The government's plan to provide a Tk 8.0 billion loan to the Bangladesh Road Transport Corporation (BRTC) to introduce electric buses has raised concerns over the state-run transport operator's ability to operate and maintain the costly new technology.
The Finance Division has approved the loan for the BRTC, the first such financing for the public transport operator since its formation in the 1960s. The loan was approved without an approved project from the Planning Commission and outside the budgetary allocation for fiscal year 2026-27.
Transport experts and sector analysts said approving the funds without assessing the BRTC's operational capacity and preparedness could lead to a waste of public money. They also questioned the plan to introduce 100 electric vehicles by December without completing the necessary groundwork.
The BRTC is already struggling with manpower shortages and inadequate resources to operate its existing fleet of more than 1,200 buses, they said. Introducing electric buses without route feasibility studies and adequate supporting infrastructure could create further operational challenges.
"If the launch is planned for December, there is not enough time to complete the necessary groundwork, including feasibility studies, driver training, charging stations, finalising depot locations and setting up workshop facilities," said an expert.
BUET Professor Moazzem Hossain said the fate of all new bus services would remain the same as in the past unless BRTC is transformed from an operator into a listed company.
"The approach to introducing new and standard bus services should follow the model of metro rail services to ensure successful operation and service delivery," he told the FE over the phone.
The BRTC, however, rejected concerns over its preparedness, saying groundwork for procuring electric buses had been under way since 2023 based on a proposal from South Korea. A BRTC team also visited the country to gain technical knowledge, officials said.
At least 15 proposals from companies in South Korea, China and Europe have been submitted to the Road Transport and Highways Division (RTHD), according to officials.
BRTC has planned to procure the buses through a direct purchase method, saying the process will comply with the Public Procurement Act. A seven-member committee has been formed to oversee the procurement process.
BRTC Chairman Abdul Latif Mollah said the corporation had held several inter-ministerial and stakeholder meetings to assess electricity availability and ensure uninterrupted power supply. Relevant agencies have also been directed to provide necessary support, he said.
"We are planning to pilot EV buses to encourage other private public transport operators in support of the government's vision of introducing modern bus services in the country," he told The FE.
Abdul Latif Mollah, who is also an additional secretary, said the BRTC was working to fulfil all necessary requirements, including driver and technical training. He also said the BRTC plans to engage the Bangladesh University of Engineering and Technology (BUET) to conduct a feasibility study on electric buses.
Regarding the loan and the absence of a final decision on the type of electric buses to be procured, Mollah said the ministry had been working on the issue for the past two months based on specifications from different countries.
BRTC's track record raises questions
Analysts, however, pointed to the BRTC's past experience with donor-funded bus procurement, saying the corporation has historically introduced various bus services based on specifications provided by development partners, partly because it lacks a dedicated technical department for such procurement.
Many of those services failed to operate for long, they said, citing Chinese CNG buses, Korean air-conditioned buses, Indian articulated buses and the expensive Volvo bus service of the BRTC.
The BRTC, a self-operating government agency, is also increasingly dependent on government agencies for the operation of its fleet as it has lost much of its capacity to run buses on a commercial basis, analysts said. Yet it will be required to repay the loan.
The corporation has introduced several specialised services, including school, circular, shuttle, tourism and women-only buses, but most have either been discontinued or are operating without generating profits.
According to BRTC data, the corporation pays Tk 20 million annually to the government from its services and has 1,418 officials and employees.
