The governments of Bangladesh and Nepal are preparing a final draft of memorandum of understanding (MoU) on energy cooperation and power trade agreement, says a report of The Himalayan Times.
Quoting Dinesh Kumar Ghimire, joint secretary at the energy, water resources and irrigation ministry, the Nepali media said the Nepal government has already given its nod to the energy cooperation with Bangladesh.
The draft MoU was sent to the Bangladeshi government, the Nepal official was quoted to have said.
“We are currently holding discussions with the Bangladeshi government to finalise the MoU,” Ghimire was also quoted to have said.
According to the report, the draft includes setting up a joint energy mechanism for power trade and investment.
The report added that the framework is based on South Asian Association for Regional Cooperation (SAARC) Framework Agreement for Energy Cooperation, which was signed by all the SAARC members in 2014.
“Power trade between Nepal and Bangladesh is complex because the transmission lines would have to traverse India,” Ghimire was further quoted.