Buses operating in Peshawar’s Bus Rapid Transit (BRT) would be handed over to a private company at an extremely low cost after the passage of 10 years, as per the agreement signed two years back.
Chief Executive Officer TransPeshawar, Fayyaz Khan, informed Geo News that the buses will be given to the private company after either being used for 12 years or having covered around 1.2 million kilometers as stated in the agreement signed between TransPeshawar and the company. He claimed that giving up the buses would not affect the government in any way.
As per the agreement, the company would acquire the 18-meter-long buses for Rs. 288 and the 12-meter-long buses for Rs. 144. However, the price of each bus is around Rs. 40 million.
The agreement was signed between both parties two years ago, which binds TransPeshwar to let go of the buses at the agreed cost after 12 years.
It is important to know that the KP government had purchased 158 BRT buses for Rs. 4.23 billion. According to international standards, buses can only be operated for a fixed time period.
What a misleading title. There are still 10 years to go before the buses could be sold at this price which is basically nil considering its the standard procedure in such agreements where the current prices are reduced in relation to the residual value. So, its actually beneficial to the first party to get reduced rates in favor of future recoverable values.
Its an incorrect title. There are still 10 years to go before the buses could be sold at this price which is basically nil considering its the standard procedure in such agreements where the current prices are reduced in relation to the residual value. So, its actually beneficial to the first party to get reduced rates in favor of future recoverable values.
Corruption khan