Hydropower potential boosts Bangladesh-Nepal partnership: Envoy

Bangladesh recently decided to import 500MW from the proposed 900MW run-of-the-river hydroelectric power plant – Upper Karnali Hydropower Project – which is supposed to be developed by India's GMR Group. Apart from this, Nepal and Bangladesh have decided to request India to provide passage for the export of 40-50MW of electricity from Nepal to Bangladesh in the initial phase. What is the progress on this issue? How do you see India's cooperation in this regard?

Energy cooperation between Nepal and Bangladesh is a much-talked-about subject.  Nepal's hydropower potential and Bangladesh's increasing energy needs provide ample opportunities for partnership in this sector.

Our concrete efforts to materialise bilateral energy cooperation began with the signing of a MoU on Power Cooperation in 2018. Since then, we have made some progress. In fact, we have never been more hopeful than this year in terms of realising power trade between our two countries.

We are encouraged by India's recent decision to facilitate the first trilateral power transaction from Nepal to Bangladesh, through the Indian grid with an export of up to 40MW. Though a symbolic step in terms of the volume of power, this is indeed an important breakthrough as it opens up new possibilities for further cooperation.

With regard to importing hydroelectricity from the Upper Karnali Hydropower Project, I understand Bangladesh authorities are engaged with GMR Group of India in finalising the power purchase agreement of 500MW of electricity. This was also discussed during the fifth meeting of the Nepal-Bangladesh energy secretary-level meeting held in May this year.

We all know power trade between our two countries is possible only with the trilateral cooperation among Nepal, Bangladesh, and India. It was because of this, that issue was also featured during Prime Minister Sheikh Hasina's visit to India in September 2022, and Nepalese Prime Minister Pushpa Kamal Dahal Prachanda's visit to India in June this year.

There is a plan to construct the Sunkoshi 683MW Hydropower Project as a joint venture between Nepal and Bangladesh. We learned that two Bangladeshi business groups showed interest in working there. What is the progress of the project?

Yes, the idea of developing the Sunkoshi III Hydropower Project as a joint venture has been on the table for some time. Nepal has already completed the feasibility study and environmental impact assessment and Bangladesh has shown interest in the project. Talks are underway with a view to concluding a joint venture agreement at the earliest. This project presents an excellent opportunity for bilateral collaboration in the energy sector. If materialised, it can be a win-win enterprise for both countries. While the idea of developing the project is still in the negotiation phase, we remain optimistic about its potential and the positive impact it can have on strengthening our energy partnership.

The Bangladesh prime minister offered Nepal to use Mongla and Chattogram ports in addition to Saidpur Airport. The negotiations on the movement of cargo and passenger vehicles under the BBIN (Bangladesh, Bhutan, India, Nepal) framework are underway. What prospect do you see in bilateral trade post-introduction of connectivity?

We thank the Bangladesh government for providing Nepal with transit facilities through Chattogram and Mongla ports. The overland trade route connecting Kakarbhitta-Phulbari-Banglabandha has been operational since September 1997, and it has been a valuable trade link between our two countries.

In March 2021, Nepal and Bangladesh signed an Exchange of Letters, designating the Rohanpur-Singhabad railway route as an additional transit route. This route is expected to facilitate the movement of traffic-in-transit as well as the third-country transit trade.

Talking about sub-regional connectivity, negotiations are underway on the movement of cargo and passenger vehicles under the BBIN framework. The successful conclusion of the negotiations, by addressing each other's concerns, if any, will be a significant milestone towards achieving enhanced road connectivity in the sub-region.

The bilateral trade between Nepal and Bangladesh is growing moderately. It was around $80 million in 2022. What measures do you suggest for increasing the volume?

It is true that the bilateral trade between Nepal and Bangladesh is increasing but remains at a modest level. The figures show that trade is heavily skewed in favour of Bangladesh. This is because Nepal's export basket is quite narrow. And, as a landlocked developing country, our transport cost is higher, and it takes a longer time to send and receive merchandise from overseas markets.

Nepali and Bangladeshi investors have collaborated to invest in some joint venture projects. The signing of the Double Tax Avoidance Agreement in 2019 has opened avenues for further expansion of trade and investment opportunities. Private sectors – led by the premier chambers of our countries, FNCCI and FBCCI – are closely connected.  However, given the closeness and proximity between our two countries, what we have achieved is nowhere close to the potential.  So, there is a need to further intensify our efforts to enhance trade and investment linkages, including by eliminating or reducing the other duties and charges, upgrading facilities at land customs stations, and harmonising trade regulations.

How can Bangladesh develop its tourism sector in cooperation with Nepal?

The two countries offer unique and diverse tourist products that can complement each other. In 2022, over 25,000 Bangladeshi tourists visited Nepal, which is close to the pre-pandemic level. However, considering the number of outbound tourists from Bangladesh, this figure remains relatively low.  To fully capitalise on the opportunities, we need to promote tourism circuits and build stronger linkages between our touristic destinations. Facilitating smooth and hassle-free travel between our countries through enhanced air and land connectivity will be critical. We can also explore opportunities for collaboration in adventure tourism, medical tourism, and eco-tourism projects. We stand ready to share our experiences with Bangladesh in this regard.

A significant number of Nepali students are pursuing higher education in Bangladesh, especially in the medical field. Could you provide some insights on its impact on bilateral relations?

Currently, around 3,000 Nepali students study in various universities and colleges across Bangladesh. These students have been pursuing their degrees in medical, engineering, and some other disciplines.  Bangladesh has been a preferred destination for our students, thanks to the quality education and warm hospitality offered by Bangladesh. I thank the people and government of Bangladesh for their continued support and cooperation extended to our students. 

The strong educational ties between our two countries have played a significant role in strengthening our bilateral relations. Not only this, Nepali students studying in Bangladesh serve as our cultural and educational ambassadors, bringing our societies and peoples closer through their academic pursuits and fostering cross-cultural understanding. We want these academic exchanges to grow both ways.

Our two countries are members of regional organisations Saarc and Bimstec and work closely at international platforms such as the UN, Non-aligned Movement, and G-77, among others. How do you see this aspect of Nepal-Bangladesh collaboration?

Nepal-Bangladesh cooperation in regional and international forums is an important aspect of our relationship.  We know South Asia is a region of immense possibilities, common values, and socio-cultural affinities. And our two countries have always worked together to promote regional peace, progress, and prosperity.  We continue to play a constructive role both in Saarc and Bimstec to drive the regional processes with a forward-looking perspective.

Similarly, international platforms like the UN, NAM, and G-77 provide opportunities for us to work together on several areas of mutual interest. We can talk about international peace and security, development, human rights and humanitarian affairs, disarmament, trade and investment, climate change, health, disaster management, and the list goes on.

Currently, the first two largest troops and police-contributing countries in UN peacekeeping operations are Bangladesh and Nepal, which continue to contribute to the noble cause of global peace and security. This has also further consolidated the exchange of visits, training opportunities, capacity development, and multinational peacekeeping exercises between our two armies.

Having said all this, only a few bilateral relations between two close neighbours embody such promises and potentials as Nepal and Bangladesh do – be it at bilateral or regional, or multilateral levels. It is incumbent upon us to utilise these platforms and institutions to realise our collective strengths for the sake of our peoples and countries.

Both Bangladesh and Nepal will be graduating from the LDC category by 2026. How can the two countries work together to ensure a smooth and sustainable graduation?

Graduation is an important development milestone that comes against the backdrop of the important socio-economic strides our two countries have made over the years. 

With a stable government under the leadership of Prime Minister Sheikh Hasina, Bangladesh has achieved phenomenal economic progress over the last fifteen years. Nepal has also made some significant development gains. However, graduation will entail various challenges, especially owing to the potential loss of international support measures. On top of this, Nepal's case is a unique one as it will be the first country to graduate without meeting the per capita income threshold.

As we embark on this new phase of development, we must work together to ensure that graduation is smooth, sustainable, and irreversible. I remember how our two delegations worked closely to secure a five-year preparatory period in the UNGA resolution that recommended the graduation of our countries while I was with Nepal's Permanent Mission to the UN in New York. We can work more closely as we prepare our transition strategies. We can share each other's experiences, including during the current preparatory period. We must engage with our development partners and the international community to advocate for favourable measures during the transitional period after 2026.