Monday, July 24, 2017

DOE seeks revised terms on ADB loan for 3,000 e-trikes



Published June 13, 2017, 10:00 PM by Myrna Velasco

Owing it to cost as well as fleet deployment considerations, the Department of Energy (DOE) is seeking revisions in the terms of the loan with the Asian Development Bank (ADB) covering the 3,000 electric tricycles (e-trikes) deployment that had been previously decided to be pushed ahead.
As assessed, the per unit cost of the e-trike proved punishing to prospective beneficiary-drivers because it had been set at a steep price of P456,000 a fleet – almost the price of a sedan car, which in essence, could be prohibitive to penny-pinching trike drivers to fend for.
Procurement of the ADB loan has also been “deemed restrictive” because the drawdown can only be done through local government units (LGUs) with guarantee from their Internal Revenue Allotments (IRAs) – a parameter that is not seen viable by the concerned government entities.
It is for this reason, according to the energy department, that they will be batting for amendments in the ADB’s loan terms and conditions.
For the 3,000 e-trike fleets, the financing cost had been pegged at P1.73 billion – drastically scaled down from P21.672 billion when Energy Secretary Alfonso G. Cusi opted to cancel the remaining portion of the loan covering the bulk of 97,000 e-trike units.
It was the Aquino administration that advanced the electric vehicle (EV) program in the country intending to deploy 100,000 units of e-trikes nationwide. It was then anchored on a five-year rollout period culminating in year 2020.
DOE Assistant Secretary Leonido Pulido III admitted that there are challenges in the implementation even for the 3,000 e-trikes’ deployment, but the department will still push for it just so it can have a test-bed for electric mobility in the country.

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