The CNG Bus Project of the City District Government Karachi (CDGK) remains stagnant as the financing issues raised by the banks are still unsorted, Business Recorder learnt on Wednesday. When contacted official sources in the Transport Department of CDGK said that the government had planned to import 4000 CNG to meet the demand of growing populace but not a single unit has so far been inducted because of said reason.
He said that some 500 buses supposed to be inducted in the fleet in ongoing fiscal year but the said anticipation has not been materialised as the financial institutions have shown concerns over financing terms. He said that said that the project was to be financed under 80-20 percent ratio, 80 percent by loans and the 20 percent through operator equity.
He said that the Federal government would provide an upfront subsidy to the operator. He further said that Mark-up subsidy would also be given to the operator for a period of five years. He informed that the Federal Government had released Rs 300 million of funds for the project. The foreign bus operators are also under our consideration as to meet the demands setup by the financial institutions, he informed. He said that a two level underground parking at Bara Dari nearing completion and only the restoration phase of Bara Dari remains in progress, whereas its inauguration is expected soon.