A micro-financing program in Mandaluyong City has successfully assisted drivers to replace two-stroke tricycles with four-stroke engines. In 2009, twenty tricycle drivers each received an interest-free loan from a revolving fund provided by the Petroleum Institute of the Philippines (PIP) through the Partnership for Clean Air (PCA), a CAI-Asia Country Network in the Philippines.

Fund management of the capital investment provided by the Petroleum Institute of the Philippines is handled by the Rizal Technological University – Kawani Multi-purpose Cooperative (RTU-KMPC). Drivers’ training on preventive maintenance was also provided by the Don Bosco Technological College. The participating tricycle drivers were able to pay back the loan from fuel savings generated out of the four-stroke engines which were 20% more efficient than two-stroke engines. Three years after the program was launched in 2009, several beneficiaries in Mandaluyong City have been able to complete loan payments and others are paying off their loans on time.

The Mayor of Mandaluyong City has endorsed the program from the beginning and, with the approval of the City Council, has given counterpart funds to the micro-financing scheme for the second phase of the tricycle upgrading program. As part of the Clean Air Month celebrations in the Philippines, Mayor Benhur Abalos turned over a P1 million check to Partnership for Clean Air President Rene Pineda Jr. last November 11 to further support the program.

In behalf of Mandaluyong City, Mayor Benhur Abalos signed a Memorandum of Understanding together with PCA, RTU-KMPC, Don Bosco and the Mandaluyong Federation of Tricycle Associations to ensure sustainability of the program. During the signing ceremony, Mayor Abalos committed to continue supporting programs for cleaning the air in Mandaluyong City because he said that “we owe our children their right to breath clean air and remain healthy….. especially the young who will grow up to be productive citizens of Mandaluyong City.”

With the successful turnout in Mandaluyong City, PCA has introduced the concept of tricycle micro-financing program to neighboring Pasig City. Selected members of the Pasig Stainless Tricycle Operators Drivers’ Association are the first beneficiaries to upgrade their two-stroke engines to the more efficient four-stroke engine as part of the program.

Related Publication:
Air and Noise Pollution Reduction from Tricycles: A Strategic Plan for Quezon City and Puerto Princesa City, Philippines