Reassessment Study of Ferry Boat Passenger Using Solar Power

Bataan Heroes Memorial College
Roman Super Highway, City of Balanga, Bataan 2100

Tel. No. (047)237-2383 Fax No. (047)237-2383 Email@bhmc.edu.ph
Mechanical Engineering Studies Department
Project Feasibility Study

(ME – 511)
Reassessment Study of Ferry Boat

Passenger Using Solar Power
Submitted by: Submitted to:

Torres, Jose Franco D.

TABLE OF CONTENTS
Title Page
Preface
Acknowledgement
Letter of Transmittal
List of Figures
List of Tables
Chapter I
Introduction 1
Chapter II
Project Summary 4
Chapter III
Project Timetable 7
Chapter IV
Management Aspects 9
Management during Pre-Operating Period 9
Management during Operating Period 13
Chapter V
Marketing Aspects 21
Demand 21
Supply 23
Price 23
Marketing Program 24
Chapter VI
Technical Aspects 25
Description of the Product 25
Machinery 27
Port Location and Trip Schedule 43
Port Layout 47
Structures 49
Utilities 52
Waste Disposal 52
Reassessment Study of Ferry Boat Passenger using Solar Power

Chapter VII
Taxation Aspects 53
Import Taxes 53
Tax Exemption 55
Chapter VIII
Financing Aspects 57
Framework and Assumptions 57
Source of Financing for the Project 58
Amount and Terms of Financing 59
Status of Financing 59
Contingencies of the Project 60
Chapter IX
Financial Aspects 61
Economic Analysis 61
Financial Analysis 65
Chapter X
Social Desirability Aspects 68
Specific Contributions 68
Chapter XI
Environmental Aspects 70
References 72

PREFACE
This Reassessment Study of Ferry Boat Passenger in Bataan using Solar Power became
possible through the hard work, perseverance, and determination of the group. In addition to
that, the group shares their ideas and knowledge to each other. The studies, researches, and
applications of the basic theories have been given in an additional knowledge.
In spite of valuable helps and the maximum effort exerted to make the project feasible
study a success, it is possible that there are areas that needs to be corrected and validated. Any
criticism by the reader to this study made constructively will be highly appreciated.
This s study is hereby presented as a partial fulfillment to the requirement of the course
Mechanical Engineering in the subject of ME-511 Project Feasibility Study.

ACKNOWLEDGEMENT
Firsrt of all, we would like to thank GOD ALMIGHTY for giving us the strength, wisdom,
patience and the provisions in doing this thesis.
The group would like to thank Engr. Desiderio V. Pepito for his guidance in completing
this thesis as well as the other instructor of Mechanical Engineering Studies Department. Their
comments, insights, suggestions and knowledge in the field were really helpful, especially the
tips on how to present the thesis properly. And also, to our fellow students who supported us.
Lastly, the group would like to thank our family and everyone in the department who
believed in us to finish thesis; the persuasion, comments and insights helped us move forward
in the thesis. The group is also giving our deepest gratitude as well as our sincerest apologies to
the numerous people, who have helped us to complete the project.
Thank you.

Letter of Transmital
October 15, 2016
Engr. Desiderio V. Pepito

Program Chair, Mechanical Engineering Department
Dear Sir,
In accordance with your guidance and instruction and in partial fulfillment
of the subject, ME-511 Project Feasibility Study, we are proudly submitting to you this project
study.
This project study is entitled “Reassessment Study of Ferry Boat Passenger
using Solar Power”.
The reasercher hop that this project study will meet the standards and
preferential consideration that will harvest your most welcome approval.
Sincerely,
Arago, James Darylle Q.
Gabon, Rianze P.
Mapano, Paolo O.
Torres, Jose Franco D.

LIST OF FIGURES
Figure Page
Number
Number
1 PERT-CPM of the Project 8
2 Project Originators 9
3 Project Promoters Management 10
4 Project Execution Strategies 12
5 Organizational Chart 20
6 Projected Supply of Service for the next five years 23
7 Main Parts of Solar-Powered Ferry Boat 26
8 Solar-Powered Ferry Boat 27
9 Solar Ferry Boat Features 30
10 Solar Ferry size 31
11 Boat Layout 32
12 SUNCAT 58: SOLAR-POWERED FERRY BOAT 34
13 Schematic Diagram of Energy Distribution of Solar Ferry 38
14 Map of Bataan and Metro Manila 44
15 Map of Orion 45
16 Map of Pasay 46
17 Aerial View Port of Orion, Putting Buhangin, Orion Bataan 47
18 Aerial View of Mall of Asia Jetty Terminal 48
19 Front View of Mall of Asia Jetty Terminal 49
20 View on the Port of Orion 50
21 Solar Ferry Boat 51
22 Projected Initial Cost and Operating Cost for Solar Ferry Boat 61
23 Projected Initial Cost for the Conventional Ferry Boat 63
24 Graph Representation of Total Cost in (INR) of Conventional 64
And Solar Ferry Boat

LIST OF TABLES
Table Page
Number Number
1 Project Timetable 7
2 Firms Involved in the Project and Its Purpose 11
3 Solar Ferry and Diesel Comparison 33
4 Trip Schedule 43
5 Project Parameters 57
6 Financial Structure Assumption 58
7 Total Project Cost 65

Chapter I
INTRODUCTION
The Philippines is an archipelago of 7,107 islands. Having large bodies of water, water
vessels are widely used as one of the main means of transportation. Water vessels are used to
travel from on island to another. The smaller un-motorized pump boat is used for traveling short
distances between islands close to each other. These boats are mostly used for fishing. Another
type of boat is the ferryboat, the most comfortable transportation for island hopping. There are
several companies who have regular trips between the bigger islands (Becker 2013).
In marine applications, gasoline and diesel engines are also used for boat operation.
Since sea conditions vary more widely than road conditions according to Beuthe, the time it
takes to cover a distance varies more, so fuel consumption is measured in gallons per hour. On
average, an in-tune four stroke gasoline engine will burn about 0.50 pounds of fuel per hour for
each unit of horse power. Likewise, a well-maintained diesel engine burns about 0.4 pounds of
fuel per hour for each unit of horsepower it produce (Becker 2013).
A ferry is a merchant vessel used to carry passengers, and sometimes vehicles and cargo
as well, across a body of water. Most ferries operate regular return services. A passenger ferry
with many stop, such as in Venice, Italy, is sometimes called a water bus or water taxi.
Ferries form a part of the public transport system of many waterside cities and islands,
allowing direct transit between points at a capital cost much lower than bridges or tunnels.
Reassessment Study of Ferry Boat Passenger using Solar Power 1

However, ship connections of much larger distances (such as over long distances in water bodies
like the Mediterranean Sear) may also be called ferry services, especially if they carry vehicles.
They are big lumps of metal that float.
Solar power is the conversion of sunlight into electricity, either using photovoltaic (PV),
or indirectly using concentrated solar power. Concentrated solar power systems (Unified Solar)
use lenses or mirror and tracking systems to focus a large area of sunlight into small beam.
Photovoltaic cells convert light into and electric current using the photovoltaic effect.
The International Energy Agency projected in 2014 that under its “high renewables”
scenario, by 2050, solar photovoltaic and concentrated solar power would contribute about 16
and 11 percent, respectively, of the worldwide electricity consumption, and solar would be the
world’s largest source of electricity. Most solar installation would be in China and India.
Photovoltaic were initially solely used as a source of electricity for small and medium-
sized applications, from the calculator powered by a single solar cell to remote homes powered
by an off-grid roof top PV system. As the cost of Solar Electricity has fallen, the number of grid-
connected solar PV systems has grown into the millions and utility-scales solar power stations
with hundreds of megawatts are being built. Solar PV is rapidly becoming an inexpensive, low-
carbon technology to harness renewable energy from the sun.
People continuously seek for the solutions to the depletion of fossil fuels one solution is
by using an alternative or renewable energy to substitute fossil fuels. There are lots of renewable
energy technologies available today. However, there are only a few that can be used in water

vessel. Some of this renewable energy are solar and wind energy. Solar and wind energy can be
power while utilizing only a small space. (Dari 2009).
Previous researchers came up with an idea of harnessing the solar energy and use it to
power a boat. The solar powered boat was successful, however there were problems present
this days. Moreover, current researchers came up with reassessing the ferry boat passenger in
the province of Bataan, and using solar power to utilize energy for the ferry boat.

Chapter II
Project Summary
SuperCat is part of 2GO Travel, subsidiary brand of 2GO Group Inc. and has been pivotal
and strategic to fast ferry industry in the country. Created synergy that has enlarged the fast
ferry industry to benefit economies scale and complement travel related products. The company
reshapes the rules and practice of sea travel, bringing fast, convenient and enjoyable ride. The
company opens new market and builds long term partnerships that propelled commerce and
trade and accelerated tourisms and tourism-related activities, to new and wider dimensions.
SuperCat was the sister company of Super Ferry and Cebu Ferries. SuperCat operated 7 vessels
in 7 ports around the Philippines.
Having realized the potential of solar boats for cruise purpose, it was only natural to
extend the same to ferries and other vessels that need much higher endurance and
performance. To buttress our capability, we have tied up with a leading solar ferry builder from
Europe and have launched the various models outlined below. A large proportion of electric
power used for the boats is stored in huge battery bank, making it solar powered electric boats.
In rainy or cloudy days, even if the sun does not provide any power, the battery bank, previously
charged overnight can run the boat whole day. In addition a backup electric generator driven by
petrol is optionally provided.
The group is looking for the factors that may be the reason on why SuperCat, a company
operating a port in Orion six years ago, stopped in operating in the Province of Bataan. On April
1, 2010, the SuperCat resumed the operation but before the year ends the company just stopped

operating. When the SuperCat resume the operation for the ferry boat six years ago, the number
of passenger riding a ferry boat is not increasing. The reason for this is the information is not
properly disseminated. Lack on advertisement is one reason because the passengers are not
informed very well all over the Province of Bataan and in the areas in Metro Manila.
People generally prefer diesel generators over solar powered ones due to the initial cost
of installation. But if one can sit and think about the future expenses that would be in store, the
individual would, without a doubt, prefer solar generators. Diesel generators would need a
constant supply of fuel – this would cause the investment to payback itself, owing the ever-
increasing price of the fuel. Add to that the amount of time each day or week spent making sure
the generator does not run out of fuel, and additional savings can be realized
The solar generator not only conserves power, but also reduces pollution. The diesel
generator would produce continuous noise, whereas the solar generator doesn’t. When using a
diesel generator, the device would go on and on, not considering the amount of power
consumed, this can be avoided on a solar powered generator. And all you can do at that time is
sit and look at all the energy being wasted. The only drawback with the solar powered generator
would be the amount of sunlight the locality receives. Though the system would run on charged
batteries, once the sunny season sets away, there are chances of the batteries going dead.
In warm/hot countries, solar generators are more reliable. But in countries where there
is less sunshine and more rain and winds, solar energy doesn’t come in handy. However, in
Germany, solar energy is used at a much higher level than in North America. Hence, reliability is
not an issue when it comes to solar powered gensets. Diesel generators, on the other hand, do
not have this issue. But if there is a storm or any such disaster, the generators become useless.
Thus when looking at the investment point of view, solar generators win against the diesel
generators.

The group reassesses the ferry boat passenger in the Province of Bataan by using solar
power. This study is not dealing with the design of solar powered ferry boat. The solar-powered
ferry boat in other countries is in reality nowadays and because Solar Boats are 100% eco-
friendly and avoids the pollution (air, water and noise) caused by conventional boats. Solar Boats
also provides a viable boating solution, with zero operating cost and low maintenance cost of
pollution are factored in. For large solar boat the breakeven period is around six years.


Chapter III
Project Timetable
Number of Months
Activities
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
A
B
C
D
E
F
G
H
I
Table 1 Project Timetable
A – Obtaining of Financing
B – Location of Operation
C – Building Construction/Rehabilitation
D – Machinery Supply Selection
E – Order and Receipt of Machinery
F – Machinery Installation
G – Materials Supplier Selection
H – Order and Record of Materials
I – Normal Operations

B
C
A E D F H I
Figure 1 PERT-CPM of the Project

Chapter IV
Management Aspects
Management during the Pre-Operating Period
Project originators
Project Origination is the first stage of the project life. This takes place when for
the first time someone expresses the need and the basic scope for the project.
Develop Review and Schedule

Prioritize project and
Project idea Project Approve
Project assign Project
Proposal Proposal Manager
Figure 2 Project Originators

Project Promoters; Managers
General Marketing
Management
Operating Financial Advertising

Managemet Management Management
Customer Service
Representative
Service Offered
Satisfaction
Figure 3 Project Promoters Management

Firms or person involved or to be involved in marketing, engineering and other studies.
Firms or person involved Purpose of the Firms
2GO Travel Shareholder
Mall of Asia Marketing and port
NavAlt Dealer of Solar Powered Ferry Boat
Aboitiz Shareholder
Engineering Firm Maintenance
Local Government Unit Marketing, Shareholder, and port

(LGU) Bataan
Table 2 Firms Involved in the Project and Its Purpose

Project Owner/Client
Project Owner/Client
Project Owner/Client Project Owner/Client Project Owner/Client
 Process Engineers  Procurement Services  Site Management

 Civil/Structural  Purchase Orders  QA/QC
Engineers  Vendor Qualification  National/Local
 Piping Engineers  Expediting Constructor
 Electrical Engineers  Traffic Logistic  Local Procurement
 Instruments and  Commissioning and
Controls Startup
Figure 4 Project Execution Strategies

Management during the Operating Period
Type of Business Organization
Corporation was chosen as the type of business organization to be used. The owners or
the Board of Directors will choose one person (Port Manager) to run the port. This person will
have the authority to decide in all matters while Board of Directors or owner of the corporation
will support and help the port manager as needed.
Internal Organization
1. Port Manager
He is the overall in charge of the port, and is responsible for the plans and activities within
the port. He formulates and implements policies regarding the port and he has the authority to
command his subordinates,
2. Port Supervisor
He is responsible for the supervision of his subordinates in the solar ferry boat, including
its inspection and maintenance.
3. Maintenance Supervisor
He is concerned with the day by day problems of keeping the physical plant in good
operating condition. He is responsible for the repair and maintenance of the machines and
equipment as well as the recommendations of a purchase of a spare part.

4. Operatine Supervisor
He is responsible for the supervision of the work and immediate control of the workers
and operating personnel.
5. Project Manager
He is responsible for the matching of available resources (time, money, and people)
against business project aims (early completion date and final cost).
6. Human Resource Manager
He is responsible for recruiting new employees to replace those who leave and for filling
newly created positions. He also trains or arranges for the training of its stuff to encourage
worker productivity, efficiency, and satisfaction, and to promote the overall success of the
corporation. Finally, human resource managers create workers’ compensation plans and
benefits packages for employees.
7. Finance Manager
He prepares financial statement in order to inform the management of its financial

position and the progress of the business. He keeps records regarding all the transactions and
financial statements on files to inform.
8. Workers
They execute the accomplish works assigned to them. This includes the crew in the ferry
boat.

Management Personnel
1. Port Manager
Compensation: Php 1000.00/day
Requirements:
1. Male
2. Professional Mechanical Engineer
3. With at least 8 years job experience
4. Has good health and personality
5. Responsible and articulate
6. Has Strong leadership personality
7. Open-minded and willing to accept suggestions
2. Solar Power Supervisor
Compensation; Php 800.00/day
Requirements:
1. Male
2. Registered Professional Mechanical or Electrical Engineer

5. Has knowledge about solar technology
3. Maintenance Supervisor
Requirements
1. Male
2. Registered/Professional Mechanical Engineer
4. With atleast 4 years job experience
5 Has knowledge in maintenance work
4. Operation Supervisor
Requirements:
1. Male

5. Has knowledge in solar technology operation
5. Project Manager
Requirements:
1. Male/Female
3. Has a good health and personality
4. With atleast 4 years job experience
5. Must be Phisically and mentally fit
6. Human Resources Manager
Requirements:
1. Male/Female

5. Has knowledge on personal handling
7. Finance Manager
Compensation; Php800/ day
Requirements:
1. Male/Female
2. Graduate of Accountancy or other course related to the position
applied for
3. Aggressive and Articulate
4. Has effective personnel a d Communication skill
5. Must know clerical job
8. Workers
Compensation; Php400/ day
Requirements:
1. Male
2. At least 23 years old

4. Must be a graduate of vocational or degree course related to the position applied for
6. Must be physically and mentally fit
7. Must be a working person

Board of Directors
Port Manager
Human
Solar Power Maintenance Operation Project Finance
Resource
Supervisor Supervisor Supervisor Manager Manager
Manager
Engineering
Ferry Boat
and Project
Crew Design Section
Mechanical Electrical
Section Section
Figure 5 Organizational Chart

Chapter V
Marketing Aspects
The Philippines energy sector is relatively dynamic. Major reforms are underway, as are
project to have a solar powered ferry boat to reduce the Philippines dependence on oil and gas
to change the relative composition of fuel consumption.
Energy production in the Philippines is concentrated in the electricity sector. Solar power
accounts for the country’s share of indigenous energy production, followed by hydropower,
coal, oil and gas
With the practicing of solar power to the country’s high energy demand, the group sees
a significant drop in the country’s pollution rate because our ferry boats use solar power as a
raw material in powering the boats.
Demand
In the past five years, ferry boats going to Pasay from Bataan and vice versa was
controlled by the Aboitiz Company and The De Guzman group of companies. The Diesel Powered
Ferry Boat of these companies was the only means of transportation from Orion, Bataan to Mall
of Asia, Pasay City by water. In April 1, 2010 the Companies Started operations in Orion, Bataan
and in the later year 2010 up to 2016 the company stopped operations leaving Bataan without
a ferry liner.
The project demand for the next five years will boost the number tourist in Orion and all
over Bataan because the ferry boats will bring back the lack of transportation from Pasay to
Orion and vice versa and the main attraction of the place will be our Solar Powered Ferry Boats
offering free emissions and low cost manufacturing supporting Bataan’s vision in clean energy.
From the start of the operation, the project is expected to grow not rapidly but increasing from
time to time.

Quantity
One unit of solar-powered ferry boat can accommodate 75 passengers including crew at
each trip Orion to Manila, Manila to Orion or vice versa, the expected and average number of
passengers per trip is 50-55 including the crew of the ship consisting of 5 such as the captain,
captain’s assistant and 2 maintenance workers which will be available on call if any unwanted
mechanical failures that can occur on the trip.
Types of Consumers
1. Typical Adult male and female weighing at 50 kilos respectively
2. Common tourists that are looking for tourists spots like beaches
3. Commuters going to Metro Manila or Bataan.
Major Firm
The Ferry’s major firms who shares a large portion of stocks are 2GO Travel and SM Mall
of Asia respectively including a partial amount of stocks to NavAlt Solar and Electric Boats (The
supplier of the ferry).

Supply
Projected supply of service of the Solar-Powered Ferry Boat for the next five years
In the y-axis, this is the quantity of trips annually.
780
770
760
750
740
730
720
710
700
2018 2019 2020 2021 2022
Figure 6 Projected Supply of Service for the Next Five Years
Prices
Cost of importation
The NavAlt Solar Ferry will cost up to INR 25000000 if we convert that to Philippine Peso
it will cost around Php.18,236,621.67 depending on the rate of exchange between taxes.

Cost of Production of Existing Firms
The firms involved on the project will each bid on their own stocks on the Ferry Express
by which they will have each shares on the stocks. The port manager have the power to change
the financial aspects on the project like changing the name of the liner or making improvements
of their own if they see fit for improving business. The highest bidder will get the opportunity to
put their brand logo on the Ferry.
Domestic Transportation Cost
Local Barangays in Orion, Bataan will offer daily transportation to the port at a rate of 10
pesos to 30 pesos depending on the length of the trip to the port or how many passengers that
they can accommodate from their location going to the port.
Expected Future Prices to be Adopted by the Project
Depending on the future of the project investors will offer any improvements on the
project if they see fit like expansions or any other improvements.
Marketing Program
The marketing program of the project will be based on how the marketing head
strategies and tactics to reach the project to the market. In the province of Bataan, the LGU is
tasked to disseminate the information to the market and this will be a big help to the tourism of
the province of Bataan. In Metro Manila. The Mall of Asia will be the marketing head in their
area that will provide more information regarding to the project. Both Mall of Asia and the
Province of Bataan will be benefited by the project. Social media like Facebook, Twitter and local
government new will be the main advertising strategy that the company will use to market the
ferry liner others will be posters scattered through Bataan and Mall of Asia including flyers and
the company’s main website.

Chapter VI
Technical Aspects
Description of the Product/Service

A 75-seater solar-powered passenger ferry, the first of its kind in the country, will be
imported from India. This ferry boat will cruise from Orion, Bataan to Mall of Asia, Pasay City.
The boat is being built by NavAlt, a Kochi-based joint venture, in collaboration with a French
company and the boat is owned by Kerala State Water Transport Department. The vessel was
designed by NavAlt Solar and Electric Boats, built by Navgathi Marine Design and Constructions
in Kochi, India. The solar-powered passenger ferry consists of a 140m2 photovoltaic modules on
the roof convert solar energy to electricity, a Lithium-ion battery unit where electrical energy is
stored, and two AC motors that utilize the stored energy to propel the ferry. During
maneuvering, when leaving the jetty or approaching it, about 22kW power is needed. Hence, on
an average about 20Kw power is needed. The total running hours, without counting the time in
jetty for embarkation and disembarkation of passengers, 5.5hours on a sunny day (as per client
needs)
The solar powered ferry boat is expected to be operational this year. Although not
mandatory to be built under class, for higher safety standards and reliability, the vessel is built
under Indian Register of Shipping rules for inland vessels and operating conditions of Vaikom –
Thavanakkadavu route (Place in India). During sunny days, the total running hours for the boat
is six hours, four and half hour for cloudy days with two hours charging from the grid, and two
and half hour or cruising during night time at cruising speed.
Altough the maximum power needed is a total of 22Kw during maneuvering and 16Kw
under cruise, a total of 40 Kw is provided as two motors of 20Kw each. The two system on either
side of the boat (in each demi-Hull) are electrivally independent to ensure redundancy in case
of system failure in one. Even if one system fails the power is available to safely cruise to shore
with other. Also, unlike diesel engines, since efficiency do not drop with load, the electric motors
can normally be operating at 50% load and in emergencies at 100%.

Photovoltaic Modules
on the roof
converts solar energy to
electricity
2 3
Figure 7
Main Parts of Solar-Powered
Ferry Boat
Electrical energy is
Two AC Motors
stored in Lithium-ion
Utilize the stored energy
battery unit
to propel the ferry

Machinery
Figure 8 Solar Powered Ferry Boat

Solar-Powered Ferry Boat Specifications
Dimensions
Length – 24m
Breadth – 7m
Depth – 1.6m
Draft – 0.8m
Sun and Energy
Solar Panels – 24kWP Poly-Crystalline
Battery bank – 2 x 40 kWh Lithium iron phosphate
Power & Performance
Motor – 2 x 20 kW Asynchronous Motor Inboard propulsion
Max. Speed – 7.5 knots
Range
Sunny day – 6hrs
Cloudy day – 4.5hrs (with charging at noon)
Night – 2.5hrs @cruising speed
The power train consists of battery, battery management system (BMS), motor
controllers and motors. The propulsion system consist of coupling, thrust bearing, shaft, stern
tube and propeller. The 20-metre long and 7-metre wide boat is covered by 140m2 of solar
panels rated at 20 kW, which in turn connect to two electric motors of 20kW, one in each hull.
The normal operating speed is 5.5 knots (10km/hr). 2 x 20 kW asynchronous motor of this solar-
powered ferry boat. There are 700 kg of lithium-ion batteries in the ship’s two hulls with a total
capacity of 50 kWh. The Catamaran hull and its shape allow it to reach speeds of up to 7.5 knots
(maximum). The hull was designed based on extensive experience of Navgathi and AltEn and
extensive Computational Fluid Dynamics (CFD) was done to determine its hydrodynamics.
To transport 75 passengers across a 1.1 nautical miles (2 km) backwater stretch of Kerala
at 5.5 knots average speed in a solar ferry built under IRS class. The energy size is to be designed
for sunny condition to reduce the cost (reduce size of battery bank). For providing comfortable
seating for 75 passengers and 3-5 crews, a catamaran with deck area of 15m length and 5.5
breadths is sufficient. However after multiple iteration it was found that about 19.5 Kw (18 Kw
for propulsion) solar panel power is needed to provide good energy management. For this

purpose the boat size was defined as 20m length and 7m breadth. After multiple iterations the
weight of the boat in full loaded condition was determined as 22T. A catamaran hull with was
selected that provided the best performance in terms of lowest resistance. This selection of hull
was based on optimization using computational fluid.
Powered by Sun
The photovoltaic modules on the roof of the 20m ferry will be sufficient to charge the
batteries for 6-hour operation every day. During the cloudy days of Kerala, the ferry service will
still be operational with secondary charging available at the dock.
Long-term profitability
With neglible operational cost due to the absence of fuel, India’s first solar ferry’s
breakeven period is as low as five years.
Zero emissions
With our resolve to provide diesel-free water transportation, we have succeeded in
building a ferry which cares for Mother Nature. Negligible noise pollution is another benefit.
Cutting-edge Battery Technology

Our ferry is powered by 50kWh Lithium battery system, one of the largest of its kind in
India.
Highly-efficient marine design

With some of the best naval architects in the NavAlt team, we have designed the ferry
to have lower drag and weight than the conventional counterparts.
Advanced manufacturing practices

With a distributed manufacturing model, we are ready to deliver our solutions anywhere
in the world

Figure 9 Solar Ferry Boat Features

Figure 10 Solar Ferry Size

Figure 11 Boat Layout

Maintenance
The company build the boat in fiberglass and composite whose life is of course based on
the maintenance and usage (a horizon of 20-30 years is very realistic). The electric drive contains
little or no wear parts and requires no lubrication. Lithium batteries announce about 2500 cycles
and last about 7 years (5 years warranty). Solar panels do not wear out and their performance
is guaranteed at least 20 years 20 years. However a six-monthly checkup of panel connectors
and yearly check of solar panels is appropriate. Solar modules need to be cleaned every day by
rinsing with fresh water.

Comparison with Conventional Ferries
Parameter Solar Ferry Diesel Ferry

Initial Cost
(for same safety standards, reliability, sea 2.5 Cr 1.5 Cr
Worthiness, built under IACS class)
Annual Running Cost
1.5 Lakhs 30 Lakhs
(Fuel, Lubes, Filters etc.)
Top Speed 14 km/h 14 km/h
250 km
Range 85 km (Capacity of Diesel
Tank)
Noise Level <60 db 80-90 db
CO2 Realeased Zero 160,200 kg/year
35T
16T
(45T including
Weight (24T including
passengers and
passengers and effects)
effects)
Table 3 Solar Ferry and Diesel Comparison
Comparison with other Solar Ferry Boat

SUNCAT 58: SOLAR SHIP, PASSENGER SHIP, SOLAR FERRY
SunCat 58 is not only a solar passenger ship that can transport up to 60 people, it also
redefines the words navigation or shipping. SunCat 58 doesn’t travel over water, it glides
across the water surface since SunCat 58 is as silent as a sailboat. Best of all, no
environmentally damaging emissions occur.

10 hours non-stop, even without sun

With a length of nearly 18 meters and a width of close to 7m, SunCat 58 is powered by
two very efficient motors. With these two machines the catamaran can reach a top speed of
up to 15km/h. The solar modules installed on the roof guarantee unlimited travel time as soon
as there is sun. But even without sun – the vessel can travel up to 10 hours non- stop due
highly efficient batteries.
Not only is SunCat 58 a technical marvel, but also a very relaxed location for a variety of
occasions. Inside the interior offers lounge ambience and provides space for around 30
passengers. SunCat 58 can be used as a passenger ship, ferry or charter boat.
Solar ship or solar ferry: Klaus Wowereit (Major of Berlin) baptized the very first SunCat 58
Berlins major Klaus Wowereit baptized the first vessel of this make in August 2009. It was
named solon. This boat can be chartered from Schiffskontor for a variety of occasions.
Figure 12 SUNCAT 58: Solar Ship, Passenger Ship, Solar Ferry

The PlanetSolar is a solar-powered vessel built by Knierim YAchtbau, in Kiel, Germany fr

Switzerland-based PlanetSolar. It is the biggest solar boat ever built. The solar powered craft is
topped by a large array of photovoltaic panels. The boat is designed to circumnavigate the
world. It became the first multi-hull vessel to sail around the world using solar energy. The
voyage began in 2010. A distance of more than 50,000 km was covered in 160 days at an
average speed of 8kt.
The boat sailed from Marseilles and crossed the Atlantic Ocean, the Panama Canal, the
Pacific Ocean, the Indian Ocean and the Suez Canal to join the Mediterranean. PlanetSolar was
christened and launched in March 2010. The solar boat made its first voyage off Keil in April
2010. It was stationed in the waters of the Baltic Sea to complete a test phase during 2013. The
test was conducted by the University of Geneva (UNIGE) from June 2013 to August 2013.
PlanetSolar Specifications
The 31m long PlanetSolar has a beam of 15m (23m with flaps) and draft of 1.55m the
height above waterline is 6.30m. The deadweight of the boat is 85t. It can sail at a maximum
speed of 14kt. The boat can accommodate up to four crew and up to 60 personnel on its world
voyage. The solar generator can produce peak power of 93.5kW. The efficiency is estimated at
18.8%. Lithium Ion (NCA) batteries have the voltage of 388V and capacity of 2910AH (485AH /
cell).
PlanetSolar Design
The solar-powered boat was designed by Auckland-based naval architecture and yacht
design company LOMOcean Design. The Design phase included the successful comprehensive
test programmed involving towing tank tests in calm water and waves. The ship design
incorporates a mail hull featuring two hydrodynamic floats. The top of the boat is surfaced
with 127 photovoltaic modules covering 537m2. The power generated by the modules is stored
in Lithium Ion (NCA) batteries. The 648 cells installed in the boat weigh about 11t. The board
battery banks have an efficiency of over 95% and deliver electricity to the electric motor in
each demi-hull.


Construction of the solar-powered vessel
Swiss Riverdell Holding funded the construction of the boat amounting to €12.5m. The
construction began in January 2009 at the shipyard Knierim Yachtbau in Kiel and took 14
months to complete. Around 100 personnel were involved in the shipbuilding. The boat is
made of carbon-fibre epoxy sandwich materials. About 20.6t of steel, 11.5t of sandwich core
and 23t of Epoxy Resin and Hardener are used in the construction.
The project is supported by the French Ministry of Ecology, Energy, Sustainable Development
and Land Settlement. The photovoltaic modules are supplied by the Immo StrÖher. Autodesk
provided the technology to create 2D and 3D plans of the boat.
Performance of the Swiss Vessel
The solar-powered catamaran demonstrated highest efficiency during the towing tank
tests conducted at the Australian Maritime College in calm water and waves. The wind tunnel
tests also proved successful. The displacement during the circumnavigation will be 65t, further
it will be increased to a displacement of 85t to serve as a luxury yacht.
Propulsion of the biggest solar boat ever built
The PlanetSolar is powered by four high-efficiency electrical permanent magnet

synchronous motor driving five-bladed carbon fibre propellers through two drive shalfts. Four
motors develop a total power output of up to 176kW (239bhp), of which about 20kW per hour
is consumed at cruising speed. The backup power is utilized at night and during rains. The
advanced lithium-ion battery can store up to 1.3MW of solar energy under deck. The boat is
equipped with a rudderless steering system. Each propeller supplied by AIR has a diameter of
2m and rotates at maximum speed of 160rpm.
Lithium Battery System Description
A lithium-ion battery or Li-ion battery is a type of rechargeable battery in which lithium

ions move from the negative electrode to the positive electrode during discharge and back
when charging. Li-ion batteries use as intercalated lithium compound as one electrode
material, compared to the metallic lithium used in a non-rechargeable lithium battery. The
electrolyte, which allows for ionic movement, and the two electrodes are the constituent
components of a lithium-ion battery cell.


Lithium-ion batteries are common in home electronics. They are one of the most popular types
of rechargeable batteries for portable electronics, with a high energy density, tiny memory
effect and low self-discharge. Beyond consumer electronics, LIBs are also growing in popularity
for military, battery electric vehicle and aerospace applications. For example, lithium-ion
batteries are becoming a common replacement for the lead acid batteries that have been used
historically for golf carts and utility vehicles. Instead of heavy lead plates and acid electrolytes,
the trend is to use lightweight lithium-ion battery packs that can provide the same voltage as
lead-acid batteries, so no modification to the vehicle’s drive system is required.
Why Catamaran Hull?
A catamaran is a multi-hulled watercraft featuring two parallel hulls of equal size. It is a

geometry-stabilized craft, deriving its stability from its wide beam, rather than from a ballasted
keel as with a monohull sailboat. Being ballast-free and therefore lighter than a monohull,
catamarans often have shallower draft (draught) than comparably sized monohulls. The two
hulls combines also often have a smaller hydrodynamic resistance than comparable monohulls,
requiring less propulsive power from either sails or motors. The catamaran’s wider stance on
the water can reduce both heeling and wave-induced motion, as compared with a monohull,
can give reduced wakes
Catamarans range in size from small (sailing or rowing vessels) to large (naval ships and car
ferries). The structure connecting a catamaran’s two hulls ranges from simple frame strung
with webbing to support the crew to a bridging superstructure incorporating extensive cabin
and/or cargo space.


Figure 13 Schematic Diagram of Energy Distribution of Solar Ferry


There is a separate solar panel group (1.5 KW), separate battery bank (24V, 300 Ah) for
utilities. These include indoor LED lights, navigations lights, fire pumps, bilge pumps, electric
horn, bulkhead lamps, search lights, wiper motor, battery management system which are
divided between the two groups and also having a redundancy of being able to select from
other battery bank for critical items. The batteries can be charged from the normal single
phase plug overnight so that they are full charged in the morning. The charging time is about
six hours. The above energy curve show how the embarkation time is reduced to 5 m which
otherwise 15 m. Also there is a 2 hours noon break during which the ferry will not be running
(only charging from sun). Grid charging during noon break is only done on cloudy or rainy days.
For various scenarios for the sunny conditions time schedule can be made to optimize the
energy usage. On an average sunny day the boat can run for 6 hours and on a cloudy/rainy day
it can run 5 hours (charging from grid during the noon break).
For providing comfortable seating for 75 passengers and 3 crew, a catamaran with deck
area of 15 m length and 5.5 breadth is sufficient. However after multiple iteration it as found
that about 19.5 Kw (18 Kw for propulsion) solar panel power is needed to provide good energy
management. For this purpose the boat size was defined as 20 m length and 7 m breadth.
After multiple iterations the weight of the boat in full loaded condition was determined as 22T.
A catamaran hull with was selected that provided the best performance in terms of
lowest resistance. The selection of hull was based on optimization using computational fluid
dynamics (CFD). This hull needs about 16 Kw to propel at 5.5 knots and about 22 Kw during
maneuvering for short period leading to average 18 Kw consumption. Two motors of 20 Kw
power are selected ensuring 100% redundancy. At full power the boat will cruise at 7.5 knots.
In Kerala, the average solar energy production from 1 Kw of solar panel is 5.72 kWh.
Taking an efficiency of 70% for 1 conversion, the energy produced by 18 Kw solar panel is 72
kWh. The total running hours for the boat is 6 hrs staring at 7 AM and ending at 7 PM, with
focus during rush hour hours in morning and evening. This translates to total energy need of
108 kWh. On sunny day the gap between energy needed and obtained from sun is 36 kWh.
This has to provide by the battery. Since lithium batteries can be discharged by 80% the
battery bank need to be at least 45 kWh. A 50 kWh battery bank of lithium iron magnesium
phosphate is selected for easy of arrangement and to provide energy buffer. The power train is
kept as two independent systems on each hull so that in the eventuality of failure in one, the
other system would provide redundancy. In normal operation motors will operate at 50% of
load.


Safety Measures in the Ferry Boat
There are many safety considerations when travelling by water. Observe these tips, and
everyone will enjoy a safe trip on Sydney ferries. Sydney ferries are constantly audited and
updated to ensure they meet the highest safety standards. Crews undertake emergency
training drills every two months.
If you have any safety concerns or are affected by the anti-social behavior of other passengers
on your wharf or ferry, please speak to a staff member.
 Safety tips on the wharf

 Taking the ferry at night
 Safe boarding and disembarking
 Safety tips on board the ferry
 Locate life jackets and exits on vessel
 Safe boarding passes for Parramatta River services
Safety tips on the wharfs
All wharves (except Cockatoo Island and Garden Island) where Sydney ferries stop are covered
by 24-hour recorded video and are equipped with an Emergency Help Point and lifebuoys.
It is a good idea to be familiar with the layout of your wharf. Note the seats, entry gates,
walkways and ramps, as well as the location of the Help Point and life saving devices.
While waiting for a ferry on the wharf:
 Don’t rush – be on the wharf ready to board at least five minutes before departure.
Gates to the Manly ferry service close two minutes before the scheduled departure
time at both Circular Quay and Manly. This is to ensure on-time departures.
 Remain behind any yellow and black striped areas on the wharf


 Riding bikes, skateboards or rollerblades on the wharf is prohibited
 Don’t climb on or over railings or the wharf structure
 Don’t move or play with gangways
 Keep a firm hold of your pram and put on the brakes
 Alert trained security personnel to danger using the emergency help point on
unstaffed wharves, and immediately press the emergency help point.
Taking the ferry at night
If you are travelling at night, stay in well-lit areas in sight of incoming vessels and in the vicinity
of the Help Point, PA speakers and CCTV cameras. See Safety late at night.
Safe boarding and disembarking
While moving between the wharf and the ferry:
 Stand back and allow passengers to get off before you board. The deckhand holding the
gangway will let you know when it is safe to board.
 Wait to get off the ferry beyond the yellow and black striped area – this allows the
deckhand to safely secure the vessel and position the gangway. The deckhand holding
the gangway will advise you when it is safe to disembark.
 Hold onto the handrail and watch you footing as you walk over the gangway. Ensure
your bags are secure.
 Don’t board or disembark while on your mobile phone.
 Supervise young children – hold their hand or guide them to use the handrail
 Prams wider then 74cm will not fit on gangways and must to be collapsed before
boarding.

 Allow passengers who are elderly, travelling with carers, mobility aids, or
assistance animals to board in front of you and give them space and time to
board and disembark safely and comfortably.
Safety tips on board the ferry

 Do not stand in areas marked with yellow and black striped lines or on the
upper deck of supercat (Watsons/Rose Bay) vessels
 Stow luggage and prams away from aisles, steps, gangways and thoroughfares.
Ask the crew where to stow large items. You must stay with your belongings
during the journey.
 Remain seated – the vessel can move and sway if water conditions change
 Supervise children on board – the safest place for them is seated beside you
 Do not sit on the bow or the side of the vessel, lean out of the windows, stand
on seats or sit children on the rails or on your shoulders.
 Keep prams out of aisles and passageways. If a crew member asks you to fold
your pram, seat your child on your lap.
 Protect your belongings from sea spray if sitting outdoors
 Riding bikes, skateboards or rollerblades on the ferry is prohibited
 Secure your bicycles in the designated area on the F1 Manly ferry and follow the
direction of the crew to stow bicycles on other vessels.
 Make the crew aware if you have safety concerns by:
o Alerting the crew on deck patrol
o Using the red Help Point on the F1 Manly ferry (located in the middle of
the vessel on both the upper and lower decks)
o Knocking on the door of the wheelhouse on other vessels.


Locate life jackets and exits on vessels
Take a minute when you board to locate the exits and life jackets, as Sydney ferries have
different layouts. Read the life jacket instructions. If there is an incident or emergency, the
crew will direct you in safety procedures,
Safety boarding passes for Parramatta River services
On busy days Parramatta River services are very popular and can reach capacity quickly. You
may be issued with a boarding pass at Parramatta and Circular Quay wharves as you arrive for
your service.
The boarding passes do not reserve seats – they are used to safely manage large cutomer
numbers on the pontoon area of the wharves. They do not replace your ticket – you must
purchase a valid ferry ticket for your service.
Port Location and Trip Schedule
The port is located at the Putting Buhangin, Orion, Bataan. This port is the port being
used by the past companies operating in the area. The jetty terminal in the Mall of Asia is
located alongside the Seaside Boulevard, Pasay City.
The trip schedule is going to be two trips and a total of 720 trips annually without
considering the rainy days.
Time of Trip Route
8:00 A.M. Port of Orion, Bataan to Mall of Asia Jetty

Terminal
3:00 P.M. Mall of Asia Jetty Terminal to Port of Orion,

Bataan
Table 4 Trip Schedule

Figure 14 Map of Bataan and Metro Manila

Figure 15 Map of Orion

Figure 16 Map of Pasay City

Port Layout
Figure 17 Aerial View Port of Orion, Puting Buhangin, Orion, Bataan

Figure 18 Aerial View Mall of Asia Jetty Terminal

Structures
Figure 19 Front View of Mall of Asia Jetty Terminal

Figure 20 View on the Port of Orion

Figure 21 Solar Ferry Boat

Utilities
Electricity is needed for the solar-powered ferry boat in case of cloudy days and night
times. Amount of electrical energy required is 100 kWh. When the vessel is docked in the port
during cloudy days, the battery must be charged after one trip with a required amount of 100
kWh. During night times when not in the trip the battery must be charged up to 5 hours to fully
charge. The Penelco substation is the provider of electricity in the municipality of Orion. The
reason on the choice of the source is because the Penelco is the one of the cheapest power
rates in Luzon and cheaper rather than Meralco. The cost of the electricity is Php 9.35 per
kilowatt-hour. Meralco Substation is the alternative source of electrical energy.
Waste Disposal
Solar-powered ferry boats are 100% eco-friendly and avoids the pollution (Air, Water &
Noise) caused by conventional boats. Zero Carbon Dioxide emission is one of the major
advantages of this solar ferry boat than conventional ferry boats. Disposal of waste is properly
done by segregation and by disposing properly every trip.


Chapter VII
Taxation Aspects
The project has to pay the following taxes:
1) Import Taxes
a. Custom Duties
b. Compensating Tax
c. Advance Sales Tax
d. Specific Tax
2) Income Tax
Except for the custom duties, which are covered respectively by the Tariff and Customs
Code and the municipal ordinances, all of the above taxes are imposed by the National
Internal Revenue Code.
When a business project machineries imports and other material needed, it has to pay
import taxes, which may be in the form of (1) custom duties and compensating tax (2)
duties and advance sales tax or (3) duties and specific tax; depending on the nature of the
article being imported, and the way in which it will be used by firm.
When business project is engaged in industry and in normal operations, it has to pay a
business tax, which is normally one of those listed. Irrespective of the nature of operations
of the project and of the way in which it is organized.
Import Taxes
The import taxed for machinery and equipment to be used in the operations and not to
be sold are in the form of custom or tariff duties and compensating tax. For most types of
raw materials or finished goods, the import taxes consist of custom duties and advance
sales taxes. For some raw materials or finished goods, the import taxes are made up of
custom duties and specific tax.


Thus, for any particular importation, only two types of import taxes are payables. It should
be noted, however, that some articles or business entities are exempt from one or more of the
import taxes.
Custom Duties
The custom duties are either
1) Ad valorem, or expressed as a percentage of the CIF value of the article

2) Specific or fixed amount of duty per unit of measure
3) Both ad valorem and specific
The rate for most items of machinery and mechanical appliances for
operation use is 10%. The rate depends on the need for an item and on the local
availability. The rates for specific items may be obtained from the Tariff and
Custom Code (Republic Act 1937 as amended)
Compensating Tax
The compensating tax, as provide for in Section 190 of the National Internal Revenue
Code is imposed in the importation of machinery and other equipment to be used and not to
be sold by a project. The tax is based on the CIF-Manila, plus custom duties; charges of local
banks; brokerage, and other charger. The rate for most items of machinery and equipment is
7%.
Business Taxes
Business taxes are the percentage and specific taxes which are imposed on the
manufacture, sales, rendering of service, or collection of income of various types of business
projects. A project which limits itself to operation will normally pay only one type of business
tax. In some cases, however, a project may have to pay more than one type of business tax.
Payment Taxes
Import Taxes – Custom duties and compensating tax are payable before the imported
products may be released from the customs. Most of the business taxes are payable on a
monthly basis – 20 days after the end of the month to which they pertain.

TAX EXEMPTION
Tax exemptions are provided for mainly by:
1) Investment Incentives Act (R.A 5168)
2) National Internal Revenue Code
Application for the availment of incentives shall be filed with the following offices.
1) Board of Investment – for tax exemptions under the investment Incentive Act
2) Bureau of Internal Revenue and other offices – for the National Internal
Revenue Code.
Investment Incentives Act (R.A 5186)
Every year the Board of Investments (BOI) draws up an investment priorities plan (IPP).
The IPP lists down the industries for which application for incentives may be filed for the year.
The IPP specifies if a project is considered as pioneer (generally a new product or services or a
new untried process in the Philippines) or non-pioneer. The BOI also prepares annually the
public utilities priorities plan (PUPP).
The tax and other incentives given to the pioneer and non-pioneer enterprises under
the IPP and PUPP are:
Income Tax Incentives:
1) Deduction of organization and pre-operating expenses for a period not over 10 years.
2) Accelerated Depreciation
3) Net operating loss carry-over
4) Tax credit for withholding tax on interest
5) Deduction for expansion reinvestment
6) Deduction for labor training expenses
7) Reduced income tax for completing finished export products.
Other Tax Incentives:
1) Tax-free capital equipment imports for pioneer project and for non-pioneer projects
with total assets for less than P 500,000. For those over P 500, 000 assets and less than
20% return on equity (in case of expansion project), reduction in taxes and deferred
payment of taxes due. For those with over 20% returns on equity, and/or mere
replacement and modernization of facilities, deferred tax payment.
2) Tax credit on local capital equipment purchases

3) Special tax credit for raw materials and supplies for export products.
Non-taxes Incentives:
1) Employment of foreign nationals
2) Anti-dumping protection
3) Protection from government competition
In addition to the above, pioneer projects are entitled to the following incentives:
Income Tax Incentives:
1) Capital gains tax exemption
2) Tax allowance of investments
3) Tax exemption on sale of stock dividends
Non-Tax Incentives:
1) Repatriation of investments
2) Remittance of Earnings
3) Foreign Loans
4) Freedom from expropriation
5) Requisition of investment
6) Patents protection
NATIONAL INTERNAL REVENUE CODE (NIRC)

Among the exemptions granted by NIRC are:
1) Shipping – no compensating tax for the importation of passenger or cargo vessels for
either coastwise or ocean-going shipping (Sec. 190 of the NIRC)
2) Publications – no 3% gross receipts tax for the publication or printing of any periodical
which appears at regular intervals and with fixed prices for subscription or sale (Sec.
191)
3) Exports – no specific tax (Sec. 123). Manufacture’s sales tax (Sec. 188e), or miller’s tax
(Sec. 189) on manufacture of articles for export.

Chapter VIII
Financing Aspects
Framework and Assumptions

The analytic framework used to assess the ISCCS financing regime involved developing
a view of project as a financial entity from the developer’s perspective. This entailed the use of
a high level model of a developer’s cash flows over the life of the project. That model was used
to construct a set of base case financial for the project. And then made use of those financials
to estimate an associated “bid” to DOE – i.e. the price at which a developer would be able to
bid a supplying the power to DOE and make a reasonable return on his investment.
The base case financial analysis is predicated upon four primary sets of assumptions.
Following is a discussion of each set of assumptions and the specific assumptions made for the
base case financials. First, there is a set of overall project parameters. These assume a two-
year construction cycle and operations (service to the consumer) beginning in 2016. In the
base case, Operation and Maintenance cost are expect to inflate at the same rate – 2.5% per
annum from the base value.
PROJECT PARAMETERS
Construction Start Year 2016
Operation Start Year 2018
Operation and Maintenance Escalate Rate 2.50%
Table 5 Project Parameters

Second, there is a set of assumptions relating to the costs of building renovation. They
base case assumes a total Php 23 million, of which the unit or the solar powered ferry boat is
about Php 18 million including the annual operational and maintenance costs. The operational
fixed and variable costs as well as the maintenance costs are assumed to be Php 2 million. Also
included in the cost is a developer’s fee, which was not considered in the engineering analysis.
A developer fee was added to the direct project construction costs. While the actual fee will
depend on the numerous factors’, and small projects tend to have a higher fee as a percent of
construction costs, a 7.5% factor was used.
Finally, the base case used a number of assumptions regarding the financial structure
and the costs of financing. In general, the base case financing structure was based on the
experience of the developers with other projects, but was intended only as indicative of one
possible financing structure.
Table 6 Financial Structure Assumptions
Debt/Equity Ratio(%Debt) 65.0%

Cost of Debt – Construction/Renovation 8.0%
Cost of Debt – L/T Project 9.0%
Cost of Debt – L/T IFC 7.5%
Cost of Working Capital 12.0%
Term of L/T Debt (years) 12
Term of IFC Debt (years) 25
% of Total Project Financed by IFC 25.0%
Depreciation Years 10
Margin 8.0%
Country Risk Premium 2.48%
Philippine Income Tax Rate 34.0%
Discount Rate 10.0%
Sources of Financing for the project

Sourcing money may be done for a variety of reasons. Traditional areas of need may be
for capital asset acquirement – new machinery or the construction of a new building or depot.
The development of new products can be enormously costly and here again capital may be
required. Normally, such developments are financed internally, whereas capital for the
acquisition of machinery may come from external sources.
In this day and age of tight liquidity, many organizations have to look for short term capital in
the way of overdraft or loans in order to provide a cash flow cushion. Interest rates can vary
from organization to organization and also according to purpose.
Sources selected Sources of finance for both long term and short-term financing
1. 2Go travel
2. Aboitiz Shipping companC
3. SM Mall of Asis
4. Local Government Unit (LGU)
Amount and terms of Financing for each source selected
a) The ferry express’s finances will be covered by the firms involved in the project like 2Go
Travel that has assumed to be the large amount of share in the project.
b) Proceeds on the project will be used for expansion, maintenance and machinery costs.
c) Pesos will be the main currency used in project
d) Renovation of the port in Orion will be worth around 2.5 million pesos plus the cost of
the ferry boat will be 18,236,621.66558 pesos giving the project a grand total of
20,736,621 pesos tax included.
Status of the financing from each source
Estimated project release will be around est. 2018 including renovation of the port and
release of the solar powered ferry boat from India. Advertising will be done a year before the
normal operation. Board of Directors will elect the port manager to prepare to run in port.

Contingencies of the project
Depending on the run of the project in the future partial delays will be expected like
lack of funds or seasonal changes delaying the project. Seasonal peaks will be through ticket
sales depending on holiday sesaons.

Chapter IX
Financial Aspects
An important objective of this task is to provide the information necessary for the
economic and financial analysis.
Economic Analysis
Figure 22 Projected Initial Costs and Operating Cost for Solar Ferry Boat

It’s common to compare the price of solar boats with a conventional boat. This is because
people think placing solar modules on top of conventional boats can make it solar powered
boat.
To manufacture a solar/electric boat there are extra cost due to photovoltaic plant,
battery bank, high-efficient motors and management control system. This entire system makes
the solar boats more reliable. It will be clear to anyone that the lithium batteries are six to
eight times costlier than normal lead acid batteries. Lithium batteries are used because they
have a discharge depth of 80% compared to normal FLA batteries which makes boat more
efficient
These additional costs are partially compensated by reduction of operation costs; in

solar-electric boat there is no consumption of fuel and the cost of maintenance is relatively
lower. After seven years, the replacement of battery should be done as maintenance and it
cost Php 3,600,000.00.
A conventional 75 passenger ferry that has to be built with similar ergonomics and
safety standards under classification society approval would cost about 150 lakhs. With a two
50 HP main engine and consumption of 15 liters diesel per hour on average, and total of 150
liters per day (engines are running all the time). At current price of diesel that amounts to
□7500 per day and □26 lakhs per year (350 days running).
Lubricating oil can be taken as 10% of fuel cost, which is □2.6 lakhs per year.
Maintenance cost for engines is another 5%, □1.3 lakhs per year. Total operating cost per year
is □30 lakhs (excluding labor and other expenses that are same in both) these area expected to
grow each year at 10%.

Figure 23 Projected Initial Costs for Conventional Ferry Bost

Figure 24 Graph Representations of Total Costs (in INR) of Conventional and Solar Ferry Boat

Table 7 Total Project Costs
Initial Costs of Solar Ferry Boat Php 18,500,000.00

Operating and Maintenance Cost Php 2,000,000.00
Building Construction/Renovation Cost Php 1,500,000.00
Operating and Maintenance Labor Php 1,000,000.00
Total Php 23,000,000.00
Financial Analysis
Assumptions:
Capital (P) = Php 20,000,00
Port Life/ Boat Life = 30 years
Interest on Capital (i) = 4 %
Sinking Fund Rate of Interest ( r ) = 6 %
Final Salvage Value = 20 % Initial Value
Sinking Fund Payment

= ( P – S ) [ r / ( 1 + r ) n – 1]
= (0.80) (20,000,00) 0.06______

(1+0.06) 30-1
= Php 202,382.60

Interest on Capital
= P (i)
= (Php 20,000,000) (0.04)
Annual Operation and Maintenance Cost
= Php 3,000,000
Annual Cost of Production

= Php 202,382 + Php 800,000 + Php 3,000,000
= Php 4,002,382
Annual Passengers of one unit of ferry boat

Assuming:
50 passengers per trip = 35,000 passengers
25 passengers per trip = 17,500 passengers
Rate
= Annual Cost of Production / Annual Number of Passengers
= Php 4,002,382 / 35,000 (17,500) number of passengers
= Php 114.35/ passenger = Php 228.71/ passenger = Php 350.00/ passenger

Rate of Return
Capital Cost + Annual Cost of Production (Break-even Point) = Rate (Annual Number of
Passengers) (Break-even Point)
Break-Even Point = n = Capitol Cost_________________________

Rate (Annual Number of Passenger) – (Annual Cost of Production)
n= Php 20,000,000_______
350 (17500) – (Php 4,002,382)
n = 9.42 years
Total Income
= (Rate) (Annual Number of Passengers) (Remaining Years)
= (Php 350 per passenger) (17,500) (30 – 9.42)
= Php 126,052,500.00
Profit
= (total income) – (Annual Production Cost) (Remaining years)
= Php 126,052,500 – (4,002,382) (30 – 9.42)
= Php 43,683,478.44

Chapter X
Social Desirability of the Project
The social desirability of this project may gauge by (1) its specific contribution in the
Philippine society or economy in terms of increased government revenues, employment and
good accommodation in transportation and other factor.
SPECIFIC CONTRIBUTIONS
These represent the effect of the establishment of solar ferry boat passenger service
business on:
1.) Government Revenues
This business will cause increased in the government revenues upon payment of
all the necessary taxes that is imposed before the operation and continuous operation of
business. This project will benefit the tourism agencies in Bataan and Pasay City.
2.) Related Industry
The establishment of our business will promote the growth of other business
firm. For example, we accept shipping the raw materials that are used in other small
businesses. And this will be a great help for the employees of the other industry in their
transportion.

3.) Consumers
The establishment of the project will benefit the customer by giving them good
satisfaction of our services while on trip. For example, providing them a good quality and safe
trip.
4.) Employees
A project is socially desirable this will give opportunity to those current

employed, reduce the ranks of unemployed, properly compensate the employees, and train
them.

Chapter XI
Environmental Aspects
This aspect shows an element of organization’s activities, products or services that can
be interact with the environment. In the study of environment, it is essential to identity each
possible environment aspect and impact of it on surrounding.
Solar Boats are 100% eco-friendly and avoids the pollution (Air, Water & Noise) caused
by conventional boats. Solar ferry boat is an application of a renewable energy. The sun
provides a tremendous source for generating clean and sustainable electricity without toxic
pollution or global warming emissions. Sunlight is made up of charged particles called photon
that originate from the collision of hydrogen atoms in the sun’s core. They impart their
energies into the electrons in the cell. Once these electrons are excited to a higher energy
state, they move around and are ultimately collected and channeled into stream of electrons
(electricity).
If you raise the temperature, the electron’s “rest temperature” is effectively increased.
Since it takes less energy to excite the electron, less energy is initially transferred from the
photon. As a result, the system produces less electricity. Extremely high temperature will have
a significant impact on solar panel efficiency.
Under this aspect, the following subjects answer the question as to what would be the
effect of the project with respect to air, land and water resources. Will there prospect
pollution?
The Solar powered ferry boat business uses a process in which is no industrial or toxic
waste produced which might affect the air, water, land and also to people working and living
near the area. And for better safety reason, the port should be constructed with a safe
distances from the populated area.

Air:
The solar ferry boat does not affect the air because we do not burn gases that cause air
pollution. It is safe and not harmful to the surrounding and people around the area.
Water:
The solid waste in the ferry boat coming from the passengers will be segregate
according to non-biodegradable and biodegradable and it will be collected by the utility worker
after the arrival so that it will not harm the water.
Land:
The over-all process of operation does not use chemical. The land site in the operation
is fully safe in the passenger and workers. The solid waste is disposed in the proper are
(dumpsite).
Solar boats are better than conventional boats because they:
 Do not pollute water

 Do not release harmful emissions in air are very silent and comfortable for passengers
 Have low vibrations
 No smell of diesel or petrol
 Have lower cost of ownership (high initial cost but low operating cost).
Solar-powered ferry boats have zero Carbon Dioxide emission, and about 60 decibels of
noise. With the developers resolve to provide diesel-free water transportation, the developers
have succeeded in building a ferry which cares for Mother Nature. Negligible noise pollution is
another benefit.

References
Websites:
https://en.wikipedia.org/wiki/India%27s_First_Solar_Ferry
http://www.navaltboats.com/navalt-products-solar-electric-ferry.php
http://www.navgathi.com/wp-content/uploads/WP01-Why-Do-We-Need-
Solar-Boats.pdf
http://www.thehindu.com/news/national/alappuzha-backwaters-to-get-
indias-first-solar-ferry/article8306075.ece
http://www.navaltboats.com/navalt-faq.php
http://www.solarwaterworld.de/en/products/passenger/solar-ship-
suncat-58.html

Reassessment Study of Ferry Boat Passenger Using Solar Power

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Bataan Heroes Memorial College

Roman Super Highway, City of Balanga, Bataan 2100

Mechanical Engineering Studies Department

Project Feasibility Study