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The Preliminary Works for the Technical Cooperation on Low-Emission Transport System in Lao Pdr (Lets Ev)

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The Preliminary Works for the Technical Cooperation on Low-Emission Transport System in Lao Pdr (Lets Ev) JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) MINISTRY OF PUBLIC WORKS AND TRANSPORT (MPWT) THE PRELIMINARY WORKS FOR THE TECHNICAL COOPERATION ON LOW-EMISSION TRANSPORT SYSTEM IN LAO PDR (LETS EV) FINAL REPORT FEBRUARY, 2014 JAPAN INTERNATIONAL COOPERATION AGENCY(JICA) ALMEC CORPORATION LAO JR 14-004 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) MINISTRY OF PUBLIC WORKS AND TRANSPORT (MPWT) THE PRELIMINARY WORKS FOR THE TECHNICAL COOPERATION ON LOW-EMISSION TRANSPORT SYSTEM IN LAO PDR (LETS EV) FINAL REPORT February 2014 ALMEC CORPORATION i The rate used in the report is USD1.0= JPY102.5=LAK7,882 (rate in February 2014) Electrci tariff=780LAK/kWh=0.099USD/kWh Gasoline price=10,590LAK/L=1.34USD/L Diesel price=9,000LAK/L=1.14USD/L (price in February 2014) TABLE OF CONTENTS 1 INTRODUCTION ......................................................................................................... 1-1 1.1 Study Context ................................................................................................................. 1-1 1.2 Study Objective, Coverage, and Counterpart Agency ................................................... 1-2 1.3 Study Implementation..................................................................................................... 1-2 2 ELECTRIC VEHICLES IN LAO PDR ............................................................................ 2-1 2.1 Current Status of EV Introduction in Lao PDR ................................................................ 2-1 2.2 Current EV-related Policies and Proposals ..................................................................... 2-9 2.3 Analysis of Ownership and Utilization Costs of EVs ...................................................... 2-17 2.4 A Direction for Promoting EVs in Lao PDR .................................................................... 2-27 3 EV POLICIES AND REGULATIONS IN EV INTRODUCING COUNTRIES ................. 3-1 3.1 EV Policies and Regulations in Japan ........................................................................... 3-1 3.2 EV Policies and Regulations in Europe ....................................................................... 3-13 3.3 EV Policies and Regulations in the United States ....................................................... 3-22 3.4 EV Policies and Regulations in China .......................................................................... 3-31 3.5 EV Policies and Regulations in ASEAN ....................................................................... 3-36 4 INSTITUTIONAL FRAMEWORK FOR EV/PHEV PROMOTION IN LAO PDR .............. 4-1 4.1 General ........................................................................................................................... 4-1 4.2 Regulatory Framework on EV ........................................................................................ 4-2 4.3 Tax System on EVs ...................................................................................................... 4-12 4.4 EV Infrastructure Development .................................................................................... 4-45 4.5 Information and Education Campaign .......................................................................... 4-53 4.6 Public and Private Partnership (PPP) in EV Development .......................................... 4-60 4.7 External Assistance and International Cooperation ..................................................... 4-62 5 MODEL PROJECTS ..................................................................................................... 5-1 5.1 General ......................................................................................................................... 5-1 5.2 E-trike Support Program ................................................................................................ 5-2 6. CONCLUSION AND RECOMMENDATIONS ................................................................ 6-1 i Appendix Appendix 3A: Vehicle Regulations in Japan Appendix 3B: Guidelines for Converted Electric Vehicles Appendix 4A: Preliminary Analysis on Vehicle Tax and Road Transport Finance Appendix 4B: Datasheet on Selected Vehicles for Analysis ii LIST OF TABLES Table 2.2.1 Priority Projects in the EST Strategy of Lao PDR ........................................................ 2-10 Table 2.2.2 Roadmap for EV Introduction ...................................................................................... 2-14 Table 2.2.3 EV Assumed Policy Targets by Year ............................................................................ 2-16 Table 2.3.1 Specification of Selected Vehicles ............................................................................... 2-17 Table 2.3.2 Characteristics of Sample ICE Vehicles and EVs for Analysis .................................... 2-18 Table 2.3.3 Vehicle Operating Costs of Motorcycles and E-bicycles (USD) .................................. 2-19 Table 2.3.4 Vehicle Operating Costs of Motorcycles and E-motorcycles (USD) ............................ 2-20 Table 2.3.5 Vehicle Operating Costs of Jumbo and E-trikes (USD) ............................................... 2-21 Table 2.3.6 Comparison of 8% Interest Loan and Interest-free Loan ............................................. 2-22 Table 2.3.7 Vehicle Operating Costs of Tuktuk, Shared taxi and E-minibus (USD) ....................... 2-24 Table 2.3.8 Vehicle Operating Costs of ICE-sedans and E-cars (Case 1: Base Case) ................. 2-25 Table 2.3.9 Vehicle Operating Costs of ICE Sedan and E-cars (Case2: battery cost =1/2) .......... 2-25 Table 2.4.1 Target EVs for Promotion by Vehicle and Battery Types ............................................. 2-27 Table 2.4.2 Comparison of Lead-acid and Li-ion Batteries ............................................................ 2-28 Table 2.4.3 EV/PHEV Promotion Policy by Vehicle Type ............................................................... 2-29 Table 3.1.1 Subsidy on EVs by the Next Generation Vehicle Promotion Center ............................. 3-2 Table 3.1.2 Working Groups in APEV ............................................................................................... 3-3 Table 3.1.3 Regulations Related to the Road Transport Vehicle Act ................................................ 3-5 Table 3.1.4 Classification of Charging Facilities at Private and Public Parking Spaces .................. 3-7 Table 3.1.5 Components of Technical Requirements for Converted EVs ........................................ 3-9 Table 3.1.6 Vehicle Classification under the Transport Vehicle Act ................................................ 3-11 Table 3.1.7 Vehicle Category under the Road Traffic Act ............................................................... 3-12 Table 3.1.8 Electric Vehicle Classification under the Transport Vehicle Act ................................... 3-12 Table 3.2.1 EV Promotion Policies and Strategies in European Countries .................................... 3-14 Table 3.2.2 Incentives given by European Countries to EVs/PHEVs Users .................................. 3-15 Table 3.2.3 National Members of AVERE ....................................................................................... 3-15 Table 3.2.4 Vehicle Classification in Europe ................................................................................... 3-19 Table 3.2.5 Supplemental Sub-classification Criteria for Vehicle Category L ................................ 3-20 Table 3.3.1 Incentives for EV/PHEV Promotion by the States ....................................................... 3-23 Table 3.3.2 EV/PHEV-Related Standards in USA .......................................................................... 3-27 Table 3.3.3 NHTSA Vehicle Classification ...................................................................................... 3-28 iii Table 3.3.4 FHWA Vehicle Classification ........................................................................................ 3-28 Table 3.3.5 US EPA Vehicle Classification ..................................................................................... 3-29 Table 3.4.1 Subsidies for EVs/PHEVs in China .............................................................................. 3-32 Table 3.4.2 List of Published Standards of Electric Automobiles in China (36 Items) .................... 3-34 Table 3.4.3 Vehicle Classification in China ..................................................................................... 3-35 Table 3.5.1 Incentives for EVs/PHEVs in ASEAN .......................................................................... 3-37 Table 4.1.1 EV Related Regulations in Lao PDR ............................................................................. 4-1 Table 4.2.1 Identified Problems and Issues with Regards to EVs, PHEVs ...................................... 4-3 Table 4.2.2 Applicability of Existing Laws and Regulations on 3 Tests ............................................ 4-6 Table 4.2.3 Identified Problems and Issues with Regards to EVs, PHEVs ...................................... 4-6 Table 4.3.1 Tax Rates on Vehicles in the Current Tax System ....................................................... 4-12 Table 4.3.2 Rates of Road User Charges by Vehicle Type ............................................................ 4-13 Table 4.3.3 Amount of Tax/Charge for Model Vehicles in Lifecycle ................................................ 4-18 Table 4.3.4 Characteristics of Middle Price (Tax Base) in Comparison to CIF ..............................
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