KATHMANDU, Aug. 10 -- Nepal and Bangladesh signed a memorandum of understanding (MoU) on cooperation in energy sector here on Friday.
The MoU is expected to promote more Bangladesh investments in Nepal's energy sector and pave the way for Nepal to export its surplus power to Bangladesh in the future.
According to a statement issued by Nepal's Ministry for Energy, Water Resources and Irrigation (MoEWRI), the two sides agreed to promote partnership between public and private sectors of the two countries in the areas of power development, transmission and distribution.
They also agreed to make investment through joint venture companies in power sector and help public and private sector entities from both countries to execute power projects.
As per the MoU, the two sides agreed to take measures to establish national and regional grid connectivity to explore the possibility of power trade between the two countries.
As Nepal and Bangladesh don't share border, the two countries have to use Indian grid for power trade.
"As two countries agreed to work together for regional grid connectivity, it will be helpful to bring India on board," Gokarna Raj Panth, senior divisional engineer at the MoEWRI, told Xinhua on Friday.
As per the MoU, the two countries also agreed to form joint task force co-chaired by the joint secretaries of the energy ministries of both countries to materialize the MoU.
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