GOVERNMENT has ordered over 200 buses and 100 engines from China to refurbish Zupco's old fleet to service rural areas as it gears for a glitzy 2008 parliamentary and presidential election campaign.

Impeccable sources in both government and Zupco told The Zimbabwe Independent that the Reserve Bank would finance the purchase of the equipment.

The sources said Zupco would use the engines to refurbish its grounded AVM and DAF buses, which will service rural areas.

Local Government minister Ignatius Chombo, who oversees Zupco's operations, confirmed to this newspaper recently that the public transporter was buying buses to be used in the rural areas.

He, however, denied that the deployment of buses in the rural areas was part of Zanu PF's election campaign strategy.

"We resolved as a government that there must be at least one bus in every district," Chombo said. "In that vein we have ordered 100 engines from China to refurbish our old AVM and DAF buses. So far we have refurbished five and they are like new."

Chombo said the decision by Zupco to service rural areas was arrived at after realising that private companies were shunning the areas citing poor road networks.

"We are saying the Zupco buses should ferry passengers to and from remote areas onto main roads where private companies are comfortable to use their buses," Chombo added.

But another cabinet minister who asked for anonymity said the deployment of Zupco buses to rural areas was meant to consolidate the ruling Zanu PF's support ahead of the parliamentary and presidential elections.

"Our focus is on the rural voter. Why should we continue to buy buses and deploy them in urban areas where we are not getting votes?

"Our support is in the rural areas and we must guarantee our voters good transport," the minister said.

In his Heroes Day address, President Robert Mugabe said the objective of the government was to have Zupco servicing more routes through buying of new buses and refurbishment of old ones.

"I am glad to report that Zupco is also covering more rural routes, thus providing an affordable alternative for many rural travellers," Mugabe said on Monday at the Heroes Acre in the capital.

Sources at Zupco said a team was dispatched to the rural areas to assess the road networks and advise where there was need for rehabilitation.

Zupco public relations manager Richard Mlambo did not respond to questions e-mailed to his office last week despite having acknowledged receipt.

The public transporter was incorporated and registered in 1980 with the government assuming sole ownership in 2004

In the last financial year, the company posted a profit after tax of $1,4 billion. The company's revenue grew by 1 320% to over $8,6 billion.

While 60% of the revenue was generated from long distance buses, metropolitan operations accounted for 38%.

Foreign currency revenue remained constant, at about 2% of total revenue.

Fleet availability, however, deteriorated from 73% to 69% due to an aging fleet and shortage of spares.