The Zimbabwe United Passenger Company’s (ZUPCO) contracts with private bus owners, which were set to expire at the end of February 2024, have been extended for another month.
As reported by <a href="https://www.herald.co.zw/zupcos-marriage-with-contracted-buses-extended/">The Herald</a>, a committee has since been set up through the Ministry of Local Government and Public Works to either make changes to the contracts or terminate them.
Last month ZUPCO advised the owners of franchised buses that it did not intend to renew the contracts which were due to expire on 28 February.
However, there are concerns that terminating the contracts could disadvantage passengers through fare hikes on some routes.
Prominent bus operator Esau Mupfumi said negotiations between ZUPCO and bus operators to renew the contracts were ongoing. He said:
<blockquote>
We were given a month to continue with our operations while negotiations are underway. This is quite pleasing as negotiations are looking at people’s welfare first.
We do not want them to feel the pinch of mushikashika. The issue should not look at profits only, but consider the welfare of people. Government is there for the people and should cater for their needs.
</blockquote>
Mupfumi also said a new committee had been set up to deal with the matter. He said:
<blockquote>
The committee has four bus operators, Zupco officials and officials from the Ministries of Local Government and Public Works and of Finance, Economic Development and Investment Promotion.
It will be chaired by an official from the Local Government Ministry, Emmanuel Ngwarati.
We are going to meet next Friday for deliberations and then write a report to Finance Permanent Secretary Mr George Guvamatanga by March 15.
</blockquote>
When contacted by The Herald, Ngwarati declined to comment, stating that he was not permitted by his office to speak to the media.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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Private Buses' ZUPCO Contracts Extended

The Zimbabwe United Passenger Company (ZUPCO) says it will not renew contracts with private owners of buses plying urban routes beyond 28 February 2024.
The parastatal contracted private transport operators during the coronavirus lockdowns to ensure that transporters would follow lockdown rules.
The government had banned all private transporters at the time which left them with no option other than joining the ZUPCO franchise for them to be allowed to continue operating during the lockdown.
However, as the lockdown was relaxed and then dropped, a lot of buses decided to return to private control and almost all kombi operators wanted independence from ZUPCO which they argued had been short-changing them during lockdown.
In a letter dated 09 February seen by <a href="https://www.herald.co.zw/zupco-terminates-contracts-for-urban-buses/">The Herald</a>, and addressed to bus operators, ZUPCO acting chief executive Tineyi Rwasoka notified operators of the expiry of the remaining contracts. He wrote:
<blockquote>
As you are already aware, the ZUPCO bus hiring contract for urban transportation between yourselves and ZUPCO Limited is set to expire on February 28, 2024.
We refer to our previous correspondence, specifically our letter dated January 1, 2024, regarding the same matter.
We are writing to officially inform you that we do not intend to renew the contract.
We kindly request that you provide us with any necessary information or documentation regarding the conclusion of our contractual relationship.
This includes the return of any ZUPCO Limited property or confidential information that may be in your possession.
</blockquote>
Manicaland bus operators chairman and coordinator of buses attached to the ZUPCO franchise, Esau Mupfumi, confirmed receiving termination letters from ZUPCO. Said Mupfumi:
<blockquote>
We are waiting for Government guidance as the termination is neither here nor there. It appears the left hand was unaware of what the right hand was doing.
</blockquote>
The Goverment has since withdrawn financial support from ZUPCO for hiring buses saying the parastatal has been subsidised enough and must be running profitably and efficiently.
Treasury was reported to be giving ZUPCO US$6 a month to enable the company to hire private buses to provide urban mass transport.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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