First Automobile Works provides $2.3 million supplier credit for acquisition of 50 buses

First Automobile Works provides $2.3 million supplier credit for acquisition of 50 buses In late 2004, First Automobile Works (FAW) provided a $2.3 million supplier credit to Zimbabwe United Passenger Company (Zupco) — parastatal company in Zimbabwe that operates for urban and long-distance bus routes — for the purchase of 50 buses to supplement the public transport system in Harare.

Then, in March 2005, Zupco actually purchased the 50 buses from China.

In total, 400 buses were to be purchased, with 100 kits to refurbish old buses and 250 additional buses to be purchased at a later date. However, FAW produces the buses without adequately accounting for local transportation conditions in Zimbabwe. By 2006, the entire fleet had stopped working and the further bus purchases were suspended.