DOE THE E-TRIKE PROJECT Market Transformation through Introduction of Energy-Efficient Electric Tricycles
Oct 28, 2014
DOE
THE E-TRIKE PROJECT
Market Transformation through Introduction of Energy-Efficient Electric Tricycles
DOE
OUTLINE OF PRESENTATION
A. Background and Overview
B. The Philippine Tricycle Sector
C. The E-Trike Project
D. The Proposed DOE-LGU
Cooperation and Contract of Sale
E. Critical Next Steps
DOE
A. BACKGROUND AND OVERVIEW
DOE
52 3 41Additional supply infrastructure and refilling stations
Optimization of AF Resources
2012
2015
2020
2030
2011 • 1000 NGVs
(NGVPPT Commercial phase )
• 23,158 LPG Taxis• 82,250 E-vehicles• Hybrid vehicles
• NGVPPT Pilot Phase
(100 CNG buses)• 19,052 LPG Taxis• 630 demo E-
vehicles
• 3,000 NGVs• 30,936 LPG Taxis
• 130,000 E-vehicles
• Hybrid vehicles
• 15,000 NGVs• 80,311 LPG Taxis
• 180,000 E-vehicles• Hybrid vehicles
Approximate Fuel Displacement
2011 2012 2015 2020 2030
Diesel (million liters) 8 16 80 239 1,193
Gasoline (million liters)
180 195 320 454 979
CO2 reduction (Tons CO2)
58,155 74,822 262,093 462,586 1,231,655
• 200 CNG buses• 20,005 Auto-LPG
Taxis• 5,750 E-vehicles
Additional CNG and auto- LPG supply infra (refilling stations); Supply infra for e-vehicles; Continuing capacity building and IEC; Conduct of socio, techno and economic feasibility studies & assessment ; addtl incentives
Additional supply infra-structure (natural gas pipeline, refilling stations and charging stations); IEC; Capacity building
NGVPPT Accreditation, CNG supply infra; Policyissuances (NGVPPT); PNS standards (NGVs and AutoLPG & E-vehicle); Retrofitting technology; Training standards (AutoLPG), Inter-agency TWG , Executive Forum, Capacity building, IEC
ENSURING STABLE SUPPLY OF ENERGY Accelerate the implementation of
Fueling Sustainable Transport Program (FSTP)
ALTERNATIVE FUELS ROADMAP
DOE
PHILIPPINE PETROLEUM OIL MIX & TRANSPORT FUEL CONSUMPTION 2010
DOE
Total # of motor vehicles in 2011 = 7.139 million
13.6%
85.4%
0.99%
DOE
67.82
23.62
3.45.15
Tricycles & Motorcycles
Utility Vehicles
Cars
Trucks & Buses
2011 PUBLIC TRANSPORT PROFILE
DOE
B. THE PHILIPPINE TRICYCLE SECTOR
DOE
THE TRICYCLE DRIVERS Belong to the country’s bottom 30% income group; considered as
poor families
Majority are drivers per se who do not own the tricycle units and are engaged under a boundary system
Have limited access to affordable financing even if they want to purchase their own tricycles
DOE
THE TRICYCLE RIDING PUBLICWhy do Filipinos patronize tricycle as a mode of transport?
In Metropolitan areas, unlike buses and jeepneys that cannot ply each and every street, tricycles can do so especially that the riding public prefers minimum walking distance “door to door delivery”; and
In the provinces, tricycle is the main mode of transport especially for residents of far-flung barangays;
DOE
C. THE E-TRIKE PROJECT
DOE
Palawan
Surigao
Davao
Metro Manila
EXISTING E-TRIKES IN THE PHILIPPINES
DOE
E-Trike Adoption
TricycleSector
Production/ Manufacturin
g
Riding Public
National & Local Policies
& Regulations
Infrastructure
E-TRIKE PROJECT
INTEGRATED APPROACH
DOE
Deployment of 100,000 E-Trikes units to replace traditional gas-fed tricycles;
Funded by loans from Asian Development Bank (ADB) and Clean technology Fund (CTF); GOP and CDM credits;
To be implemented in 5 years (2012-2016) and in two phases: Industry Development Phase = 20,000 etrikes; Scale-Up Phase = 80,000 etrikes;
Establishment of associated electric vehicle (EV) support industries:
battery leasing/recycling/disposal; motor supply chain; and charging stations
E-TRIKE Project
E-TRIKE PROJECT
PROJECT DESCRIPTION / SCOPE
DOE
On a micro-level, project aims to alleviate the standard of living of tricycle drivers.
On a macro-level, project aims to reduce transport sector’s annual petroleum consumption by 2.8% (based on 20 Million Barrels per year consumption in 2010) or an equivalent of 89.2 Million Liters per year; and
Achieve 79% emission avoidance by shifting to 100,000 tricycles running on pure electricity. Avoided CO2 emission is estimated at 259,008 tons of Carbon Dioxide per year; and
E-TRIKE Project
E-TRIKE PROJECTPROJECT OBJECTIVES
DOE
With the E-Trike Project Without E-Trike Project
Net annual reduction by 2.8% in fuel consumption by road transport sector in 2016 (est. of 560, 926 barrels = 89 mn liters of gasoline) 79% net emission avoidance in 2016 (est. of 259,000 tons CO2) thru shift to e-trike use
Spur the establishment of the E-Trike industry: at least two (2) E-Trike companies are established as new industries in 2014
Drivers will own the unit after “lease” term
Drivers’ net take home pay will increase to more than P500.00 per day
Reduce health hazards due to air and noise pollutionMore efficient vehicles
Fuel consumption by road transport sector will remain or even surpass 2010 level (estimated at 20 million barrels)
Emissions from 100,000 gas-fed tricycles is placed at 328,000 tons CO2
No existing established local industry for E-Trikes with lithium ion batteries
Drivers will remain on boundary system
Drivers’ net take home pay averages P300.00 per day only
Pollution-related illnesses will remain
E-TRIKE Project
E-TRIKE PROJECT“WITH” AND “WITHOUT” SCENARIO
DOE
YEAR NO. OF E-TRIKES
2012 5,000
2013 15,000
2014 30,000
2015 30,000
2016 20,000
E-TRIKE Project
E-TRIKE PROJECTPROCUREMENT SCHEDULE
DOE
Cities and Municipalities Number of E-Trikes
Metro Manila 12,500
Quezon CityCaloocan City
Makati CityCity of Manila
Parañaque CityMandaluyong City
7,0001,5001,1001,0001,000 900
Puerto Princesa City, Palawan 1,500
Cabanatuan City 1,500
Lipa City 2,000
Tarlac 1,000
Dagupan City 1,000
Davao City 500
TOTAL 20,000
E-TRIKE PROJECTIMPLEMENTATION PLAN: PHASE I
DOE
Cities and Municipalities Indicative Number of E-Trikes
Metro Manila 27,000
Quezon CityCaloocan City
Makati CityCity of Manila
Parañaque CityMandaluyong City
15,000 5,500 1,500 1,500 2,000 1,500
Cabanatuan City 22,500
Antipolo City 10,000
Puerto Princesa City, Palawan 2,500
Tarlac City 9,000
Lipa City 3,000
Los Baños 2,500
Dagupan City 1,500
Davao City 1,500
Malay, Aklan (Boracay) 500
TOTAL 80,000
E-TRIKE PROJECTIMPLEMENTATION PLAN: PHASE II
DOE
E-TRIKE PROJECT
Secured NEDA Board Approval on March 22, 2012; DBM Forward Obligational Authority (FOA) on May 22, 2012; Monetary Board (MB) Approval in Principle;
Secure Presidential Special Authority (to negotiate and sign loan agreements) ;
Loan Negotiation (ADB and DOF); Sign Loan Agreement (after loan approval by ADB Board);
Secure MB Final Approval; Secure DOJ Legal Opinion; and
Submit other conditions for loan effectiveness.
PROJECT STATUS
DOE
Conventional Tricycle (Gasoline-fed)
E-Trikes
Range per day (kilometers) 80 80
Fuel Consumption per day 5 liters 7 kwh
Fuel Price/ Electricity Charging Php 56/liter Php 11.50/kwh
Fuel Cost per day Php 280 Php 80
Peso per kilometer P3.50 P1.00
Savings on Fuel P2.50 per kilometer
Daily Fuel Savings * Php 200.00
E-TRIKE PROJECT POTENTIAL DAILY FUEL SAVINGS
* At P51/li of fuel price, daily fuel savings is estimated at P175
DOE
E-Trikes
Daily Cash Inflow
Php 720
Daily Cash Outflow
313
Loan Payment 153*
Fuel & Savings for Battery
Replacement
160
Net Cash Flow Daily during loan term
Php 407
Net Cash Flow Daily after loan term (5yrs)
Php 560(or P14,560/mo)
*based on P200,000 etrike price; 7%/annum; 5
years; (P162/day if 9.5%; 5yrs); (P238/day if 7%; 3 yrs); (P246/day if 9.5%; 3 yrs)
Gasoline Fed Tricycles
Daily Cash Inflow
Php 720
Daily Cash Outflow
430
Boundary Fee 150
Fuel Cost 280
Net Cash Flow Daily (average)
Php 290
E-TRIKE PROJECT PROFITABILITY TO DRIVERS
DOE
E-TRIKE PROJECT Government Agencies and Organizations Involved:1. Department of Energy - Head Executing Agency2. Department of Finance3. Asian Development Bank4. Department of Budget and Management5. Landbank of the Philippines6. Local Government Units as Implementing Agencies
Supporting Agencies:7. Land Transportation Office8. Bureau of Customs9. Department of Trade and Industry10. Department of Science and Technology
DOE
PAYMENT “Boundary-Hulog
Scheme
E-TRIKE PROJECT FLOW DIAGRAM
LBP
Suppliers
E-Trike Drivers
PAYMENT
E TRIKE LEASE TO OWN
PROGRAM
Supply, Delivery & After sales
service
PROCUREMENTOrderE-Trikes
DOEProj Executing Agency
Conduct IEC & Capacity
Building Loan Agre
ement
LGUProject Implementing Agency
E-Trike Office
TricycleRegulatory Unit
Endorse LGUs
DIRECT PAYMENT
FOR E-TRIKE
RELEASE OF SARO
LOAN AGREEMEN
T DOFLoan Borrower on
record
OutrightPayment
BTr
DBMADB
Memorandum of Agreement
FUNDS FLOW
PAYMENT/REPAYMENT
NOTICE/AGREEMENTS
PHYSICAL
DOE
E-TRIKE PROJECT FUNDS FLOW
LBP
LGUSuppliers
E-Trike Drivers
PAYMENT “Boundary-Hulog Scheme
PAYMENT
E TRIKE LEASE TO OWN
PROGRAM
Supply, Delivery & After sales
service
PROCUREMENT OrderE-Trikes
DOEProj Executing Agency
Conduct IEC & Capacity
Building Loan Agre
ement
Project Implementing Agency
Proposed E-Trike Office
TricycleRegulatory Unit
Endorse LGUs
DOE
Functions of the Proposed E-Trike Office:1. Conduct Information Drive;2. Screen Driver-Applicants;3. Train Drivers; 4. Manage the Battery Charging Station (as needed);5. Extend After Sales Services (after the warranty period);6. Monitor Project;7. Design appropriate financing scheme for drivers;8. Manage collection from drivers;9. Remit payment to LBP;10. Generate Simple Reports, including financial reports, and other
documentations; and11. Other functions necessary for the effective management
of the E-Trike Program.
E-TRIKE PROJECT
DOE
E-TRIKE PROJECT
Battery Charging Stations Strategically located in target areas Initially, through collaboration between government and
private utility companies
Battery Leasing Options
INFRASTRUCTURE
DOE
D. THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
DOE
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
Legality of DOE Entering into a Contract of Sale of E-Trikes1. The same is merely incidental to and in pursuance of DOE’s
mandate under Section 5 (g) and (h) of Republic Act No. 7638, viz:“ xxx (1) ensure a continuous, adequate, and economic supply of energy. . . through the judicious conservation, renewal and efficient utilization of energy xxx; and (2) rationalize, integrate, and coordinate the various programs of the Government towards self-sufficiency and enhanced productivity in power and energy without sacrificing ecological concerns.”
2. Section 6(e) of Executive Order No. 423, series of 2005 provides that:
“Should the NEDA favorably act on the contract, the Department Secretary and Head of the Procuring entity is hereby given full powers and authority to approve, sign, execute and deliver any deed or document necessary and proper for the execution and implementation of such contract, and subsequent amendments or supplements thereto.”
DOE
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
Object of Sale: E-Trike Units
DOE
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
Consideration of Sale
1. Price of an E-Trike Unit = Php 200,000.00 (est) 2. Manner of Payment = Five (5) years to pay through a
special financing package from Landbank of the Philippines at seven percent (7%) per annum with the assignment of LGU’s
Internal Revenue Allotment
DOE
Consent of the Parties
DOE’s Consent:
DOE shall give its consent to the Sale should the LGU accept the incentives it will provide and agree with its
predetermined terms and conditions as contained in the succeeding slides, without prejudice to negotiation.
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
DOE
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
Consent of the PartiesLGU’s Consent Acceptance of the following Project Incentives Package:1. Access to LBP’s special financing package under the E-Trike
Project, i.e. 7%/annum fixed interest rate for 5 years;2. 3-year battery warranty;3. Free registration with LTO;4. Free Comprehensive Insurance for 3 years;5. Provision of 2 model battery charging stations to be strategically
located within the LGU premises; and6. Capacity building for personnel of LGU’s E-Trike Office and target driver-beneficiaries (free training on proper vehicle use, trouble shooting, and maintenance).
DOE
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
Consent of the PartiesLGU’s Consent : Agreement to the following DOE’s terms and conditions:1. Passage of SB Resolutions, to wit:
a. Authority to implement the E-Trike “Lease to Own” Program within the city/local government;
b. Authority to enter into MOA with DOE; c. Authority to enter into a Contract of Sale with DOE; and d. Authority to enter into loan agreement with LBP.
2. Passage of Ordinance/s to promote Adoption of E-Trikes, to include but not be limited to the following provisions, to wit: a. Replacement of two-stroke and four-stroke tricycles with E-Trikes and gradual phase out of gas-fed tricycles;
DOE
Consent of the PartiesLGU’s Consent : Agreement to the following DOE’s terms and conditions:3. Grant of the following Incentives to E-Trike Early Adopters:
a. Longer franchise effectivity and preferential routes;b. Exemption of E-Trikes from number coding scheme; andc. Special financing package (Interest rates to drivers should be less than 10% per annum).
4. Institutionalize a system and establish a mechanism where tricycle drivers* will be given the opportunity and priority to own their E-Trikes;
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
DOE
Consent of the PartiesLGU’s Consent : Agreement to the following DOE’s terms and conditions:5. Establishment of E-Trike Office under the LGU; 6. Provision of land area with a minimum of ____ square meters
for the charging infrastructure; and7. Technical and manpower support for the construction of
charging infrastructure.
THE PROPOSED DOE-LGU COOPERATION AND CONTRACT OF SALE
DOE
E. CRITICAL NEXT STEPS
1. The five (5) LGUs (Mandaluyong, Paranaque, Cabanatuan, Puerto Princesa and Boracay to submit to DOE on or before the 2nd week of July a SB Resolution authorizing the Mayor to order the pre-determined number of E-Trike units from DOE. Should the authority be for a number less than the pre-determined number, inform DOE of such fact on or before the 1st week of July so DOE could offer the deficiency to other interested LGUs. DOE needs to meet its quota of 5,000 E-Trike units due for bidding in August 2012; and 2. Help the DOE to secure the Regional Development Council’s endorsement of the E-Trike Project.