c/o NFR, Rm. 205 PhilDHRRA Partnership Center, 59 C. Salvador St. Varsity Hills Subdivision, Loyola Heights, 1108 Quezon City, Philippines TF +632 927 0122 | [email protected]| www.aksyonklima.com July 13, 2012 Trust Fund Committee Clean Technology Fund Climate Investment Funds Dear members of the CTF Trust Fund Committee: Aksyon Klima continues to call for the deferment, if not outright rejection, of the endorsement of the Philippines’ revised investment plan. Our network was included in the supposed steering committee organized to prepare for the stakeholder consultations on the revised investment plan. As we have already narrated to the Trust Fund Committee, this steering committee was unceremoniously swept aside, and the massive process deficit worsened when the Asian Development Bank pushed through with the consultations last May. We contend that the consultation outcomes were misrepresented, as there was in fact a strong consensus, if not an agreement, over the following key issues: The involvement of local government units in the project design would be disastrous, especially given the upcoming election year; There was insufficient reasoning behind the diversion of funds from the solar rooftop plan; Local transportation planning should have been considered first, and with it the addition of two- and four-wheel electric vehicles in the proposed intervention; and The 20,000-unit review threshold should be even lowered to rectify mistakes and prevent electric waste as much as possible. The Department of Energy itself has acknowledged “technical, financial, and social challenges” in the project design. Please refer to page 11 of the attached web clippings on the issue from local media, who have been closely scrutinizing this project due to perceived flaws in the approval process Energy secretary Rene Almendras has also publicly admitted that he “can even make the e-trike work using local funds” (page 16, see also page 13). If our government already admits to being able to launch the e-trikes project without the CTF loan, the funding could then be put into better use. One example would be investing it in community-based renewable energy systems, which have been successful in our country but which need to be replicated in more areas. Thank you for your consideration. Sincerely, Rowena F. Bolinas National Coordinator
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c/o NFR, Rm. 205 PhilDHRRA Partnership Center, 59 C. Salvador St. Varsity Hills Subdivision, Loyola Heights, 1108 Quezon City, Philippines TF +632 927 0122 | [email protected] | www.aksyonklima.com
July 13, 2012 Trust Fund Committee Clean Technology Fund Climate Investment Funds Dear members of the CTF Trust Fund Committee: Aksyon Klima continues to call for the deferment, if not outright rejection, of the endorsement of the Philippines’ revised investment plan. Our network was included in the supposed steering committee organized to prepare for the stakeholder consultations on the revised investment plan. As we have already narrated to the Trust Fund Committee, this steering committee was unceremoniously swept aside, and the massive process deficit worsened when the Asian Development Bank pushed through with the consultations last May. We contend that the consultation outcomes were misrepresented, as there was in fact a strong consensus, if not an agreement, over the following key issues:
The involvement of local government units in the project design would be disastrous, especially given the upcoming election year;
There was insufficient reasoning behind the diversion of funds from the solar rooftop plan;
Local transportation planning should have been considered first, and with it the addition of two- and four-wheel electric vehicles in the proposed intervention; and
The 20,000-unit review threshold should be even lowered to rectify mistakes and prevent electric waste as much as possible.
The Department of Energy itself has acknowledged “technical, financial, and social challenges” in the project design. Please refer to page 11 of the attached web clippings on the issue from local media, who have been closely scrutinizing this project due to perceived flaws in the approval process Energy secretary Rene Almendras has also publicly admitted that he “can even make the e-trike work using local funds” (page 16, see also page 13). If our government already admits to being able to launch the e-trikes project without the CTF loan, the funding could then be put into better use. One example would be investing it in community-based renewable energy systems, which have been successful in our country but which need to be replicated in more areas. Thank you for your consideration. Sincerely, Rowena F. Bolinas National Coordinator
FREE PREVIEW (BUSINESS WORLD) Posted on May 25, 2012 07:39:16 PM E-trike fund stalled over issue by advocacy groups ADDITIONAL SUPPORT for the Energy department’s electric tricycle (e-trike) project has yet to be approved by the committee administering the fund due to complaints from advocacy groups, an official of the Asian Development Bank (ADB) said. ###
Govt shifts P21b loans to e-Trikes Mindanao solar projects dropped also for e-appliances Posted June 13th, 2012 by Christine F. Herrera & filed under Feature. MANILA STANDARD TODAY MINDANAO continues to reel from a power shortage, but the Aquino administration has engaged in “fund diversion and railroading” of a solar power project worth $500 million (P21.5 billion) in foreign loans in favor of 100,000 energy efficient electric tricycles or e-Trikes and e-appliances that will be distributed in the 2013 mid-term elections. At P215,000 $5,000 each, some 20,000 8-seater e-Trikes and P1-billion worth of e-appliances such as television sets, electric fans, refrigerators, computers and air conditioning units will be distributed in Metro Manila starting next year and nationwide up to the 2016 presidential elections, according to the Energy Department. Civil society groups and a Mindanao lawmaker have protested and questioned the “fund diversion.” They want the project aborted until after a credible consultation has been held. President Benigno Aquino III himself approved the shift from the solar power generation project originally espoused by the Arroyo administration to the e-Trikes project even before proper consultation was made, according to Pete Maniego, board chairman of the National Renewable Energy Board, which was created as mandated by the Renewable Energy Act.
Maniego was part of the board when the solar power generation project under the Arroyo administration was approved by the Washington DC-based Trust Fund Committee, which oversees the Clean Technology Fund or CTF. “We question the haste with which this fund diversion was made without credible and transparent consultation from various stakeholders. Was the process railroaded to beef up the campaign kitty of the administration?” said Red Constantino, executive director of the Institute for Climate and Sustainable Cities. Constantino said the Aquino administration created an “artificial demand” for transportation to justify the purchase of e-Trikes. “Where does the e-Trikes foreign loan-funded project leave Mindanao, which is now experiencing a power crisis?” said Agham Rep. Angelo Palmones, who first accused some businessmen of conniving with Energy officials of creating “artificial power blackouts” to justify the privatization of the hydroelectric power plants in Mindanao. “Does Manila and elsewhere have a transportation crisis? These e-Trikes would compete in electricity use and further aggravate traffic congestion,” Constantino said the e-Trikes would aggravate the consumption of dirty coal and diesel because electricity in Metro Manila was basically relying on coal-fired and diesel power plants. “The government is also perpetrating political patronage since the e-trikes operation will be coursed through chosen local government units that would collect boundary payment of P350 daily from drivers and transmit this to the national government, which will service the debts to the Asian Development Bank,” Constantino said. The Energy Department says the loan contracts will come from the CTF, which will provide $101 million for the e-Trikes and $24 million for the e-appliances. The ADB will provide $300 million and the national government $99 million. The $1 million from the CTF will come as a grant for technology transfer from conventional battery to lithium-ion and rechargeable batteries. The foreign currency loans will be coursed through the Energy and Finance Departments at 6 percent interest, with the two departments re-lending the funds to local government units at 11 percent interest and payable in 25 years. The e-Trikes are said to last for 10 years, and they will be imported from China, Korea and Japan, the ADB says. “We were not consulted. Three days before the supposed consultation, the Renewable Energy Board, a government agency and recommendatory body attached to the Department of Energy, was told that the top level of government up to President Aquino himself already approved of the reallocation, so my attendance at the consultation was pro forma,” Maniego told the Manila Standard.
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“The ADB provided an undisclosed number of participants only two working days to go over background documents,” Ronni Masayda, assistant transition manager of the NGO Forum on ADB, told the Manila Standard. “Such short notice for meetings, not to mention an extremely short period to study drafts, is unacceptable and puts to question the meaningful interaction of participants who would not have time to scrutinize the documents thoroughly.” Masayda expressed fears that the ADB was putting at risk the Philippine investment plan submission to the Clean Technology Fund by repeatedly and deliberately contravening the instructions of the CTF’s Trust Fund Committee to involve and undertake with civil society groups and other stakeholders a “common credible consultative process over the fund diversion.” Energy Undersecretary Loreta Ayson confirmed the “reallocation of funds” from the solar projects was based on both the lowered installed capacity targets for solar energy, and the increased investor interest in the development of solar energy. “The solar project planned by the ADB was a residential rooftop solar paneling project with a projected capacity of 100 megawatts. With the installed solar capacity targets currently pegged at only 50 megawatts, and the current applications with the Department for solar, we decided it would be inappropriate for the government to compete with private interests,” Ayson said. The Palace documents obtained by the Manila Standard show that the 100,000 e-trikes would cost $400 million but would “save” some 500,000 liters of gasoline a day or $500,000 a day for a total of $185 million in “savings” annually. The Energy Department said it would also avoid carbon dioxide emissions of 400,000 tons per year from a total emission of 160,000 tons a year. Citing an ADB study, the department said transport sector emissions accounted for 30 percent of the air pollution in the Philippines and about 80 percent of the air pollution in Metro Manila. Under the Philippines’ CTF Investment Plan, the government will purchase about 200,000 energy efficient air-conditioners, 150,000 refrigerators, 350,000 electric fans and 100,000 television sets. The consumers will pay for the appliances over a 36-month “hire-purchase scheme.” The documents also say the e-Trikes would be made available to areas with “stable power supply,” with the government providing “public charging stations.” “The project is not about procuring 100,000 e-Trikes but creating a new local industry and local employment,” the documents say. “So we have a case here of generating jobs for 100,000 drivers and displacing as many numbers of operators because the local government units would act as operators collecting boundaries and transmitting to the national government, which would ensure the debt servicing of the foreign loans,” said Palmones, who comes from Cotabato.
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Denise Fontanilla, Aksyon Klima advocacy officer, said the ADB’s credibility became questionable having tried many times to “abbreviate a process” despite its own rules stipulating information disclosure and proper consultation guidelines. “The ADB informed us of the supposed consultation two days before the event. We were not consulted. We want to know if there is still some amount left for renewable energy projects or everything was allocated to e-Trikes,” Fontanilla said. “In its desire to rush the consultations, the ADB employed deception and deliberately misused the name and logo of some members of the steering committee in order to create the impression that sessions were co-organized with civil society groups,” Constantino said. The other civil society groups that protested the “farce consultations” on May 21 to 23 were the Freedom from Debt Coalition and Partnership for Clean Air. “Unfortunately, the ADB, through its own actions, may have fatally wounded the Philippine government’s submission to the Clean Technology Fund,” Fontanilla said. (Published in the Manila Standard Today newspaper on /2012/June/13) ###
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http://www.interaksyon.com/article/34664/government-taps-300-million-adb-loan-for-e-trikes Government taps $300 million ADB loan for e-trikes 13-Jun-12, 8:09 PM | Chichi Conde, InterAksyon.com MANILA - The Aquino administration will avail of a $300 million loan from the Asian Development Bank for the procurement of energy efficient tricycles or e-trikes. Presidential Spokesman Edwin Lacierda said the loan is separate from a $500 million standby fund made available by ADB for solar power projects. "Let me be clear, the government is not availing of any loan for solar project. It is a standby loan by the ADB to whoever would wish to avail or explore solar power as an alternative source of energy," Lacierda said. "There is, however, a loan that we’re availing of. We are planning to avail of a loan of around $300 million for e-trikes. It is separate and distinct from the loan that ADB is providing for private proponents of solar energy," the Palace official added. Agham Rep. Angelo Palmones earlier protested the alleged realignment of the $500 million loan facility for solar energy projects in favor of procuring 100,000 e-trikes for 2013. “Does Manila and elsewhere have a transportation crisis? These e-trikes would compete in electricity use and further aggravate traffic congestion," Palmones said. But Lacierda insisted this was not true. "There is no realignment. The government did not align anything because the government is not availing of any loan for solar projects," Lacierda said. According to Red Constantino, executive director of the Institute for Climate and Sustainable Cities, the timing of the realignment was suspect given next year's mid-term polls. “We question the haste with which this fund diversion was made without credible and transparent consultation from various stakeholders. Was the process railroaded to beef up the campaign kitty of the administration?” Constantino said. Constantino said the Aquino administration created an “artificial demand” for transportation to justify the purchase of e-trikes. ###
ADB, DOE aware of fund diversion Posted June 15th, 2012 by Christine F. Herrera & filed under Main Stories. MANILA STANDARD TODAY THE Energy Department and the Asian Development Bank had confirmed the reallocation of $500 million in funding for solar power projects to electric tricycles or e-trikes and energy-efficient appliances, contradicting the Palace’s claims that no diversion took place, civil society groups said Thursday. At a three-day meeting with the groups, the ADB’s principal energy specialist Solair Hasnie and Energy Undersecretary Loreta Ayson justified the reallocation of the funds as a national priority, the civil society representatives said. “The reason a series of consultations was held by the DOE and ADB recently was because the stakeholders complained to the Washington D.C.-based Clean Technology Fund Trust Fund Committee last year that the funding for solar power projects was diverted to e-trikes and e-appliances without proper, transparent and credible consultation,” said Vicky Segovia, executive director of the Partnership for Clean Air. Segovia and the representatives of other civil society groups slammed presidential spokesman Edwin Lacierda for denying the diversion of funds. “Are they telling us that Malacañang is clueless about what the departments are doing?” Agham Rep. Angelo Palmones said. “The government is seeking loans that the taxpayers would be paying for. The P21.5 billion is a huge amount of money and this is no laughing matter. Lacierda should be careful in making pronouncements.”
The solar project loan was first sought by the Arroyo administration and was approved by the CTF Trust Fund Committee in December 2009, Palace documents obtained by the Manila Standard show. On Nov. 4, 2011, the Aquino administration, through the Energy and Finance departments, presented a revised investment plan to Washington proposing the reallocation from solar to e-trikes and e-appliances. “The Government of the Philippines proposes to reallocate resources in the Clean Technology Fund Country Investment Plan which was endorsed by the Trust Fund Committee in December 2009,” the Palace documents that were submitted to the CTF and presented in Washington show. Segovia, a member of the steering committee that hosted and facilitated the three-day consultation, said a whole-day session on May 22 focused mainly on explaining why the government had to reallocate the funds to e-trikes. Shortly after the consultations, the ADB and the Energy Department scrapped the $24-million allocation for e-appliances and reverted the funds to solar power projects. ADB country director Neeraj Jain acknowledged the decision was an offshoot of the three-day consultation held in May. Jain said some P4 billion would be used for the rooftop solar project and P17 million for one megawatt of solar charging for the e-trikes. Red Constantino, executive director of the Institute for Climate and Sustainable Cities, said the decision was proof that there was nothing wrong with investing in solar power projects. “This sudden, albeit partial, change of heart or epiphany on the part of the ADB confirms our assertion that the original solar rooftop paneling project is one viable, feasible project that should have never been replaced by this project mix of e-tricycles and e-appliances. Otherwise, why would the bank and the government reconsider the solar rooftop paneling once again?” added Ronni Masayda of the NGO Forum. The civil society groups continued to question the $400-million diversion of available funds to the e-trike program and criticized the involvement of local government units. “How do we expect the mayors to collect the daily boundaries *payments for the e-trikes] of P350 and remit them to the national government for debt servicing on election year when some LGUs do not even remit the GSIS payments of their employees?” Constantino said. Segovia agreed and said the civil society groups would continue to oppose the project if the LGUs would be made to guarantee payments for the loans. “Let’s face it, it is election year next year and it would be suspect for the government to distribute 20,000 of the 100,000 e-trikes and having the mayors telling them to pay,” Segovia said. “We have nothing against the e-trikes. We are rejecting the LGU involvement.’’ With Alena Mae Flores (Published in the Manila Standard Today newspaper on /2012/June/15) ###
Civil society has been calling for consultations Posted June 15th, 2012 by Manila Standard Today & filed under Opinion. MANILA STANDARD TODAY We refer to the Asian Development Bank’s letter (June 14, 2012) regarding your article ‘‘Govt shifts P21b loans to e-Trikes’’ (June 13). Allow us to correct the Bank’s claims in its letter point by point: First, there was nothing wrong with the Department of Energy’s original plan for the solar rooftop project. ADB’s subsequent re-diversion—back to the original plan of the Department of Energy but using a fraction of the original amount—only proves this contention. Second, ADB’s token offer to set aside $4 million for the solar charging of the e-trikes was proposed only after the consultation. The units were meant in the project design to be plugged in to the usual dirty coal, in contrast to the objective of clean energy. The ADB moreover requested the renewable energy representatives and other civil society organizations they met to write to the Clean Technology Fund committee under a united front to ask for the grant. Third, local government units are expected to distribute the e-trikes to operators starting in 2013, an election year. A unanimous view of people who attended the May 21-23 event is that local governments should focus on regulation, not the business of collecting or disbursing financing. Why is the Bank crowding out the private sector, particularly local financing institutions? The ADB appears intent on creating an artificial supply by pushing conventional procurement processes, instead of relying on private sector innovation and market responses, as well as on creating artificial demand via local government sign-ups, instead of demand from the vehicle users market. Traffic
problems may even worsen in the participating localities because local transport planning was not considered in their selection. Fourth, many have been promoting the development of local manufacturing capacity long before the ADB thought of it. It is too early to tell, however, whether its project will be able to achieve this aim. Unknown to the public, the ADB e-trikes in Mandaluyong have yet to be registered with the Land Transportation Office. A high percentage of its vehicles have also broken down. Fifth, participants were invited two, three working days before the actual event. Some were given even shorter notice. Most of the speakers, as the minutes will show, were invited a day before the actual event; one was unfortunately given only an hour’s notice. The claim that documents have been available on the Clean Technology Fund website since November 2011 is disingenuous, as most participants to the consultation did not even know of the Fund until May 21. Lastly, the ADB has made at least four attempts to abbreviate the consultation process. Civil society has been able to “share’’ its voice despite the persistent attempts to shortcut the process. We for our part refuse to put up with the underhanded moves of the ADB. Since December 2011, civil society groups have been calling on the ADB almost every month to hold consultations with all sectors on the e-trikes proposal. Had the Bank taken this call seriously right away, instead of rushing as they did only last May 21-23, it would have realized the folly of the fund diversion and the ill-thought project design. Rowena F. Bolinas National Coordinator Aksyon Klima [email protected] (Published in the Manila Standard Today newspaper on /2012/June/15) ###
Electric Tricycles to Reduce Transport Sector’s Gasoline Consumption by 5.6 MMB MEDIA RELEASE, DEPARTMENT OF ENERGY June 15, 2012 (Taguig City) - The Department of Energy pursues its electric tricycle (E-Trike) Project amidst its technical, financial, and social challenges, confident that the project objectives are aligned with the government thrust of reducing the transport sector’s reliance on fossil fuels and alleviating the standard of living of tricycle drivers. The Project envisions that the transport sector’s gasoline consumption will be reduced by 561,000 barrels per year thereby avoiding 260,000 tons of carbon dioxide emissions annually. This is made possible by replacing 100,000 gasoline-fed tricycle units with energy efficient e-trikes. Likewise, the Project will boost the incomes of e-trike drivers through the savings in fuel cost and create local jobs from the establishment of manufacturing companies and associated after-sales services. The DOE allays the unfounded fears of stakeholders that the introduction of e-trikes will put additional burden on the supply of electricity due to increase in demand. e-trikes are usually charged during low peak hours or in the evenings which contributes to higher utilization of available generation capacities. In the case of off-grid areas, e-trike electricity requirements will be sourced from solar-powered charging stations, thus contributing further to a cleaner environment. The e-trike Project will put the Philippines at the forefront in terms of efficient, environment-friendly, and sustainable transport system. ###
DOE may roll out $500-M e-trike project By: Amy R. Remo, PHILIPPINE DAILY INQUIRER 10:50 pm | Friday, June 15th, 2012 The Department of Energy recently received the Monetary Board’s approval to proceed with the rollout of the $500-million electric tricycle (e-trike) project, hoping to put 100,000 of these vehicles on Philippine roads within five years. Of this allocation, $300 million will come from the Manila-based Asian Development Bank, $100 million from the Philippine government, and $100 million from the Clean Technology Fund (CTF). In a briefing Friday, Energy Secretary Jose Rene D. Almendras said the DOE would still pursue the project despite technical, financial and even social challenges, given the project’s economic and “transformational” gains. The replacement of 100,000 gasoline-fed tricycle units with energy efficient e-trikes is expected to help reduce the transport sector’s gasoline consumption by 561,000 barrels a year, equivalent to about 260,000 tons of carbon dioxide emissions annually. The e-trike project is also expected to boost the income of tricycle drivers through savings in fuel costs and will likewise create local jobs with the establishment of manufacturing companies and associated after-sales services. Citing these gains, Almendras denied the alleged reallocation of a $101-million loan from CTF, which was supposed to be used for a major solar generation initiative but was instead diverted to the e-trike project.
Based on a 2009 plan, a total of $125 million would be allocated for renewable energy and energy efficiency programs of the country. But in the Revised CTF Investment Plan for the Philippines, the amount was divided to $24 million for energy efficiency and $101 million for e-trikes. “There can be no diversion of funds because the funds are not yet available back then (2009). We don’t have it yet. The loans were not approved yet—the loan will be discussed sometime in June or July during the monthly board meeting of ADB,” Almendras explained. The energy chief also said that the e-trike project would push through with or without the CTF because the business model of the DOE and ADB was one that could work using commercial loans from local banks. These banks, he added, are likely to fund such a project because the economic gains will be significant. Sohail Hasnie, principal energy specialist at ADB, said that back in 2009, when the prices of solar power generation started to decline, the option for solar projects was included in the CTF plan. The plan was to go back to CTF and present the options where the funds could be used two years after 2009, or around December 2011. By that time however, the scenario had changed, said Hasnie, who added that the DOE and ADB both found the e-trike project to be a more feasible option where CTF funding could be used. “There was no fund allocation in 2009, in the strict sense because the funds were not yet approved or available,” Hasnie added. Hasnie earlier said that the plan was to roll out the first 20,000 units on key islands, such as Boracay and Puerto Princesa, and in some parts of Metro Manila. After this, a study will be conducted to determine whether the use of e-trikes will work, according to the project objectives, and yield the benefits expected by the ADB and the Philippine government. Once the initial batch proves to be successful, the ADB will then proceed with the rollout of the remaining 80,000 units, Hasnie said. At present, more than 3.5 million motorized tricycles are operating in the country, producing more than 10 million tons of carbon dioxide and using nearly $5 billion worth of imported fuel a year. ###
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http://www.interaksyon.com/article/34839/doe-dispels-fears-e-trikes-will-strain-power-supply DOE dispels fears e-trikes will strain power supply 15-Jun-12, 6:46 PM | Euan Paolo C. Anonuevo, InterAksyon.com MANILA - The Department of Energy has allayed concerns that the electric tricycle program will compete for already limited power supply. Such fears are "unfounded", the DOE said, because e-trikes are usually charged during low peak hours or in the evenings. This in turn contributes optimal use of available generation capacities. "Likewise, the project will boost the incomes of e-trike drivers through the savings in fuel cost and create local jobs from the establishment of manufacturing companies and associated after-sales services," the agency said. The department's four-year e-trike program is anchored on the replacement of 100,000 gasoline-fed tricycle units with energy efficient tricycles that run on electricity. The project is envisioned to reduce the transport sector's gasoline consumption by 561,000 barrels per year, thereby avoiding 260,000 tons of carbon dioxide emissions. "In the case of off-grid areas, e-trike electricity requirements will be sourced from solar-powered charging stations, thus contributing further to a cleaner environment," DOE said. The Asian Development Bank has committed to provide counterpart funding for the project. Under the tie-up, the DOE and ADB have committed to spend $500 million for 100,000 units of e-trikes in the next four years. Of the total amount, $300 million will come from the ADB, $100 from the Clean Technology Fund and the remaining $100 million from the government. Besides the replacement of conventional tricycles, the program targets to establish local expertise and manufacturing facilities to support the development of e-trikes. ###
Aquino committed to e-Trikes project Posted June 16th, 2012 by Alena Mae S. Flores & filed under Main Stories. MANILA STANDARD TODAY ENERGY Secretary Jose Rene Almendras on Friday said President Benigno Aquino III was committed to the electric tricycle program, and that he had almost been sacked for not carrying it out sooner. He defended the distribution of the e-trikes through the local government units amid criticism that would politicize the program during an election year. He said there was no diversion of funds because the $101-million financing from the Clean Technology Fund had not even been approved. “There can be no diversion of funds because we don’t have them yet,” Almendras said. “The loan has not been approved, and it will be discussed sometime in June or July during the monthly board meeting of the Asian Development Bank.” Almendras said the Local Government Code mandated that the e-trikes be coursed through the local government units. “The laws say that the LGUs are the ones who control the tricycles. They are the ones who are authorized to give the franchise. You cannot go against the local government code,” Almendras said. He said the e-trike program coincided with an election year because it was delayed.
“We really wanted this earlier,” Almendras said. “As a matter of fact, I almost lost my job because the President was so mad because he had wanted this. We really tried to do this as much as we could, but we had to go through the process. You have to convince the lender that we did the studies.” Almendras said the program will run until 2016, with the tricycles being distributed in tranches. He said the CTF funding was “not crucial” because the ADB was willing to put in $300 million in financing even without the CTF. “I can even make the e-trike work using local funds,” he said. “It’s just that we have a partnership agreement with the ADB to honor all the promises we made. They’ve been very helpful in the whole project, and it’s only right that we explore and do it with them.” Sohail Hasnie, the ADB’s principal energy specialist, said that, in 2009, when the CTF was made available, there were a lot of countries competing for the funds. “The idea is that the fund should be transformational, it should be invested in projects that will transform an industry,” he said. He said the Electric Power Industry Reform Act also limited their options because, under the law, public funds could not be used for power generation. “So taking all those into account, the Philippine government got working with ADB and asked for $125 million to be allocated, and what CTF did at the time was they endorsed it, which means we pencil in that much money for a project for this country,” he said. (Published in the Manila Standard Today newspaper on /2012/June/16) ###
ADB, DOE looking for E-trikes manufacturer By Neil Jerome C. Morales (The Philippine Star) Updated June 16, 2012 12:00 AM Comments (0) MANILA, Philippines - The Asian Development Bank (ADB) and the Department of Energy (DOE) have started seeking manufacturers for the rollout of 100,000 E-tricycles (E-trikes) until 2016. The program aims to reduce the transport sector’s reliance on fossil fuels and enhance the standard of living of tricycle drivers, officials said. “We are doing a pre-qualification of the bidders and we have a set of criteria. One of the criteria is that they should have the technical expertise,” said DOE Undersecretary Loreta G. Ayson. The ADB and DOE already came up with a final design for the five-seater E-trikes following a consultation with ADB’s team of Japanese experts, said DOE Secretary Jose Rene Almendras. In March, the DOE selected the three best E-trike designs among 80 entries. Almendras said the Japanese experts enhanced the safety and functional features of the winning models. “The E-trike project will put the Philippines at the forefront in terms of efficient, environment-friendly and sustainable transport system,” the DOE said. Specifically, it targets reducing the transport sector’s gasoline consumption by 561,000 barrels per year, resulting in the reduction of 260,000 metric tons carbon dioxide emissions per year.
All 100,000 units will be rolled out to local government units from 2012 to 2016. The ADB, for its part, is in talks with five to six lithium battery producers, said Sohail Hasnie, senior energy specialist of the ADB. “If we look at the battery patents, most of the patents in the lithium battery is held by Japan, South Korea, US and China,” Hasnie said. The deal will include a five-year battery warranty for the E-trikes, Almendras said. “We do not want to expose the tricycle driver to a technology risk,” he said. The E-trikes project will boost the incomes of tricycle drivers through the savings in fuel cost while creating local jobs from the establishment of manufacturing companies, the DOE said. The DOE expects E-trike operators to spend P90 to P100 per day to charge the E-trikes, lower compared with P380 per day spent for oil-powered tricycles. “These E-trikes will be manufactured in the Philippines... hopefully this will start a new industry that will create jobs,” Almendras said. The DOE will allot a portion of a $300-million ADB loan to the E-trikes initiative. State-owned Land Bank of the Philippines, which is the receiving agent for the payments, will determine the credit-worthiness of the local government units (LGUs) that want to buy E-trikes. “Not all LGUs will get this. The lending scheme will be based on their credit worthiness,” Almendras said. Local officials in Boracay in Aklan, Puerto Princesa in Palawan and Cabanatuan in Nueva Ecija earlier said they want to order E-trikes. Under the E-trike program, the recharging stations will be put up in strategic locations like airports and tourist destinations. The DOE said the E-trikes will not put an additional burden on the supply of electricity as the vehicles are charged during off-peak hours or in the evenings. “In the case of off-grid areas, E-trike electricity requirements will be sourced from solar-powered charging stations, thus contributing further to a cleaner environment,” the DOE said. In April, the government launched 20 E-trikes that are now plying the streets of Metro Manila. ###
ADB Tapping E-Trikes’ Battery Providers By MYRNA M. VELASCO, MANILA BULLETIN June 17, 2012, 2:16pm MANILA, Philippines --- Electric vehicles will only thrive if drivers are assured that they will not be stuck in the roads with empty batteries, hence, the Asian Development Bank (ADB) is addressing that one component in the chain to ensure the success of its planned rollout of 100,000 electric tricycles nationwide. In a press briefing, ADB energy specialist Sohail Hasnie disclosed that they sent out request for proposals to lithium-ion battery manufacturers to support the country’s e-trike deployment program. “So far, there are five to six companies which came back to us for proposals,” he said, stressing that these are countries with major patents in lithium-ion battery production, such as Japan, South Korea, United States and China. Hasnie noted that some of the battery suppliers’ proposals come with five-year warranty, thus ensuring that after-sales support will be there and that these are not “throw-away” technologies. The other major concerns being addressed by the ADB on the e-trike program would be accessibility to charging stations as well as the muchaspired local production of these environment-friendly vehicles. In other countries, battery-swapping stations are also being set up so the EV drivers would know exactly where to run to when they would run out of batteries.
Energy Secretary Rene D. Almendras has emphasized that the rollout of the targeted 100,000 e-trikes will be until 2016, the end of tenure of President Aquino. He pointed out that economics will propel the drivers’ shift to etricycles because this will eventually increase their take-home pay. This is anchored on the fact that their electricity-underpinned fuel cost will be more stable compared to bracing with the extreme swings in oil prices. The less overt impact of electric mobility would be reduction in the country’s carbon footprints. Still, Almendras is acknowledging that the DoE-designed e-trike program has some “technical, financial and social challenges,” yet they are determined to overcome these to win “the government’s thrust of reducing the transport sector’s reliance on fossil fuels and alleviating the standard of living of tricycle drivers.” The energy chief averred that the mass rollout of e-trikes will trim down the transport sector’s gasoline consumption by 561,000 barrels per year or roughly 260,000 tons of carbon dioxide avoidance on a yearly basis. On fears that the e-trikes may trigger hike in electricity demand, the energy chief opined that these “are usually charged during low peak hours or in the evenings which contribute to higher utilization of available generation capacities.” ###
Int’l fund body holds OK of e-trikes project Govt plan to roll out electric tricycles by 2013 may suffer setback Posted June 18th, 2012 by Christine F. Herrera, MANILA STANDARD TODAY PRESIDENT Benigno Aquino III’s target to roll out 100,000 electric tricycles by 2013 may suffer a setback after the Washington-based Clean Technology Fund postponed a decision on the program following complaints from civil society groups that the money earmarked for solar projects were diverted without proper public consultation. The postponement in April prompted the Energy Department and the Asian Development Bank to rush consultations with civil society groups in May. “Since at present there is not unanimous support to endorse the revised investment plan, we are postponing the deadline for approving the proposed decision,” said Patricia Bliss-Guest, an official of the Climate Investment Fund Administrative Unit, in a letter to the CTF Trust Fund members. “We will be consulting with the government of the Philippines and the ADB on when they will be in a position to resubmit the revised plan for endorsement.” The 16 CTF Trust Fund Committee-member countries include the United States, United Kingdom, Turkey, Sweden, Spain, South Africa, Nigeria, Morocco, Japan, India, Germany, France, Egypt, China, Brazil and Australia.
The UK, Germany, Japan, Australia, the United States and France have agreed to postpone approval of the revised Philippine investment plan “until after the outcomes of consultations have been made available to the Trust Fund Committee. Germany’s representative said they wanted feedback from the civil society groups after their consultations with the Philippine government. “Australia agrees with the requests put forward by the United States and Germany seeking further evidence/clarification of how the concerns raised by stakeholders are being addressed,” the Australian representative said. “We value the continuous consultation process with stakeholders and would like to see the updated supplemental report to address the concerns being raised by CSOs,” Japan’s representative said. Citing official documents, Red Constantino, executive director of the Institute for Climate and Sustainable Cities and Ronni Masayda, assistant transformation manager of the NGO Forum on ADB, said the ADB’s $300-million loan was “contingent” on the approval of the CTF’s $101 million in concessional loans. The Philippine government would provide the $99 million to complete the $500 million project. “Since December 2011, civil society groups have been calling on the ADB almost every month to hold consultations with all sectors on the e-trikes proposal,” said CTF Trust Fund Committee observer Elpidio Peria of Aksyon Klima in a letter to the Manila Standard. “Had the bank taken this call seriously right away, instead of rushing as they did only last May 21-23, it would have realized the folly of the fund diversion and the ill-thought project design.” Peria said the ADB made at least four attempts to “abbreviate the consultation process.” He also reiterated the objections of civil society groups to include local government units in the disbursement and collection of financing, particularly during an election year. The Philippines first tried to tap the CTF concessional loan for solar projects to bring savings to about 30,000 commercial and government buildings and factories under the Arroyo administration in 2009. Two years later, however, the Aquino administration sought to revise the use of CTF funds and pushed its e-trike program instead. (Published in the Manila Standard Today newspaper on /2012/June/18) ###
DOE pursues e-trike project Published : Monday, June 18, 2012 00:00 Article Views : 136 Written by : Alvin Murcia, JOURNAL AMIDST technical, financial and social challenges, the Department of Energy pursues its electric tricycle project, confident that the project objectives are aligned with the government thrust of reducing the transport sector’s reliance on fossil fuels and alleviating the standard of living of tricycle drivers. The project envisions that the transport sector’s gasoline consumption will be reduced by 561,000 barrels per year avoiding 260,000 tons of carbon dioxide emissions annually. This is made possible by replacing 100,000 gasoline-fed tricycle units with energy efficient e-trikes. The DOE said the project will boost the income of e-trike drivers through the savings in fuel cost and create local jobs from the establishment of manufacturing companies and associated after-sales services. The department allays the unfounded fears of stakeholders that the introduction of e-trikes will put additional burden on the supply of electricity due to increase in demand. E-trikes are usually charged during low peak hours or in the evenings which contributes to higher utilization of available generation capacities. In the case of off-grid areas, e-trike electricity requirements will be sourced from solar-powered charging stations, thus contributing further to a cleaner environment. The e-trike project will put the Philippines at the forefront in terms of efficient, environment-friendly, and sustainable transport system.###
30% of e-Trikes pilot-tested in Mandaluyong City failed Posted June 19th, 2012 by Christine F. Herrera & filed under Main Stories. MANILA STANDARD TODAY THE electric tricycles that President Benigno Aquino III wanted deployed nationwide next year at a cost of P21.5 billion had proved “problematic” in pilot tests in Mandaluyong City, civil society groups warned Monday. Some 30 percent of the Asian Development Bank-designed e-trikes remained parked in garages because those had broken down barely a year in operation, said Red Constantino, executive director of the Institute for Climate and Sustainable Cities and Ronni Masayda, assistant transition manager of the NGO Forum on the Asian Development Bank. That contrasted with the assurances of the ADB and the Energy Department to the Washington-based Clean Technology Fund that the tricycles would last 10 years, the civil society groups said. Aksyon Klima convenor Elpidio Peria Jr., also an observer at the Clean Technology Fund deliberations, said the civil society groups had raised the lack of after-sales service for the 100,000 e-trikes that the government wanted to distribute, particularly since most of the parts, including the lithium-ion batteries, were imported. “President Aquino wants to roll out and distribute to the mayors 20,000 of the 100,000 e-trikes starting next year, an election year,” Peria said. “This will become an election issue and people will start questioning the ‘straight path’ if the legitimate and serious concerns raised by the civil society *groups+ are not properly addressed.”
Peria reminded the government that the 16-member Clean Technology Fund had postponed its decision on financing the project until “substantive issues” had been taken up. Agham Rep. Angelo Palmones says the government must make sure the project is viable and does not become a burden on the mayors and taxpayers. Palmones and civil society groups had questioned the government’s decision to shift the loan funding away from the solar projects promoted by the previous administration to its own e-trikes program. Florante de Leon, head of the Mandaluyong City Tricycle Regulations Office, confirmed that six of the 20 e-trikes in the city bogged down after the ADB turned over 20 units for pilot testing in April 2011 and commercial operations began in May of the same year. He also said battery management systems should be installed to prevent the batteries from overheating. “Preventive maintenance is very important to the viability of the project,” De Leon told the 150 participants in a three-day workshop organized by the ADB and the Energy Department in May. “Another lesson learned through the Mandaluyong pilot is that the fast charging is not as fast as expected. Initially, it took 15 to 45 minutes to charge. However, after a while, charging time increased to up to three hours because of the selector that was installed to control the current.” De Leon said charging stations must be given priority, and a disposal or recycling mechanism must be put into place before mass adoption. Palmones said the problem with the e-trikes was not limited to having no after-sales service. They were not even registered in Mandaluyong. “We have here a case of e-trikes plying the routes without having been properly registered because the *Land Transportation Office+ did not know how to classify them under the existing rules,” Palmones said. Under the government’s investment plan, the ADB would extend loans to the Energy and Finance Departments, which will re-lend the amount to the mayors. The mayors in turn would collect P350 in daily payments from the tricycle drivers and remit the money to the national government for debt servicing. But civil society groups have opposed the setup, saying it would encourage political patronage and deprive the private sector of a role in micro-financing. (Published in the Manila Standard Today newspaper on /2012/June/19) ###
E-trikes will put RP at the forefront of energy efficiency, sustainable transport - DOE 19-Jun-12, 8:04 PM | Philippine News Agency InterAksyon.com: The online news portal of TV5 MANILA, Philippines - The Department of Energy (DOE) is pursuing its electric tricycle (E-Trike) Project amid its technical, financial, and social challenges, as it is confident the project objectives were aligned with the government thrust of reducing the transport sector’s reliance on fossil fuels and uplifting the standard of living of tricycle drivers. The Project envisions reducing the transport sector’s gasoline consumption by 561,000 barrels per year, thereby avoiding 260,000 tons of carbon dioxide emissions annually. This is made possible by replacing 100,000 gasoline-fed tricycle units with energy efficient e-trikes. The project will also boost the incomes of e-trike drivers through the savings in fuel cost and create local jobs from the establishment of manufacturing companies and associated after-sales services. DOE also allayed the fears of stakeholders that the introduction of e-trikes would put additional burden on the supply of electricity due to increase in demand. It said e-trikes are usually charged during low peak hours or in the evenings, which contributes to higher utilization of available generation capacities. In the case of off-grid areas, e-trike electricity requirements will be sourced from solar-powered charging stations, thus contributing further to a cleaner environment.
DOE said the e-trike project would put the Philippines at the forefront in terms of efficient, environment-friendly, and sustainable transport system. Energy Secretary Jose Rene Almendras, meanwhile, said the government was mandated under the Local Government Code to distribute e-trikes to the local government units. "The laws say that the LGUs are the ones who control the tricycles. They are the ones who are authorized to give the franchise. The TRB (Toll Regulatory Board) is in the LGUs, you cannot go against the local government code," Almendras said. Almendras said LGUs would be chosen based on their financial standing and capability to pay back government. Almendras lauded the Asian Development Bank for supporting the project. "Thank god ADB was around who said they are willing to fund it. ADB helped us perfect the design, ADB helped us run the design contest for Filipinos, ADB paid for the Japanese consultants who were vehicle designers who brought the technology aspect. ADB was willing to go for it primarily because it was transformational," he said. ###
A questionable program (Editorial) Posted June 20th, 2012 by Manila Standard Today & filed under Opinion. IN the light of what we know from official documents, the Aquino administration is seeking to divert development funds originally earmarked for solar energy projects to its own pet project, the distribution of electric tricycles. How this administration chooses to use development loans is well within its authority, but the government’s lack of candor and unanswered questions about the e-trike program have cast doubt on the wisdom of its choices. First, the Palace denied there was a diversion of funds, arguing semantically that there could be no diversion because the loan had yet to be approved. The official documents submitted by the Energy Department and the Asian Development Bank, however, belie those claims, clearly stating that the Philippine government sought “a reallocation” of $500 million in funding for solar power projects to e-trikes and energy-efficient appliances. The civil society groups that met with the government recall how one Energy official justified the reallocation of funds as a national priority. In fact, they said, consultations had been necessitated because they had complained to the Washington D.C.-based Clean Technology Fund last year that the funding for the solar power projects had been diverted without proper, transparent and credible consultation. In the light of these revelations, the Palace denials seem disingenuous, to say the least.
But there are other troubling questions. The release of the tricycles through local governments during an election year should set off alarm bells that money is being spent on what will indubitably be a politicized program. Will a town mayor bestow e-tricycles on those who would support his political opponent? The answer doesn’t require much thought. Finally, there are questions on the viability of the program itself, and whether adequate support services are in place. These would include spare parts and repair services and charging stations, as well as environmentally sound disposal facilities needed to make the program a real success. Unfortunately, a pilot test in Mandaluyong City has not been encouraging. In a year, about 30 percent of the e-trikes distributed in that city had broken down and are now confined to the garage—contrary to the government’s rosy projections that the units would last 10 years. Despite this less than auspicious start, the administration proposes to spend P21.5 billion on what looks clearly like a problematic program. What is even more tragic is that, in its rush to push its pet project, the government, despite its denials, is taking funds away from a viable program for tapping a clean and renewable energy source. (Published in the Manila Standard Today newspaper on /2012/June/20) ###
Skies clear for controversial e-Trike project By Christine F. Herrera | Posted on July 08, 2012 | 12:01am MANILA STANDARD TODAY The Washington DC-based Clean Technology Fund has reversed its earlier decision against the planned distribution of 100,000 electric tricycles to Metro Manila mayors in next year’s elections and paved the way for the release of funds for the P21.5 billion project. The decision of the CTF Trust Fund Committee paved the way for the release of a total of $500 million in loans broken down into $105 million from the CTF, $300 million from the Asian Development Bank and $99 million from the Philippine government. The endorsement for approval came amid protests from civil society groups led by Red Constantino, executive director of Institute for Climate and Sustainable Cities; Ronni Masayda, assistant transition manager of the NGO Forum on ADB; Anna Abad, Greenpeace climate and energy campaigner; and Denise Fontanilla, advocacy officer of Aksyon Klima Pilipinas. Civil society protests They made a last-ditch attempt to block the approval, claiming the ADB and DoE “railroaded” the process of consultations and failed to ensure there would be “after-sales service” considering that about a third of the 20 e-trikes that are being pilot-tested in Mandaluyong City are now rotting in garages. “The national government should make sure that old tricycles are phased out before the additional 100,000 e-Trikes are made to congest the already traffic-congested metropolis,” said Agham Rep.
Angelo Palmones, who first questioned the supposed diversion of funds from solar power projects to e-trikes. “With Mindanao facing a power crisis, and with Luzon recently placed on yellow alert, the people’s urgent demand is for more power, not for more vehicles which will compete for it,” Fontanilla said. But the CTF disagreed and claimed there were enough consultations with concerned sectors. Enough consultations “On April 11, 2012, we wrote to you withdrawing an earlier proposed decision to endorse the revised investment plan for the Philippines since at that time there was not unanimous support for the endorsement of the revised plan,” Patricia Bliss-Guest, program manager of the CTF’s Climate Investment Fund Administrative Unit wrote to the 16-member CTF Trust Fund. “The Government of the Philippines and the Asian Development Bank have since undertaken additional stakeholder consultations in response to earlier comments made by Committee members and issues raised by interested stakeholders,” Bliss-Guest said. Masayda, for his part, claimed the ADB rushed the consultations and “instead of eliminating opportunities for corruption, they appear to have been further enshrined in the project document.” “We urge the Trust Fund Committee to refrain from endorsing the project. We had hoped that the Aquino government would not be as easily played by the ADB as the Arroyo government,” Masayda added. Where are the safeguards? “Every month since December 2011, we have been asking the government and the ADB to ensure that LGUs are given a proper regulatory role without politicizing the initiative,” Constantino said. “Unfortunately, they keep insisting that LGUs be integrated into the financing cycle. Worse, government has opted to create artificial demand and supply rather than work with the private sector and harness market forces.” “The latest document is proof of this and this is regrettable. Instead of supporting the initiative we have to ask the CTF Trust Fund Committee not to endorse the project,” Constantino said. Bliss-Guest said the approval of CTF funding for the e-trikes project is contingent upon the Trust Fund Committee’s endorsement of the revised investment plan. She said the Trust Fund Committee agrees to an envelope of up to $250 million in CTF funding to finance the revised plan, which includes two projects for which CTF funding has already been approved (the Philippines Renewable Energy Accelerator Program and the Philippines Sustainable Energy Finance Program) and two projects for which project preparation grants have been approved (Philippines Renewable Energy Development and the Cebu Bus Rapid Transit Demonstration).
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“If we do not receive an objection to these proposed decisions by close of business on July 13, 2012, the decisions will be approved,” Bliss-Guest said. Recipe for corruption Fontanilla said the plan was a “recipe for corruption,” which will benefit foreign transnational firms while saddling the country with huge debt and a pile of e-waste. “We do know why the Department of Finance did not intervene and why the agency allowed the Asian Development Bank and Department of Energy to impose a dubious procurement scheme that’s untethered to market forces,” Fontanilla said. “We are now forced to communicate to the committee that we cannot endorse this proposal. We ask the committee to send the proposal back to the Philippine government and to tell the Asian Development Bank to stop perverting processes that adversely impact country ownership of projects and programs,” Fontanilla said. “The government is missing a real opportunity to make this a truly transformational project. By failing to lock it in step with renewable energy development efforts, the project undermines rather than stimulates real change,” Abad said. ###
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