CNG Buses: Plan to be Based on 80 : 20 Debt Equity Ratio

ISLAMABAD: The Prime Minister’s Programme for 8,000 Compressed Natural Gas (CNG) buses would be based on a 80:20 debt equity ratio.The official working paper on the project available with Daily Times reveals that the cost each bus would come up to Rs 3.6 million, however, due to the recent depreciation of the Pakistani rupee, the final price may end up higher than this figure.

A loan of Rs 2.9 million per bus would be available from designated banks with 10 percent interest rate payable in five years and the government would pick up 100 percent payment of interest in 60 installments. According to the paper, the federal cabinet in its decision taken on July 16, 2008 approved the launch of 8,000 CNG buses for efficient, environment-friendly and affordable public transport in nine mega cities of the country namely Karachi, Multan, Lahore, Peshawar, Quetta, Faisalabad, Hyderabad, Gujranwala and Rawalpindi/Islamabad.