The Yangon Bus Line Public Company will begin operations with Ks 25 billion (US$25 million) in capital.
The government will contribute Ks 10 billion, and the private sector will put up the remaining Ks 15 billion. Shwethanlwin, Shwetaung Group, Diamond Star, Zeya & Associates and Fishery and Marine Products 2000 will each hold a Ks-2 billion share, and the remaining Ks 5 billion-worth of shares will be sold to the public.
Among the founding companies, Shwethanlwin, Shwetaung Group and Diamond Star are known to maintain close relationships with President Thein Sein.
“We allowed them to own eight-per cent (Ks 2 billion) shares each because they don’t care much about profits; they just poured in their cash to make the company work. But we will make sure people profit from the shares we sell,” said Dr Maung Aung, the chairperson of the committee to launch the company.
The company has been presented to Directorate of Investment and Companies Administration (DICA) for registration.
Dr Maung Aung confirmed the new company will strive to open a Bus Rapid Transit system (BRT-Lite) within six months.
The company’s capital is expected to be increased to up to Ks 100 billion in future.
“We’re searching for a place to accommodate the buses. We’ve also modified the vehicle code to include room for the expressway that the company-owned buses will drive on. The thing is not to let other vehicles disturb the way of the company’s buses. The rapid bus lines are supposed to shrink the commuting time to half of the current rate.”
The BRT-Lite will connect Pyay Road, Kabaraye Pagoda Road, Hlaingthaya Township, Dagon University and Thilawa Special Economic Zone.