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Bus transport
system needs foreign expertise: ministry
"We have intimated the World Bank to extend some support for putting the regulatory system in place," Transport Ministry Secretary, M. Susiriwardena told The Sunday Times. "This is towards capacity building, training people and perhaps even bringing down foreign experts." He further said that this could include route franchising. 'Each route has to be auctioned. We will give the timetables and the fares and they will tender. The government will help run the uneconomic routes' he said. The idea of setting up a Bus Monitoring Unit is also in the pipeline. While emphasising that the Ministry would not act as a guarantor for the purpose of bringing down buses, he said once the Rs. 1419 million had been paid to the Treasury by the IBIS company, the government would guarantee about Rs. 450 million or 30 percent of that amount. This will be to provide quick finances and working capital, and had been set out in the Management Agreement and Shareholders agreement. Meanwhile, the Public Enterprise Reforms Commission (PERC) is preparing to put up for sale the shares of the Northern Transport Company and the Peoplised Transport Service Company. Speculation was rife this week that the Cabinet had not okayed the sale of cluster company shares to the IBIS company and that the proposal had been turned down at the Cabinet meeting on November 27. However, State Transport Minister Upali Piyasoma dismissed as false reports that Cabinet approval had not been given for the handing over of cluster bus company shares. Speaking to The Sunday Times Minister Piyasoma said observations had been called and a decision would be taken next week by the Cabinet. LATEC chief Ravi Wettasinghe and a group from the IBIS company headed by Mr. Ian Boulet were in the UK this week and are scheduled to return today or tomorrow. Meanwhile, the Lanka Private Bus Owners Association which pledged to take islandwide strike action on December 16 if the already sold cluster bus companies import more buses on a World Bank loan has issued an ultimatum to the government. "We promise to call off the islandwide private bus strike if you inform us that 2000 buses will not be imported and that such an irregular transaction as making the government guarantor to obtain a World Bank loan for the already sold cluster bus companies will not take place," LPBOA President Gemunu Wijeratne stated in a letter to the State Transport Ministry Secretary on Thursday. "We have come to learn that the cluster bus companies that were sold are attempting to obtain a Rs. 7 billion loan using the government as a guarantor," he said. "We state that when such a large sum is applied for and 2000 buses are imported to the country our industry will be completely ruined. This is because even at present there is an excess of 8000 buses," Mr. Wijeratne said. However, Transport Ministry Secretary M. Susiriwardena denied that the government was promoting the import of 2000 buses. Former Consultant to the Transport Ministry Somaweera Chandrasiri told the Sunday Times that since the small time private bus owners have 17,000 buses and the SLTB own 6,000 there was no apparent need to purchase more buses. "Double deckers are not new to Sri Lanka, nor are women conductors," he said. He further said that the buses given to Werahera for repairing under the 100 days program are yet to be repaired. While opposing the move to sell the cluster company shares, Mr. Chandrasiri said they would speak to the President next week regarding it. The President has called for a report from PERC regarding the matter, Mr. Chandrasiri said. |
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