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BRTC loses out to donors1 pressure

Purchase and operation rights of 300 CNG buses handed to private sector

SyedTashfin Chowdhury
The government has given In to pressure from donor agencies on a plan to purchase and operate 300 CNG-driven buses under the Dhaka Clean Fuel Project (DCFP) and has handed over the responsibility to private companies recently.
It was speculated earlier that the Bangladesh Road TYansport Corporation (BRTC) would handle the purchase and operation on its own but development partners were reportedly critical of the corporation’s past record insimilar ventures.
The DCFP was initiated with a view to improve the overall transport system in the city. Under this project, plans were made for purchasing300CNG-driven buses and 2,000 CNG-operated auto-rickshaws. In addition to those initiatives, 26 new CNG filling stations were to be set up, 23 ofwhich would be Inside thecity.
Due to continuous failure In formulating a definite guideline, the government had to shi ft the purchase and operation plans o f the 300 CNG- d riven buses to 2005.
According to sources, the Communica-
tions Ministry could not prepare a guideline and also could not come to a decision about which department or organisation should be looking after theoperutiunof these buses.
Initially, the Energy Ministry suggested that the Ministry of Communications should procure the buses through the Rupontarita Prakritik Gas Company Ltd. (RPGCL). However, that idea was opposed by the Communications Ministry which felt that the buses could be bought and operated through the BRTC.
But the Asian Development Bank (ADB) and Norwegian Development Bank (NORAD), the two donor agencies for the project, did not want the BRIC’s involvement apparently because of its alleged post recordofcomiptionand incompetence.
Hie totalcostof theproject Is around Si 13 million, out of which I9O million is being fundedbythe two dono rs with AD B’s contri-bution standing at $80 million. The government will provide $23 million from internal resources.
The development partners had proposed the disbursement of the money through bank loans which was not agreed by the
Communications Ministry as that would 1 1 have increased the total implementation । cost of the project.
.The ADB loan that comes with around 15,1 percent Interest would be waived for the first . . ten years. Repayment of the loan, with Inter- / | est,wouldbeginafterthatperiod. .
The installation of a 60-kilometre gas ’ I pipeline from Aminbuzar of Savar to . Dhanuu, construction of two gas stations at ' । Savar and Ashulia and a 97-kilometre pipe- . ( line in Dhaka has also been included in ' project. ■ 1
"As thedonors did not want us tobeapart of the project they therefore have handed it ' over to private companies," said BRTC chairman Taimur Alam Khondoker. |
"Due to the involvement of private companies in such an important project, thecity would I besulferinginthencarruture."headded. .
"The approved funds for the project I hopefully would be made available by > November." said a senior official of the • Communications Ministry. If that happens, I the purehaseof the buses and their eventual ’ operation could be initiated from February | next year, felt sources in the ministry.