HCM CITY  --  An auction for leasing advertising space on HCM City buses will now be held between June 21 and July 18 following four previous unsuccessful attempts.

Seventy one packages will be tendered out this time.

The advertisements can be placed on both sides of buses though with their size not exceeding 50 per cent of the vehicle's side. Ads are not permitted in the front or back or on the top.

Bidders can choose how long they want to lease ranging from six months to three years.

They will have to pay a deposit ranging from 5 per cent of the reserve price for a three-year contract and 15 per cent for six-month contracts.

According to the HCM City Property Auction Service Centre, where the auction will be held, of the 71 packages on offer, the lowest-priced offers advertising spaces on only four buses and starts at VNĐ205 million for six months and over VNĐ1.2 billion for three years.

The centre said the values of the contracts have been fixed by the relevant authorities.

Trần Chí Trung, director of the centre, said in preparation for the auction, the centre discussed customers’ requirements with regard to hoardings on buses with advertising firms.

The large number of packages this time would offer bidders more options to choose from, he added.

Cao Thanh Bình, deputy head of the city People’s Council's economics and budgets division, said the revenues from the advertising are expected to help the city to improve its bus services, improve infrastructure including terminals for buses and reduce subsidies.

Bình said the leasing could yield up to VNĐ200 billion (US$8.6 million) a year, which would help reduce the subsidies the city pays for bus services.

Around 1,000 non-subsidized buses that are in operation are expected to use the advertising revenues to improve the quality of their services.

HCM City spends more than VNĐ1 trillion (US$44 million) a year to subsidise bus services, according to its Department of Transport.—VNS.