Environmental protection with increase in income (PAK/01/17)
Project Details & Results
In the absence of adequate urban mass transport systems in Pakistan, three wheeler rickshaws and mini-buses carry the major share of commuter traffic. The rickshaws use a 1950’s technology of Italian origin – Vespa – for automotive power. It is a two-stroke, 175 cc engine that runs on a mixture of petrol and Mobil oil. The vehicle is being produced in Pakistan now, since copyrights have been abandoned by Vespa. Many local manufacturers produced virtually the whole of the vehicle with the exception of some components like the carburettor. The Auto-rickshaw, as it is called in vernacular terms, is a cheap commercial transport vehicle, price ranging between Rs. 75,000 to Rs. 90,000 but it is extremely fuel-inefficient, noisy and produces toxic exhaust emissions that are dangerous to health. (Carbon Monoxide, Hydro Carbons, Nitrogen Oxide, Particulates). Ill-tuned diesel engines of public transport and haulage vehicles along with auto-rickshaws are producing unacceptable levels of air pollution in the cities of Pakistan.
Cleaner alternatives to two-stroke petrol engines include four-stroke petrol engines, engines powered by liquefied petroleum gas (LPG), compressed natural gas (CNG) and electricity. Replacement of two-stroke vehicles with four-stroke vehicles would significantly reduce hydrocarbon and particulate emissions; however nitrogen oxide would increase. Replacing the wide base of two-stroke auto-rickshaws with four-stroke vehicles is not a viable solution; not only because of higher cost of four-stroke engines but that existing assets would have to be scrapped. However, a new breed of three wheelers is appearing on the market with four-stroke engines but these are underpowered and too slow for urban traffic. Increasing demand of petroleum products at a rate faster than domestic availability and rising costs of imported oil are necessitating search for alternative fuels.
The project will promote LPG kits in auto rickshaws to reduce carbon emissions by replacing gasoline with LPG by eliminating barriers in promotion of LPG kits in auto rickshaws.
Though in case of LPG carbon content is not very low as compared to gasoline but With LPG the auto rickshaws can give better mileage. With 1 litre of gasoline an auto rickshaw on average covers 18 km whereas in case of LPG the rickshaw travels upto 52 km on average in 1 kg LPG. 1 kg LPG is equivalent to 1.346 litres of gasoline. Thus with 1 kg of LPG a rickshaw covers 26 km more than same quantity of gasoline.
Notable Community Participation
The NGO will provide credit to rickshaw owners to install LPG kits in auto rickshaws and these rickshaw owners will pay back this money with interest to the NGO. In addition to LPG kits the silencers of the rickshaws will also be replaced which will reduce the noise of the vehicles.
Emphasis on Sustainable Livelihoods
The project will enhance the income of rickshaw drivers as they will require less fuel to run their rickshaws and will improve their earning.
Promoting Public Awareness of Global Environment
All the rickshaws converted to LPG with GEF/SGP financing will be painted to display environmental messages on the back and will display information on GEF/SGP as the funding agency.
Project Results
1. Awareness to 500 rickshaw owners/drivers/mechanics of Rawalpindi City for noiseless, economical and environmental friendly rickshaws. As a result of the project activities, virtually all the more than 5,000 rickshaw drivers/owners/mechanics have been made aware of the benefits of conversion to gas. In this respect the project has far surpassed original target. Installation of noise reducing silencers is also in progress and it is expected that soon that will become a standard modification for all rickshaws in the city.
2. Capacity building of workshop owners to provide technical training to maintain rickshaws fitted with gas kits. Through 4 training workshops, 14 workshop mechanics have been trained in installation and maintenance of gas-kits with the help of ENERCON. One training course was conducted specifically for CNG kits and its potential advantages.
3. Awareness and Promotion. Through 9 seminars and regular weekly and monthly meetings awareness has successfully been created amongst all stakeholders. The awareness program also included pamphlets, posters, stickers and two radio programs. At least six different makes of kits are available on the market and virtually all the rickshaws are using one type of conversion kit or another. Although few rickshaws have been provided the loan facility, commercial operators have developed sale of kits through private credit systems.
4. Loan facility. Loan facility was successfully introduced and is in great demand now, especially for up gradation from LPG to CNG kits. 163 people were given loans and there is now a long waiting list for more rickshaw drivers/owners wanting to avail the facility. Recoveries have been 100 percent with no defaults till date.
5. Enhancement of Incomes. The income levels of rickshaw drivers have been significantly enhanced. Petrol driven rickshaws costs Rs. 5.25 per kilometer as against Rs. 1.25 for L.P.G and Rs. 0.70 for CNG. On an average mileage of 40 kilometers, an average rickshaw driver using LPG makes a saving of Rs. 160 per day, a part of which is passed on to the customer in cheaper fares. For a CNG operated rickshaw the saving is Rs 182 per day. When adjusted for higher financial cost of CNG kit (by Rs 25 per day), the savings are about equal over a period of one year, after which the CNG has a clear advantage of Rs 22 per day. If it is assumed that 25 – 30 percent of the cost advantage is passed on to the consumers, the project has contributed an increase of Rs. 3,000 per month (Rs 100 per day on long term average including short days and stoppages etc.) to the income of rickshaw drivers and their families.
6. Cleaner environment. Rawalpindi city has benefited from conversion to gas kits and the consumers are enjoying lower fares. According to one estimate, rickshaw fares have returned to the levels of 10 year ago when fuel prices were much lower.
RETURN ON INVESTMENT (ROI)
Based on assumptions about number of rickshaws converted to gas during last three years, 320 working days in a year, the ROI for the project is as follows:-
Mark up earned by ADO Rs. 291,033
Income enhancement of rickshaw drivers Rs . 144 million
Saving in transport cost to urban clients Rs. 10.8 million
Trade Profit for Dealers/suppliers of kits Rs 3 million
Total amount of fiscal social benefits Rs. 248 million
On a cost of Rs 2.6 million, this represents a very high return in terms of direct fiscal benefits to the stakeholders and beneficiaries of the project – 9200 percent.
By substituting gas for petrol in the rickshaws plying roads of Rawalpindi, a significant reduction has taken place in emissions. The following table shows typical reduction of emissions in gas-converted rickshaws compared to petrol before conversion for the same rickshaw:-
GAS Petrol
Rickshaw CO HC ppm CO2 CO HC ppm CO2
1 0.14% 6160 3.40% 4.37% 7030 4.20%
2 0.16% 6040 2.90% 5.55% 7500 4.30%
Reduction in Emissions
1 97% 12% 19%
2 97% 19% 33%
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