43207-013: Market Transformation through Introduction of Energy-Efficient Electric Vehicles Project | Asian Development Bank

Philippines: Market Transformation through Introduction of Energy-Efficient Electric Vehicles Project

Sovereign (Public) Project | 43207-013 Status: Active

ADB is supporting a project that will replace 100,000 gasoline-burning tricycles in the Philippines with clean, energy-efficient electric tricycles, or E-Trikes. These motorcycles with a passenger sidecar serve as short-distance taxis in the country. The E-Trikes, which run on an electric motor and rechargeable lithium-ion battery, will be introduced in Metro Manila and other urban centers.

Project Details

Project Officer
Cowlin, Shannon C. Southeast Asia Department Request for information
Country
  • Philippines
Modality
  • Grant
  • Loan
Sector
  • Energy
 
Project Name Market Transformation through Introduction of Energy-Efficient Electric Vehicles Project
Project Number 43207-013
Country Philippines
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0326-PHI: Market Transformation Through Introduction of Energy-Efficient Electric Vehicles
Clean Technology Fund US$ 5.00 million
Loan 2964-PHI: Market Transformation through Introduction of Energy-Efficient Electric Vehicles Project
Ordinary capital resources US$ 300.00 million
Loan 8261-PHI: Market Transformation Through Introduction of Energy-Efficient Electric Vehicles
Clean Technology Fund US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Energy / Energy efficiency and conservation

Transport / Transport policies and institutional development

Gender Equity and Mainstreaming Some gender elements
Description The project will replace gasoline tricycles (motorcycles with a passenger sidecar) with three wheel plug-in electric vehicles running on an electric motor and rechargeable battery (e-trikes). The project will initiate a transformation of the tricycle subsector by: (i) improving the livelihoods of tricycle drivers through higher incomes and a better work environment; (ii) generating global environmental benefits and reducing the carbon footprint of the tricycle industry through the introduction of low-carbon e-trike technology; and (iii) leveraging private sector participation in the e-trike market.
Project Rationale and Linkage to Country/Regional Strategy

In 2011, the Philippines spent about $12.8 billion (29% more than in 2010) on imported petroleum products; 70% of the imports went to the transport sector. This heavy dependence on imported fuels renders the country vulnerable to energy supply disruptions and global price fluctuations. The cost of fuel imports is expected to rise further as the population continues to grow rapidly and urbanization increases. With motorization growing at about 6% per year, emissions from road transport are estimated to rise from 24 million tons of carbon dioxide equivalent (tCO2e) in 2007 to 37 million tCO2e by 2015 and 87 million tCO2e by 2030. This will further deteriorate the country's air-quality and energy security, and increase the Philippines' carbon footprint. The National Framework Strategy on Climate Change, 2010-2022 considers a low-carbon path in the transport sector a strategic priority. It argues for cleaner, indigenous, and optimized energy and transport sectors to enable the Philippines to address its energy security while reducing pollution.

Transport is central to connecting people and economic centers both nationally and locally. In 2010, according to the Philippines Department of Energy (DOE), using Land Transport Office's vehicles statistics, 92% of the transport sector's fuel consumption was from road transport. Although public vehicles represent only about 15% of road transport, they are major fuel users and cause most of the transport pollution, tricycles account for 67%, followed by jeepneys (23%), cars (4%) and buses (6%). The 3.5 million tricycles currently operating are major contributors of greenhouse gas emissions and inefficient users of imported fuel. Although local government units (LGUs) regulate the number of tricycles, this will rise as motorcycle sales increase. About 1 million motorcycles are expected to be sold domestically in 2012, nearly a third more than the 760,000 units sold in 2010.

The International Energy Agency considers electric vehicles as one of the best options for the transport sector, especially in urban areas. Recent studies by the Clean Air Initiatives for Asian Cities estimate that switching to e-trikes will reduce the greenhouse gas impact of tricycles by 54%. International studies also point to similar savings. Tricycles are a popular mode of local transport in the Philippines and are run entirely by the private sector. In many cases, they provide a vital link as a local feeder service to the larger-public transport network. Although the government has banned the importation of two-stroke motorcycles, the existing two-stroke engines are easy to fix and continue to be used in tricycles. Isolated initiatives since 2009 to develop an e-vehicle industry (e-trikes, e-jeepneys, and e-buses) mostly used lead-acid or substandard lithium-ion batteries because of cost considerations and limited brand availability.

Impact Sustainable energy use by transport sector
Project Outcome
Description of Outcome Transformation of the public transportation through large-scale adoption of energy efficient electric vehicles, in particular e-Trikes
Progress Toward Outcome The project has encountered substantial delays; additional time required to assess progress towards outcome.
Implementation Progress
Description of Project Outputs

1. E-trike units

Complete e-Trike units delivered to LGUs with at least standard 3-year warrantee

2. Battery supply chain

Lithium-ion battery supply chain, including support infrastructure, created

3. Solar charging stations

Solar and other charging stations available in selected areas to meet the public charging needs

4. Material recovery

Collection of used batteries and old ICE tricycles: (i) recycling of lithium-ion batteries and (ii) body disposal

5. Communication, Social Mobilization and Technology Transfer

Status of Implementation Progress (Outputs, Activities, and Issues)

1. The procurement package for 3,000 e-trike units has been awarded. E-trikes will be deployed following finalization of amendments to the loan agreement and Project Administration Manual (PAM).

2. The project still has to deploy the first e-trike units to be able to assess status of the battery supply chain.

3. The commencement of bidding for solar charging stations of 50 kW is being targeted in parallel with the scheduled deployment of e-trike units.

4. An overall framework will be developed on proper handling of the old tricycles and used batteries to be adapted by the LGUs and other participating entities.

5. Trainings will be conducted ahead of the delivery of the e-trike units to the respective areas of implementation.

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized as C for environment. The e-trikes will have no tailpipe emissions and no engine noise. Because the project is classified as category C, no separate environmental assessment will be required, although environmental implications need to be reviewed. According to ADB's publication on electric bikes, lead pollution is an inherent problem with e-vehicles, and electric bikes with lead-acid batteries will increase overall pollution rates more than ICE motorcycles. Lithium-ion batteries, however, are not an environmental hazard, but are classified by the Government of the United States as nonhazardous waste, and are safe for disposal in the normal municipal waste stream.
Involuntary Resettlement The project is categorized as C for involuntary resettlement.
Indigenous Peoples The project is categorized as C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design A series of industry meetings among industry players coupled with formal meetings and workshops among various stakeholders including international electric vehicle experts, battery manufacturers, local government units and government agencies have been initiated to ensure local buy-in throughout the project preparatory process. These meetings have helped in building community awareness and addressing industry, community and driver concerns.
During Project Implementation A local e-Trike manufacturing and supply industry will be created targeting multiple levels of the value chain: e-Trike assembly, lithium ion battery assembly, lithium ion battery leasing, charging station assembly, and overall leasing or banking operation. Communication strategies will include:

(i) Development of an e-Trike website with information regarding the project and notification of opportunities to bid;
(ii) Informal industry meetings to answer questions throughout the process;
(iii) More formal meetings to engage stakeholders, introduce potential partners, and maintain an open dialogue with the industry; and
(iv) Development of promotion materials on electric tricycles, lithium battery technology.

Consultative workshops and other consensus building activities may be planned on an as-needed basis.
Business Opportunities
Consulting Services The Project has recruited a project implementation consulting (PIC) firm with 9 months international and 79 months national inputs under the Quality and Cost-Based Selection (QCBS) method. The contract was awarded in February 2016.
Procurement The package covering the supply and delivery of 3,000 e-trike units was awarded in February 2016.
Responsible ADB Officer Cowlin, Shannon C.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Department of Energy
PNPC Complex
Merritt Road, Fort Bonifacio
Makati, Metro Manila
Timetable
Concept Clearance 16 Dec 2010
Fact Finding 31 Aug 2011 to 08 Sep 2011
MRM 25 Oct 2011
Approval 11 Dec 2012
Last Review Mission -
Last PDS Update 20 Sep 2017

Grant 0326-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2012 27 Sep 2013 13 Dec 2013 30 Jun 2018 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 0.00 11 Dec 2012 0.00 0.36 7%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 5.00 11 Dec 2012 0.00 0.46 9%

Loan 2964-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2012 27 Sep 2013 13 Dec 2013 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 399.00 Cumulative Contract Awards
ADB 300.00 11 Dec 2012 23.12 0.00 72%
Counterpart 99.00 Cumulative Disbursements
Cofinancing 0.00 11 Dec 2012 1.57 0.00 5%

Loan 8261-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2012 27 Sep 2013 13 Dec 2013 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 0.00 11 Dec 2012 0.00 8.30 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 100.00 11 Dec 2012 0.00 0.00 0%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Amendment to Loan Agreement for Loan 2964-PHI and Loan 8261-PHI (CTF): Market Transformation through Introduction of Energy Efficient Electric Vehicles Project Loan Agreement (Special Operations) Oct 2017
Market Transformation through Introduction of Energy-Efficient Electric Vehicles: Project Administration Manual Project/Program Administration Manual Oct 2017
Market Transformation through Introduction of Energy-Efficient Electric Vehicles Project: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jun 2017
Market Transformation through Introduction of Energy-Efficient Electric Vehicles Project: Audited Project Financial Statements (January-December 2015) Audited Project Financial Statements Jun 2016
Market Transformation through Introduction of Energy-Efficient Electric Vehicles Project: Audited Project Financial Statements (January-December 2014) Audited Project Financial Statements Jul 2015
Loan Agreement (ADB Clean Technology Fund) for Market Transformation through Introduction of Energy Efficient Electric Vehicles Project Loan Agreement (Special Operations) Sep 2013
Grant Agreement (ADB Clean Technology Fund) for Market Transformation through Introduction of Energy Efficient Electric Vehicles Project Grant Agreement Sep 2013
Loan Agreement for Market Transformation through Introduction of Energy Efficient Electric Vehicles Project Loan Agreement (Ordinary Resources) Sep 2013
Market Transformation Through Introduction of Energy-Efficient Electric Vehicles: Report and Recommendation of the President Reports and Recommendations of the President Nov 2012
Market Transformation through Introduction of Energy-Efficient Electric Vehicles: Project Administration Manual (As of Board Approval) Project/Program Administration Manual Nov 2012
Market Transformation Through Introduction of Energy-Efficient Electric Vehicles: Procurement Plan Procurement Plans Nov 2012

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
PHI: Market Transformation through Introduction of Energy Efficient Electric Tricycle Project Advance Notice Archived 11 Jun 2012

Contracts Awarded

No contracts awarded for this project were found