By Mohammad Ali Khan
PESHAWAR, May 18: The federal government has asked the provinces to prepare feasibility studies for the environment-friendly public transport system to be launched in provincial capitals through public-private partnership.
The planning and development division had asked the provincial governments to submit PC-Is for the running of CNG buses in their respective cities on the pattern of a project recently cleared by the Central Development Working Party for Karachi, an official told Dawn on Friday.
The Karachi project is yet to be approved by the Executive Committee of National Economic Council.
The federal government has planned to provide CNG buses for provincial capitals to cope with transport problems and environmental pollution.
The defraying cost of interest against the loans procured for CNG buses by the private sector would be met from the block allocation of Rs5,000 million available with the Public Sector Development Programme (PSDP).
The loans will be arranged by commercial banks.
The federal government would bear 70 per cent of the interest while the rest of 30 per cent and principal amount of the loan would be borne by the private sector, the official added.