DOE awards e-trike contract to Japan firm, local partner

by Lenie Lectura – January 20, 2016

from Business Mirror

THE Department of Energy (DOE) has issued a notice of award to Uzushio Electric Co. Ltd. of Japan and its local partner, Bemac Electric Transportation Philippines Inc., the lone bidder for the supply and delivery of 3,000 electric-powered tricycle (e-trike).

Energy Undersecretary Donato Marcos, who was present during the ceremonial switch-on of the 54- megawatt (MW) wind farm in Pililia, Rizal, said the negotiated contract price for each unit costs P455,000 to P460,000.

“The notice of award was signed by the energy secretary last week. We expect them to complete all the requirements 28 days upon issuance of the notice before the contract signing takes place,” Marcos said.

The e-trike project is a joint undertaking of the DOE and the Asian Development Bank (ADB). The objective of the project is to replace some 100,000 gasoline-fed tricycles by 2017.

The ADB will provide $300-million financing for the $504-million project. The government will fund $99 million, and Clean Technology Fund, $105 million.

The e-trike project aims to promote sustainable transport, address the increasing carbon emissions in major cities, and reduce oil dependence of the local transport sector. The project also aims in transforming the public tricycle sector and jump-starting a new industry in the transport sector.

Marcos said the lone bidder would provide a five-year warranty and conduct regular maintenance work on all units. These will be rolled out in the National Capital Region and Regions 4A and 4B.

The DOE official said there could be another round of bidding for more e-trike units, depending on the outcome of the deployment of the first batch.

“If we see that the government serves as a catalyst in this industry, then maybe we could go for another round. However, if the DOE does not feel the presence of these e-trikes, then we might as well consider putting up another type of e-vehicle like jeepney or buses,” Marcos said.