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EVA and PCA stand on the ADB’s eTrike initiative

The Electric Vehicle Alliance (EVA) and the Partnership for Clean Air (PCA) wrote to the ADB regarding the proposed “reallocation of USD 110 million away from the original stipulation in the approved Country Investment Plan of the Philippines with respect to the Clean Technology Fund (CTF).” The amount will pay for the purchase of about 100,000 electric tricycles, with the intention of having these replace conventional ones currently operating in many Philippine cities and towns. Following is the letter from the EVA and PCA:

Warm greetings!
We wish to inform you that the Electric Vehicle Alliance (EVA) represents a broad assembly of private sector organizations involved in vehicle manufacturing and assembly, fleet operations, battery solutions, electricity provision and after-sales servicing, academic institutions, government officials and civil society groups. EVA is spearheading the transition of the country towards a low emission transport regime, particularly through the sustained deployment of electric vehicles.

We wish to inform you that, in principle, EVA supports the aims enunciated by the eTrikes proposal that your office is currently evaluating. We urge your office, however, to postpone decisions over the requested reallocation of USD110 million away from the original stipulaton in the approved Country Investment Plan of the Philippines with respect to the Clean Technology Fund.

We believe further deliberation is warranted in order to correct what may be flaws in the proposal as designed and which can help ensure the genuinely transformational utilization of the CTF.

Among many other reasons, the following deserves serious scrutiny:

1) Country ownership: As documents from the Philippine government will demonstrate, country ownership of the initiative is far from certain. We attach, as an example, a document from the Department of Energy expressly stipulating that this is largely an ADB-driven initiative, a fact that is the subject of public debate at present.

In addition, as the the lead agency that determines climate change policy and operational coherence with regard to Philippine mitigatory and adaptation measures, there has been no formal involvement of the Climate Change Commission in the crafting, much less finalization, of the said proposal. The eTrikes initiative remains under intensive discussion at the National Economic and Development Authority (the Philippine planning authority) as to whether or not it will be included in the Investments Coordination Committee of the country.

2) Lack of government consultations with the private sector, civil society and academe. The Department of Energy itself has stated that it has not undertaken formal consultations with stakeholders to the enterprise, particularly the transport sector and the banking sector. (Using subsidized credit from the CTF the eTrikes project may potentially crowd out commercial banks intent on opening lending windows for e-vehicle financing) and, particularly, the renewable energy industry from whose sector the USD110 million is going to be diverted. No member of the renewable energy industry, in fact, has been consulted over the reallocation of the funds.

3) Design flaws. Unless corrected – which is also the purpose behind the need for quality undertaking of consultations – huge gaps in the project design are likely to have an adverse impact on the long-term success of the transition to low carbon transport in the Philippines. For instance:

* No feasibility study has been presented to sectors that stand to gain from, or be adversely impacted by, the eTrikes proposal. We believe such a brief should actually be the basis for consultations that the Philippine government is obliged to undertake.

* The project unbundles the undertaking into four operational clusters that will be bidded out: motor and controller; battery supply; charging station and chassis/body. It is uncertain if there is a fifth cluster on after-sales service, specifically because is no bidding process for the assembly stage of the operations. This last point particularly invites sticky warranty and legal issues – if there is no aggregator of the different clusters of the project, the question is who will assume liabilities? We hope it is not the Philippine government.

Furthermore, haphazard unbundling may also involve questionable transactions down the road given the size of the undertaking. (A single firm that does not undergo bidding may end up assembling 100,000 E-Trikes that, as the project proponent states, will be given away to “beneficiaries”).

We can identify further concerns but suffice it to say, from the examples cited above, a postponement of decisions by the CTF board is warranted.

We would be pleased to share with you further details about issues that will arise if decisions are made with undue haste.

Thank you for your attention.

Signed,
Mr. Rene Pineda Jr.
President, Partnership for Clean Air, Inc. (PCA)
Convenor, Electric Vehicle Alliance (EVA)

EVA Members:

Danilo Villas – AMMEO; David Garcia – Atin ‘To; Michael Alunan – Atin ‘To; Atty. Glynda Bathan – CAI-Asia; Bert Fabian – CAI-Asia; Alvin Mejia – CAI-Asia; Dir. Gregorio Tangonan – COMSTE; John Sognco- COMSTE; Engr. Jean Rosete – EMB-DENR; Asec. Cora Davis – DENR; Manny Sabater – DENR; Dir. Zenaida Mendoza – DOE; Arnel Garcia – DOE; Lourdes Capricho – DOE; Dr. Manuel Biona- DLSU; Rey Esguerra – DOST; Cynthia Lazo – DOT; Engr. Terry Galvante Jr. – DOTC; Art Valdez – former DOTC Undersecretary; Yuri Sarmiento – e-jeepney; Sec. Bebet Gozun – Office of the Phil. President; Yvonne Castro – EVAP; Red Constantino – iCSC; Efren Cruz – FPAD; Engr. June Yasol – JAYAREC; Ma. Theresa Calo – Mandaluyong City Office; Rannie De leon – Mandaluyong City Office; Anthony Agoncillo – Meralco; Mack Dizon – Meralco; Melinda Derpo – Meralco; Frank Collantes – Meralco; Jufaleh Constable – Meralco; Annie Reodica – Meralco; Victor Baylosis – Meralco; Carlo Nombres – Meralco; Tessa Oliva – Miriam P.E.A.C.E.; Raquel Naciongayo – MMASBA; Arnold Sarmiento – Motolite; Rhene Borja – Motolite; Abelardo Mendoza – Motolite; Rommel Juan – MVPMAP; Bong Cruz – MVPMAP; Ferdie Raquelsantos – MD Juan Enterprises; John Marasigan – PhUV; John Lee – PhUV; Rene Pineda – PCA; Vicky Segovia – PCA; Aileen Tepace – PCA; Alberto Suansing – SOPI; Jose Regin Regidor – UP-NCTS; Atty. Gia Ibay – WWF; Denise Galvez – WWF; Vince Perez – WWF; Lory Tan – WWF; Elsie de Veyra – ZWRMP

The statement is a clear expression of the stand taken by stakeholders in the e-trike saga. It is also clear that many if not most stakeholders have not been consulted in the rush towards the deployment of 100,000 electric tricycles. While the ADB and the DOE may have meant well in pushing for electric tricycles to replace the conventional ones, railroading e-trikes will cost the fledgling local industries a lot considering the possibility that the electric vehicles will all be imported from China. It should be noted, however, that there has really been little or no success at this stage since the e-trikes that have been donated have only added to the current fleets comprising of legitimate and colorum tricycles. Perhaps in the haste or excitement associated with the potential positive impacts of e-trikes (e.g., low emission transport) on the environment, the bigger picture concerning issues on public transport in Philippine cities and towns has been disregarded. But then this might be understandable since the approach appears to be still mostly from the energy perspective rather than transport’s. It should be emphasized again that the DOTC, as the lead transport agency with a mandate to draw up policy concerning transport in the country, should be active in the discussions and present a clear road map for what transport should be in terms of hierarchy and taking into consideration the relationship between demand and supply. Then perhaps the direction we are taking in relation to low emission transport such as electric vehicles will be a clearer and, not to mention, a straighter one.

Municipal transport in San Francisco – Part 2: Trolley buses

San Francisco’s trolley buses are probably among the last of a fading breed of bus transport still employing electricity to service various routes in that city. With a cousin driving our vehicles along McAllister Street, I was able to take photos of the overhead cables from which the trolley buses are able to pick-up electricity to power their motors.

Overhead cables seem to be everywhere including the streets around the San Francisco City Hall located at the Civic Center. This is a photo of the intersection of McAllister and Polk Street.

Another view of City Hall with cables running above McAllister. Notice the cables connected to transverse wires that are in turn connected to the light poles.

Where buses turn, cables may also be found above. This is the junction of McAllister and Van Ness Avenue. That’s the Herbst Theater building on the left, which houses the Museum of Performance and Design, and the California Public Utilities Commission on the right. Those are two buses, one trolley and the other natural gas-powered in the middle of the photo.

A close-up from the preceding photo shows the trolley bus with its long pantograph. The bus on the right runs on natural gas and is a low emission vehicle.

A closer view of the overhead cables show how they are connected to the poles along the roadside.

That’s a bus headed for the Transbay terminal. At front is a bicycle rack and the worm logo of Muni.

In the streets of San Francisco, one thing’s for sure – if you see those overhead cables along a road, you know that the trolley buses run along that street. Most major streets in San Francisco are served by public transport, providing excellent mobility for its citizens. They say you can usually take or get off a bus within a block of your destination. If you have to walk, the walk is usually at a leisurely pace and generally in a safe environment. You’ll probably only encounter difficulties walking when you’re in the hilly areas like Nob Hill and Russian Hill where the streets can get quite steep. Still, the walk’s usually well worth it not just because of the exercise but also because of the view and the small neighborhood shops and restaurants along your way.

 

First battery swap program for E-jeepney

I am posting a press release from the proponents of the electric jeepney about the first battery swap program launch this morning. The program will allow for the continuous operations of the e-jeepney in Makati,  extending its operating hours as they are no longer limited by the depletion of their batteries. This program will surely have a significant impact on how e-vehicles (not just e-jeepneys) are deployed and presents a model for local government units who are at least curious about having the electric vehicles (perhaps) to replace conventional public transport in their respective cities. This should be a game-changer in the promotion of EST in the Philippines.

Electric jeepney fleet proponent pioneers country’s first battery swap program

(October 19, Manila) The pioneer of the country’s first electric jeepney fleet unveiled this morning an innovative battery swap scheme which its proponents expect “to dramatically improve the efficiency and revenue generation of eJeepney operators.” Over thirty guests, including 22 British volunteers headed to Bohol on Friday for climate change solidarity work, graced the occasion.

“With a little practice, we expect the battery change to take the whole of 10 minutes, which is like a common stop in a gasoline station. The previous eight-hour charging process becomes a thing of the past with this program. It means eJeepney drivers can use their vehicles for a longer period and reduce battery depreciation as well,” said iCSC executive director Red Constantino.

Constantino said “green aims must be coupled with robust economic benefits. We anticipate double earnings for operators, which is superb since we’re already saving a huge amount just because we’re using electricity instead of gasoline to power the vehicles.”

The Institute for Climate and Sustainable Cities, which owns and operates the celebrated eJeepney fleet in Makati City, designed and fabricated the battery program with the support of the British Embassy in Manila. Also known as iCSC, the group is implementing the program in partnership with private sector groups Ejeepney Transport Corp (EJTC) and Motolite.

The scheme is based on a simple roll-off, roll-on logistical set-up, using eJeepneys retrofitted with battery trays and a battery loading bay at the eJeepney depot. A dispatcher rolls out spent battery sets of an eJeepney and replaces it with a fully charged set through a palette lifter manufactured by iCSC.

“Ejeepneys represent carry huge business potential and improvements in operations such as this scheme can create new revenue streams for groups interested not just in eJeepney operations but in battery leasing as well,” said the CEO of EJTC, Yuri Sarmiento.

“We are with you not as passengers but as partners. Together, we can steer our way to a brighter, more sustainable and prosperous future,” said Trevor Lewis, the British Embassy’s Deputy Head of Mission in remarks made during the event.

“Our company is determined to invest in the future of this country and we are elated to be part of this venture,” said Arnold Sarmiento, who represented leading Philippine battery manufacturer Oriental Motolite.

The battery swapping project aims to accelerate the expansion of electric public utility vehicle applications in the Philippines by increasing the operating time of electric jeepney fleets while reducing time used to charge eJeepney batteries. The pilot test period will take place from October 19, 2011 to February 14, 2012. Partners in the initiative hope data from the project can promote a more rapid transition to low carbon transport in the Philippines.

The battery swapping system is located in Makati City’s Fire Station, the site of the country’s first battery-charging station for electric vehicles. Ejeepney units plying the country’s first two routes – the Legazpi Village loop and the Salcedo Village loop — will utilize the battery swap pilot system, which will be run by iCSC, EJTC, Motolite and Makati City jointly.

“We thank the British Embassy in Manila for their support of the city’s endeavors. We are committed to build a low carbon future together with climate change-resilient development,” said Makati City transportation consultant Ernie Camarillo.

iCSC works on fair climate policy and innovative energy solutions for localities. It is the pioneer of the Climate-Friendly Cities project, which integrates sustainable waste management and renewable energy generation with electric public transport alternatives.

Going electric in the Philippines

The Asian Development Bank (ADB) hosted and co-organized a forum on electric vehicles with the Department of Energy (DOE) today. The forum was divided into two parts where the first part included remarks from the DOE Secretary and two presentations from invited speakers. The second part included mainly presentations of experiences in the deployment of electric vehicle technology around the country and a presentation by the ADB on their program to support electric vehicle deployment in the Philippines.

In the first part, the DOE Secretary was very clear in his message in support of electric vehicles. He emphasized the importance of addressing concerns pertaining to the use of fossil fuels, mentioning the need for fuel efficiency and our transport system’s (over)dependence on fossil fuels. He also expressed concern over environmental aspects, recognizing the direct association between emissions and fuel consumption. His remarks was followed by two presentations on experiences on electric vehicle applications abroad. One presentation was mainly on the infrastructure for charging e-vehicles and included material on the experiences in China. Another was on battery technology but included also the different e-cars that are currently available in the market (e.g., Volt, Leaf, Tesla, etc.).

I must admit, modesty aside, that I was disappointed with the presentations as they were both mainly on private vehicle applications including electric motorcycles and electric cars. I was unimpressed, as were others, with the presentations that had material one could easily pick out of the internet. Even information on battery technology did not provide any new knowledge to most participants that included proponents/advocates of electric vehicles in the Philippines. The comment of one participant said it all when he mentioned that in the Philippines the focus was on public transport applications of e-vehicles.

The second part was more interesting, although two presenters tended to stray away from the topic of electric vehicles. The first presentation of the second part of the forum was delivered by the Congressman representing Taguig City. He did not use any slides but chose to make a rambling speech on Taguig’s experience during his time as mayor of the city. He explained his administration’s push for the e-trikes in Bonifacio Global City and made it appear as if his administration was progressive in its push and that the private sector (i.e., Ayala Land, which had a say on transport at BGC) did not have foresight. In truth, the question that needed to be answered at the time of their push was if the e-trike was the appropriate transport mode at the Fort. Ayala knew it was not but it was clear that Taguig insisted on the deployment of e-trikes at BGC rather than take the more progressive (radically) yet risky push of replacing conventional tricycles in the old Taguig east of C5. His speech was really more a conscious delivery of soundbites and I must say, was quite pretentious and self-serving. It was, for me, simply lip service and a waste of time. In fact, one person near us was already snoring by the time the Congressman finished his speech.

The second presentation was delivered by a representative of the Puerto Princesa Mayor. It was straightforward and wasted no time in explaining PPC’s programs and clearly showed their efforts in deploying environment-friendly transport systems. He also mentioned the incentives that the city has so far offered and proceeded to ask those present to partner with them in promoting e-vehicle use.

The third presentation was on Makati’s experience on electric vehicles. The presenter was city’s traffic consultant and I was expecting him to focus on the electric jeepneys now operating along three routes in that city’s central business district. Instead, he took up much time presenting on Makati’s transport plan including the proposed Bus Rapid Transit (BRT) system and its extensive pedestrian facilities that included walkways connecting buildings and to the shopping district. Nevertheless, his presentation had its saving grace in that it mentioned how the e-jeepney could serve as feeders to the BRT and how the pedestrian facilities complemented public transport services.

The fourth presentation was by a representative of Mandaluyong City, which is the first recipient of the incentives being granted by the ADB in support of e-vehicles. This was another straightforward presentation and clearly covered the main points of the e-trike application in that city including the infrastructure they put up for charging. These charging stations represented an innovation that can be picked up by entrepreneurs in coming up with a business model for charging stations. It was not clear though if Mandaluyong has set out to replace conventional tricycles as my impression was that the e-trikes they acquired will be on top of the existing tricycles plying routes around the city.

The fifth presentation was from Ateneo De Manila University, and focused on that school’s efforts to pilot e-vehicles for the use of their students and staff. The presentation mentioned their rationale and the apparent marching orders from their newly installed president, who is an acknowledged expert on environment, to address air quality in the vicinity of the campus. I found their presentation awkward and at the very least hypocritical of the fact that the problem they have to face is the overwhelming number of private vehicles the school generates and their continuing coddling of tricycles whose phase out along Katipunan is long overdue. Perhaps I will expound on this and other issues when I write about Katipunan transport and traffic in the future.

The last presentation was a quick one from the ADB. It was mainly on the ADB’s program supporting e-vehicle promotion. It was also explained why ADB chose to focus on tricycles and was unapologetic in their argument that tended to generalize the problem on transport in the Philippines. There was no mention of rationalization considering that there is actually an oversupply of tricycles and this too needs to be addressed.

While it is commendable that the ADB has extended assistance in the form of grants incentives to promote e-vehicles, there are still questions on the sustainability of this effort given that they chose to focus on tricycles. Of course, the statistics on the number of tricycles and their environmental and energy impacts clearly argue for addressing this problem pertaining to conventional motor tricycles. However, the ADB must realize that local government units (LGUs) can be quite fickle-minded or hard-headed in their approaches to public transport regulations. This is a fact given that there are few LGUs that have been successful in regulating tricycles and particularly in restricting their numbers and their operations along routes or areas where they are suitable. If we take a look at many cities, we will find tricycles running on national roads and causing congestion in CBDs. We would also see that many of these cities, among them highly urbanized cities (HUCs), have a need to graduate from these low capacity modes into middle or even high capacity vehicles.

It was noticeable that there were no representatives from the Department of Transportation and Communications (DOTC) nor its attached agencies like the Land Transportation Office (LTO) and the Land Transport Franchising and Regulatory Board (LTFRB) at the forum. Despite pronouncements by the DOE Secretary that the DOTC and the Department of Science and Technology (DOST) were on-board in the former’s push for e-vehicles, experience has shown that DOTC and its attached agencies have been the bottlenecks in the forward movement of e-vehicles. This includes the absence of clear policies pertaining to e-vehicles including their registration as well as the lack of direction pertaining to their mainstreaming as public transport modes (i.e., franchises). Also, lest we forget, all the talk on e-vehicles while being spearheaded by the DOE, is very much the province of the DOTC since we are, after all, talking about transport. It is the main responsibility and the mandate of the DOTC to see the e-vehicles through and lead in the mainstreaming of these vehicles in the context of environmentally sustainable transport. It is a pitch for e-vehicles that would go a long way into ensuring that a critical mass can be realized and that the tipping point for the shift to electric would be reached in the near future.

The pitch for electric public transport

Electric vehicles have been in operation as public transport modes in the Philippines since 2007 when electric three-wheelers were introduced at the Bonifacio Global City in Taguig City, Metro Manila. At the time, the City Government of Taguig bought the pitch by the proponents of the E-Trike and supported their trial operations that have since expanded but are yet to be legitimized due to the vehicles not being registered with the Land Transport Office. These could not “legally” charge their passengers since they also did not have franchises with the Land Transport Franchising and Regulatory Board (LTFRB) nor with the local government (i.e., like conventional tricycles).

E-trike in Fort Bonifacio

Meanwhile, around the same time, another electric vehicle was introduced in the Visayas. In this case the vehicle was in the form of a national icon – the jeepney. Electric jeepneys were first built out of China and directly imported as a “proof of concept.” What were initially launched in Bacolod and Silay Cities in Negros Occidental were examined by local partners based in Manila, and eventually a locally manufactured E-jeepney came out in 2009, care of the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) and Motolite with assistance from the Dutch Stichting Doen. The project quickly gained proponents including two very influential mayors and their cities – Binay of Makati and Hagedorn of Puerto Princesa. It is to the credit of the cooperation between the Institute for Climate and Sustainable Cities (iCSC, the original proponents of the E-jeepney) and Makati City that there are currently two E-jeepney lines in that city. But while the vehicles have been registered with the LTO (using the conspicuous orange plates), they have yet to be granted franchises by the LTFRB. The vehicle gained more attention when the newly elected Vice President Binay rode the vehicle to the inauguration. Currently, the E-jeepney is subject to studies at the National Center for Transportation Studies of the University of the Philippines and has gained interest from private firms as well as other researchers. Together, the E-jeepney and the E-trike represent the strongest cases for electric vehicle applications in public transport.

Electric jeepneys parked at UP Diliman – the Bjeep is the one used by Vice President Binay during the inaugurations

I reproduce below a news item from the GMA News website that features an initiative from the ADB that may finally push electric vehicles to gain a significant share of trips across the country:

The Asian Development Bank is offering as much as $280 million in loans for the Philippine government to finance a proposed re-fleeting program for tricycle drivers and operators shifting to electric motorbikes or e-bikes.

“The loan will be coursed through ADB conduit banks like Land Bank of the Philippines for re-lending to tricycle drivers who may want to shift into using e-bikes,” Environment Secretary Ramon Jesus Paje told reporters in a briefing Tuesday.

He said ADB will give 30 e-bikes as donation to city governments in the Metropolis.

“ADB wants to us to sample the bikes to see for ourselves that these machines are totally pollution-free. No emissions, less pollution,” he said.

If all Philippine tricycles are e-bikes, the country can save much as 20 million metric tons of carbon footprints a year.

“We could go into carbon trading. That will earn us dollar equivalent which we can use to offset a portion of the loan,” said Paje.

Tricycle drivers can save up to P300 in daily fuel costs with the use of e-bikes.

“Four hours of charging would only cost P40 compared to P340 for fossil-based fuels. The acquisition cost is about 20 to 30 percent higher than fuel-fired motorcycles but the overhead cost is certainly lower,” Paje said.

Of the total 5 million tricycles in the country, 2.8 million are in Manila.

The department said that the shift to e-bikes would reduce pollution 25 percent to 30 percent in the country’s urban centers by 2011.

As of 2009, the country’s total suspended particulates – a concentration of micro pollutants in the air – in all cities and urban centers is 134 micrograms per normal cubic meters, which is 48 percent beyond the normal standard of 90 micrograms per normal cubic meters.

The major sources of these particulates are diesel vehicles and coal-burning power plants. Dust from unpaved roads and construction activities contribute to the rise in particulates especially during summer months.

Vehicles contribute as much as 80 percent to air pollution, while the remaining 20 percent are from industries.

Department monitoring shows that more than 50 percent of vehicles are registered without prior actual testing by accredited Private Emission Testing Centers.

“If all vehicles are tested for emission prior to registration, the 30 percent reduction in particulates will be easily realized,” Paje said. —With MR Gavin/VS, GMANews.TV

The ADB initiative comes at a critical time when the national government is still finding its way with regards to local public transport modes, particularly how the tricycle has established itself as the primary (sometimes, the only) public transport option in cities and municipalities across the country. It is inevitable that the issue of proliferation and regulation of tricycles will have to be addressed. National and local government would have to discuss the nuances of the Local Government Code in as far as public transport operations, franchising and fare setting are concerned. On top of this, the time is critical also because there is a strong call for environmental sustainability; one that is anchored on the increasing awareness for climate change and its impacts. The long-standing perception is that the conventional tricycles contribute to the continuing degradation of our environment as the collective emissions from these vehicles effectively suffocate our cities, and the key is for local governments to realize this and be a major player in transforming local transport into the environment-friendly kind. It is, after all, in the best interests of their constituents that clean air be pursued to ensure that there will be a bright future for their cities and this country.