Vehicle Inspection & Maintenance in Asia

1. Vehicle Inspection & Maintenance in Asia Cornie HuizengaClean Air Initiative for Asian Cities 15 September 2006 Islamabad, Pakistan Sustainable Urban Mobility in Asia A CAI-Asia Program

2. Vehicle Growth in Asian Countries(in Millions of Vehicles) China, P.R. India Thailand Indonesia Note: Vehicle Population Projection from Segment Y Ltd

3. 2- and 3-wheelers in Asia • Increasing use of motorcycles – India, China and Thailand: • 2005: 100 million • 2008: 140 million • 2015: 250 million • When will the tipping point be reached after which more people switch to cars: China 2025? • Motorcycles now breaking into new markets e.g. Philippines • 2-3 wheelers play an important role in transit in Asia, e.g. • Tricycles in Philippines • Rickshaws in South Asia • Tuk-tuk in Thailand Note: The forecasts used were developed by Segment Y Ltd

4. Comprehensive Approach toReducingVehicle Emissions Air Pollution Vehicle Emission Standards Fuel Specifications Inspection& Maintenance Transport Planning & Management

5. Emission Standards (1) • Tightening of emission standards for new vehicles is the best way to reduce mobile source pollution • I&M programs need to be linked to in-use emission standards: these in-use standards need to be linked to the type approval standards for new vehicles • Most Asian countries follow ECE (Euro) standards, but adopting them at different speeds • Little regional discussion on harmonization of standards • New cars sold in Asia today are potentially cleaner than standards require in many Asian countries but poor fuel quality makes it difficult to realize reductions in emissions

6. Emission Standards (2) • Motorcycle standards are very important, and in several countries Asia is ahead of Europe and USA • No proper link between in-use and new vehicle emission standards - Difficulties with second hand imports • In-use standards will become increasingly differentiated • If in-use standards are too strict emerging I&M systems will face problems

7. Institutionalizing Vehicle Emissions Standards (new light duty vehicles) Source: CAI-Asia, 2006

8. Status of a few I&M Facilities in Asia • Hong Kong – centralized system works • Singapore – centralized system works • Bangkok, Thailand – centralized I&M facility is underutilized, laboratory under lock and key • PRC – centralized system in key cities • India – centralized facility in Delhi not used?, PUC certificate system did not work for a long time, improved system • Philippines – centralized system, emissions testing only • Dhaka, Bangladesh – centralized I&M facilities is remaining idle for several years now • Sri Lanka – government about to sign deal with ESP

9. Components of a Successful I&M Program Centralized Testing Public Awareness Appropriate Test Procedures Good Quality I&M Strong Enforcement Appropriate Standards and Norms Inspector Training Privatized with appropriate test fees Government Oversight and Auditing

10. Institutional Arrangements • Centralized system whereby inspection is separate from maintenance operates best - yet several Asian countries ignore these lessons of experience and go for decentralized or hybrid systems • Private sector is best qualified to implement I&M systems regulated by government • Success of I&M in Asia will depend on support of senior decision makers and institutional capacity to manage and regulate the system • I&M works best if linked to the annual registration of vehicles • Mixed responsibilities for I&M often results in problems between departments of environment, transport and police

11. Contracting Issues • Quality: engage reputable companies • Single vs. multiple contractors • Minimum contract length (+7 to 10 yrs) • Setting and adjusting prices • Promoting competition at re-bid - Ownership of land, facilities and software • Risk management - Revenue adjustment provisions

12. Government Coordination and Management • “Vertical” coordination (national, state, local) • “Horizontal” coordination (environment, transport or police agency) • Key Issue: integration with road worthiness inspections

13. Technical Issues • Fleet characterization • Test procedures • Emission standards • Frequency of inspection • Trend towards “loaded test” to measure compliance with tighter standards - this will require major overhaul of many existing I&M stations • Technical quality of I&M systems run by government is often weak

14. Quality Assurance and Audit • To control corruption, a well established QA and audit mechanism is essential • Computerized systems are essential • Governments often lack the capacity to regulate and to carry out QA efficiently • QA and audit is best undertaken by independent groups • Often there are no effective procedures against corrupt inspectors

15. Enforcement and Compliance Promotion • Link to periodic vehicle registration - Need to enforce vehicle registration requirement • Linkage to insurance coverage • Need for complementary public awareness campaigns • Differing views on roadside inspections

16. Managing Resources • Financial resources: setting fees and recovering costs • Management and technical resources: ensuring adequate capacity • Political resources: ensuring popular support

17. Setting Fees and Recovering Costs • Fees should be set to recover all costs - to include costs of govt oversight and quality assurance • If necessary fees could be augmented by earmarking charges on fuels or vehicles • Essential that concession period be of sufficient length to recover costs at lowest possible charges

18. Public Participation • Public perception on effectiveness and transparency of I&M will determine the willingness to cooperate in the I&M system • Few countries in Asia have effective, sustained awareness raising campaigns focusing on I&M • Performance standards are required for I&M stations that guarantee fast and reliable tests • Transparency is important: produce an annual report, make it available to the public

19. The Importance of “M” in I&M • It is the “M” that actually reduces pollution not the “I”, yet in most Asian countries few efforts are made to improve the quality of maintenance • “M” industry needs to be an active partner in discussions on emission standards • Referee stations are required to offer a second opinion to vehicle owners

20. Roadside Testing • Roadside testing can complement I&M but not replace it • Roadside testing is needed to keep the public focused on the issue of vehicle pollution • Roadside testing should focus on gross polluting vehicles • Roadside testing is difficult to oversee and more open to corruption

21. Cost Effectiveness and Impact • More stringent emission standards are more effective in the long term, I&M can have a short term impact • Although I&M is increasingly used as an instrument to reduce pollution, no efforts are made to quantify the environmental impact • Little is known about actual cost-effectiveness of I&M systems in Asia