The New Nation - Internet Edition

bdnews24.com, Dhaka

Bangladesh and Bhutan will discuss transit through India during prime minister Sheikh Hasina's visit to the tiny mountain nation starting Friday, but are not expected to sign a deal just yet, foreign minister Dipu Moni said.

She said the two countries would sign a trade agreement, however.

The foreign minister also said Dhaka would try to "be involved" in the hydro-power projects in Bhutan to meet Bangladesh's increasing energy needs.

Hasina, who flies fly to Thimpu Friday morning for a three-day visit, will meet her Bhutanese counterpart Jigme Thinley on Saturday.

"As India has offered transit facilities, we will have talks on possible signing of a deal with Bhutan in future," Dipu Moni told the news agency on Thursday at her foreign ministry office.

"But we are not signing the transit deal during the visit," she said.

Dipu Moni is one of the members of a 28-strong Bangladesh delegation to

Bhutan that signed a transit agreement in 1980 to boost bilateral trade.

But the 20-year deal could not establish transit facilities between the two countries as Bangladesh and India could not reach agreement on the issue.

Bangladesh and Bhutan will have to cross a 50-kilometre stretch of Indian land to reach each other's territories.

India, meanwhile, has long been demanding transit facilities from Dhaka to reach its seven states in its North East separated by Bangladesh.

Successive governments in Bangladesh have refused to allow India land transit facilities due to the contention on the issue at home. The main opposition BNP and its allies are dead against giving land transit facilities to India.

But India, during Dipu Moni's Delhi visit in September, offered Bangladesh passage to reach Bhutan and Nepal subject to securing separate transit deals with Thimpu and Katmandu.

The volume of Bangladesh-Bhutan trade is very small. Dhaka imports commodities, mainly fruit and fruit-products, worth $14 million per year while exports less than one million dollars, according to commerce ministry.

Bhutan's annual gross domestic products is worth only around $3.5 billion while Bangladesh's is over $84 billion.

"During the visit, we will sign an agreement to increase the volume of trade between the two countries," said Dipu Moni.

Representatives of Federation of Bangladesh Chamber of Commerce and Industries will sign a memorandum of understanding with the apex trade body of Bhutan, foreign ministry officials have said.

Bangladesh will explore the possibility of increasing export of medicines to Bhutan, which has a population of only 700,000.

Prime minister will also donate three tons of medicines to Bhutanese people affected by a recent earthquake, the foreign ministry officials said.

On power sharing, Dipu Moni said, "Bhutan has huge potential for hydro-electricity generation."

"We will have talks with the government officials whether Bangladesh can be involved in the power generation schemes."

Despite a population of under a million, mountainous Bhutan has the potential to produce up to a massive 30,000MW of hydro-electricity per year, according to Bhutanese estimates.

Indian companies in Bhutan have so far been able to produce10,000MW, a major portion of which goes to India.

But Dhaka must get New Delhi's approval to import power from Bhutan as Bangladesh must construct distribution lines over Indian land to reach its border.

According to foreign ministry sources, Hasina will leave Dhaka Friday morning by Druk Air, Bhutan's flag carrier. She is scheduled to return home Nov 9.