KARACHI, Oct 1: Serious differences have cropped up between the provincial and the city governments over violation of terms of the urban transport scheme (UTS) and import of four large buses by the Green Bus Company.

Well-placed sources said the provincial government had introduced the urban transport scheme and invited open bids for investment in the transport sector through the city government’s transport and communication department.

The sources said that a booklet, containing terms of reference of the UTS along with a form to apply for the bid, was sold out for a sum of Rs5,000 each. More than 25 offers from local and foreign entrepreneurs were received by the transport department.

They said the Green Bus Company, which was one of the contestants, got an advertisement published in local newspapers in the end of Aug, when the process of bids were yet to be finalized. Through the advertisement, the company had sought application for operating 300 buses in the city.

A senior transport official said: “Although it is an act of violation of the bid process, we will look into it.”

The sources said the advertisement was in violation of the terms of the UTS, as the government had assured the entrepreneurs that the bids would be evaluated and only those companies would be awarded tenders who would offer quality transport service.

The Green Bus Company brought in four CNG-fitted large buses from China and asked the transport department to inaugurate the project and assign a route to the company.

The sources said the city government had signed a memorandum of understanding (MoU) with the company in which the latter had shown willingness to invest in the transport sector for improving its service and quality.

“It was just a MoU and not an agreement. We have not entered into an agreement with the Green Bus Company for bringing in large buses. The company had shown interest to bring investment in the transport sector and it does not mean the import of large buses,” an official in the transport department remarked.

Another official said the urban transport scheme had been devised for improving the quality and service of the transport sector and the bids were invited under the UTS terms of reference, but, he added, the Green Bus Company succeeded in # launching its project by violating all rules and bypassing the UTS.

The company wanted to hand over the keys of the buses to the City Nazim but he declined as it was in violation of the rules. The sources maintained that the Sindh government should not have formulated a strategy and once the plan was devised and bids invited, action should have been taken against the Green Bus Company and it should have been declared disqualified to take part in the bids.

The sources said that provincial transport minister, secretary transport, and the EDO (transport & communication) were approached by the company and following refusal by the City Nazim to receive the keys, the governor of Sindh launched the buses at a ceremony in the Governor’s House on Sept 27.

The sources said the company had demanded of the provincial government to award a route to it for plying the buses, but the city government turned down the demand with an instruction to increase the number of buses to at least 25, after which the route would be designated.

The sources said that foreign and local entrepreneurs, contesting the bids, had objected to the violation.