Hybrid bus operators to get additional perk

CEBU, Philippines - The Philippine government, through the Board of Investments (BOI) has added another incentive offer to the land transportation sector in the country to encourage operators to use hybrid bus system using electrically-run buses, instead of depending on fossil fuel.

This was announced by BOI governor Oliver Butalid in his recent visit to Cebu to hold a public hearing on the proposed investment priorities plan for 2013.

According to Butalid, for bus operators (big or small) incentives will be given if their units will have the capacity to use alternative fuel, or the hybrid units that will at least consume only 50 percent of fossil fuel, and 50 percent electric component or (re-chargeable).

“One of the causes of pollution is the exhaust of motor vehicles. This should be minimized,” said Butalid in an interview.

Aside from encouraging the mass transport system in the Philippines to adopt environment friendly operation, this incentive Butalid said will also curb the country’s dependency in fossil fuel import.

In the past, BOI has not granted bus operators with incentives for duty-free equipment, income tax holidays.

Butalid said the introduction of hybrid buses, is not new in the Philippines, as it is already gaining ground in Metro Manila, with adoption of some jeepneys, tricycles, in electrically-run vehicles.

However, the conversion of existing bus to hybrid is not part of the incentive offering, he clarified, although he hinted that the rules can be altered.

Based on the BOI proposed investment priorities for this year, under the land mass transport, it stipulates that the incentive will cover mass transport using Alternative Fuel Vehicle (AFV) buses.

AFV buses shall be limited to buses that run on electric batteries and gasoline-diesel, and other fuels.

Following are the qualifications for registration: it must utilize brand new electric buses or other AFV buses with at least Euro 3 compliant engine and using Euro 3 fuel; Operators must have their own terminals and garage that can accommodate the total number of buses under their franchise (s); and operators must undertake to operate within their franchise routes.

Prior to start of commercial operation, the enterprise shall submit copy of its franchise (s) from the Land Transportation Franchising & Regulatory Board (LTFRB).

At present, Butalid revealed that there are no bus companies in the country that are BOI-registered.

Meanwhile, in a separate interview with one of the country’s largest bus operators, the Yanson Group of Companies (YGC), the operator of Ceres Bus and Bachelor Express, among others, announced the improvement of its operation to make a world-class land transportation service in the Philippines.

However, the company has not mentioned about plans of utilizing environment friendly fuel alternatives. (FREEMAN)