DOE

THE E-TRIKE PROJECT

Market Transformation through Introduction of Energy-Efficient Electric Vehicles

PROJECT OVERVIEW

Deployment of 100,000 E-Trikes nationwide to replace traditional gasoline-fed tricycles To be implemented in 2 phases

Development Phase : 20,000 units (Y1= 5,000; Y2= 15,000)

Mid-term Review

Scale-Up Phase

: 80,000 units (Y3= 30,000; Y4= 30,000; Y5= 20,000)

Establishment of associated EV support industries:

motor and parts supply chain charging stations battery leasing/recycling/disposal

Funded by loans from Asian Development Bank (ADB) and Clean technology Fund (CTF); Govt of Phils (GOP)

PROJECT OBJECTIVES
On

a macro-level, project aims to reduce transport sectors 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 79% emission avoidance by shifting to 100,000 tricycles running on pure electricity. Avoided CO2 emission is estimated at 259,008 tons per year
DOE

Achieve

E-TRIKE PROJECT KEY PLAYERS

Government Agencies and Organizations Involved: 1. DOE (Head Executing Agency) 2. DOF 3. ADB 4. DBM 5. LBP 6. LGUs as Implementing Agencies Supporting Agencies: 1. LTO 2. Bureau of Customs 3. DTI 4. DOST 5. TESDA

Philippine E-Trike Model

DOE

3 wheeled vehicle 5 passengers (excluding driver) 3kw electric motor Lithium-ion battery On-board charger Battery management system
(BMS)

POTENTIAL DAILY FUEL SAVINGS

Conventional Tricycle (Gasoline-fed)
Range per day (kilometers) Fuel Consumption per day Fuel Price/ Electricity Charging Fuel Cost per day Peso per kilometer Savings on Fuel 80 5 liters Php56/liter Php280 Php3.50

E-Trikes
80 7 kwh Php11.50/kwh Php80 Php1.00 Php2.50 per kilometer

Daily Fuel Savings *

Php 200.00

DOE

PROJECT INCENTIVES

Lease to Own Scheme No Downpayment 5 Years to Pay at Low and Fixed Interest Rate LTO-registered for 3 years 5-Year Warranty on E-Trike Unit and Battery Free insurance for 3 years Free Training on Proper Maintenance, Troubleshooting & Safe Operation of E-Trike & Charging Station Stand-by E-Trike units during repair and maintenance

DOE

SELECTION CRITERIA FOR LGUS

LGUs level of commitment and support to the E-Trike Project and its implementation. Degree/level of pollution in the area

Number of existing tricycle units with legal franchise. (How many are still running on two-stroke engine?)

DOE

HOW TO AVAIL OF E-TRIKES

Letter of Intent (signed by the Mayor) Sanggunian Resolution

DOE

PROJECT STATUS & MILESTONES

Project Approval
Project

approved by NEDA Board on 26 June

2013

Procurement
On-going

bidding for the initial procurement of 3,000 E-Trike units

DOE

THANK YOU!

DOE

COMPARISON BETWEEN BRAND NEW 4-STROKE GASOLINE-FED TRICYCLE AND E-TRIKE

Conventional Tricycle (Gasoline-fed)
Acquisition Cost (motorcycle) Php60,000-75,000 (payable in 3 years, downpayment Php4,000Php5,000, monthly amortization of Php3,000-Php4,000) Php15,000-25,000 (depends on the material whether steel or stainless) Php19,420 Php62,600 (@ 4 liters/day) Php12,120 Php25,040 (@Php 80/day for Charging)

E-Trikes

Php200,000

Acquisition Cost (sidecar) Annual Maintenance Cost (@313 days/year) Annual Fuel Cost

PROJECT APPROVAL MILESTONES & STATUS

Milestones
NEDA-ICC Approval NEDA Board Approval

Triggers

Status

Remarks
Approved by NEDA ICC on 16 February 2012 Approved by NEDA Board on 22 March 2012 NEDA ICC confirmed by ad referendum DOEs request on the changes/modification on the E-Trike Project on 21 December 2012 DOE has requested NEDA ICC chairpersons for the concurrence of the Project changes 8 May 2013

Approved by NEDA Board on 26 June 2013

Loan Negotiation

Forward Obligational Authority (FOA) from DBM Monetary Board- Approval in Principle (MB-AIP)

FOA issued by DBM on 21 May 2012

Negotiation between ADB and DOF concluded on November 19, 2012

MB-AIP secured on 31 May 2012;

NEDA Board confirmation of ICC-CC approval

Special Authority from the President for DOF to negotiate and sign loan agreement

Awaiting official document

Signed by the President on Nov. 16, 2012

SPA to be amended based on the confirmation of NEDA Board to the Project changes/modifications

PROJECT APPROVAL MILESTONES

Milestones

Triggers

Status

Remarks

ADB Board Loan Approval

Approved ADB and CTF Loan and Grant

Approved by ADB Board on 11 December 2012

Loan Agreement Signing

Amendment to SPA

Pending

Loan Effectivity

Loan Agreement Signing

BSP Monetary Boards final approval in place

Legal Opinion issued by DOJ

Between 1- 90 days after Loan Agreement Signing

DOE

OPTION 1

LBP to LGU rate is 7% p.a. fixed for 5 years; Proposed LGU pass-on rate to borrowers is 9.5% p.a. fixed for 5 years
DRIVEROPERATOR GASEFED TRIKE
Pang araw-araw na KITA (A)

OPERATOR ONLY DRIVER ONLY GASEEGASEEFED TRIKE TRIKE2 FED TRIKE TRIKE2 250 135 73 62 250 200 162 39 315 200 162 39 250 216 115 50 115 254 720 466 250 81 389 720 331 315 81 324 720 396

720 351 73 62 216 369

720 281 162 39 81 439

Pang araw-araw na GASTOS (B)

Hulog Utang * Boundary Maintenance Gasolina Kuryente ng E-Trike

Malinis na KITA (C) = A-B Malinis na KITA (pagkatapos ng utang-5yrs)

19%
442 600 188

-57%
211

0%
277

53%

27%

36%

12%

47%

* financing terms were similar for both gas-fed tricycles and E-Trikes

OPTION 2

LBP to LGU rate is 7% p.a. fixed for 5 years; Conduit pass-on rate to borrowers is 18% p.a. fixed for 5 years
DRIVEROPERATOR GASEFED TRIKE
Pang araw-araw na KITA (A)

OPERATOR ONLY DRIVER ONLY GASEEGASEEFED TRIKE TRIKE2 FED TRIKE TRIKE2 250 150 88 62 250 234 195 39 334 234 195 39 250 216 100 16 100 254 720 466 250 81 389 720 331 334 81 305 720 415

720 366 88 62 216 354

720 315 195 39 81 405

Pang araw-araw na GASTOS (B)

Hulog Utang * Boundary Maintenance Gasolina Kuryente ng E-Trike

Malinis na KITA (C) = A-B Malinis na KITA (pagkatapos ng utang-5yrs)

14%
442 600 188

-84%
211

0%
295

53%

20%

36%

12%

57%

* financing terms were similar for both gas-fed tricycles and E-Trikes

2011 REGISTERED MOTOR VEHICLE

VEHICLE TYPE NUMBER OF VEHICLES

MC/TC
Bus

3,881,460
34,478

Car
UV SUV Truck Trailer

828,587
1,748,402 284,099 329,385 32,531

TOTAL
Source: Land Transportation Office (LTO)

7,138,442

DOE

EXISTING E-TRIKES IN THE PHILIPPINES

Metro Manila

Puerto Princesa Boracay

Surigao

Davao

DOF BTr

OPTION 1 - (ORIGINAL FUNDS FLOW)

Direct and Outright Payment

ADB

DOE
Proj Executing Agency

LBP
Wholesale Lender Loan Agreement Sales Contract

Suppliers

Supply, Delivery & After sales

LP

LGU
Proj Implementing Unit

LGUE-Trike Proj Office

Franchise Control and Regulation Lease Contract with Option to Own PAYMENT Boundary-Hulog Scheme

DOE

E-Trike Borrowers

OPTION 1 - (ORIGINAL FUNDS FLOW)

LBP rate to LGU is 6-7% p.a. fixed for 5 yrs LGU rate to drivers can be 9.5% p.a. LGU through Tricycle Office will select borrowers (based on agreed selection criteria) Management of collection will be done either through:

E-Trike Office ; OR 3rd party Collecting Agent

DOE

OPTION 2 - (EXPANDED FUNDS FLOW)

DOF BTr
Direct and Outright Payment

ADB

DOE
Proj Executing Agency

LGU
Proj Implementing Unit

LBP
Wholesale Lender Loan Agreement Sales Contract

LP

Suppliers

Supply, Delivery & After sales

Financing Conduits
E-Trike Buyer/Retail Lender

LGUE-Trike Proj Office

Franchise Control and Regulation

Lease Contract With Option to Own PAYMENT Boundary-Hulog Scheme

E-Trike Borrowers
DOE

OPTION 2 - (EXPANDED FUNDS FLOW)

LBP rate to accredited conduit is 6-7% p.a. fixed for 5 yrs Conduit rate to drivers can be 15% to 18% Conduit will select borrowers from their members Payment collection will be done by the conduit Advantage/s of Option 2:

No financing risk to the LGU Conduits like transport cooperatives have direct oversight among member borrowers

Limitation/s of Option 2: Relatively High interest rate to drivers

Original Funds Flow (MODEL 1)

Expanded Funds Flow (MODEL 2)

Applicability

For LGUs : that is highly keen on implementing E-Trike project

with sufficient net borrowing capacity willing to take some financing risk so that end-borrowers will pay low interest rates

For LGUs: with expressed support for the ETrike project

with limited net borrowing capacity not inclined to bear financing risk who can partner with financial conduit (with sufficient funds) who is willing to share the developmental objectives of the project

Arrangements

DOE as EA, procuring entity and seller LGU as IA through its E-Trike Office, e-trike buyer from DOE; implementer of E-Trike rent-toown to driver/operators

DOE as EA, procuring entity and seller LGU as IA through its E-Trike Office Financial Conduit as E-Trike buyer from DOE; implementer of E-Trike

Original Funds Flow Advantages End-borrowers will pay low interest rates (7% up to 9.5%)

Expanded Funds Flow Core functions are best carried out: LGUs provide enabling environment for the E-Trike adoption LGUs as E-Trike Project Implementing Unit (through E-Trike Office) Financial conduits lend to borrowers

Disadvantages

Project implementation may encounter delay/slow start

End-borrowers will pay higher interest rates

Few LGUs are willing to do this Risk Mitigant: model due to the ff: Partnership with financial conduits who share LGUs not willing to developmental objectives of the compromise IRA E-Trike project Some LGUs have (interest rates not higher than insufficient net borrowing 12%, at least under Phase 1 of