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Operators ask for more time ahead of reforms that could shake up the sector

Wednesday August 14 2019
Buses

Public transport operators have decried being left in the dark about the looming sector restructuring. Photo | Cyril NDEGEYA

By JOHNSON KANAMUGIRE

Public transport operators have decried being left out in the process leading to the proposed sector restructuring.

This, the operators say, has made it difficult for them to prepare ahead of the expiry of their contracts.

The operators expressed concerns that despite their requests to get timely details of the proposed reforms, which include new contracts, they were left in a state of confusion with few questions remaining unanswered.

The government had earlier indicated that a new study to guide the restructuring of the commuting system in Kigali would be out in the 2018/2019 fiscal year.

However, as of last week the study had not been released.

For many operators, whose extended contracts will come to an end on August 30, there was limited time left to meet the new requirements.

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on acquisition of new fleet and other strict operating conditions by the operators.

Operators who spoke to Rwanda Today demanded that the government considers offering at least six to 12 months to meet the new criteria which may require reaching out to banks for funds.

“We are only hoping that upon releasing the new contract terms, there will be a transition time under which operators in the public transport business and potential entrants can prepare ahead of the routes tendering,” said Bishop Kihangire, director of transport at Rwanda federation of transport co-operatives.

Operators have been serving under a five-year contract, which the government extended by 12 months last year to allow state agencies in charge of transport to carry out a study, which will be used to guide the process.

The reforms are expected to address the demand caused by an increase in passenger numbers and possible new routes as a result of th expanding city.

Outdated plan

Operators continue to blame prevailing passengers’ grievances around poor service largely to the ongoing reliance on the commuting system which took long to be adjusted to the realities in the fast growing city of Kigali.

“Apparently, even until now the studies have not yet been concluded and we risk being handed another contract extension, which would be a big mistake because that’s further prolonging a worsening situation since we are operating on outdated planning.

This has had implications on the business as we are unable to plan our operations,” said Nille Muneza, head of Royal Express.

Operators noted that uncertainties over future contract terms were taking toll on the public transport service provision on various routes.

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