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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 l.jpg
Motorcycle Upgrade Project for Bangkok

Clean

Polluting

The World Bank

February 12, 2001


Air quality problem l.jpg
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.



Vehicle growth in bangkok l.jpg
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


Motorcycles and air pollution l.jpg
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


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The Pillars of Vehicular AQM

In-Use Vehicle Standards - I&M

New Vehicle Standards

Transport Management

Cleaner Fuel


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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


In use mc project preparation process l.jpg

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


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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



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


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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


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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


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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) ----->


What are the motorcycle upgrade project objectives l.jpg
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


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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


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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


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How will the MC Testing work?

Pass or Minor Repair

Testing Center

Major Repair

MUP -NEW MC

Scrap/Recycle old MC


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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



Risks involved in such a scheme l.jpg
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


What the program means to various stakeholders l.jpg
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


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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


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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


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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)


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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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