DOE cuts rollout target for troubled e-trike program

The Department of Energy (DOE) has cut its forecast for e-trike deployment and is instead focusing on helping local government units (LGUs) get qualified to seek multilateral loans under its $504 million e-trike project.

DOE Undersecretary Donato D. Marcos said some LGUs do not qualify for the Asian Development Bank (ADB) loans under the e-trike project and the department wants to help them fill the gaps in their credentials. Although most LGUs have paying capacity, some lack the so-called of good housekeeping seal from the Department of Interior and Local Government or DILG.

“The seal of good housekeeping is necessary because it means they have a record for good governance, they don’t have pending cases with the Ombudsman or COA (Commission on Audit),” Marcos said. “We cannot be lax about this. We have to ensure that they can pay back the loans to make the project sustainable.”

DOE is thus cutting back on the number of e-trike units to be launched this year, concentrating only on LGUs that meet all current requirements. At the same time, however, DOE is talking to LGUs on how those unqualified can get the seal of good housekeeping from the DILG.

“Within the year we can maybe launch 500 units,” Marcos said. The initial target was 3,000 e-trike units for 2014 alone. The total rollout under the e-trike program is 100,000 units. “We are also doing a postreview of qualified suppliers,” he said.

The bidders in the August 2013 auction for the e-trike project were Japan’s Lirica Rising Sun & Shoyo-Terra Group and Uzushio Electric Co. Ltd. (Japan), as well as Eco One Co. of Korea and Teco Electric & Machinery Co. Ltd. of Taiwan. The winning bidders were initially expected to be announced last December and then again around January 2014 but have not been publicized until now.

Also among those interested in e-vehicle manufacturing locally are Japanese firms Terra Motors and BEET Philippines. Both bid for the DOE-ADB e-trike project but are considering making the Philippines a hub for e-bike and e-trike manufacturing regardless of the result of the auction—that is, if there is enough market demand.

DOE Secretary Carlos Jericho L. Petilla said the awarding of contracts is on hold because there is a lack of qualified off-takers. Petilla said most LGUs seem to have the money to finance their e-trike acquisition through the Land Bank of the Philippines but seem to fail on good governance requirements.

The government has yet to commit on the new deadline for announcing the accredited suppliers and potential LGU beneficiaries that can get financing for their e-trike fleet orders.

There are about 3.5 million tricycles and 3.88 million motorcycles on Philippine roads, and the country seeks to curb this number to help ease dependence on petrol-based products which traditional vehicles use.