MoU with Nepal to tap hydro-electricity soon

A high-powered team led by State Minister for Power, Energy and Mineral Resources Nasrul Hamid to fly to Nepal tomorrow (August 9) to sign a memorandum of understanding (MoU) with the country to tap its hydro-electricity potential through investing in the project of Indian company GMR.
"We are set to sign a MoU with Nepal soon, Nepal has agreed with our idea, we have talked with the Indian government and GMR. The Nepali Minister for Energy has assured us that they are ready to re-start talks in this regard," State Minister for Power, energy and Mineral Resources Nasrul Hamid told the Daily Observer on Thursday.
Power Division has made massive preparations to ensure the country's energy security from India, Nepal and Bhutan. Bangladesh also sought open access to Nepal's hydro-electricity potential, which is estimated to be around 46,000-MW.
The Nepalese ministry concerned will send back the draft MoU to us for  oversee it, Power Division official said.
According to a Power Division official, Nepal government identified the proposed Upper Marsyangdi-II as one of its national priority projects, which is being facilitated by the Investment Board of Nepal where GMR will invest and give 12 percent royalty to Nepal and bring all power from Nepal to India. Later, GMR will market this electricity in its own way.
Bangladesh now plans to import hydro-electricity from Nepal after India to meet its increasing demand for power to ensure the country's energy security from India, Nepal and Bhutan.
During a meeting with Prime Minister Sheikh Hasina in 2016, Nepali energy Minister  Janardan Sharma give the same assurance.
"NVVN is interested in firming up Power Sale Arrangement (PSA) with GoB/BPDB which will be a back to back agreement to the PPA to be entered into NVVN and GUKHL. NVVN's involvement in this transaction is an electricity trader with limited liability to the extent of trading margin to facilitate the transactions," a senior official of the Power division said.
NVVN is the lone Indian state owned company in the Power sector engaged in the business of Power Trading. Doing business in areas of short term-medium term-long term power trading, solar bundled power, cross border power trading, power swap arrangement and trading of power & REC on power exchanges.
In 2014, Power Division has sent a draft MoU to the Ministry of Foreign Affairs of Nepal on Power Sector Cooperation. However, Nepal is yet to send back the draft.
India has executed a MoU with GMR Upper Karnali Hydropower Ltd (GUKHL), Nepal, for tying up 900-MW saleable power to Discoms, India and Bangladesh. However, NVVN propose to sign a MoU with Bangladesh government/ Bangladesh Power Development Board to tie-up up to 500-MW from the Upper Karnali Hydropower project on the long term basis.
"We want to make a joint investment in the hydro-power projects with the Himalayan country to import 500-MW electricity," Nasrul Hamid said.
"A tri-lateral MoU for joint development of Hydro-power among Bangladesh, India and Nepal may be signed soon to materialise the idea," a senior official said.  
Bangladesh may be requested to share their views and comments regarding examining the feasibility for joint participation and development of Sunkoshi-3 (approx. 536MW) and Sunkoshi-2 (approx. 1110 MW) hydro-power project in Nepal. For importing power Bangladesh has to use Indian corridor that is why both countries may consider tri-party MoU for Joint development hydro power project in Nepal, he added.  
International Finance Corporation (IFC), an arm of World Bank, willing to provide fund and technical support to Bangladesh for making investment in the Nepalese hydro-power project.