Gov’t gets $300-M ADB loan for e-trike project

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The Asian Development Bank (ADB) has approved a $300-million (P12 billion) loan to the Philippine government to replace 100,000 gasoline-powered tricycles throughout the country with more energy efficient electric units and kickstart the transition to a sustainable nationwide transport program.

In a statement, the ADB said it was also administering a $100-million loan and a $5-million grant from the Clean Technology Fund for the e-trike project, while the Philippine government would provide a $99-million counterpart fund. This would bring total financing for the project—to be rolled out through the next five years up to December 2017—to $504 million (P20 billion).

“E-trikes are a cleaner, greener transport solution for the Philippines and they would provide a better quality of life for the trike drivers. This project can help transform transportation in the country and position it as a leader in electric vehicle development in Asia,” said Neeraj Jain, ADB country director for the Philippines.

“This project will lessen the Philippines’ dependence on foreign oil and, by fabricating and assembling the tricycles domestically, would create up to 10,000 jobs in its five-year implementation,” said Energy Undersecretary Loreta G. Ayson.

The ADB said replacing the 100,000 gasoline-engine trikes would result in savings of more than $100 million (around P4 billion) a year in fuel imports, while decreasing annual carbon dioxide emissions by about 260,000 tons.

At present, more than 3.5 million motorized tricycles ply the country’s roads, producing more than 10 million tons of carbon dioxide and consuming nearly $5 billion (P200 billion) in imported fuel yearly.

These gasoline-fuel tricycles, which are responsible for more than two-thirds of the air pollution generated by the transport sector nationwide, serve as short-distance taxis, with the average tricycle driver earning less than $10 (around P400) a day.

With e-trikes, which can carry more passengers, drivers will save upwards of $5 (P200) a day in fuel costs. E-trike drivers saw their daily incomes more than double during a pilot program in Metro Manila.

The e-trikes, which run on an electric motor and rechargeable lithium-ion battery, will be introduced in Metro Manila and other urban centers across the Philippines under a lease-to-own arrangement.

Ayson said seven companies—three them local firms—had prequalified to build the e-trikes. The ADB has yet to announce the winning bidder.

Sohail Hasnie, principal energy specialist at ADB, said earlier he expected at least 100 e-trikes to begin plying Philippine roads soon. The plan is to initially roll out 20,000 units on key islands like Boracay and Puerto Princesa, and parts of Metro Manila.

Hasnie said the ADB was also looking at putting up five pilot charging stations to ensure the viability and sustainability of the e-trikes project. The target, he said, was to make sure the power used by the e-trikes would cost much less than the fuel used by regular tricycles.

The e-trike project is supported by local auto parts makers led by the Motor Vehicle Parts Manufacturers Association of the Philippines and the Electric Vehicle Association of the Philippines.

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • http://pulse.yahoo.com/_5STEU22AD7YRHQSB6RE56ZDSYA J

    http // globalnation inquirer net/59379/chinas-mining-occupation-of-the-philippines#comment-733963225

    No more loans please. Baon na ng utang ang Pinas. Just check-on the minerals smugglers and mining companies that plundering PH natural resources. Hindi na dapat sa trisikel sumakay ang Pinoy. Dapat Pinoy ang makinabang sa yaman ng bansa at hindi mga dayuhan tulad ng mga intsik.

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    If ADB is serious about greening the earth … it must entice the govt to go solar by giving low cost loans coupled with tax free importation of the solar equipment for  ordinary people. This will surely help in reducing household power costs.

    A suggestion to ADB … when you give loans to the govt … please stipulate that loans to beneficiaries must not be coursed thru private banks. The low interest must benefit the end users … NOT the private banks!!! This is not the case presently!!!

  • alconce

    Loans for e-trikes? Hasn’t anybody ever thought about mass transport yet? Tricycles or e-trikes, they’re a menace to our limited road space that competes with undisciplined jeepney drivers, hawkers claiming every available space and illegal parkings.

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    What is the logic behind this loan? GREEN GREEN STUFF? That is full of sh…..T!!! Where do you get power to charge the batteries? Don’t they burn fossil fuel to generate the electricity? How about the cost of fuel used by those traffic caused by the e-trikes on the roads in the metropolis? Where does one dump all those discarded batteries and the electrolytes?

    I think it is all about the commission from the loan … about the votes the local politicians will generate from this one-time use e-trikes. It is about the interests generated by the private banks from the loans …. THIS IS ALL ABOUT MONEY FOR THE “RIGHT” PEOPLE!!! NOT ABOUT ENVIRONMENT OR HELPING THE POOR!!!!

    • http://pulse.yahoo.com/_WC2VPZRJETRO5KOU4VOZCJXEDY Tamarindwalk

       Get the government to do something!  It’s done nothing for years. 

  • Farfur Bafur

    I don’t know why ADB insist this loan and who is the author of this loan, is the Philippine economy on rise? The government pay a lot of loan money this year and here he comes a hoax loan, a mischievous in the making. How come this was approved loan by the lawmakers? Now we can see how good are the law makers of the Philippines. Boo to this loan down to all of you!!!

  • http://profile.yahoo.com/MOWQH4CRS6TO7CGB7JAW7DXD3U Rey

    Uh, hello? Didn’t the ADB already deny this story, which came out in the Philippine Star weeks ago? It kinda puts the PDI in a very awkward spot – you’ve been scooped, and scooped for a hoax of a story. I hope I am wrong, but the ADB will probably have its say anyway.  

    • http://profile.yahoo.com/TRUL7WO4HJPGNVCKIHP4PTZGX4 Mark

      pero kung totoo man yan, anong sense at urgency ng proyekto na to??? ndi ba mas dapat tutukan ng gobyerno ang flood control infrastructure at relocation ng mga pilipino na naninirahan sa hazard areas?  kung ang objective ay clean air, bakit ndi ayusin ang dami ng mga sasakyan.  Bakit ndi ayusin ang transportation system, terminal system, kalsada at trapiko? ang mangyayari lang jan sisiksik ang mga karagdagang sasakyan na to sa kalsada.  Kawawa ang mga susunod na henerasyon, sila ang magbabayad ng $500M na to na kukurakutin lang ng may pakana.

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