The local government is to spend 2.6 billion yuan (US$379.8 million) this year on new buses to service city routes, according to transport administration officials.

The authority also say they will continue to expand bus routes to suburban residential areas, enhance the fare discount policy and raise salaries for bus crews. Shanghai Urban Transport and Port Administration said the government's 2.6-billion-yuan investment would buy more than 3,200 buses costing almost 800,000 yuan each.

"Compared to our previous practice of offering compensation to encourage bus companies to replace old buses, the new plan should work directly and more effectively," said Li Jielin, an administration official.

Read more: http://www.shanghaidaily.com/sp/article/2009/200902/20090203/article_389694.htm

Source: Shanghai Daily (www.shanghaidaily.com)