Energy sector holds huge potential of BD-Nepal cooperation

Nepalese Ambassador to Bangladesh Ghanshyam Bhandari on Thursday said his country sees huge potential to cooperate with Dhaka in five key areas, including the energy sector, setting milestones in bilateral and sub-regional cooperation, reports UNB.
"We are encouraged by the decision of the government of India to facilitate the first trilateral power transaction from Nepal to Bangladesh, through the Indian grid with an export of up to 40 MW. This is just a baby step, a symbolic one. But this will be a huge milestone to kickstart a new drive for our bilateral and, in fact, sub-regional cooperation in energy," he said.
In addition, the ambassador said, talks are also underway for a joint investment in the 683 MW Sunkoshi III hydropower project in Nepal.
"I understand Bangladesh authorities are engaged with GMR Company of India in finalising the deal for 500 MW of electricity from Upper Karnali," he said.
The Nepalese ambassador was delivering a keynote speech at Cosmos Dialogue titled "Bangladesh-Nepal Relations: Prognosis for the Future" in the city, which was organised as part of the "Ambassadors' Lecture Series" by Cosmos Foundation.
Former Bangladesh High Commissioner to India and Ambassador to the United States and Honorary Emeritus Advisor, Cosmos Foundation Tariq A Karim chaired the discussion while Cosmos Foundation Vice President Masud Khan delivered welcome and closing remarks.
Former Secretary, Ministry of Foreign Affairs Sabbir Ahmed Chowdhury, former Principal Secretary to Prime Minister of Nepaql Hari Sharma, Dhaka University International Relations Department Prof Lailufar Yasmin and Assistant Professor, Department of Economics, East West University Parvez Karim Abbasi, among others, spoke at the symposium.
Cosmos Foundation Chairman Enayetullah Khan was also present.
The envoy said Nepal's hydropower potential and Bangladesh's increasing energy needs are much-talked about subjects.
"Currently, Nepal has an energy surplus. But, what we are producing now is just over 5.0 per cent of what is economically viable. This means, if fully realised, Nepal's hydropower can make tremendous contributions to the clean energy solutions of South Asia," said the ambassador.
Tariq Karim said if there is one factor that will determine the future of Bangladesh-Nepal relations, it is cooperation in the energy sector between the two countries.
He said Nepal and Bangladesh are finally about to enter a new phase in terms of power supply, and he sees huge and very exciting possibilities.
"If 40MW starts coming, that is a beginning, but it will open a floodgate," said the former diplomat, adding that through this they can begin the transition more quickly to green energy, not just clean energy.
He highlighted the hydropower potential that the region, especially Bhutan, Nepal, and Northeast India, holds.
Karim said the relations have not gone really at the pace that kept with the expectations from the sides.
"We have to understand that if we want something, we have to give something. If we deny something, we will also be denied something," he mentioned.
Masud Khan said one of the most promising sectors between the two countries is energy.
"This will also grow as Nepal develops its hydropower capabilities and Bangladesh optimises its gas output," he said.
There is a secretary-level joint steering committee for energy cooperation, which held a significant session in August 2022.
However, Masud said, trade in energy and electric power will need to be trilateral, as India's consent and participation would perhaps be essential and critical.
"South Asian diplomacy will require putting some emphasis on that aspect," he mentioned.
Sabbir Ahmed Chowdhury said the two countries need to explore their untapped potential through bilateral and regional cooperation.
He said that through a tripartite arrangement, the export of 40-50MW electricity from Nepal to Bangladesh is progressing. "It is a small step in the progress of the relationship between Bangladesh and Nepal, but a giant leap for regional cooperation, and its implications for future regional cooperation will be extensive."
Sabbir also said it is necessary to focus on trade arrangements between the two countries.
Hari Sharma said the two countries and their people need to understand each other better and need to understand each other's sensitivity.
He said the two countries need to have regular "strategic dialogue" to take forward their relations, noting that there are very little interactions between knowledge centers.
Hari Sharma said the relationship needs to be nurtured through various mechanisms that are available to both countries. "If we exchange more, our relationship will grow further."
Prof Lailufar Yasmin highlighted the importance of soft power in strengthening relations, noting that there should be efforts to enhance cooperation in the cultural arena.
She said the two countries can go for joint movie production.
Prof Abbasi laid emphasis on investment flow from both ends and felt for an agreement on investment and a protection mechanism for joint venture investment.
He also highlighted potential in the tourism sector and said the two countries must have broader tourism facilities with the support of India. "Tourism infrastructure needs to be developed."
Prof Abbasi also highlighted the importance of having "sustained engagement" for greater benefits.
Ambassador Ghanshyam said as they look to the next fifty years and beyond, there is a need to build on the progress and consolidate our partnership with more focus on enhancing economic linkages.
"With just 51 years on the clock of our formal diplomatic relationship, we can of course take stock of, celebrate, and commemorate the achievements we have made together," he said, highlighting five key areas of cooperation - energy, trade and investment, connectivity, tourism and people-to-people contacts, and climate change.
The two governments have agreed to start power trade at the earliest, even with a small volume of 40-50 MW to begin with.