EVAP Regroups After DOE Decides to Scrap E-Trike Program

The Electric Vehicle Association of the Philippines (EVAP) was forced to rethink its strategy after the Department of Energy (DOE) announced that it will drop its $500 million E-trike Program, set to be funded by the Asian Development Bank (ADB).

During its annual General Management Meeting (GMM), the EVAP assessed the effect of the DOE's decision on the overall domestic electric vehicle industry, and is appealing to the government agency to continue the program. At the event, EVAP president Rommel Juan announced a new roadmap for the Philippine EV industry, which was drafted in partnership with power giant Manila Electric Company (Meralco).

“It has come to our attention that the Electric Tricycle Program of the Department of Energy will be discontinued,” Juan said at the event. “If so, we the officers and members of EVAP would like to state our position on this matter, which is that the E-trike Program be continued for other electric-vehicle projects as a Green Financing Program that could be administered by other government agencies.” “Our EVAP Executive Director Bong Cruz outlined the short, medium and long- term action plans of the new roadmap covering the next ten years which will be formally submitted to the BOI,” he added.

Juan acknowledges that DOE's decision was a huge setback to EVAP's plans to upgrade the budding local EV industry, but is confident that the group can overcome the hurdle, claiming that it won't hamper with their plans to create a definitive 10-year roadmap.

DOE's decision

Late in November of last year, DOE decided to terminate the loan component of the E-trike Program, preventing 100,000 interested e-trike buyers to fund their purchase. However, the bidding has concluded for the first 3,000 units and produced by the winning supplier, so Energy Secretary Alfonso G. Cusi said the agency will proceed with this initial release. The reason for the scrapping of the project, according to Cusi, was the failure of the project to drum up the necessary interest, speculating that it may be because of the project's high cost.

“We implore the government to please help us sustain the momentum of the initial success of EVs in the country and help make the Philippines the EV hub of Asia. With government support, we can do it. Just please continue the DOE E-trike Program with a revised Terms of Reference,” Juan said, adding that the Department of Transportation (DOTr) and/or the Department of Interior and Local Government (DILG) can pick up the slack left by the DOE and take over the E-trike Program using government financial institutions as loan conduits.

The EVAP e-trike roadmap

Juan explains that the EVAP roadmap is designed to enable the private sector and equip it with tools it needs to develop the EV industry within five years. “One of the most important factors of the new roadmap is the effort to pass the proposed EV and Hybrid Bill in both the Senate and in Congress. This bill will definitely be the focus of EVAP this coming 2017.”

EVAP Executive Director Bong Cruz added that the roadmap also contains a few key EV-related initiatives. These include helping TESDA draft a nationwide curriculum for EV maintenance, servicing and repairs, as well as formulating quality standards for EVs, EV components and parts, and the procedures that will be used for testing them.

“We also will work for setting up of one of the most important EV structures needed: battery charging and swapping stations in strategic locations in the country. And to boost sales, we will work to have green financing available at the retail sector. We will encourage foreign investment and joint ventures with foreign EV players and develop the export market. We hope that the Philippines will soon be the manufacturing hub for EV parts and components in the region,” Cruz said.

Diverting the $500 million fund

EVAP said that the $500 million ADB fund may still be used for other EV-centric projects that do not require a formal bidding. “We do not wish for this fund to be wasted and simply be returned to ADB. There are plenty of opportunities in the country for EVs, may it be three-wheeled e-trikes or even four-wheeled e-jeepneys. This much-needed fund could help jump-start and catalyze our domestic EV industry, which is just starting to take off,” Juan said, citing the successful use of e-vehicles in certain parts of the Metro including Makati, Muntinlupa, Mandaluyong, Filinvest City and Ateneo de Manila. E-trikes are also enjoying use in provincial areas such as Bacoor, Naga, and Boracay.

“All of these simply prove that EVs already work, can be mass-produced locally by local technicians, engineered by Filipino engineers and are, therefore, already available locally in commercial volumes. We have a sunrise industry in our hands. It needs the caring and nurturing arms of government,” Juan said.