The long-awaited tripartite power trade deal between Nepal, Bangladesh and India has finally materialized, paving the way for Nepal to export hydroelectricity to Bangladesh via India. With the agreement in force, Nepal will export 40 megawatts of power to Bangladesh in the rainy season.

Executive Director of Nepal Electricity Authority (NEA) Kulman Ghising, Chairperson of Bangladesh's Power Development Board Mohammad Rezaul Karim and Chief Executive Officer of India's NVVN, the nodal agency, Renu Narang signed the agreement in Kathmandu on Thursday. The agreement was signed in the presence of Nepal's Energy Minister Dipak Khadka and Bangladesh's Minister for Forest, Environment, Climate Change, and Water Resources Syeda Rizwana Hasan.

The agreement was supposed to be signed on July 28, but it was postponed due to the protests in Bangladesh against the quota (reservation) system that reserves jobs for relatives of veterans who fought in the war of independence from Pakistan in 1971. Following the protests, the erstwhile Prime Minister of Bangladesh Sheikh Hasina resigned and fled the country on August 5.

As per the agreement, the NEA shall provide power to India's NVVN and then the Indian company shall transmit power to Bangladesh by using Indian infrastructure.

The power shall be exported through the 400 KV capacity cross-border transmission line between Nepal and India.

The NEA is preparing to export 25 megawatts of power from Trishuli Hydropower Project and 22 megawatts from Chilime Hydropower Project. The NEA has already received approval from the Indian side to export power from these two projects.

The NEA shall export power to Bangladesh for five months beginning June 15 to November 15 during the monsoon season.

As agreed, 144,000 megawatts hour power will be exported during the five months. According to the NEA, per unit power will be sold at Rs 9.30.

As per the agreement, the NEA will begin to export power within some days.

Meanwhile, the joint directorate committee's meeting of the secretary-level of Nepal and Bangladesh held on Wednesday agreed to develop Sunkoshi Hydropower Project-III in partnership with Nepal, Bangladesh and India. The meeting decided that an agreement would be finalized soon and to develop the project by establishing a joint venture company in partnership with NEA and Bangladesh's Power Development Board.

Similarly, a process to sign a deal between NEA and Bangladesh's Power Development Board for the development of Sunkoshi Reservoir-based Hydropower Project with a capacity of 680 megawatts of electricity has been initiated.