THE E-TRIKE PROJECT

Market Transformation through Introduction of Energy-Efficient Electric Vehicles

Deployment of 100,000 E-Trikes nationwide to replace traditional gasoline-fed tricycles

To be implemented in 2 phasesDevelopment 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 chaincharging stations battery leasing/recycling/disposal

Funded by loans from Asian Development Bank (ADB) and Clean technology Fund (CTF); Govt of Phils (GOP)

On a macro-level, project aims to reduce transport sectors annual petroleum consumption by 2.8% (based on 20 Million Barrels per year consumption in 2010) or an equivalent of 89.2 Million Liters per year; and

Achieve 79% emission avoidance by shifting to 100,000 tricycles running on pure electricity. Avoided CO2 emission is estimated at 259,008 tons per year

E-TRIKE PROJECT KEY PLAYERS Government Agencies and Organizations Involved: 1.DOE (Head Executing Agency)2.DOF3. ADB4. DBM5.LBP6.LGUs as Implementing Agencies

Supporting Agencies:1.LTO2.Bureau of Customs3.DTI4.DOST5. TESDA

Philippine E-Trike Model 3 wheeled vehicle5 passengers (excluding driver)3kw electric motor Lithium-ion batteryOn-board chargerBattery management system (BMS)

Conventional Tricycle (Gasoline-fed)E-TrikesRange per day (kilometers)8080Fuel Consumption per day5 liters7 kwhFuel Price/ Electricity ChargingPhp56/literPhp11.50/kwhFuel Cost per dayPhp280Php80Peso per kilometerPhp3.50Php1.00Savings on FuelPhp2.50 per kilometer

Daily Fuel Savings *Php 200.00

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

LGUs 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?)

Letter of Intent (signed by the Mayor)

Sanggunian Resolution

HOW TO AVAIL OF E-TRIKES

Project ApprovalProject approved by NEDA Board on 26 June 2013

ProcurementOn-going bidding for the initial procurement of 3,000 E-Trike units

COMPARISON BETWEEN BRAND NEW 4-STROKE GASOLINE-FED TRICYCLE AND E-TRIKE

PROJECT APPROVAL MILESTONES & STATUSMilestonesTriggersStatusRemarksNEDA-ICC ApprovalApproved by NEDA ICC on 16 February 2012NEDA Board ApprovalApproved by NEDA Board on 22 March 2012

NEDA ICC confirmed by ad referendum DOEs 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 2013Loan NegotiationForward Obligational Authority (FOA) from DBM

Monetary Board- Approval in Principle (MB-AIP)

NEDA Board confirmation of ICC-CC approval

Special Authority from the President for DOF to negotiate and sign loan agreementFOA issued by DBM on 21 May 2012

MB-AIP secured on 31 May 2012;

Awaiting official document

Signed by the President on Nov. 16, 2012Negotiation between ADB and DOF concluded on November 19, 2012

SPA to be amended based on the confirmation of NEDA Board to the Project changes/modifications

PROJECT APPROVAL MILESTONESMilestonesTriggersStatusRemarksADB Board Loan ApprovalApproved ADB and CTF Loan and Grant

Approved by ADB Board on 11 December 2012

Loan Agreement Signing

Amendment to SPAPendingLoan Effectivity

Loan Agreement Signing

BSP Monetary Boards final approval in place

Legal Opinion issued by DOJBetween 1- 90 days after Loan Agreement Signing

OPTION 1LBP to LGU rate is 7% p.a. fixed for 5 years; Proposed LGU pass-on rate to borrowers is 9.5% p.a. fixed for 5 yearsDRIVER-OPERATOROPERATOR ONLYDRIVER ONLYGAS-FEDE-TRIKEGAS-FEDE-TRIKEE-TRIKE2GAS-FEDE-TRIKEE-TRIKE2Pang araw-araw na KITA (A) 720 720 250 250 315 720 720 720 Pang araw-araw na GASTOS (B) 351 281 135 200 200 466 331 396 Hulog Utang * 73 162 73 162 162 - - - Boundary - - - - - 250 250 315 Maintenance 62 39 62 39 39 - - - Gasolina 216 - - - - 216 - - Kuryente ng E-Trike - 81 - 81 81 Malinis na KITA (C) = A-B 369 439 115 50 115 254 389 324 19%-57%0%53%27%Malinis na KITA (pagkatapos ng utang-5yrs) 442 600 188 211 277 36%12%47%* financing terms were similar for both gas-fed tricycles and E-Trikes

OPTION 2LBP to LGU rate is 7% p.a. fixed for 5 years; Conduit pass-on rate to borrowers is 18% p.a. fixed for 5 yearsDRIVER-OPERATOROPERATOR ONLYDRIVER ONLYGAS-FEDE-TRIKEGAS-FEDE-TRIKEE-TRIKE2GAS-FEDE-TRIKEE-TRIKE2Pang araw-araw na KITA (A) 720 720 250 250 334 720 720 720 Pang araw-araw na GASTOS (B) 366 315 150 234 234 466 331 415 Hulog Utang * 88 195 88 195 195 - - - Boundary - - - - - 250 250 334 Maintenance 62 39 62 39 39 - - - Gasolina 216 - - - - 216 - - Kuryente ng E-Trike - 81 - 81 81 Malinis na KITA (C) = A-B 354 405 100 16 100 254 389 305 14%-84%0%53%20%Malinis na KITA (pagkatapos ng utang-5yrs) 442 600 188 211 295 36%12%57%* financing terms were similar for both gas-fed tricycles and E-Trikes

Source: Land Transportation Office (LTO)2011 REGISTERED MOTOR VEHICLE

VEHICLE TYPENUMBER OF VEHICLESMC/TC3,881,460Bus34,478Car828,587UV1,748,402SUV284,099Truck329,385Trailer32,531TOTAL7,138,442

SurigaoDavaoMetro ManilaBoracayPuerto Princesa

LPPAYMENT Boundary-Hulog SchemeProcurementLoan AgreementSupply, Delivery & After salesE-Trike BorrowersSales ContractDirect and Outright PaymentLease Contract with Option to OwnFranchise Control and RegulationDirect PaymentOPTION 1 - (ORIGINAL FUNDS FLOW)

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

LPPAYMENT Boundary-Hulog SchemeProcurementLoan AgreementSupply, Delivery & After salesE-Trike BorrowersSales ContractDirect and Outright PaymentLease Contract With Option to OwnFranchise Control and RegulationDirect Payment

LBP rate to accredited conduit is 6-7% p.a. fixed for 5 yrsConduit rate to drivers can be 15% to 18%Conduit will select borrowers from their membersPayment collection will be done by the conduitAdvantage/s of Option 2: No financing risk to the LGUConduits like transport cooperatives have direct oversight among member borrowersLimitation/s of Option 2: Relatively High interest rate to drivers

Original Funds Flow(MODEL 1)Expanded Funds Flow(MODEL 2)ApplicabilityFor 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 ratesFor LGUs: with expressed support for the E-Trike 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

ArrangementsDOE as EA, procuring entity and seller

LGU as IA through its E-Trike Office, e-trike buyer from DOE; implementer of E-Trike rent-to-own to driver/operatorsDOE as EA, procuring entity and seller

LGU as IA through its E-Trike Office

Financial Conduit as E-Trike buyer from DOE; implementer of E-Trike rent-to-own to driver/operators

Original Funds FlowExpanded Funds FlowAdvantagesEnd-borrowers will pay low interest rates (7% up to 9.5%)

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 Few LGUs are willing to do this model due to the ff:

LGUs not willing to compromise IRA Some LGUs have insufficient net borrowing capacity End-borrowers will pay higher interest rates

Risk Mitigant: Partnership with financial conduits who share developmental objectives of the E-Trike project

(interest rates not higher than 12%, at least under Phase 1 of the project)

THE E-TRIKE PROJECT(Part 2)Market Transformation through Introduction of Energy-Efficient Electric Vehicles

Mabawasan ang paggamit ng gasolina sa sektor ng transportasyon

Mabawasan ang polusyon sa hangin dulot ng paggamit ng gasolina sa tricycle sektor.

De-GasolinaE-Trike

De-GasolinaE-Trike

1) Mayroong pampasaherong tricycle na may lehitimong prangkisa1st Priority: two-stroke 2nd Priority: four-stroke

2) Rehistradong botante ng siyudad

3) Mabuting miyembro ng TODA

Mataas na Kalidad na E-Trikes sa Mababang InterestWalang DownpaymentLibreng rehistro sa LTO3-5 taong Warranty sa E-Trike Libreng Training sa Tamang Maintenance at operasyon ng E-Trike Troubleshooting & Operation ng E-Trike

Philippine E-Trike Model 3 wheeled vehicle5 passenger (excluding driver)3kwh electric motor @ 60kphLithium-ion batteryOn-board chargerBattery management system (BMS)Able to negotiate 16 degree slope terrain

*******Submission of a Letter of Intent to the Department of Energy indicating its plan to implement an E-Trike Rent to Own Program and deploy a specific number of E-trikes using lithium ion batteries under the DOE E-Trike Project.

The LGU shall commit to provide an enabling environment to support the adoption of E-Trikes in its locality such as issuance of ordinances, Sangguniang Resolution, grant of incentives and conduct of IECs on E-Trike with TODAs

**Four stroke gasoline fed: daily maintenance cost= Php 60 annual maintenance cost= Php 60 x313 days daily fuel cost = 4 liters gasoline x 50 pesos/liter= Php 200 annual fuel cost = Php 200 x 313 days = Php62,600

*There were a total of 7 Million registered motor vehicles in 2011 and majority of which are motorcycles and tricycles totaling 3.9 Million, not accounting the number of colorum which continuously ply are streets and contributing to the deteriorating air quality.*Estimated 170 various E-Trike units being demonstrated as an initiate of local government units in key cities and provinces nationwide.****Project ObjectivesThe Project aims to reduce annual fuel consumption of the transport sector by 2.8% or an equivalent of 89.2 million liters per year (based on 20 million barrels per year consumption in 2010). It also aims to achieve a 79% emission avoidance (estimated at 259,000 tons of CO2 per year) by shifting to 100,000 e-trikes running on pure electricity.

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