Even as Nepal has the potential to generate upwards of 40,000 megawatts of hydropower, it has been stuck at generating less than 1,000 megawatts for over two decades. Above, a hydro electricity station on the Bhote Koshi River outside Barabise town near the Nepal-China border. Photo/Conor Ashleigh

Kathmandu - Efforts have moved forward for a trilateral agreement between Nepal, Bangladesh, and India to construct the Sunkoshi III Hydropower Project with a capacity of 683 megawatts.

In Bangladesh, the joint secretary–level Joint Working Group (JNTF) meeting between Nepal and Bangladesh has prepared to move the project forward based on the earlier agreement to include India in the project.

The Joint Secretary-level Joint Task Force (JNTF) meeting between Nepal and Bangladesh in Bangladesh has made preparations to move forward with the project based on the previous agreement to include India in the project.

In the current situation, where India–Bangladesh relations have become strained, the meeting assessed that expanding Nepal–Bangladesh electricity trade could become more complicated. Since Indian approval will be necessary for matters related to the joint transmission line, trilateral coordination is expected to be decisive in the next phase.

It has been stated that the secretary-level Joint Steering Committee (JSTC) meeting to be held on Thursday is preparing to move forward by approving the issues raised in the joint secretary-level discussions.

In last year’s JSTC meeting, Nepal and Bangladesh had agreed to include India in the development of the Sunkoshi-3 Hydropower Project. There are plans to form a joint venture for the project’s construction and move the development process forward through it.

Estimated to cost around 160 billion rupees, this project is considered strategic from the perspective of multilateral electricity trade. With the construction of the project, a large portion of the electricity produced is planned to be exported to Bangladesh, for which a ‘dedicated transmission line’ through India will be required.

The meeting also held preliminary discussions on identifying new areas of Nepal–Bangladesh cooperation in alternative energy. These topics are expected to be discussed in greater detail and translated into decisions during Thursday’s secretary-level meeting.

The efforts to jointly advance Nepal–Bangladesh electricity trade, the expansion of transmission lines, and large projects such as Sunkoshi-3 are expected to develop as a new model in the South Asian energy market.

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