Nepal invites Bangladesh to discuss energy cooperation

The Nepal Government has invited Bangladesh to discuss the possibility of cooperation in sectors like energy and power trade, according to media report today.

As part of the initiative, Nepal Government has sent a draft Memorandum of Understanding to Bangladesh on the matter and waiting for the latter's response, according to the Himalayan Times.

"The Nepal government had given its go-ahead for energy cooperation with Bangladesh in September. A draft MoU had been sent to the Bangladeshi government, but there had been no response from the latter until now," Dinesh Kumar Ghimire, joint secretary at Ministry of Energy, Water Resources and Irrigation (MoEWRI), was quoted as saying in the report.

The draft finalised by Nepal includes setting up a joint energy mechanism for power trade and investment.

"This framework is based on South Asian Association for Regional Cooperation (SAARC) Framework Agreement for Energy Cooperation, which was signed by all the SAARC members in 2014," said Ghimire.

Earlier, the Bangladeshi government had said it would build one large hydropower project in Nepal, and in return got the assurance for facilitation for the Bangladeshi investors in the Himalayan nation's energy sector, the report said.

In recent years, Nepal government has been trying to tap into its huge hydropower potential, attract more foreign direct investment into the sector and cater to the energy needs of the entire South Asia.