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.