NDF - Financing for climate change and development projects

Bangladesh gets cleaner busses


NDF supports the transfer from polluting diesel buses to gas-driven buses in the city of Dhaka in Bangladesh.

The Government of Bangladesh has embarked on a program to replace old buses running on diesel with new vehicles running on gas to decrease costs and improve air quality. Bangladesh has its own resources of natural gas, a cheaper energy source than diesel or petrol. The poor air quality in Dhaka causes a high rate of diseases like asthma, chronic bronchitis, decreased lung functions and heart attacks.
“The project may also have a beneficial climate impact, the primary effect being derived, not from the fuel substitution, but from its contribution to the increased efficiency of the overall transport system in Dhaka, in particular the reduction in traffic congestion”, says Mr Björn Möller, Country Program Manager at NDF.
NDF provided a credit of EUR 10 million in 2003 for the purchase of 100 CNG buses. In June the NDF Board approved the purchase of the same make of buses to add to the existing fleet for the remaining amount of the credit. In March 2010 100 gas-driven buses from China arrived to Dhaka. Now NDF will finance the replacement of 190 more diesel-fuelled buses by gas-driven vehicles.