Yangon Region Gov’t to form public bus service company with 40/60 JV system

Current private bus lines should upgrade their services to compete with upcoming services of the first public bus service company.  Photo: Aye Min Soe
Current private bus lines should upgrade their services to compete with upcoming services of the first public bus service company.
Photo: Aye Min Soe

Yangon, 4 May — The Yangon Region Government plans to establish a public bus service company to operate a modern bus service along main routes in Yangon, retaining a 40 per cent share of the company while offering 60 per cent to the public.
Authorized capital of the first public bus service company in Myanmar is set at K100 billion, and the business would be established with the Bus Rapid Transit (BRT Lite) system through the Public, Private, Partnership (PPP) system, said U Myint Swe, the Yangon Region Chief Minister, at a ceremony held Monday to invite shareholders for establishing the company.
The bus service will operate with the i-pay system and a control system using the Global Positioning System (GPS) and modern communication technology,
The project is divided into phases, with the capital for the first phase set at K25 billion and the government to inject K10 billion during the first phase and invite the public to invest in the business by buying shares, he said.  Each unit of the shares is priced at K100,000, he added.
The bus line with BRT (Lite) system is aimed at reducing inconvenience to the public due to traffic congestion and to provide the public with a safe and comfortable bus service, the chief minister said.
The first phase would start with around 100 2010-model buses and the company will buy the buses through the tender system, said Dr Maung Aung, an adviser to the Ministry of Commerce.
In the first phase, the bus line will operate along the main route from the southern to northern parts of Yangon.
The first phase is tentatively targeted to launch within five months, and the government has already begun to build stations for the bus line, said Dr Maung Aung.  Foreign investment is not allowed during the first phase of the project, he added.
Meanwhile, the Yangon Region Government has invited current private bus service businessmen to invest in the project in cash or in kind.
Private bus service businessmen are also allowed to invest their buses in the business as an in-kind investment, but their buses must meet the criteria set by the company, said Dr Maung Aung, adding that the buses should be fully air conditioned and should be2010 model buses or later.
Currently, more than 360 bus lines are operating with 3,500 buses in Yangon, transporting around 2 million people a day.
According to Yangon’s All Bus-Line Control Service, out of its 6,000 buses, just more than 3,000 can operate daily due to the scarcity of drivers and conductors and the difficulty in securing a license for running bus services since 2012 when the number of buses increased in the city.— GNLM

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