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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

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motorcycle upgrade project for bangkok
Motorcycle Upgrade Project for Bangkok



The World Bank

February 12, 2001

air quality problem
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
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
  • 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
the pillars of vehicular aqm
The Pillars of Vehicular AQM

In-Use Vehicle Standards - I&M

New Vehicle Standards

Transport Management

Cleaner Fuel

ways to reduce motorcycle emissions
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

- 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
bangkok motorcycle clinics concept
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


  • 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
mc clinic results impact of minor tune ups
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

mc clinic results classification of motorcycles
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

conceptual framework of a mc upgrade project
Conceptual Framework of a MC Upgrade Project

Additional Motorcycles Added (Cleaner)

2005 - with program

Motorcycles taken out of circulation

(Very Polluting)


Number of Motorcycles


2005 - without program





Emission Factor (g/km) ----->

what are the motorcycle upgrade project objectives
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
main components
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


Schematic of Process, Benefits and Costs



No interest










Old MCs



New MC











  • 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


  • 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


how will the mc testing work
How will the MC Testing work?

Pass or Minor Repair

Testing Center

Major Repair


Scrap/Recycle old MC

mc upgrade process
MC Upgrade Process

Emission Test

(MC Dealers to Administer)

In-Use MC







Minor Tune Up &

Emission Test




Major Repair &

Emission Test



Out on the road




User to Upgrade

New MC


Old MC



Repair/Recycle Parts/Sold Upcountry


risks involved in such a scheme
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
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
role for bma and ltd
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
role of financial intermediary
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
role of the world bank
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)
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