Peru’s executive has prepared a bill to create a bond to convert taxis into electric cars, which should be ready in the second quarter of 2023.

“We have to send to Congress in the second quarter. That’s where the whole statutory approval process comes from and once it’s approved, start putting everything together so that within a year we have our first convertible,” said Production’s Raúl Perez Reyes a few weeks ago.

The draft law, which brings together normative and regulatory measures, has been articulated by the ministries of Energy and Mines, Economy and Finance, Environment and Production.

Taxi Conversion

The Minister explained that the Executive’s short term goal was to convert 10,000 taxis to petrol or LPG in the first year of the program.

“There is an important group that is currently operating with natural gas vehicles. Perhaps, it was unprofitable for them to change. For those who operate on LPG and petrol, it is profitable for them”, he commented.

He explained, the business model for re-conversion is self-funding for re-conversion and payment for it with energy costs, as happened in the conversion of natural gas vehicles.

“The savings are between 50% and 70%, depending on the weight of the vehicle and other technical characteristics. So, the idea is for the taxi driver to use the savings to finance the conversion,” he explained.

However, he said, in some cases it is necessary to give a bonus whose amount has not been determined.

“In some cases we may need a bonus, not for trash, but for engine conversion. For some cars we need a slightly higher bonus and for others, a smaller bonus. To be exact, we define whether we get different bonuses according to the model or agree to a single bonus depending on the taxi,” he informed.

catering

At another time, the minister announced that the project would also establish subsidies for power stations to deploy them.

“We have spoken with distributors. We have had meetings with two of them and this week we will have two more. It’s only Thursday that I will visit Arequipa to talk to the power distributor,” he said.