PM's Bhutan visit: the prospects of easing power crisis
Sunday, 15 November 2009
Prime Minister Sheikh Hasina chose Bhutan as the first country in the South Asian region to visit. She herself has given an explanation: "Bhutan was among the first countries to recognise independent Bangladesh that is why my first bilateral visit in the South Asian region is to Bhutan." This plausible political explanation apart, the Prime Minister's November 6-9 visit to Bhutan made excellent economic sense. This is about power. Foreign Minister Dipu Moni, who was one of the three ministers who accompanied the Prime Minister to Bhutan, had said before their departure for Thimpu that Bangladesh wanted to "become involved" with Bhutan in the production of electricity. The Bhutanese press quoted Hasina as saying, "If Bhutan can export electricity we will be very happy to get it." The countries have also agreed, according to the joint press statement issued on the conclusion of the Prime Minister's visit, to explore the possibility of cooperation in the energy sector under SAARC regional collaboration. If this agreement is eventually clinched, Hasina's Bhutan visit will greatly contribute towards removing one of the most formidable obstacles to economic progress of the country -- the power crisis.
The founder of democratic Bhutan, King Jigme Singye Wangchuck had said, "Water is to us what oil is to the Arabs." Bhutan -- and Nepal -- have a vast potential for producing hydroelectricity which, if properly harnessed and utilised imaginatively, can meet much of the electricity requirement of the South Asian region. Bhutan alone has a potential to produce 30,000 MW of hydro electric power. Till now, only 03 per cent of this capacity has been utilised. India has been collaborating with Bhutan on hydroelectricity production since 1961, which has alleviated India's power crisis to a great extent. While the question of Bangladesh and Bhutan cooperating in hydro electric power comes up, there is a catch. The two countries will need India's agreement on allowing them to construct 50 kilometres of distribution lines over the intervening Indian territories for export of electricity from Bhutan to Bangladesh.
So, Bangladesh will have to wait till India redeems the pledge it made during the September 07-10 visit to New Delhi by Foreign Minister Dipu Moni. The joint press statement, issued on the occasion, mentions, "Indian side agreed to facilitate Nepal-Bangladesh and Bhutan-Bangladesh connectivity." It is widely believed that an agreement to this effect will be signed during the forthcoming visit of Prime Minister Hasina to New Delhi. If the proposed "Bhutan-Bangladesh connectivity" also incorporates electricity distribution lines, only then Bangladesh-Bhutan power cooperation will become a practical proposition.
Even the implementation, to its full potential, of the trade agreement that has been signed between Bangladesh and Bhutan is crucially dependent on the direct road link between the two countries over Indian territories which India has promised to grant under the "Bhutan-Bangladesh connectivity" formula. Bangladesh and Bhutan signed the first trade agreement in 1980 but the volume of trade has remained too small. Statistics of the last 15 years show that Bangladesh exported to Bhutan goods worth $0.02 to $5.10 million a year and imported from Bhutan goods worth $2.21 to $12.83 million a year. If direct road link were available, the exchange of goods between the two countries would have possibly increased manifold and landlocked Bhutan could use the Mongla port, boosting the bilateral economic cooperation to a great extent. Looking from this perspective, the Prime Minister's visit to Bhutan is a half-way station to her visit to New Delhi which has the key to "connectivity". Bangladesh-Bhutan and Bangladesh-Nepal cooperation can fully flourish only if India, in a spirit of goodwill and regional cooperation, extends a helping hand to its small neighbours.
The founder of democratic Bhutan, King Jigme Singye Wangchuck had said, "Water is to us what oil is to the Arabs." Bhutan -- and Nepal -- have a vast potential for producing hydroelectricity which, if properly harnessed and utilised imaginatively, can meet much of the electricity requirement of the South Asian region. Bhutan alone has a potential to produce 30,000 MW of hydro electric power. Till now, only 03 per cent of this capacity has been utilised. India has been collaborating with Bhutan on hydroelectricity production since 1961, which has alleviated India's power crisis to a great extent. While the question of Bangladesh and Bhutan cooperating in hydro electric power comes up, there is a catch. The two countries will need India's agreement on allowing them to construct 50 kilometres of distribution lines over the intervening Indian territories for export of electricity from Bhutan to Bangladesh.
So, Bangladesh will have to wait till India redeems the pledge it made during the September 07-10 visit to New Delhi by Foreign Minister Dipu Moni. The joint press statement, issued on the occasion, mentions, "Indian side agreed to facilitate Nepal-Bangladesh and Bhutan-Bangladesh connectivity." It is widely believed that an agreement to this effect will be signed during the forthcoming visit of Prime Minister Hasina to New Delhi. If the proposed "Bhutan-Bangladesh connectivity" also incorporates electricity distribution lines, only then Bangladesh-Bhutan power cooperation will become a practical proposition.
Even the implementation, to its full potential, of the trade agreement that has been signed between Bangladesh and Bhutan is crucially dependent on the direct road link between the two countries over Indian territories which India has promised to grant under the "Bhutan-Bangladesh connectivity" formula. Bangladesh and Bhutan signed the first trade agreement in 1980 but the volume of trade has remained too small. Statistics of the last 15 years show that Bangladesh exported to Bhutan goods worth $0.02 to $5.10 million a year and imported from Bhutan goods worth $2.21 to $12.83 million a year. If direct road link were available, the exchange of goods between the two countries would have possibly increased manifold and landlocked Bhutan could use the Mongla port, boosting the bilateral economic cooperation to a great extent. Looking from this perspective, the Prime Minister's visit to Bhutan is a half-way station to her visit to New Delhi which has the key to "connectivity". Bangladesh-Bhutan and Bangladesh-Nepal cooperation can fully flourish only if India, in a spirit of goodwill and regional cooperation, extends a helping hand to its small neighbours.