BD willing to invest $1b in Bhutans Dorjilung Hydro Power Project

Bangladesh is set to invest $1 billion in the Bhutans 1,125 megawatt Dorjilung Hydropower Project, through trilateral cooperation with India.

Prime Minister Sheikh Hasina has made the proposal once again for discussion during the upcoming bi-lateral meeting between the Prime Minister Sheikh Hasina and Bhutanese King Jigme Khesar Namgyel Wangchuck, scheduled for March 25.

Bhutanese King Jigme Khesar Namgyel Wangchuck is set to arrive in Dhaka on Monday to join the Independence Day celebrations on March 26.

Bangladesh is in talks with Bhutan, India, Myanmar, and Nepal to import electricity to meet its growing energy demand. Bangladesh plans to import 9,000 MW of electricity from the neighbouring countries, however, the country has already imported around 1726 MW of electricity from India.

In May 12, 2016 the then Bangladesh Foreign Minister Abul Hassan Mahmood Ali discussed the proposal with his Bhutanese counterpart Damcho Dorji. It has been estimated that by engaging more in cross-border energy trade, South Asian countries could save over $9 billion annually and reduce carbon emissions by 8 per cent jointly, an Asian Development Bank study has said.

"India has, in principle, agreed to Bangladeshs proposal to invest in the project and provide transit for transmission of electricity from Bhutan. The three countries are working to finalize a draft memorandum of understanding (MoU)for the project, which would diversify energy markets of Bangladesh and Bhutan, and further build energy trade and cooperation among the three countries….we hope this time it will get a different momentum," a senior official of the Power Division said.

Meanwhile, a bilateral meeting on electricity cooperation was held between Bangladesh and India on January 4, 2023 in New Delhi, India, State Minister for Power, Energy and Mineral Resources Nasrul Hamid sought "visible Indian cooperation" for importing hydropower from Bhutan and Nepal.

Meanwhile, Prime Minister Sheikh Hasina has also sought support from the Indian side to import electricity from Bhutan smoothly during a recent meeting with the Indian High Commissioner Pronoy Verma.

The proposed trilateral MoU between Bangladesh, Bhutan and India for cooperation in the field of hydroelectric power on the principles of an agreed regional framework would influence the collective efforts of Bangladesh in resolving its power deficit.

"Cooperation in tourism to maximise its potential is another win-win area. Cooperation in other sectors, including ICT, connectivity, health, agriculture, education, culture, water resources will also be discussed during the meeting," a senior official of the Foreign Ministry has said.

The issue of using of Inland Waterways for Transportation of Bilateral Trade and Transit Cargoes between Bhutan and Bangladesh and the way for opening up the connectivity with Chittagong and Mongla ports will also be discussed in the meeting, he added.

However, Bangladesh, in negotiations with Bhutan, is expected to export more products, such as ready-made garments, ceramics, pharmaceuticals, jute and allied products, leather goods, toiletries and agricultural produce, while Bhutan has agreed to facilitate entry for these products to promote trade and investments between the two countries.

Meanwhile, Bhutan and Bangladesh entered into a trade agreement in 1980 under which Bangladesh granted duty-free access to 18 products from Bhutan. The total bilateral trade volume has been on the rise over the past decade and, more than US$100 million, Bhutans exports to Bangladesh recorded their highest value in 2017.

Bangladesh has emerged as a favoured destination for higher studies for Bhutanese students, especially for courses in health and medical sciences, this time Bangladesh wants to help Bhutan to establish a burn hospital there.

Meanwhile, a senior official of the Ministry of Foreign Affairs has said that the king will attend the Independence Day celebrations on March 26. He will pay respect to Bangladeshs war heroes at the National Martyrs Memorial in Savar and attend President Mohammed Shahabuddins formal programme at the Bangabhaban and visit the proposed "Bhutanese Special Economic Zone" in Kurigram, a joint initiative of the governments of Bangladesh and Bhutan.

The district administration has already handed over 133.92 acres of Khas land under Madhabaram Mauza of Bhogdanga Union to Beza.

"A memorandum of understanding is expected to be signed between the two countries during the Kings visit.

 After completing the overall legal process between the two countries and preparing the space, it will be possible to start the full operation of the SEZ within the next three years. If the economic zone is opened, it will create employment for the people of Kurigram," Beza Executive Chairman Shaikh Yusuf Harun said.

Bhutanese King Jigme Khesar Namgyel Wangchuck will return to Bhutan via India using the Sonahat Land Port of Bhurungamari Upazila of the district.