Foreign Ministers of Bangladesh and Bhutan Discuss Energy Cooperation
12 May 2016
Bangladesh Foreign Minister Abul Hassan Mahmood Ali and Bhutan Foreign Minister Damcho Dorji discussed hydropower, as well as other areas of cooperation, including connectivity, air services, renewable energy, trade and commerce, human resource development, science and technology, and peacekeeping in a meeting in Thimphu, Bhutan on 12 May 2016.
Bangladesh plans to invest in the 1,125 megawatt Dorjilung hydropower project in Bhutan's Lhuentse district, according to Foreign Minister Ali. The Government of Bangladesh earlier approved $1 billion for investment in Bhutan's hydropower. Trilateral cooperation among Bangladesh, Bhutan, and India would enable Bangladesh to invest in Bhutan's hydropower sector. India has agreed to Bangladesh’s 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 for the project, which would diversify energy markets of Bangladesh and Bhutan, and further build energy trade and cooperation among the three countries.
Bangladesh is also looking into additional imports from Bhutan’s other hydropower projects. With its goal of becoming a middle-income country by 2018, power imported from Bhutan would help Bangladesh meet its growing energy demand.
Hydropower projects in Bhutan are a source of clean and affordable electricity for its neighbors in the region. Bhutan’s export revenues are a primary source for government spending on socio-economic development, supporting social services such as health, education, and rural development.
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