KARACHI, July 8: In order to find a long-term solution to Karachi’s transport problem, the Transport and Communication Department (TCD) of the City Government has launched the Urban Transport Scheme (UTS) with the sale of its bidding papers and which earmarks 18 routes, while one interested group has even obtained import duty exemption to bring in 29 CNG buses.
The UTS, initiated by the provincial government with the view to induct new large buses in Karachi and to gradually phase out minibuses, coaches and polluting old-model buses from the main routes of the city, has started yielding results as many aspirants have purchased the bidding documents from the TCD.
Since it has been decided that only companies, cooperatives and consortium can participate in the scheme, many foreign and local groups have expressed interest, including Dallah Group of Saudi Arabia, Green Bus Company and transporters from Karachi and Rawalpindi.
However, only Green Bus Company has obtained request for proposal from the TCD, while others are negotiating at the Nazim Karachi secretariat.
Ministry of Industries and Production, Islamabad, has granted import duty exemption to Green Bus Company which operates under the name of Automobile Corporation of Pakistan, on the condition that these buses will only be used in Karachi and no bus will operate at the inter-city route.
These 29 CNG-assembled buses are being imported from China and the first batch of four units are expected to arrive in the first week of August.
TCD has started the sale of bidding papers for the earnest money of Rs5,000 and these tenders will open on Aug 5, these tender documents also contain 18 routes which are being offered to the new operators on first-come basis.
According to details, the TCD will make contract for these major routes for a period of five years and extendable by another subsequent five years.
Bus depots/terminal facilities subject to availability will also be leased to these operators for a period of five years, besides provision of joint development of infrastructure.
The provincial cabinet, in its decision on UTS, has approved the recommendations of committee which include major route network designed for operation of large buses, one-window facility at the TCD of City Government with a route premium of Rs50 per bus per day.
The TCD will provide one-window facility to minimize hassle in obtaining fitness, registration, route permit, etc.
Two types of buses have been identified for the scheme — those having carrying capacity of 50 for all seated and buses with 70 to 100 seated and standees which will be non-AC.
These operators will be given exclusive rights for route and zones subject to fulfilment of route capacity and a minimum of 5 years’ agreement would be signed. They would also be exempted from certain provision of Motor Vehicle Ordinance and from income tax under the UTS.
One of the major incentives for these operators will be mark- up subsidy reimbursement directly to operators at 6 per cent for non-AC and 9 per cent for AC buses. However, it is clearly stated in the request for proposal of the TCD that the successful operator will be required to ensure that the proposed buses are brand new and meet minimum standards, while the minimum fleet of buses must be 25.—PPI