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Kathmandu, Friday August 08, 2003  Shrawan 23,  2060.

Govt hands over trolley bus services to local bodies

Post Report

KATHMANDU, Aug 7 : Materializing the long-running saga of resuming the operation of Trolley Bus Services (TBS), the government formally handed over the TBS to a consortium of Kathmandu Metropolitan City, Bhaktapur and Thimi municipalities.

A formal agreement to this effect was signed here toady between the representatives of the government and concerned municipalities. Dhurba Sharma, spokesperson of Ministry of Labour and Transport Management and chief executives of the three municipalities signed the agreement on their respective behalf.

Talking to the pressmen after the signing ceremony, Ram Prasad Sharma, chief executive of the Kathmandu Metropolitan City, said the joint consortium of the three municipalities is planning to operate the service by September 1.

As per the agreement, the government has formally handed over the TBS to the local bodies for 20 years and all the liabilities of the company would be borne by the consortium itself. However, the local bodies will acquire approval from the government in case they wish to sub-contract the management. The consortium will also require submitting report of operation in every six months.

The consortium is planning to invest some Rs 30 million to bring the services into operation. Of the total, Rs 10 million will be invested for the maintenance of the buses while some 20 million for repair of its cable system.

Despite the signing of the agreement, both the government and the consortium have not yet fixed the amount of royalty. Dhurba Sharma told The Kathmandu Post that the amount of royalty to the government would be fixed through mutual understanding.

Speaking on the signing ceremony, Minister for Finance, Labour and Transport Dr Prakash Chandra Lohani said the hand-over is a part of the government policy of empowering local bodies through enhancing their participation in public utilities. "The government is ready to extend co-operation with all municipalities, where the feasibility of trolley bus operation is possible," said Lohani adding the government has recently asked proposal from the interested municipalities for the operation of trolley bus services.

Kamal Thapa, Minister for Information and Communications, said there is a high and immediate possibility of operating trolley bus services in sectors like Biratnagar-Dharan, Hetauda-Birgunj and Nepalgunj-Kohalpur and added that the government is ready to extend necessary co-operation if proposals regarding the operation of services are forwarded.

The bus service was closed in 2001 after the company incurred unbearable loss due largely to political interventions and financial anomalies.

The TBS is expected to resume its services on its route between Tripureswor of Kathmandu and Surya Binayak in Bhaktapur. The decision to hand over the TBS to local bodies was taken on the recommendations of Nepicon Engineering Consultancy, which the Chand government had hired to study its feasibility for revival.


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