State-owned cos to operate mass transport services
Sunday, 16 September 2012
Munima Sultana
The government has taken its first-ever measure to form state-owned companies in the transport sector with an investment plan worth Tk 120 billion, thus taking up the challenge to operate in earnest the mass transport services through managing the city's chaotic traffic jam.
Officials said the Communications Ministry has completed preparatory work to form the companies on Mass Rapid Transit line-6 (MRT-6) rail and Bus Rapid Transit (BRT), which are being planned to be introduced in the city's two important corridors.
"The separate summary papers on both the companies will soon be placed to the cabinet for its nod to start the formal procedure," said a ministry official. The first MRT line, commonly known as metro rail, has been planned to set up on the elevated way from Uttara to Motijheel via Pallabi, while BRT from Gazipur to Sadarghat via Shahjalal International Airport, thus setting the dedicated two-lane route having high passenger capacity with articulated buses.
Transport experts said both mass transit services are estimated to facilitating thousands of commuters to cross a corridor uninterrupted within just a few minutes, and it was supposed to be a challenge for the government to manage the services efficiently.
They said as both the mass transit services must have to be run uninterrupted, highly skilled and technical people would be needed to be hired avoiding bureaucratic tangles.
The officials said development partners of both BRT and MRT projects -- Japan International Cooperation Agency (JICA), Asian Development Bank and World Bank -- recommended to form the companies with professional and performance-based recruitment people from national and international levels with competitive salary.
In the JICA supported MRT project, a consulting firm has also been working to train and develop skill among the people concerned
The government has a number of companies having the total ownership in energy, telecommunication and civil aviation sectors, but performance of some companies is not satisfactory due to faulty set-up.
The ministry officials said in the Article of Association and Memorandum of Association, Dhaka Mass Transport Company will start operation with a capital of Tk 100 billion with 98.8 per cent share to Road Division. Other shares will equally be owned by Dhaka Transport Coordination Authority, the Prime Minister's Office, finance, rail, home, local government ministries, power division and DMTC.
A board of directors will be formed comprising shareholders with designated officers. Two private sector members have also been proposed in the board from FBCCI and Civil Engineering Department of BUET.
They said of the total fund expected to be provided by JICA, the finance ministry will re-lend 60 per cent of the fund as loan to the company and 40 per cent would be provided as equity, which would be considered as capital.
Professor Jamilur Reza Chowdhury, head of the advisory committee of the city's 20-year transport policy, said MRT and BRT systems, must have to be run by relevant professionals and through open market system.
"To make the companies profitable in business, efficiency of the companies must have to be ensured through recruiting all professionals for both MRT and BRT companies from open market and in a competitive way," he told the FE.
The MRT and BRT companies will be registered with the registrar of joint stock company after completing vetting from the law ministry and getting the approval from the cabinet.
JICA has been providing technical support to forming Dhaka Mass Transit Company Ltd (DMTC). However the BRT service from Gazpur to Sadarghat has been planned into two parts -- Asian Development Bank has been supporting to set up service from Gazipur to the Dhaka international airport, while the World Bank is backing the route from the airport to Sadarghat. The BRT company will operate both BRT services.
Of the BRT projects, the ADB supported one has now been in design stage, while the WB's one in planning stage.
The MRT-6 line has been confirmed but it is now under process to appoint consultants for the detailed design and other works.
The government has taken its first-ever measure to form state-owned companies in the transport sector with an investment plan worth Tk 120 billion, thus taking up the challenge to operate in earnest the mass transport services through managing the city's chaotic traffic jam.
Officials said the Communications Ministry has completed preparatory work to form the companies on Mass Rapid Transit line-6 (MRT-6) rail and Bus Rapid Transit (BRT), which are being planned to be introduced in the city's two important corridors.
"The separate summary papers on both the companies will soon be placed to the cabinet for its nod to start the formal procedure," said a ministry official. The first MRT line, commonly known as metro rail, has been planned to set up on the elevated way from Uttara to Motijheel via Pallabi, while BRT from Gazipur to Sadarghat via Shahjalal International Airport, thus setting the dedicated two-lane route having high passenger capacity with articulated buses.
Transport experts said both mass transit services are estimated to facilitating thousands of commuters to cross a corridor uninterrupted within just a few minutes, and it was supposed to be a challenge for the government to manage the services efficiently.
They said as both the mass transit services must have to be run uninterrupted, highly skilled and technical people would be needed to be hired avoiding bureaucratic tangles.
The officials said development partners of both BRT and MRT projects -- Japan International Cooperation Agency (JICA), Asian Development Bank and World Bank -- recommended to form the companies with professional and performance-based recruitment people from national and international levels with competitive salary.
In the JICA supported MRT project, a consulting firm has also been working to train and develop skill among the people concerned
The government has a number of companies having the total ownership in energy, telecommunication and civil aviation sectors, but performance of some companies is not satisfactory due to faulty set-up.
The ministry officials said in the Article of Association and Memorandum of Association, Dhaka Mass Transport Company will start operation with a capital of Tk 100 billion with 98.8 per cent share to Road Division. Other shares will equally be owned by Dhaka Transport Coordination Authority, the Prime Minister's Office, finance, rail, home, local government ministries, power division and DMTC.
A board of directors will be formed comprising shareholders with designated officers. Two private sector members have also been proposed in the board from FBCCI and Civil Engineering Department of BUET.
They said of the total fund expected to be provided by JICA, the finance ministry will re-lend 60 per cent of the fund as loan to the company and 40 per cent would be provided as equity, which would be considered as capital.
Professor Jamilur Reza Chowdhury, head of the advisory committee of the city's 20-year transport policy, said MRT and BRT systems, must have to be run by relevant professionals and through open market system.
"To make the companies profitable in business, efficiency of the companies must have to be ensured through recruiting all professionals for both MRT and BRT companies from open market and in a competitive way," he told the FE.
The MRT and BRT companies will be registered with the registrar of joint stock company after completing vetting from the law ministry and getting the approval from the cabinet.
JICA has been providing technical support to forming Dhaka Mass Transit Company Ltd (DMTC). However the BRT service from Gazpur to Sadarghat has been planned into two parts -- Asian Development Bank has been supporting to set up service from Gazipur to the Dhaka international airport, while the World Bank is backing the route from the airport to Sadarghat. The BRT company will operate both BRT services.
Of the BRT projects, the ADB supported one has now been in design stage, while the WB's one in planning stage.
The MRT-6 line has been confirmed but it is now under process to appoint consultants for the detailed design and other works.