MUSCAT: The Development Bank has financed 510 school buses as part of a broader initiative to replace 1, 000 buses in partnership with the Ministry of Education and Karwa Motors. This first phase, valued at RO 11.475 million, provides interest-free loans to support small and medium enterprises (SMEs) while enhancing the quality and safety of student transportation across Oman.
The initiative aligns with Oman Vision 2040’s goals of fostering economic growth, job creation, and local industry development. By offering financing to bus owners, the program enables entrepreneurs and SMEs to participate in the school transport sector while ensuring students travel in modern, safer vehicles equipped with the latest technology.
Yousef bin Mohammed al Awini, Director of SME Financing at the Development Bank, highlighted the bank’s role in supporting economic activities under Oman Vision 2040 and the Tenth Five-Year Plan. He emphasized that interest-free financing for school buses is a key initiative that promotes self-employment and provides sustainable income opportunities for Omanis.
Since the project’s launch in March 2024, there has been strong demand from bus operators eager to upgrade their fleets. Each bus is financed up to RO 22, 500, allowing owners to replace aging vehicles with modern, fuel-efficient models. The financing is structured over nine years, making it accessible to small business owners.
The Ministry of Education nominates beneficiaries for the program, and the Development Bank facilitates the financing process, issuing purchase orders to Karwa Motors for bus manufacturing and delivery. This streamlined approach ensures that the initiative benefits local businesses while maintaining high standards for student transportation.
Eng Issa bin Saleh al Rashdi, Director of the School Transport Department at the Ministry of Education, underscored the project’s goal of improving school transport safety. The initiative aims to replace 5, 000 old buses over five years, prioritizing the oldest vehicles first to reduce risks associated with aging fleets.
New buses will feature advanced monitoring and tracking systems, enhancing student safety and optimizing transportation routes. Drivers will receive specialized training, including certification in preventive driving techniques, to ensure they meet the highest safety standards.
The project also extends the operational lifespan of school transport services, with buses covered under a maintenance and spare parts guarantee for at least ten years. This ensures uninterrupted service and reduces long-term costs for bus operators.
Eng Sami al Badi, Sales Manager at Karwa Motors, described the initiative as a major milestone for local industry. Karwa Motors is responsible for manufacturing and delivering the buses, maintaining a steady supply of spare parts, and offering competitively priced maintenance services during the warranty period.
The project also supports sustainability goals by introducing fuel-efficient buses that reduce emissions. The new fleet aligns with environmental standards and Oman’s broader efforts to lower its carbon footprint in the transport sector.
Additionally, the initiative is expected to create job opportunities in vehicle maintenance, driver training, and logistics, benefiting SMEs involved in the transportation sector.
Several bus owners who received interest-free loans expressed their appreciation for the program. They noted that the financing structure—allowing repayments over ten months per year in line with the school calendar—helps ease financial burdens.
By modernising school transportation, the project enhances student safety, supports local businesses, and strengthens Oman’s industrial sector, all while fostering economic development in line with Vision 2040. — ONA
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