HCM City approves transport firm to purchase 21 CNG-fuelled buses

HCM City People’s Committee has passed the proposal of Saigon Passenger Transport One-member Co Ltd to purchase 21 new CNG-fuelled buses (compressed natural gas).

In details, Saigon Passenger Transport Co Ltd will be allowed to import 21 CNG buses to replace the old buses on route No 1 from Ben Thanh Market to Binh Tay Market.

These imported buses will be put into trial operation for six months before the city’s people committee issues subsidiary level for those green buses.

The investment capital for purchasing the buses will be borrowed from HCM City State Financial Investment Co (formerly known as HCM City Urban Development Fund. A CNG-fuelled bus costs 1.8-2 billion dong.

Previously, in early May, the city had put into trial operation two buses that run on compressed natural gas. However, after one-month trial run, the two buses risked to stop operating temporarily because of some difficulty in signing fuel supplying contract.

The gas supplier of Southern Liquid Gas Trade Joint Stock Co demanded that they would only transport CNG from Vung Tau to Tan Binh gas station if there are over 20 CNG-fuelled buses. They would stop supplying CNG by July 1 if the transport companies fail to have about 20 buses.

According to the 2009-2011 development plan proposed by HCM City Department of Transport, the city will replace and put into operation 38 green buses. After 2011, there would be 500 CNG-fuelled buses to be used.