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Ho Chi Minh City greenlights 300 gas-fuelled buses

The Ho Chi Minh City People's Committee has approved a programme to manufacture 300 buses using compressed natural gas over the next year.
The Ho Chi Minh City People's Committee has approved a programme tomanufacture 300 buses using compressed natural gas over the next year.

The Sai Gon Transportation Mechanical Corporation(SAMCO) will make the CNG busses at a total cost of 130 billion VND (6.1million USD) to gradually replace old buses using fossil fuel in thecity. In April, SAMCO successfully produced the first CNG bus.

CNG engines emit 53 percent less toxic fumes and cost 30-40 percentless to operate, according to the city Department of Transport.

More than a year ago, the People's Committee had given the green lightto the Sai Gon Passenger Transport Company to import 50 CNG buses.

The company has bought 21 and operates them on the Ben Thanh market – Cho Lon Bus Station route.

The Ho Chi Minh City Bus Co-operative Alliance has also imported sevenCNG buses and also operates them in the city's main areas. Phung DangHai, general director of the alliance, said the buses have been welcomedby passengers and always run full.

Cityauthorities have been researching and developing a plan for operatingpublic buses in 2012-15, according to the Department of Transport.

The plan envisages buying 1,680 new buses - not CNG - by providingtransport companies soft loans worth up to 70 percent of the cost of thebuses. The loans will carry an interest rate of 5 per cent and a termof seven years.

If the People's Committee approvesthe financial support, the city will provide interest-rate subsidies ofaround 100 billion VND (4.8 million USD) a year.

Experts have said the city can allow advertising on buses to reduce the subsidy burden.-VNA
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