Peru Sets Up Funding for Conversion of Cars to CNG

| Peru: Lima | Source: MINEM

Peru CNG VehiclePeru’s Ministry of Energy and Mines (MINEM) has invited citizens to participate in the financing program for conversion of vehicles to Compress Natural Gas (CNG) with resources made available through the Social Energy Inclusion Fund (FISE). The program estimates conversion of 15,000 vehicles per year in 12 regions of the country.

Currently owners of vehicles of the M1 category that are equal to or less than 10 years old, benefit in Lima, Ica, Chiclayo, Trujillo and Piura.
Conversions will be promoted in the regions of Lima, Callao, Ica, Lambayeque, Piura, Ancash, La Libertad, Junin, Cajamarca, Arequipa, Moquegua and Tacna.

The owners of vehicles belonging to category M1 (four wheels), which are less than or equal to 10 years old and have approved the technical pre-inspection in a vehicle conversion workshop authorized by the Ministry of Transport and Communications, will be eligible for the program. (MTC).

To access the FISE CNG financing, vehicle owners must first choose a conversion workshop and request the technical pre-inspection of their vehicle. The next step will require owners to call on the financial institution that has a current agreement with Osinergmin (Peru’s energy and mining investment regulator), with proof of pre-inspection approval and the proforma for the vehicle conversion to be evaluated by the financial institution.

The fees will be established according to the payment schedule issued by the financial institution with a maximum term of up to 5 years, applying an interest rate of 3%, a percentage lower than those of the market that range from 14% to 40%.

To date, an agreement has been signed with the financial institution, Edpyme Acceso Crediticio SA, which runs the program in its offices in Lima, Ica, Chiclayo, Trujillo and Piura. Other cities will gradually be added as more agreements with financial entities are signed. On September 13, the first vehicular conversion to natural gas was executed and to date there have been 40 conversions.

In this way, the MEM seeks to massify natural gas at a national level in a progressive manner, so that it is accessible to the population and promotes clean energies.

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