Kathmandu, May 18 :  Nepal and Bangladesh have agreed to construct the 683-MW Sunkoshi-III reservoir hydropower project.

A Nepal-Bangladesh Secretary-level Joint Steering Committee (JSC) meeting has made significant decisions on the construction and management of the cross-border transmission lines, the Sunkoshi-III hydropower project and the cross-border electricity trade.

The secretary-level meeting held in Patuakhali, Bangladesh on Tuesday, decided to sign the joint venture agreement (JVA) within six months to construct the Sunkoshi-III hydropower project.

Secretary of the Ministry for Energy, Water Resources and Irrigation of the government of Nepal Dinesh Kumar Ghimire led the Nepali delegation while Secretary of the Ministry of Power, Energy and Mineral Resources of the government of Bangladesh Mohammad Habibur Rahmon, led the team of Bangladesh. 

They also discussed the recommendations made by the joint secretary-level joint working group meeting, which concluded on Monday.

According to the Ministry of Energy, Water Resources and Irrigation, the meeting also agreed to start the cross-border electricity trade by exporting up to 40 megawatts of electricity to Bangladesh in the coming winter season.

The meeting has decided to sign the Power Sales Agreement as soon as possible, said the Ministry.

The meeting has decided to instruct the concerned joint technical team regarding power transmission lines to study the possible options of cross-border transmission lines for electricity trade between Nepal and Bangladesh and submit a report within six months.

It has also been agreed to facilitate the attraction of Bangladesh's private sector for investment in Nepal's hydropower sector and sign the draft Memorandum of Understanding (MOU) prepared for cooperation in the field of alternative energy between Alternative Energy Promotion Centre, Nepal and Sustainable and Renewable Energy Development Authority, Bangladesh.

Similarly, in the meeting, it was agreed to take initiatives from both sides to establish a high-level tripartite administrative mechanism for cooperation in the electricity sector, including electricity trade, and construction of cross-border transmission lines between Nepal, Bangladesh and India.

During the discussion, Bangladeshi authorities informed that the 'Power Sales Agreement (PSA) between BPDB and GMR, India regarding the purchase of electricity from the Upper Karnali Hydroelectric Project by Bangladesh has reached its final stage and an agreement to this effect will be signed as soon as possible, said the Ministry.