It was speculated earlier that the Bangladesh Road Transport Corporation (BRTC) would handle the purchase and operation on its own but development partners were reportedly critical of the corporation's past record in similar ventures.

The DCFP was initiated with a view to improve the overall transport system in the city. Under this project, plans were made for purchasing 300 CNG-driven buses and 2,000 CNG-operated auto-rickshaws. In addition to those initiatives, 26 new CNG filling stations were to be set up, 23 of which would be inside the city.

Due to continuous failure in formulating a definite guideline, the government had to shift the purchase and operation plans of the 300 CNG-driven buses to 2005.

According to sources, the Communications Ministry could not prepare a guideline and also could not come to a decision about which department or organisation should be looking after the operation of these buses.

Initially, the Energy Ministry suggested that the Ministry of Communications should procure the buses through the Rupantarita Prakritik Gas Company Ltd. (RPGCL). However, that idea was opposed by the Communications Ministry which felt that the buses could be bought and operated through the BRTC.

But the Asian Development Bank (ADB) and Norwegian Development Bank (NORAD), the two donor agencies for the project, did not want the BRTC's involvement apparently because of its alleged past record of corruption and incompetence.

The total cost of the project is around $113 million, out of which $90 million is being funded by the two donors with ADB's contribution standing at $80 million. The government will provide $23 million from internal resources.

The development partners had proposed the disbursement of the money through bank loans which was not agreed by the Communications Ministry as that would have increased the total implementation cost of the project.

The ADB loan that comes with around 1.5 percent interest would be waived for the first ten years. Repayment of the loan, with interest, would begin after that period.

The installation of a 60-kilometre gas pipeline from Aminbazar of Savar to Dhanua, construction of two gas stations at Savar and Ashulia and a 97-kilometre pipeline in Dhaka has also been included in project.

"As the donors did not want us to be a part of the project they therefore have handed it over to private companies," said BRTC chairman Taimur Alam Khondoker.

"Due to the involvement of private companies in such an important project, the city would be suffering in the near future," he added.

"The approved funds for the project hopefully would be made available by November," said a senior official of the Communications Ministry. If that happens, the purchase of the buses and their eventual operation could be initiated from February next year, felt sources in the ministry.