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Motorcycle Upgrade Project for Bangkok

Motorcycle Upgrade Project for Bangkok. Clean. Polluting. The World Bank February 12, 2001. Air Quality Problem. PM 10 levels are two to three times the “24-Hour Average” and “Annual Average” Thai standards. CO levels are two to three times the “8-Hour Average” Thai standard.

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Motorcycle Upgrade Project for Bangkok

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  1. Motorcycle Upgrade Project for Bangkok Clean Polluting The World Bank February 12, 2001

  2. Air Quality Problem • PM10 levels are two to three times the “24-Hour Average” and “Annual Average” Thai standards. • CO levels are two to three times the “8-Hour Average” Thai standard. • NOx may become a problem if PM repairs not performed correctly.

  3. PARSONS

  4. Vehicle Growth in Bangkok There are estimated to be almost 2 million motorcycles registered in Bangkok currently. About half may be in use and our target gross polluters MC are about 50,000. Source: Road Transport Statistics, Department of Land Transport

  5. MOTORCYCLES AND AIR POLLUTION • Up to 50% of vehicle fleet • up to 80% of them have 2-stroke engines • Consume up to 25% of gasoline • Emit up to 60% of total HC, 20% of total CO and 20% of PM10 and NOx

  6. The Pillars of Vehicular AQM In-Use Vehicle Standards - I&M New Vehicle Standards Transport Management Cleaner Fuel

  7. Ways to reduce motorcycle emissions • New Vehicle Emissions Standards in progress • Improved Lube Oil Standards done • Encourage public transit in progress • Tax incentives for clean MCs failed this year • Improved in-use I & M program in-use MC project • MC Upgrade and Scrappage in-use MC project The PCD, BMA, LTD, and other agencies are addressing many of these issues, with the co-operation of the manufacturers

  8. Date - Oct. 1998 - Jan. 1999 - June 1999 - Jan. 2000 - April 2000 - May 2000 - Nov. 2000 - Feb. 2001 Major Milestones BMA and Bank agreed to work together to identify Air Quality Management related issues and options Defined possible Air Quality Management Project Components Stakeholder workshop with various agencies Decided to organize clinics to gather data MOA with the manufacturers Three MC clinics in Bangkok Results of the clinics and decision to start a small project Detailed project design and financing arrangements In-use MC Project Preparation Process

  9. Bangkok Motorcycle ClinicsConcept • Objectives: • To Improve the Knowledge-Base • Promote Awareness • Encourage Inter-agency coordination and public-private partnerships • Pilot the approach to generate lessons for future program design Procedure: • Motorcycles brought in for testing. • Based on their emissions, they were: • Given minor repair • Given major repair • Traded in for a new motorcycle -- old motorcycle to be refurbished and sold upcountry or scarpped

  10. Clinic Summary

  11. MC ClinicsBasic Information: 3000 MCs in 6 days in 2 clinics

  12. MC Clinic ResultsImpact of Minor tune-ups Reduction in highly Polluting Vehicles Less Polluting Motorcycles (based on Opacity) More Polluting Motorcycles (based on Opacity) Corresponding Increase in Cleaner Vehicles

  13. MC Clinic ResultsClassification of Motorcycles Need Major Repairs / Potentially Scrappable Borderline Cases Clean Vehicle Population Current Standard Vehicles cleaned-up to standard after minor tune-up

  14. Conceptual Framework of a MC Upgrade Project Additional Motorcycles Added (Cleaner) 2005 - with program Motorcycles taken out of circulation (Very Polluting) 2000 Number of Motorcycles 1985 2005 - without program 0.1 0.5 0.6 0.8 Emission Factor (g/km) ----->

  15. What are the Motorcycle Upgrade Project Objectives? • Reduce local air pollution from in-use motorcycles (and associated health impacts) in Bangkok Metropolitan Area • Promote awareness of vehicular air pollution issues, maintenance practices • Strengthen Inspection & Maintenance enforcement • Improve fuel economy of 2-wheelers

  16. Main Components • Implement a Motorcycle Upgrade and Scrappage Program using a combined “carrot-and-stick” approach • Piloting other components of the Bangkok Air Quality Management Project Project will be designed to be flexible and adaptable to incorporate lessons learned during implementation

  17. Schematic of Process, Benefits and Costs Pass Pass No interest 50 35 9 4 Repair/Sell 100 Test1 Test2 MUP Old MCs Fail Fail New MC 2 15 6 50 Minor Repairs 15 Major Repairs Scrap • Public Health benefits due to improved air quality: Very High Reduction of Unit Pollution over very few vehicles (new and repaired) • More fuel economy • Sale of New MCs • Safety Improvement • Parts salvaged • Global GHG benefits • Environmental Awareness • Enforcement Capacity • Economy • Experience & lessons • Dealer Benefits (Advertising/image, new vehicle sales) • Public Health benefits due to improved air quality: Small Reduction of Unit Pollution over large number of vehicles • More fuel economy • Safety Improvement • Better Resale Value • Global GHG benefits • Public Health benefits due to improved air quality: Significant Reduction of Unit Pollution over a few number of vehicles • More fuel economy • Better Resale Value • Safety Improvement • Global GHG benefits Benefits • BMA/LTD Capacity Building • Transaction and other fixed costs, including Promotional Campaign • Testing Costs • “Freebees” • Very High buyback/upgrade/scrapping Costs • Low Repair Costs (primarily labor) • Testing Costs • Higher Repair Costs (parts and labor) • Testing Costs Costs

  18. How will the MC Testing work? Pass or Minor Repair Testing Center Major Repair MUP -NEW MC Scrap/Recycle old MC

  19. MC Upgrade Process Emission Test (MC Dealers to Administer) In-Use MC 100 Pass 50 50 Fail 35 Minor Tune Up & Emission Test Pass 15 Fail Major Repair & Emission Test 9 Pass Out on the road 6 Fail 6 User to Upgrade New MC 6 Old MC 4 2 Repair/Recycle Parts/Sold Upcountry Scrap

  20. MUP Estimated Costs

  21. Risks involved in such a scheme? • Difficult to monitor as it will be dispersed • Old MC may be sold in the countryside as is • Second-hand market may get flooded • Corruption in tracking of old • Manufacturers commitment • The Government commitment to enforcing standards • Incentives may not be enough for dealers and owners of polluting MC

  22. What the Program means to Various Stakeholders • MC Owners - fuel savings, new MC, pride of helping clean up Bangkok • Thai Government (MOF, BMA, PCD) - Better enforcement, institutional capacity building, public outreach, part of air quality management efforts • Motorcycle Manufacturers and dealers - Image/advertising, increased sales of newer products and service, goodwill • World Bank - Pilot experience, lessons for proposed Bangkok Air Quality Management Project • General Public - cleaner air, better fleet, awareness

  23. Role for BMA and LTD • Oversight of the MC Upgrade Project • Advisory services on the options available under the MUP • Pre-qualify inspection sites for MC testing • Awareness raising and MUP advertising campaign oversight (to be done by private sector) • Improve Enforcement of I & M standards

  24. Role of Financial Intermediary • Clearing house for MUP transactions • Transfer of funds to be used for purchase of a new MC and for scrappage • Organization of community service cooperative (CSC) • Provide credit financing for the purchase of the new MC

  25. Role of the World Bank . • Technical Experience from Around the World • Facilitator of vision & institutional dialogue • Macro Policy Changes & Dialogue with RTG • Mobilize Bank & Donors resources (TA and Loan)

  26. NEXT STEPS • Pre-Appraisal of the MUP - February 1 WB/AusAid • Financial Intermediary agreement - Feb. 20 GSB/BMA/WB • Stakeholder discussion meeting - March 10 BMA/MM • Finalize MUP Concept - March 15 WB/BMA/MM • Obtain MOF acceptance for the MUP - March 31 BMA • Finalize Draft Appraisal - April 15 WB/AusAid • Project Implementation Plan (+ Procurement) - April 15 WB/AusAid • Negotiations for a Bank Loan - May MOF/BMA/WB • Project Approval by June 2001 BMA/WB

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