The southern province of Dong Nai has pledged support for a project todevelop a bus network using vehicles powered by Compressed Natural Gas(CNG) and build CNG filling stations.

The SonadeziTransport Joint Stock Company proposed the project at a meeting on May27 between the provincial People’s Committee and relevant agencies onthe development of public transport systems using CNG bus.

A CNG bus emits about 20 percent less carbon dioxide than a fossilfuel-powered bus. Fuel costs for CNG buses is 30-40 percent less than abus running on fossil fuels.

Sonadezi said it plans to purchase162 buses and build two CNG filling stations this year. During the nextfive years, the company will buy 393 more coaches and build five moreCNG filling stations. Total investment for the project is estimated at630 billion VND (29.3 million USD).

It is askingthe province to provide land for the filling stations as well as accessto preferential credit and import tax exemption for vehicles andequipment used by the project.

In the past few years,local demand for public transport has increased significantly togetherwith the expansion of industrial parks. It is estimated that over 22million people use public transportation this year and the figure isexpected to reach 32 million by 2020.

At the meeting, ViceChairman of the provincial People’s Committee Tran Van Vinh affirmedthat the province will facilitate the project as it is in line with theprovince’s policy of switching to environmentally friendly vehicles forpublic transport services.-VNA