Lone bidder for e-trikes agrees to cut cost–DOE

by Lenie Lectura – December 7, 2015

from Business Mirror

THE lone bidder for the supply and delivery of 3,000 electric-powered tricycle (e-trike) has agreed to lower the cost by 27 percent, an official of the Department of Energy (DOE) said last week.

Uzushio Electric Co. Ltd. of Japan and its local partner BEMAC Electric Transportation Philippines Inc. submitted a bid of P364.17 million. Energy Undersecretary Donato D. Marcos said the department was able to negotiate for a lower cost.

“We were able to lower the price by 27 percent,” Marcos said.

Marcos added that the agency would again try to further lower the cost. “The result of the first negotiation was for the lone bidder to lower it by 27 percent. Now we are negotiating again with the presence of an e-vehicle expert. We are hoping that it can still be lowered.”

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

The ADB will provide financing of $300 million 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 Uzushio Electric Co. Ltd. of Japan and its local partner BEMAC Electric Transportation Philippines Inc. will be submitting a counter offer soon.

“We have to seek again a No Objection Letter from the ADB. After it is issued, we have to recommend the award of the project to the DOE secretary,” Marcos said.

The project’s objective is not only to replace the traditional gasoline-fed tricycles but also to reduce the transport sector’s annual petroleum consumption by 2.8 percent (equivalent to 89.2 million liters) per year and achieve 79 percent carbon dioxide foot print avoidance.

Each e-trike unit features a 3-kilowatt-hour lithium-ion rechargeable battery. It can comfortably seat up to five passengers. The entrance is on the pedestrian side of the vehicle.

Each unit complies with the Land Transportation Office’s Road Worthiness Guidelines and Regulations. It requires less maintenance, and designed for easy driving, maneuverability and passenger comfort. There is no noise and there is less vibration than conventional tricycles.