. The tripartite agreement was initially planned during the energy secretary-level joint steering committee meeting in May last year, involving NEA, Bangladesh Power Development Board, and NVVN.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
