A proposal to create a public transport fund (PTF) to ensure the financial viability of electric bus operations in Dhaka was rejected by the interim government on its final day in office, casting uncertainty over the planned rollout of the city's electric bus service despite growing demand for a modern public transport system.
The Finance Division on February 17 refused to approve the fund, arguing that it would increase the government's loan burden as it would be formed with financing from development partners.
Earlier, the Road Transport and Highways Division (RTHD) also wrote to the Economic Relations Division (ERD) expressing reservations about the World Bank-backed project.
Sources said the concerns stemmed from apprehensions about possible non-cooperation from existing bus operators.
Officials also argued that the government's financial contribution could increase if the operational model for electric buses -- prepared based on 190 kilometres of daily operation for 16 hours at a speed of 120 km per hour -- proved unfeasible or if bus fares were raised.
However, sector analysts said the rejection just before the formation of the new cabinet once again highlighted political influence within the bureaucracy, which they claim has long been reluctant to support improvements in the city's bus services despite transport strategies prioritising public transport to shift commuters from private vehicles to mass transit.
"How can such an order be issued on the last day of a government?" said an official who preferred not to be named.
The World Bank had recommended establishing the PTF under the Bangladesh Clean Air Project (BCAP) to introduce 400 electric buses through a Bus Route Franchise (BRF) system and provide financial support to operators in the form of viability gap funding.
Responding to the rejection, World Bank Division Director for Bangladesh and Bhutan Jean Pesme said global experience shows that fare revenues alone rarely cover the full costs of high-quality public transport, making targeted financial interventions necessary to ensure sustainability.
"The proposed public transport fund is only one of several potential financing mechanisms. We remain committed to working closely with the government and stakeholders to identify the most cost-effective and viable solution for a modern, reliable electric bus network in Dhaka," he told The Financial Express in an email.
Dhaka Road Transport Owners Association General Secretary Mohammad Saiful Alam, however, blamed the government for failing to approve the fund, saying the city's bus sector has long been loss-making due to a lack of financial and managerial support.
"We are always blamed for problems in bus services and traffic management, but we have never received the necessary cooperation from the government to sustain the business.
The authorities have never acknowledged the sector's financial needs," he told The Financial Express over the phone.
Although successive governments have pledged to improve public transport, the sector has long been plagued by irregularities and illegal earnings due to political involvement.
The new BNP government, since assuming power, has stressed the importance of improving bus services, but the concerned ministry has yet to take concrete steps.
smunima@yahoo.com
