Title: Motorcycle Upgrade Project for Bangkok
1Motorcycle Upgrade Project for Bangkok
Clean
Polluting
The World Bank February 12, 2001
2Air 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(No Transcript)
4Vehicle 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
5MOTORCYCLES 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
6The Pillars of Vehicular AQM
In-Use Vehicle Standards - IM
New Vehicle Standards
Transport Management
Cleaner Fuel
7Ways 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
8In-use MC Project Preparation Process
- 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
9Bangkok 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
10Clinic Summary
11MC ClinicsBasic Information 3000 MCs in 6 days
in 2 clinics
12MC Clinic ResultsImpact of Minor tune-ups
Reduction in highly Polluting Vehicles
More Polluting Motorcycles (based on Opacity)
Less Polluting Motorcycles (based on Opacity)
Corresponding Increase in Cleaner Vehicles
13MC 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
14Conceptual 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
0.6
0.8
0.5
Emission Factor (g/km) -----gt
15What 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
16Main 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
17Schematic of Process, Benefits and Costs
Pass
Pass
No interest
Repair/Sell
50
35
9
4
100
Test1
Test2
MUP
Old MCs
Fail
Fail
New MC
2
15
6
50
Minor Repairs
Major Repairs
15
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
- Very High buyback/upgrade/scrapping Costs
Costs
- Low Repair Costs (primarily labor)
- Higher Repair Costs (parts and labor)
18How will the MC Testing work?
Pass or Minor Repair
Testing Center
Major Repair
MUP -NEW MC
Scrap/Recycle old MC
19MC Upgrade Process
Emission Test (MC Dealers to Administer)
In-Use MC
Pass
100
50
50
Fail
35
Minor Tune Up Emission Test
Pass
Fail
15
Major Repair Emission Test
Pass
9
Out on the road
Fail
6
6
User to Upgrade
New MC
6
Old MC
4
2
Repair/Recycle Parts/Sold Upcountry
Scrap
20MUP Estimated Costs
21Risks 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
22What 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
23Role 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
24Role 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
25Role 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)
26NEXT 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