Bangladesh-Nepal bilateral relationship found a new pace in August 2018 with the signing of an energy cooperation agreement to oversee investment, development and trade in hydroelectricity between the two countries. Under this arrangement, Bangladesh will import up to 9,000 MW of hydropower from Nepal by 2040.

The agreement also set up a Joint Working Group (JWG) to facilitate cooperation and a Joint Steering Committee (JSC) to review the progress of the JWG. The two committees are tasked to meet regularly and expedite the implementation of the agreement. The JSC has met twice, and the JWG has conducted several rounds of deliberations. However, the progress has not made headway due to a delay in signing a tripartite agreement that includes India.

Bangladesh, with an average GDP growth rate of around 7.5% in the last decade, has positioned itself as one of the fastest-growing economies in the world. The aspiration of elevating its stature to a high-income country by 2041 should be coupled with sustained production of energy to feed the ever-growing energy demand from the infrastructure and industrial sector. Since non-renewable natural gas is contributing 75 per cent of its total fuel consumption, Bangladesh is in haste to replace this scenario by importing energy from other countries so that the depleting gas reserve can be slowed.

https://thehimalayantimes.com/business/bangladesh-nepal-energy-cooperation-the-horizon-of-new-possibilities/