Training Programme on E-Bus Contract Management for Ahmedabad City Officials

Ahmedabad is among the pioneers in operating electric buses in India. However, managing contracts for these buses has been identified as a key challenge for city officials. As of January 2022, Ahmedabad Janmarg Ltd (AJL) operates approximately 200 electric buses, with four different types of batteries. The city is also planning to procure more e-buses. To help address this challenge, a training program on contract management for e-buses was organised by the Center of Excellence in Urban Transport (CoE-UT), CRDF, CEPT University. Ten city officials, including members from AJL and AMTS (Ahmedabad Municipal Transport Service), attended the program to enhance their knowledge and skills in managing e-bus contracts.

The event started by welcome address with a brief background of the study. This was followed by an overview of the training programme, highlighting the economic and environmental benefits of adopting e-buses in place of conventional fuel buses. A scenario-based approach, outlining the fleet requirement and level of electrification for the target year was presented. The approach aimed to increase the public transport mode share, minimise the impact on environment and make it economically viable for the operators.

Following the introductory sessions, the important aspects in contract management for e-buses were discussed. It started with an overview of the existing and proposed fleet in AJL’s BRT system, and its procurement stages. The key features, characteristics, and allocation of risks in the existing FAME II Agreement (agreement between AJL and the operator, under FAME II) and the Non-FAME Agreement (agreement between AJL and the operator, not under FAME scheme) were explained. Differences such as assured debt payment to an operator during termination, escrow, and substitution mechanism in the FAME II agreement were highlighted, which ensure bankability for operators and mitigate investment risk.

The training program proceeded with an exploration of key considerations for contract management. Ten essential aspects were covered, including bus specifications, inspection & acceptance of buses, rate revision method, performance monitoring process, termination, condition precedents, subsidy disbursement, escrow account, financial closure, and timelines. Some of these key aspects were commonly found in both the agreements, while some were specific to the FAME II agreement.

Overall, the training program provided comprehensive information and guidance on managing e-bus contracts, considering the specific provisions of the agreements, and addressing the concerns and queries of the participants.