- Bangladesh is formally reviewing a proposal to jointly develop a 683-megawatt hydropower project with Nepal to expand clean energy imports.
- Energy Minister Iqbal Hassan Mahmood confirmed the government is assessing the project's feasibility, investment structure, and regulatory framework.
- The initiative builds on existing energy trade and seeks to diversify Bangladesh's power sources through Nepal’s vast renewable hydropower potential.
- The project remains in early stages, focusing on technical and legal assessments before any final implementation decisions are made.
Dhaka/Kathmandu: Bangladesh has initiated a formal review process for the proposed joint development of a 683-megawatt hydropower project with Nepal, marking an important step toward strengthening bilateral energy cooperation between the two South Asian countries. The initiative is part of Bangladesh’s broader strategy to expand clean energy imports and diversify its energy sources by utilizing Nepal’s vast hydropower potential.
Bangladesh’s Energy and Mineral Resources Minister, Iqbal Hassan Mahmood, informed the national parliament on Monday that the government is currently assessing the feasibility, investment structure, and implementation framework of the proposed project. Responding to a starred question from members of parliament, he said, “In a bid to import more hydropower from Nepal, the issue of jointly constructing a 683-MW hydropower plant is under review.”
The proposal remains at an early stage, but it reflects Bangladesh’s growing interest in renewable energy cooperation and regional power trade. Officials said the review process will examine technical, financial, legal, and regulatory aspects of the project before any final decision is made. The government is also expected to consider regional mechanisms to ensure smooth implementation if the project moves forward.
The minister also noted that Bangladesh is already importing 40 megawatts of electricity from Nepal under existing bilateral arrangements. This limited but significant energy exchange is being viewed as a foundation for expanding future cross-border electricity trade between the two countries. He further added, “If legal action is required in the regional hydropower sector in the future, necessary measures will be taken accordingly,” indicating Bangladesh’s readiness to address any legal or regulatory challenges related to cross-border energy cooperation.
At present, Nepal and Bangladesh maintain gradually expanding but still limited trade relations, with most bilateral exchange occurring through transit routes via India under regional connectivity arrangements. Direct trade volumes remain modest; however, both countries have expressed interest in enhancing economic engagement, particularly in the energy sector.
In recent years, Nepal and Bangladesh have agreed in principle to expand cooperation in hydropower development and cross-border electricity trade. Bangladesh has already been identified as a potential buyer of Nepal’s surplus hydropower, while also emerging as a prospective investor in Nepal’s energy infrastructure projects. Discussions have also included the possibility of strengthening regional grid connectivity and improving transit arrangements to facilitate smoother trade flows.
Despite these positive developments, challenges remain, particularly in terms of infrastructure limitations and the lack of direct transit routes between the two countries. Experts note that overcoming these barriers will be crucial for unlocking the full potential of Nepal–Bangladesh economic and energy cooperation.
If successfully implemented, the proposed 683-MW joint hydropower project is expected to significantly deepen bilateral ties, enhance regional energy security, and support the transition toward cleaner and more sustainable energy systems in South Asia. However, officials have clarified that the proposal is still under review and no final agreement has yet been reached, with further discussions expected in the coming months.
