BIMSTEC members ready to sign Grid Agreement

Kathmandu, Feb. 7: Seven members of BIMSTEC – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand – are ready to sign the Memorandum of Understanding (MoU) to establish a BIMSTEC Grid Interconnection.

They expressed their readiness to sign the MoU at the 17^th session of the BIMSTEC Senior Officials' Meeting (SOM), which concluded in Kathmandu on Tuesday.

The MoU will be signed at the Third Energy Ministers' Meeting, which is expected to be held in Kathmandu on March 30 and 31 this year.

"The member states have expressed their readiness to sign the MoU for the establishment of the BIMSTEC Grid Interconnection at the Third Energy Ministers' Meeting after completing their internal process," said Shankar Das Bairagi, secretary at the Ministry of Foreign Affairs (MoFA).

High officials of the member countries at the fifth meeting of the BIMSTEC Task Force on Transpower Exchange, held in Dhaka, Bangladesh, had finalised the MoU, and once approved, it will provide energy security in the region, share energy among the member states, and facilitate in energy generation and trading in the region.

The MoU will facilitate other BIMSTEC countries to import hydropower from Myanmar and exchange power.

This deal is in line with the SAARC Framework Agreement for Energy Cooperation, which aims to set up a South Asian Regional Grid for cross-border power trade.

Similarly, the BIMSTEC SOM has approved the report of the 7^th meeting of the Joint Working Group on the establishment of the BIMSTEC permanent secretariat.

The report has finalised the administrative and financial matters, including salary, allowances and other facilities of the secretary general, directors and general service staff, as well as the Service Rules and Financial Regulations of the BIMSTEC Secretariat.

"Likewise, the meeting has tasked the Eminent Persons' Group (EPG) to work out the BIMSTEC vision – a roadmap for the future directions of the initiative in line with the UN Agenda 2030," said Bairagi. "It also decided to conclude a BIMSTEC Free Trade Agreement at the earliest."

According to the initiative, BIMSTEC member countries had agreed to establish the Free Trade Area Framework Agreement in order to stimulate trade and investment, and attract outsiders to trade with and invest in BIMSTEC at a higher level.

The meeting also agreed to constitute various expert level working groups for a trade facilitation agreement, mutual assistance on customs matters, cooperation on countering radicalisation and terrorism, BIMSTEC coastal shipping agreement, disaster management and blue economy.

"To enhance the visibility of BIMSTEC, commemorative postal stamps will be launched by the member countries on June 6 bearing BIMSTEC heritage sites, promoting the BIMSTEC Buddhist Circuit and tourism. Likewise, a commemorative book on BIMSTEC will be published and a trade fair will be organised in the member states," said Bairagi.

Nepal is the current chair of BIMSTEC (Bay of Bengal Initiatives for Multi-Sectoral, Technical and Economic Cooperation) – a regional organisation established on June 6, 1997 through a Bangkok Declaration.

The meetings were chaired by Mani Prasad Bhattarai, chief of the Regional Organisation Division at MoFA.

Officials from MoFA, Ministry of Finance and Office of the Prime Minister and Council of Ministers participated in the meetings.

Foreign secretary of Bangladesh, additional secretary of Sri Lanka, secretary of India and director generals from Myanmar and Thailand had led the delegations of their respective countries.