Bus operators back DOE’s natural gas vehicle program

Four groups of bus operators have signed a manifesto indicating their support for the Natural Gas Vehicle Program for Public Transport of the Department of Energy (DOE).

The signing was led by Integrated Metro Manila Bus Operators Association president Claire dela Fuente. The other bus operators who signed the manifesto are: Metro Manila Bus Operators Association president Ramon Castillo; Southern Luzon Bus Operators Association, president Michael Pontenciano; Intercity Bus Operations Association president Aladin Simundac; and Provincial Bus Operators Association of the Philippines president Alejandro Yague Jr.

Energy Secretary Vincent S. Perez said there is an available $20 million financing facility from Land Bank of the Philippines and Development Bank of the Philippines provided for by the Asian Development Bank (ADB) to support this program.

"A financing window is already there. It is just a matter of applying for it," Perez told the bus operators.

Perez said the signing of the manifesto is an important event not only for the country but also for the bus operators. "There are a lot of advantages in the use of natural gas. It is a clean technology and the bus operators who will use it will be given incentives," he said.

Among the incentives and privileges for using natural gas as fuel include the exclusive use of prime highways in the country like C-5, fast tracking of issuance of environmental clearance from the Department of Enegy and Natural Resources, lower cost (natural gas is likely to be sold 50 percent lower than diesel), tariff cut on natural gas vehicle (NGV) conversion systems, exemption of NGV operators from securing certificate of compliance with emission standards. Granting of three franchise for NG bus operators (two for Batangas-Manila route and one for Manila-Bicol route).

In their manifesto, the bus operators expressed their commitment to convert a portion of their fleet to run on natural gas.

So far, there are already three private sector-led activities under the NGV program. The California Bus Line has intended to acquire 100 units of OEM-NGVs by 2003.

Shell Philippines Exploration B.V., the main operator of the Malampaya Deep Water Gas to Power project, and other firms such as First Gas Power Corp., Philippines National Oil Co. and Petron Corp. have signified interest to construct refueling stations and related facilities.