Negotiation gets underway on a new Indian Line of Credit (LoC) under which Bangladesh will purchase 100 double-decker electric buses, among others, suiting global phasing out of expensive diesel-engine vehicles.
In this connection, the Roads and Highways Ministry has already requested the ERD to open discussions with India for funding the projects under the new LoC.
Under LoC partnership, a total of $7.362 billion was allocated by India. To date, contracts have been signed for around $2.0 billion out of which around $1.344 billion has already been disbursed, sources said.
The last LoC was signed in New Delhi during Prime Minister Sheikh Hasina's visit in September last year.
Sheikh Hasina is expected to visit Delhi again this coming September and the new LoC may be announced that time, officials concerned hinted.
Bangladesh Road Transport Corporation (BRTC) has already submitted a project proposal for the Tk11.53-billion electric double-decker-purchase project under the new line of credit.
The ministry also had detailed discussions on the project with the Indian High Commission in Dhaka, which gave the green signal for the funding, sources told the FE.
Sources in the transport ministry hope the procurement of the electric double-deckers would be a "game changer" in the country's transport sector.
At present the state-run BRTC has 1,350 running buses in its fleet, which is not capable enough to meet people's new commuter-service demand.
On the other hand, lifespan of around 800 buses will be completed in two years, leaving the state transport agency hamstrung with only 550 to operate.
So, an immediate measure to procure new buses is deemed "very crucial".
The draft project proforma says with a rapid growth of environmental pollution and climate change the need for innovative solutions and technologies has become inevitable.
"The most significant advantage of electric vehicles is that they do not contribute to carbon pollution, which results in improving air quality in cities... electric vehicles produce no emissions while driving and thereby no air pollution happens," it is stated about merit of the bus buys.
In addition, electric vehicles are economical as it requires a little maintenance and above all it matches the vision for environment-friendly sustainable development, the project proposal argues.
The officials said as diesel engines and CNG buses would be phased out globally after 2035, automobile manufacturers will no longer manufacture diesel-engine vehicles.
"It is, therefore, advisable to add electric vehicles to the fleet of the BRTC now, otherwise it will create huge crisis all on a sudden," one BRTC official said.
The Tk 1153-crore project also envisages building infrastructure related to electric vehicles such as installation of electric charging station, construction of suitable working sheds.
As proposed, Tk 854crore will be spent from external funds and Tk 299 crore funded by the government of Bangladesh.
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