Muhammad Tareq — The Bangladesh Road Transport Corporation (BRTC) is seeking a massive ৳400 crore direct allocation from the government to purchase 100 state-of-the-art electric buses.
The Ministry of Road Transport and Bridges has formally approached the Finance Secretary, requesting the funds as a direct grant or equity rather than a traditional loan, to kickstart the country’s transition toward an eco-friendly public transport network.
The funding request marks a renewed push by the state-run transport agency. The Finance Division previously turned down a direct grant proposal, citing the government’s ongoing austerity measures and tight fiscal space.
At the time, financial regulators advised BRTC to channel the initiative through a standard “development project” structure funded by loans, arguing that a credit repayment model fosters greater institutional accountability.
However, BRTC has firmly pushed back against the loan proposal. In its latest correspondence, the corporation argued that saddling its limited internal revenues with long-term high-interest debt would severely compromise its operations.
As a public welfare-oriented utility rather than a purely commercial entity, BRTC stressed that the burden of principal and interest repayments would trigger an unsustainable financial crisis.
Consequently, the agency has requested a direct financial injection from the national budget for the current 2026-27 fiscal year.
Aligning with Green Energy and Climate Commitments
According to official correspondence, integrating electric buses into the state fleet is vital to fulfilling the government’s election manifesto commitments to establish a high-efficiency, integrated “Green Transport Corridor”.
The core objectives of the mega-project include mitigating climate change risks by drastically lowering carbon emissions, curbing the state’s massive foreign currency expenditure on imported fossil fuels, and ensuring eco-friendly urban mobility for citizens.
The targeted ৳400 crore budget has been meticulously itemized by BRTC:
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Fleet Procurement: ৳240 crore allocated to purchase 100 electric buses, valued at ৳2.40 crore per unit.
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Charging Infrastructure: ৳50 crore to set up 25 specialized charging stations at a unit cost of ৳2 crore.
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Spare Parts & Tech Support: ৳35 crore for components and ৳20 crore for technical training and support.
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Logistics & Depots: ৳25 crore for transport and vehicle registration, alongside ৳30 crore designated for infrastructure development and depot renovations.
Urban Deployment and Economic Analysis
BRTC intends to deploy these zero-emission buses primarily across major high-traffic corridors in Dhaka metropolitan areas and critical inter-city routes connecting divisional headquarters.
The shift is expected to significantly combat the capital city’s severe air pollution crisis.
Addressing fiscal concerns, BRTC emphasized that while the upfront capital expenditure for electric vehicles is higher than conventional diesel or CNG variants, the long-term operational and maintenance costs are drastically lower.
The agency promised that the project would be executed under transparent, strict adherence to national public procurement laws and financial regulations.
Expert Insights on Public Transport Subsidies
Economists have voiced cautious support for the modernization project, emphasizing the social value of green infrastructure over short-term commercial returns.
“The initiative to introduce electric buses to modernize public transport and protect the environment is highly commendable. Globally, governments regularly sustain such public utility agencies through subsidies or grants because these projects generate immense social welfare rather than immediate commercial profits.”
— Professor A.K. Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS)
However, the BIDS chief also urged the government to implement stringent oversight mechanisms if a grant is approved. “It must be guaranteed that public taxpayer money is not wasted,” Professor Haque warned, calling for 100% transparency and strict accountability across the procurement and infrastructural phases.
He additionally emphasized that BRTC must simultaneously pursue long-term financial self-reliance so that it does not remain permanently dependent on continuous government bailouts or grants for future fleet expansions.