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)

and 79% emission avoidance by shifting to 100. Avoided CO2 emission is estimated at 259.PROJECT OBJECTIVES  On a macro-level.8% (based on 20 Million Barrels per year consumption in 2010) or an equivalent of 89.2 Million Liters per year. project aims to reduce transport sector’s annual petroleum consumption by 2.000 tricycles running on pure electricity.008 tons per year DOE  Achieve .

E-TRIKE PROJECT KEY PLAYERS Government Agencies and Organizations Involved: 1. DBM 5. DTI 4. LTO 2. LBP 6. DOF 3. LGUs as Implementing Agencies Supporting Agencies: 1. ADB 4. DOE (Head Executing Agency) 2. DOST 5. Bureau of Customs 3. 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 per kilometer Daily Fuel Savings * Php 200.00 Php2.50 E-Trikes 80 7 kwh Php11.50/kwh Php80 Php1.00 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  LGU’s 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 .

000 E-Trike units 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.

THANK YOU! DOE .

420 Php62.000-Php4.040 (@Php 80/day for Charging) E-Trikes Php200.000. monthly amortization of Php3.000-75.600 (@ 4 liters/day) Php12.COMPARISON BETWEEN BRAND NEW 4-STROKE GASOLINE-FED TRICYCLE AND E-TRIKE Conventional Tricycle (Gasoline-fed) Acquisition Cost (motorcycle) Php60.000) Php15.000Php5. downpayment Php4.120 Php25.000 (payable in 3 years.000 (depends on the material whether steel or stainless) Php19.000 Acquisition Cost (sidecar) Annual Maintenance Cost (@313 days/year) Annual Fuel Cost .000-25.

2012 SPA to be amended based on the confirmation of NEDA Board to the Project changes/modifications . 16. 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. 2012 MB-AIP secured on 31 May 2012.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 DOE’s 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.

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 Board’s final approval in place Legal Opinion issued by DOJ Between 1.90 days after Loan Agreement Signing DOE .

a. Proposed LGU pass-on rate to borrowers is 9.5% p. 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 1 LBP to LGU rate is 7% p.a. fixed for 5 years.

OPTION 2 LBP to LGU rate is 7% p. Conduit pass-on rate to borrowers is 18% p.a. fixed for 5 years.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 .

099 329.385 32.2011 REGISTERED MOTOR VEHICLE VEHICLE TYPE NUMBER OF VEHICLES MC/TC Bus 3.138.587 1.402 284.442 DOE .478 Car UV SUV Truck Trailer 828.748.881.531 TOTAL Source: Land Transportation Office (LTO) 7.460 34.

EXISTING E-TRIKES IN THE PHILIPPINES Metro Manila Puerto Princesa Boracay Surigao Davao .

(ORIGINAL FUNDS FLOW) Direct and Outright Payment ADB DOE Proj Executing Agency LBP Wholesale Lender Loan Agreement Sales Contract Suppliers Supply.DOF BTr OPTION 1 . 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 .

OR 3rd party Collecting Agent DOE .a.  LGU through Tricycle Office will select borrowers (based on agreed selection criteria)  Management of collection will be done either through:    E-Trike Office . fixed for 5 yrs  LGU rate to drivers can be 9.5% p.OPTION 1 .(ORIGINAL FUNDS FLOW) LBP rate to LGU is 6-7% p.a.

(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 .

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 .OPTION 2 .(EXPANDED FUNDS FLOW)      LBP rate to accredited conduit is 6-7% p.

procuring entity and seller •LGU as IA through its E-Trike Office.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. implementer of E-Trike “rent-toown”” to driver/operators •DOE as EA. e-trike buyer from DOE. implementer of E-Trike . procuring entity and seller •LGU as IA through its E-Trike Office •Financial Conduit as E-Trike buyer from DOE.

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%.Original Funds Flow Advantages •End-borrowers will pay low interest rates (7% up to 9. at least under Phase 1 of .

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