KATHMANDU, July 28: Due to ongoing violent protests in Bangladesh, the scheduled agreement between Bangladesh and Nepal for the purchase and sale of electricity, planned for July 28, has been postponed, raising doubts about electricity exports to Bangladesh this year.

The agreement's signing would have marked the first time Nepal could export electricity to a third country besides India. Since 2021, Nepal has been exporting electricity to India through a competitive method.

A tripartite agreement between the Nepal Electricity Authority (NEA), India's NTPC Vidyut Vyapar Nigam Ltd. (NVVN), and the Bangladesh Power Development Board was scheduled for July 28. The agreement would have allowed Nepal to sell 40 megawatts of electricity to Bangladesh at the rate of 6.4 US cents per unit for five years, specifically during the six months of the rainy season.

However, the Bangladeshi government team informed that they could not attend the signing ceremony due to the ongoing student movement in the country, causing a setback for the NEA's plan to export electricity to Bangladesh. Naveen Raj Singh, spokesperson for the Ministry of Energy, Water Resources, and Irrigation, told New Business Age, "The signing of the agreement has been postponed for an indefinite period."

Singh explained that the continued protests in Bangladesh have made it uncertain when the agreement will be signed. He said, "Even if they come for an agreement after the movement stops, it may take a month to make the necessary preparations."

Singh also mentioned that the Energy Minister of Nepal, Deepak Khadka, had invited the Energy Minister from Bangladesh and the Energy Minister and Energy Secretary from India for the agreement but the signing ceremony could not be held.

As a result, the NEA, which aims to export electricity to Bangladesh, now has to wait longer. The NEA is concerned that if the tripartite agreement is not reached soon, it will lose the opportunity to export electricity to Bangladesh during this rainy season.

Chandan Kumar Ghosh, spokesperson for the NEA, said, "It is not in our hands when the agreement will be made. Our desire is to be able to sell the electricity as soon as possible, but since the agreement is for a long term, there is no need to worry too much if it gets delayed for 1-2 months."

According to the ministry, after the agreement, 28,800 megawatt hours of electricity will be exported to Bangladesh per month. Over the next five months, a total of 144,000 megawatt hours of electricity will be exported to Bangladesh, earning the NEA Rs 1.23 billion.

In addition to the tripartite agreement, the bilateral high-level mechanism meeting on energy between Nepal and Bangladesh, scheduled for July 29 and 30 in Pokhara, has also been postponed. The joint secretary level joint working group meeting was scheduled for July 29, and the secretary level joint steering committee meeting was scheduled for July 30.

During the bilateral mechanism meeting, discussions or agreements were planned regarding a joint venture to build the Sunkoshi 3 hydropower project with a capacity of 683 MW. Singh previously told New Business Age that Nepal has already sent the draft agreement to Bangladesh. In past bilateral talks, the joint venture agreement was discussed between the NEA and the Bangladesh Power Development Board. According to Ghosh, the agreement has not been finalized, but Bangladesh is willing to build the project.