Hà Nội approves interest subsidies for electric bus conversion
This applies to enterprises investing in large-scale passenger transport infrastructure and those providing bus services in Hà Nội that purchase electric or green-energy buses and related infrastructure, such as substations, charging stations and refuelling stations.
HÀ NỘI — Hà Nội has approved an increase in interest rate subsidies for loans to invest in electric buses, raising the support level from 50 to 70 per cent. The move is intended to help enterprises participate in developing greener public transport.
On Monday, the Hà Nội People’s Council adopted a resolution that prioritises the development of mass public passenger transport, encourages investment in bus stations, car parks and other motor vehicle facilities, and promotes the application of advanced technologies in transport management and operations.
The city budget will cover 70 per cent of loan interest from commercial banks or the Hà Nội Development Investment Fund, with support capped at 100 per cent of the contract value throughout the loan term, up to a maximum of 10 years.
This applies to enterprises investing in large-scale passenger transport infrastructure and those providing bus services in Hà Nội that purchase electric or green-energy buses and related infrastructure, such as substations, charging stations and refuelling stations.
Director of the city's Department of Construction Nguyễn Phi Thường explained that raising the subsidy rate to 70 per cent (from 50 per cent under Resolution 07/2019/NQ-HĐND) is necessary because the total investment in electric buses is two to three times higher than for diesel buses, pushing loan costs up by about 67–70 per cent.
The adjustment also ensures Hà Nội’s support level is in line with other localities, such as Hải Phòng and Vĩnh Phúc, which have applied rates of up to 80 per cent.
The extended support period – the full duration of the loan contract, up to 10 years, instead of only the first five years – also better matches the depreciation cycle of buses, which currently stands at 10 years according to approved economic and technical norms.
Since Resolution 07/2019/NQ-HĐND was issued in 2019, only one enterprise, Bảo Yến Travel and Construction Services Co., Ltd., has applied for interest subsidies for its fleet of 139 CNG buses. However, due to a lack of clear regulations on loan support limits and project approval authority, the company has yet to benefit from the policy. — VNS
