News / National
Zupco in $25 million bus deal
20 May 2016 at 06:32hrs | Views
THE government is negotiating a $25 million deal with an Indian bank to enable Zupco to procure high capacity buses meant to wipe out pirate taxis in urban centres.
Under the loan facility, the parastatal will purchase 290 buses to ply intra-city routes.
Responding to a question in Parliament on Tuesday, Local Government, Public Works and National Housing deputy minister Christopher Chingosho said:
"It may please this august house to note that the Zim-Asset strategy is set to introduce mass bus transport system on all our urban roads with the intention to reduce the current dominance on the urban public transport sector by para-transit modes in terms of kombis," said Chingosho.
He said this would only be achieved through recapitalising Zupco through a loan facility with the India Exim Bank deal.
"The sum of $25 million Zupco-India Exim Bank bus loan deal, which is currently under negotiation is one step towards the implementation of the strategy by building capacity in Zupco. The deal will enable Zupco to procure 290 buses from ASHOK (Pvt) Ltd. 145 of this number will ply intra-city routes and Zupco has already sent a team of experts to India to inspect the bus specifications," he said.
The deputy minister said the introduction of the buses is meant to bring sanity in cities and towns where kombi crews and pirate taxi operators have sown lawlessness.
"The introduction of high capacity buses in urban routes is expected to drive out para-transit modes without legislating. That action will naturally reduce the number of kombis and illegal operators in the form of mushika-shika (pirate taxis) on our roads and is expected to have a significant impact on urban traffic congestion," said Chingosho.
Last year, the ailing parastatal which is facing a myriad of challenges failed to pay a $2,5 million import duty to Zimbabwe Revenue Authority for 50 buses.
Under the loan facility, the parastatal will purchase 290 buses to ply intra-city routes.
Responding to a question in Parliament on Tuesday, Local Government, Public Works and National Housing deputy minister Christopher Chingosho said:
"It may please this august house to note that the Zim-Asset strategy is set to introduce mass bus transport system on all our urban roads with the intention to reduce the current dominance on the urban public transport sector by para-transit modes in terms of kombis," said Chingosho.
He said this would only be achieved through recapitalising Zupco through a loan facility with the India Exim Bank deal.
"The sum of $25 million Zupco-India Exim Bank bus loan deal, which is currently under negotiation is one step towards the implementation of the strategy by building capacity in Zupco. The deal will enable Zupco to procure 290 buses from ASHOK (Pvt) Ltd. 145 of this number will ply intra-city routes and Zupco has already sent a team of experts to India to inspect the bus specifications," he said.
The deputy minister said the introduction of the buses is meant to bring sanity in cities and towns where kombi crews and pirate taxi operators have sown lawlessness.
"The introduction of high capacity buses in urban routes is expected to drive out para-transit modes without legislating. That action will naturally reduce the number of kombis and illegal operators in the form of mushika-shika (pirate taxis) on our roads and is expected to have a significant impact on urban traffic congestion," said Chingosho.
Last year, the ailing parastatal which is facing a myriad of challenges failed to pay a $2,5 million import duty to Zimbabwe Revenue Authority for 50 buses.
Source - chronicle
