HCM City seeks $43mil in subsidies for bus services

Published: 13/12/2009 05:00

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Authorities in HCM City said they needed VND820 billion in subsidies instead of the previous request for VND700 billion to fund the city’s bus service next year.

Speaking at the second day of the council’s 17th session, People’s Council Deputy Tran Quang Phuong, director of the municipal Department of Transportation, said the city must increase the subsidy for bus services in 2010 because of the increase in oil and gas prices, and drivers’ salaries.

If the subsidy was insufficient, then bus ticket prices must be increased from VND3,000 to VND4,000 per route, which would pose a burden to the poor, Phuong added.

Deputy Vo Van Sen supported the proposal to increase the city’s subsidy, saying it would encourage residents to use public transportation.

Deputy Nguyen Minh Hoang said the department should auction off more bus routes in the city to contribute to the state budget.

The auction has helped the city reduce its subsidy for each route by VND1 billion (US$62,000) a year, according to the HCM City Department of Transport and Public Works.

Hoang said the quality of services needed to be improved, and bus schedules and routes needed to meet the increasing demand of passengers.

VietNamNet/Viet Nam News

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