The government is offering state guarantees to raise funds for working capital and investments, subject to preset conditions as an added incentive to bidders taking up stakes in the remaining bus companies.
The Public Enterprises Reform Commission (PERC) re-issued its invitation over the weekend to take up a 39% stake in the remaining five cluster bus companies and two other public transport firms.rn
rnThe government failed to retain interest in the remaining bus companies in its pervious attempt on October 31, which saw six other regional establishments being picked up at the end of a closed bidding exercise implemented through the Stock Exchanges trading facility. rn
rnThe state guarantee, by way of mortgaging assets of the company to the government, will be limited to the first year of operations and is expected to encourage participation by the private sector.rn
rnThe government is also taking steps to strengthen the regulation of the bus services and to improve service quality and the safet