Public Authorities Drive Bus Fleet Renewal with Bank Financing
Six public banks, including CPA, BADR, CNEP-Banque, BEA, BNA, and BDL, have launched a new financing formula specifically for collective passenger transport professionals. This initiative allows both individuals and legal entities in the sector to acquire new buses, with the financing covering up to 90% of the total vehicle cost, inclusive of all taxes. The scheme requires a 10% personal contribution and offers a 10-year repayment period, which may include a six-month grace period. Available in both classic and Islamic banking formats, this measure is part of public authorities' broader decision to progressively withdraw buses older than 30 years from the national fleet and enhance overall transport conditions.
This new financing arrangement aligns with the government's wider strategy to modernize Algeria's transport infrastructure, directly supporting President Abdelmadjid Tebboune's directive for the importation of 10,000 new buses. Concurrently with these financial facilitations, the National Society for Recovery and Valorization, a subsidiary of the SNS group, is responsible for the recovery and dismantling of older buses. This process includes salvaging components, such as iron, for reintegration into the industrial cycle, contributing to sustainable economic practices.
The National Organization of Algerian Transporters (ONTA), represented by its president Hocine Bouraba, has expressed strong approval for these measures. Mr. Bouraba noted that the initiative will significantly improve operational conditions for transporters and accelerate the national fleet's renewal. He highlighted additional benefits for beneficiaries, including an exemption from Value Added Tax (VAT) on bus costs and a 20% state subsidy, further complementing the banking facilities. Moreover, a new tranche of 165 vehicles is slated for distribution to reinforce urban transport in six wilayas—35 buses each for Batna, Biskra, and Skikda, and 20 buses each for El Tarf, Djelfa, and El Oued—as part of ongoing efforts to provide citizens with more comfortable and safer travel options.
