It gives me immense pleasure to stand before you today on this momentous occasion - the signing ceremony of the Tripartite Power Purchase Agreement between Nepal Electricity Authority (NEA), NTPC Vidyut Vyapar Nigam (NVVN) and Bangladesh Power Development Board (BPDB).

We are honoured by the presence of Honourable Ministers, Secretaries and senior delegates from Nepal, India and Bangladesh, as well as our valued development partners, all of whom play an important role in our shared mission of promoting regional energy cooperation. I extend a warm welcome to all of you gathered here for this historic ceremony.

Your gracious presence today underscores our shared commitment to advancing energy cooperation in South Asia, a vision that has united us in this endeavour.

Today marks a significant milestone in our journey towards electricity trade within the South Asian region. This agreement, which facilitates the sale of 40 MW of power from Nepal to Bangladesh through the Indian grid, is more than just a contractual arrangement; it is the culmination of our combined efforts, shared vision and unwavering determination. We are moving from bilateral power trade to a trilateral framework, opening up avenues for sub-regional and regional cooperation in the energy sector.

I would like to highlight some of the key points of the Tripartite Power Purchase Agreement.

NEA will supply 40 MW of power to the Mujaffarpur substation in India from 15 June to 15 November each year for a period of five years at 6.40 US cents per unit on a round-the-clock (RTC) basis through the Dhalkebar-Muzaffarpur 400 kV transmission line. BPDB will purchase this power from Bheramara in Bangladesh through the Baharampur-Bheramara HVDC cross-border link.

NVVN will act as a trader for this transaction and will receive a trading margin from BPDB for the energy supplied by NEA at the delivery point. NVVN will also oversee all scheduling, dispatching and energy accounting related to this transaction. In addition, all transmission charges and losses from the entry point - Mujaffarpur to the exit point - Bheramara will be borne by BPDB. A total of 144 million units of electricity will be sold to Bangladesh during the five months of each year, generating an estimated annual revenue of approximately USD 9.22 million for Nepal.

This tripartite agreement is in accordance with the Guidelines issued by the Government of India for Import/Export of Electricity, 2018 and the Procedure for Approval and Facilitation of Import/Export of Electricity by the Designated Authority of India, issued on 26 February 2021.The actual flow of electricity from Nepal to Bangladesh will take place after obtaining the necessary approvals from the Designated Authority, Central Electricity Authority, Ministry of Power, India.

Nepal has become the first country to trade power on the Indian Energy Exchange market from 2021. Currently, Nepal exports around 900 MW to India through bilateral, day-ahead and real-time market segments and after this agreement, Nepal will be the first country to export power to a third country across the border.

Looking to the future, the Nepalese government aims to significantly expand its capacity to 28,500 MW by 2035, with plans to sell up to 10,000 MW to India and 5,000 MW to Bangladesh over the next decade.

Our geographical proximity gives us a unique opportunity to develop key transmission infrastructure and strengthen our interconnections. Together, we can build high-voltage connections that will facilitate increased power flows and lead to a more integrated South Asian energy market.

Nepal's abundant hydropower potential not only supports the energy security of this sub-region, but also plays a critical role in our global efforts to reduce carbon emissions. This historic milestone will not only strengthen people-to-people links between our countries, but also promote the sharing of diverse and complementary energy resources, leading to economic prosperity for all.

The development of hydropower projects, especially dams, in a mountainous country like Nepal will not only bring energy benefits but also flood control, irrigation, navigation and tourism benefits to downstream countries. Thus, integration of all types of renewable energy resources through a strong grid network will create a win-win proposition for all partner countries.

This agreement lays the groundwork for promoting a fair energy market in the region, encouraging joint investment in energy projects and unlocking numerous benefits for our countries. I urge all of us to prioritise confidence building and maintain an open dialogue between us to achieve a seamless flow of electricity across physical borders, paving the way for an integrated sub-regional and regional energy market.

We would like to express our deepest gratitude to the dynamic and visionary leaders, secretaries and diplomats of these sub-regional countries for their tireless efforts to achieve this milestone in cross-border energy trade.

We are also grateful to NVVN and BPDB for being our trusted partners.

Furthermore, we would like to express our sincere appreciation to our development partners for their unwavering support in the development of Nepal's energy sector.

Once again, welcome to all our distinguished guests and thank you for honouring this ceremony with your gracious presence. Your support strengthens our commitment to energy security and regional cooperation.

Let us seize this opportunity for collaboration as we move forward together towards a prosperous and sustainable future for South Asia.

Kul Man Ghising is the Managing Director of the Nepal Electricity Authority (NEA). This is an excerpt of the welcome statement delivered at the tripartite agreement signing ceremony.