CNG bus project in the doldrums

Due to financial crunch and official apathy, the Shaheed Benazir Bhutto CNG Bus project is in doldrums, it is learnt reliably. The project was scheduled to be launched before October 2010, however due to issues in bank financing and official apathy, the project is being delayed and the government has failed to give a final deadline for the launch of the project, informed sources in the Environment Ministry told Business Recorder here on Friday.
A meeting of the Steering Committee on Shaheed Benazir Bhutto CNG Bus Project was held under the chairmanship of Federal Secretary Environment Javed Malik here on Friday. During the meeting progress of the project was discussed and different proposals and suggestions to were considered. Financial modalities, role of State Bank of Pakistan and other relevant matters with respect to the proposed project were also highlighted on the occasion.
However, the meeting failed to give a final date for the launch of this project, which was aimed at providing better transport facilities to the people of the twin cities. Eight thousand CNG buses were to be operated in big cities including Rawalpindi Islamabad, Karachi, Lahore, Multan, Peshawar, Quetta, Faisalabad, Hyderabad, Sukkur and Gujranwala under the project. In the first phase 500 CNG buses were to be launched in Karachi, the number of which was to be later increased to 4000.
It was observed in the meeting that government has been trying to tackle the worsening transport and environment problems through such subsidised programmes in different mega cities of Pakistan. According to the project, the government will contribute a total of Rs 677,181 as subsidy over 5 years towards the cost of one bus, including Rs 300,000 as upfront grant and part of down payment and Rs 377,181 as mark-up subsidy payable in 5 years.
Meeting of the Steering Committee was attended by Provincial Minister for Transport Sindh Akhtar Hussain Jadoon, Member Infrastructure Planning Commission Ghulam Mohiuddin Maree, Managing Director Enercon Fareedullah Khan, Chief Environment Planning Commission Dr Aurangzeb and other members of the Steering Committee.