BRTC's 340 AC bus procurement delayed again as Korean Exim Bank approval lags

The Bangladesh Road Transport Corporation's (BRTC) plan to procure 340 air-conditioned (AC) buses has faced repeated delays due to slow approval from the Exim Bank of Korea and delays in appointing the project director and Korean consultant. 

Originally scheduled for delivery by 2024, the purchase could not be completed despite extensions, prompting BRTC to propose extending the project deadline to 2026.

According to a proposal jointly signed by Project Director Colonel Kazi Ayub Ali and BRTC Chairman Abdul Latif Mollah, the project was approved by the Executive Committee of the National Economic Council (ECNEC) on 5 September 2023.  However, it took nearly 15 months to appoint the project director and Korean consultant, delaying the initial implementation phase. 

The tender documents were sent to the Exim Bank of Korea for approval on 28 November 2024, but multiple rounds of comments and revisions postponed the process. Final approval was received only on 20 November 2025, preventing timely procurement. Following the bank's approval, the tender notice was published in national newspapers on 1 December 2025. 

BRTC officials said the full procurement process – from tender submission to technical and financial evaluation, Exim Bank clearance, government committee approvals, contract signing, loan disbursement, and delivery – could take nearly two years. Initially, BRTC sought a two-year extension of the project, but the Ministry of Road Transport and Bridges agreed to a one-year extension without revising the cost. Accordingly, the project implementation deadline has been set to 31 December 2026.

The 340 single-decker AC buses, CNG-powered, are estimated to cost approximately Tk1,133.46 crore, or about Tk3.33 crore per bus. Of the total, Tk828.63 crore will come from a South Korean loan under the Economic Development Cooperation Fund (EDCF), while the remaining Tk308.83 crore will be financed from the government treasury. As per the loan agreement, only South Korean suppliers are eligible to supply the buses, limiting competition but ensuring compliance with the lender's conditions.

According to BRTC, 140 of the new buses will operate on various Dhaka city routes, with about 15% additional spare parts and related equipment imported for maintenance. The remaining 200 buses will serve intercity routes, with similar provisions for spares to ensure long-term serviceability.

Officials say the project, once completed, will expand BRTC's AC bus services both within the capital and across intercity routes, improve passenger comfort, and contribute to a more environmentally friendly public transport system.