E-Tricycles are more fun with SHGs like Cooperatives than LGUs

Electric powered tricycles are an ideal solution to lessen pollution caused by gasoline powered tricycles in the Philippines. However, a US$300 million project by the ADB to roll out an 100,000 of them is already taking 3 years running (the bank expects to complete the rollout in 2017). However, it appears the root cause of the delay is the final stakeholder (LGUs) has to meet the requirements set by Land Bank to be lent the funds to purchase these vehicles. Is there a workaround this problem? Why not allow self help groups like cooperatives play a role in the process. I am sure they can be in a better position than LGUs in bringing these vehicles to the market.

From BusinessWorld Philippines

November 05, 2014

DoE invites new bids for e-trikes

THE GOVERNMENT is set to conduct another round of auctions for the supply and delivery of first 3,000 tricycles powered by electricity early next year, according to a notice published on Wednesday.

The electric tricycle (e-trike) project is a joint undertaking by the Philippine government and Asian Development Bank (ADB).

The Department of Energy (DoE), which serves as the executing agency, said in its notice that it is now inviting eligible bidders to submit sealed bids.

The department said 1,200 units are required to be produced and delivered between April 1 to June 30, with initial delivery of the first 500 units on April 2015.

There was no deadline given for the remaining 1,800 units.

“International competitive bidding will be conducted in accordance with ADB’s single stage, two-envelope procedure and is open to all eligible bidders from member-countries,” the DoE said.

Bid documents will be made available upon payment of P30,000 non-refundable fee. There will be a pre-bid conference on Dec. 2.

The deadline for bid submissions is 9:00 a.m. on Jan. 15, 2015. Bids will be opened at 9:30 a.m. of the same day.

This is the second time the DoE started seeking offers for the supply and delivery of first 3,000 e-trikes, which will initially benefit local government units (LGUs) in Luzon.

The first round of auctions held in August last year drew offers from four companies: Lirica Rising Sun & Shoyo-Terra Group and Uzushio Electric Co. Ltd. of Japan; Eco One Co. of South Korea; and Teco Electric & Machinery Co. Ltd. of Taiwan.

However, the awarding did not materialize after the LGUs failed to meet requirements set by the Land Bank of the Philippines.

Energy Secretary Carlos Jericho L. Petilla said last month that a recipient of the e-trikes should have the “seal of good housekeeping” — a certification given by the Department of Interior and Local Government.

In order to secure the “seal of good housekeeping,” an LGU is judged based a set of standards that include good planning, sound fiscal management, transparency and accountability.

Article location : http://www.bworldonline.com/content.php?section=Economy&title=DoE invites new bids for e trikes&id=97360

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