Government is seeking a strategic investor who can raise USD 16 million to partner with in the divesture of ONATRACOM, the sole public transport company, The New Times has reliably learnt.A public transport policy released in October indicates that for the phase one of the restructuring plan to be implemented, a total of 162 high occupancy standard buses are required of which the struggling ONATRACOM may provide 62 through revamping of its old fleet while a private operator will have to spend about USD 16 million.Since private buses shun rural poor roads, the plan is to set up a properly regulated bus service under a route franchising approach.Also a public limited company will be set up to take over responsibility of ONATRACOM bus service operations.The company has been in the news over mismanagement and financial problems.“A decision has been taken to have government controlling stake in the company removed….a partner is needed...” the official said preferring not to be named because he is not authorised to speak on the matter.Other documents availed to The New Times also indicate the company is operating with a thin cash flow of Rwf 123 million which is only 1.4 percent of operating costs, vehicle depreciation costs not added.The documents also indicate that the company has a staff of 265 with annual costs of Rwf 636 million and it would require Rwf 999 million to repair its fleet.“Many of the buses are in bad shape…,” the official added but cautioned that selling the company is counterproductive to its core mission of servicing rural routes because no private company will want to commit its vehicles to rural roads.He added that government should have allowed ONATRACOM to manage all taxi parks countrywide to enable it offset on losses associated with rural poor roads.However, the State Minister for Infrastructure Alexis Nzahabwanimana told Parliament last week that government has no intentions to privatise the company.The minister told parliament that out of a fleet of 178 buses only 59 buses are functional while another 40 can be repaired.Contributing to the debate, MP Basile Bayihiki described the company buses as ‘rotten and a shame to the country’ and that government is better selling them off to concentrate on improving roads.The transport company has seen its market share shrink significantly, following the liberalisation of the market, which set in privately owned express buses.With a loss of Rwf342m and a liability of Rwf2 billion in 2010 due to a thinning clientele base and the aging bus fleet, it is increasingly becoming difficult for the company to be competitive.
