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ISLAMABAD, Dec 20 (APP):Daewoo Pakistan Express Bus Service Limited (Daewoo Express) and a Consortium of Development Financial Institutions (DFIs), led by Saudi-Pak Industrial and Agricultural Investment Co. Ltd., have signed an agreement to provide a 5-year ‘Lease Financing Facility’, totalling Rs 2,000 million to procure a combination of EV and Euro III intercity buses from Golden Dragon, P.R. China.
The historic signing ceremony was held at a local hotel here late Thursday, which would help pave the way for climate-resilient and sustainable transport solutions.
The DFIs involved include Saudi Pak Industrial and Agricultural Investment Company Limited, Pak China Investment Company Limited, Pak Libya Holding Pvt Limited, and Pak Oman Investment Company Limited. JS Bank acted as the Account Bank, and Mohsin Tayebaly & Co served as the Transaction Legal Counsel.
Speaking on the occasion, CEO of Daewoo Express Faisal Ahmed Siddiqui stated, “Daewoo Express is the leading transport company in Pakistan, with over 25 years of operations and a fleet of more than 1,000 buses covering various intercity and intracity routes.”
“Under our 5-year strategy, we aim to transform and replace a significant portion of our existing intercity fleet with climate-friendly Electric Vehicles (EVs) and Euro III buses,” he informed.
“By embracing an environmentally friendly approach in our business operations, we are not only improving our fleet’s efficiency but also contributing to Pakistan’s long-term environmental goals,” Faisal Ahmed Siddiqui claimed.
“We are grateful to all the DFIs with whom we have worked to bring this transaction to fruition,” he said.
General Manager and CEO of Saudi Pak Industrial and Agricultural Investment Company Ltd Rizwan Ahmed said, “We are privileged to have played a leading role in forming Pakistan’s first-ever DFI Syndicate for a long-term lease arrangement.”
“This transaction aligns with our mission to enable private sector participation in sustainable transport and infrastructure development,” he expressed hope.
By providing long-term financing for sustainable transportation initiatives, the DFIs are paving the way for impactful green solutions,” Rizwan stated.
“Such financing structures can be replicated across other sectors, amplifying the impact of sustainable projects and strengthening the role of DFIs in driving development,” he concluded.
It is pertinent to mention here that Pakistan is among the top ten countries most affected by climate change over the past two decades. The transportation sector contributes approximately one-sixth of global emissions, green transportation solutions are urgently needed to address country’s environmental
challenges.