06/05/2015 15:10 GMT+7 Email Print Like 0

Public transport development policies approved

Hanoi, May 6 (VNA) - Prime Minister Nguyen Tan Dung has issued policies on encouraging bus companies to develop public transport bus services, including infrastructure development, investment in buses and subsidies of passengers' bus fares.

The policies, which take effect in July, are expected to reduce traffic congestion, accidents and environmental pollution nationwide.

Specifically, bus enterprises will be prioritised to receive funds from State budgets for infrastructure investment and development, including land funds, facilities to connect between buses and other means of transport, investment in clean-energy buses, and enterprises will become eligible to receive loans with favourable interest rates.

Bus enterprises will also receive tax exemptions on imported automobile parts to produce and assemble buses. Those whose buses use clean energy will be free from paying ownership fees.

Further, people's committees in cities and provinces will be required to support interest rates of loans for bus enterprises.

The committees will also take responsibility for supporting the construction of management centres for buses to allow staffs to supervise the quality of service offered by buses in their localities.

Based upon their financial resources, the committees will determine the amounts of subsidies for bus fares, such as free travel for children under six, people with disabilities and reduced fares for the elderly, students and others.