KATHMANDU: Nepal and Bangladesh are preparing to sign a memorandum of understanding (MoU) for a joint venture to construct the Sunkoshi III Hydropower Project, with a capacity of 683 MW. This project, to be built on the Sunkoshi River in the border of Ramechhap and Kavrepalanchok districts, has been under discussion for a long time between the two countries.

In the upcoming meeting of the Joint Working Group (JWG) and the Secretary-level Joint Steering Committee (JSC) of the Ministry of Energy, Nepal and Bangladesh plan to sign the MoU to establish the joint venture. Navin Singh, spokesperson for the Ministry of Energy, Water Resources, and Irrigation, stated that this meeting will be held in Pokhara on June 23 and 24.

“In this meeting, preparations have been made to sign a memorandum of understanding to form a joint venture for the development of the Sunkoshi III project,” Singh said.

At the previous meeting of these mechanisms, held in Patuakhali, Bangladesh, last year, it was agreed to sign an MoU for the joint construction of the Sunkoshi III project by the Nepal Electricity Authority and the Bangladesh Power Development Board within six months. Although delayed, government officials are now aiming to finalize the agreement.

Singh mentioned that the share distribution within the joint venture has not yet been decided. Both Nepal and Bangladesh have expressed interest in involving Indian companies in the joint venture. They believe that including an Indian company will facilitate the export of electricity produced from the project to Bangladesh.

“It has been proposed to sign a memorandum of understanding to allow companies from Nepal, India, and Bangladesh to join the joint venture,” said Singh. Officials noted that in previous meetings, both sides agreed to involve India to help advance the project. The Government of Nepal held internal discussions before proposing the inclusion of an Indian company.

It has been two years since Nepal and India issued a joint statement aimed at enhancing hydropower cooperation among Bangladesh, Bhutan, India, and Nepal (BBIN). However, tripartite discussions have not yet occurred.

Bangladesh is expected to purchase 40 MW of electricity from Nepal under a tripartite cooperation. During Prime Minister Pushpa Kamal Dahal’s visit to India last year, an agreement was reached to facilitate the transmission of electricity to Bangladesh via Indian transmission lines.

Although a five-year trade agreement has been signed for exporting 40 MW of electricity from Nepal to Bangladesh, the pricing has not yet been finalized. “Since Bangladesh has not yet decided on the price proposed by the Nepal Electricity Authority, the NEA has not been able to export the 40 MW of electricity,” Singh explained.

Once the price is agreed upon, a tripartite agreement will be reached, and electricity will be exported. Efforts are being made to export electricity to Bangladesh this year, Singh added.