Monday 03 / February / 2025
MUSCAT: The Development Bank has decided to provide interest-free financing for 510 school buses as part of the School Bus Replacement Initiative, which aims to finance a total of 1,000 school buses in its first phase.
This initiative is being implemented in partnership with the Ministry of Education (MoE) and Karwa Motors, an Omani-Qatari investment, with a total financing value of OMR11.475 million since the project was launched in 2024.
This initiative aligns with the bank’s efforts to promote self-employment and support small and medium-sized enterprises (SMEs) in line with Oman Vision 2040, which aims to stimulate economic activities and create job opportunities for Omani youth through financing programmes.
Yousuf bin Mohammed Al-Owueini, Director of SME Financing at the Development Bank, stated that the bank plays a crucial role in financing SMEs as part of its developmental mission to stimulate key economic activities outlined in Oman Vision 2040 and the Tenth Five-Year Plan. He emphasised that interest-free financing for school buses is a priority for the bank, given its significance in enabling different segments of society to pursue self-employment and encouraging Omani youth to engage in entrepreneurship.
He added that since the project’s launch in March 2024, it has witnessed significant demand, with beneficiaries securing interest-free financing of up to OMR22,500 per school bus.
Al-Owueini further explained that the Development Bank’s role in this initiative involves providing necessary financing to school bus owners, with beneficiaries nominated by the Ministry of Education.
The bank approves the financing procedures according to its internal regulations, issues purchase orders to Karwa Motors for manufacturing the buses, and ensures their delivery to beneficiaries.
He highlighted that this financing is interest-free and extends for a period of nine years, taking into account the financial needs of school bus owners. Additionally, the project enhances in-country value by supporting local industries and increasing investment opportunities for SMEs, thereby strengthening the national economy.
Al-Owueini pointed out that the initiative serves multiple objectives, including stimulating the national economy in line with Oman Vision 2040’s goal of enhancing local content and reducing reliance on imports.
This is achieved by encouraging the local manufacturing of buses and supporting economic activities. He noted that the Development Bank offers flexible financing solutions to facilitate the transition to new buses, ensuring that stakeholders can meet their objectives.
Meanwhile, Eng. Issa bin Saleh bin Sufyan Al-Rashidi, the Director of the School Transport Department at the MoE, stated that the project is progressing toward achieving its objectives in less than a year since its launch.
He noted that the collaboration between the Ministry, the Development Bank, and Karwa Motors is focused on improving the efficiency of school transportation and ensuring the highest safety standards for students.
He emphasised that replacing outdated school buses with modern vehicles is crucial to providing safe and secure transportation.
The new buses are equipped with advanced monitoring and tracking systems, making them safer, more comfortable, and smarter for transporting students between their homes and schools. Additionally, drivers will receive defensive driving training to enhance their road safety skills.
Al-Rashidi further mentioned that the Ministry and its partners aim to replace 5,000 old school buses with new ones over five years, prioritising the oldest buses first. This approach will help reduce risks associated with ageing vehicles.
He also highlighted that the project will provide additional benefits, such as extending the service life of school transportation, ensuring a minimum ten-year warranty on bus maintenance and spare parts, and maintaining service efficiency at the highest standards. He stressed that the initiative contributes to achieving sustainable development goals under Oman Vision 2040 by improving the quality of education and school transportation services. Additionally, the project encourages the adoption of environmentally friendly buses, reducing the carbon footprint and enhancing operational efficiency.
Al-Rashidi noted that the initiative will also expand job opportunities in bus maintenance, training, and driving, as the renewal of the school bus fleet will create new business opportunities for local SMEs operating in the transport and logistics sector.
For his part, Eng. Sami Al Badi, Sales and Marketing Assistant Manager at Karwa Motors, stated that the school bus project represents a significant milestone in encouraging local industries, developing their capabilities, and providing products that meet the requirements of school transportation. He noted that the Development Bank’s support for this initiative contributes to strengthening in-country value.
He added that Karwa Motors is committed to supplying the required number of buses in coordination with contractors and the Ministry of Education. The company will also ensure competitive pricing for maintenance and spare parts during the warranty period, which will last for at least ten years. Additionally, it will provide training for school bus drivers in defensive driving at the traffic safety institutes affiliated with the Royal Oman Police or the Oman Energy Association (OPAL) in their respective governorates. This will ensure the safety of students during transportation. The new buses will also be equipped with automated systems that comply with the Ministry of Education’s standards.
Al Badi stated that Karwa Motors’ involvement in the project allows it to develop new technologies in bus manufacturing, strengthening its position in both local and regional markets. He emphasised that reducing reliance on imports can be achieved by supporting local bus manufacturing and reinforcing Oman’s economic development.
Several beneficiaries of the interest-free loans for school buses expressed their satisfaction with the initiative, which has alleviated the financial burden of purchasing new buses. They highlighted that the financing terms have made it easier to acquire buses without significant financial strain, as repayments are structured around the school academic year, with instalments payable over ten months annually.
They also noted that the project has reduced maintenance costs and vehicle downtime, as well as minimised repair expenses. Additionally, the modern features of the new school buses and their advanced technologies have enhanced safety and driving comfort.
