In 1999 Sida initiated cooperation with Dhaka in the area of urban transportation. The project consisted of financing support for the purchase of 50 high capacity buses (double-deckers) together with a package of technical assistance related to the production, maintenance and operation of the buses, which were put in operation in 2001. In 2003, a request was made by the Government of Bangladesh for the continuation of the Swedish support through the financing of another 95 double decker buses. This would complete the provision in the 1999 National Plan of Bangladesh that stipulated the introduction of a total of 350 such buses in order to relieve congestion and air pollution. The main purpose of this report is to evaluate the performance of the first 50 buses but also to identify and evaluate other aspects that may have relevance for Sida in the decision as to continue or discontinue the cooperation with Dhaka in the requested form. There is no doubt that the introduction of the first Swedish double decker buses has been successful. The performance of the buses is remarkably high and above the expectations in terms of the number of buses on road (over 90 percent) and kms produced (over 64 000 kms per bus and year). These are figures comparable with, or better, than European standards and it is evident that, at least so far, the buses have been well maintained and cared for. The number of transported passengers appears to be lower than it could be but this may partly depend on flaws in the fare collection and current reporting systems. Passengers appreciate the Volvo buses (especially women) since they offer safe and comfortable ways of travelling. It has not been possible to assess in detail the possible impact of the 50 buses on Dhaka's entire urban transport system. However, the concern (mainly by the World Bank) that the project would distort competition and force the private bus sector out of the market has clearly not come true. If anything, the appearance of the new buses seems to have stimulated private operators to operate more buses along the same routes and during the last eighteen months new operators have been stimulated to operate more standard sized buses in general.