Plans for pub­lic trans­port PPPs get mov­ing with strong in­ter­est

The Myanmar Times - - Business - AYE NYEIN WIN ayenyein­win@mm­times.com

SOME 21 com­pa­nies have sig­naled in­ter­est in en­ter­ing into a pub­licpri­vate part­ner­ship (PPP), says the Yan­gon Trans­port Author­ity Group, as the city eyes up­grades to its de­crepit pub­lic bus trans­port net­works.

Yan­gon Trans­port Author­ity Group sec­re­tary U Maung Aung said ap­pli­ca­tions closed on Au­gust 31, al­though not all who sub­mit­ted pro­pos­als would be up for con­sid­er­a­tion.

“In to­tal, 21 com­pa­nies ap­plied [for] the pro­posal. But we will an­a­lyse again be­cause we found out some com­pa­nies do not have enough money to run the op­er­a­tion,” said U Maung Aung.

He said that smaller com­pa­nies could be grouped to­gether with larger out­fits in or­der to meet the am­bi­tious terms set out for the ten­der.

‘’We need much more money – bil­lions worth – but some com­pa­nies can’t [come up with] that amount. So we will com­bine these small com­pa­nies with big com­pa­nies. Gen­er­ally, PPPs can form if they have US$500 mil­lion, but we need more be­cause our op­er­a­tion is big. We hope to run … about 200 buses for one bus line. So, the com­pa­nies must be stout in money,” he said.

YTA is set to meet with ap­pli­cant com­pa­nies and dis­cuss their pro­pos­als, U Maung Aung said.

Changes to the pub­lic trans­porta­tion sys­tem will mean shut­tle bus lines will ser­vice the six town­ships of down­town from key in­ter­sec­tions.

Com­pa­nies charged with run­ning the buses will have to fall in line, U Maung Aung ex­plained.

‘’When the buses are run­ning, com­pa­nies must [con­duct busi­ness] ac­cord­ing to our [rules]. If they do not fol­low them, we will is­sue a warn­ing,” said U Maung Aung.

The Yan­gon Re­gion gov­ern­ment says it hopes to have new bus lines op­er­at­ing by Novem­ber – whether or not the PPP bids are up to scratch.

“If pri­vate own­ers want to be in­cluded in PPP, we have planned to al­low this with buses in­stead of buy­ing shares or in­vest­ing money,” U Maung Aung said. “We al­ready al­lowed [com­pa­nies] to sell old buses to other states and re­gions, and to buy new buses with a hire-pur­chase sys­tem in con­nec­tion with banks.”

“If the own­ers did not want to sell their cur­rent buses, they will have the chance to run on in­ter­sec­tions which will con­nect to main roads,” he said. ‘’We will un­der­take bus re­form no mat­ter what.”

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