The transit elevated bus TEB-1 is on road test in Qinhuangdao, North China's Hebei Province, Aug 2, 2016.(Photo/Xinhua)
The controversial Transit Elevated Bus (TEB) project, also known as Batie, is facing a capital crunch as investors have stopped providing funds, domestic news website thepaper.cn reported on Thursday.
An unidentified manager from TEB Technology Development Co, the vehicle builder, told thepaper.cn that "the company has been plagued with liquidity problems since late November because current project investors were reluctant to invest more. All capital-driven work has been halted."
The company's test vehicle, Batie No.1, is sitting covered in thick dust in Beidaihe district, Qinhuangdao, North China's Hebei Province, according to the report.
Test operations have been stopped for around two months, the report noted, citing an unidentified gatekeeper at the test site.
TEB Technology recently missed a payment to the vehicle's designer, Suzhou-based AOJ Auto Technology, the report said, and an increasing number of employees have been leaving the company recently.
But TEB Technology Chief Engineer Song Youzhou said the company is still operating normally, and media reports to the contrary are just rumors.
"Every week, we send experts to the test site in Beidaihe district, and a manufacturing subsidiary of State-owned CRRC just paid a visit to the field last week," Song told thepaper.cn.
Song explained that the dust on Batie No.1 was caused by haze and dirt, which is common "if you don't wash your car for three or four days," the report said.
As for investors, Song said TEB Technology has reached an agreement with a State-owned enterprise in Beijing, whose main business is energy, the report noted.
However, Song declined to name the company.
The Batie project triggered widespread controversy after making its debut in August.
Some market participants have raised doubts over the feasibility of the vehicle's design and the investment backing the project.
