The Ministry of Public Works maintains over 500 Government vehicles. That 500 consists of
tractors, motorcycles, Heavy trucks, Bulldozers, Concrete mixers and 119 GP cars to name a
few. The average age of a government vehicle is 10+ years and as any mechanic will tell you,
the older a car gets, the harder and more expensive it is to maintain.
Through the Ministry of Transport’s “EVolve Bermuda” policy, this Government is committed
to an eco-friendlier future for generations to come. This initiative is intended to foster the
development of the renewable energy industry in order to help Bermuda achieve its Net-Zero
goal by:
1. encouraging the growth of the electric automotive market in Bermuda, and
2. reducing the number of internal combustion engine (ICE) vehicles being imported.
Whilst the overall draft national policy is advancing in unison with our industry partners, the Ministry of Public Works has been diligently preparing for this transition for some years now.
As one of the larger procurers of vehicles on Island, to lead by example, we have committed to electrifying the Government vehicle fleet through a phased approach by replacing aging assets with EVs when available.
A few years ago, we purchased 6 EVs as a pilot project that are currently being used by public
servants as well as the purchase of 2 Electric bikes for the Bermuda Post Office under the
Electric Motorcycle Pilot Programme.
Earlier this year, the public will recall the purchasing of 5 EV’s to replace a portion of the district Nurse’s Fleet at the Department of Health.
During the Budget Debate in March this year I set out a plan to replace the ministerial fleet of
13 cars and provided funding in that budget to do so. The Ministry issued a Request for Proposal in September 2023 to procure thirteen (13) new sedan-style fully electric passenger vehicles to replace the depreciated assets. Three
submissions were received, however, two did not meet the mandatory criteria and the
companies were given the opportunity to rectify the respective submissions. Neither company
elected to correct the errors within the required timeframe.
The single valid submission by Auto Solutions Ltd. was then reviewed in accordance with the
RFP rules and the Code of Conduct for Project Management and Procurement by an evaluation
team that determined that the tender submitted by Auto Solutions Ltd. was best value. The
company has displayed their understanding of the requirements and budgeted accordingly
while maintaining a very competitive price. Auto Solutions offered a further 8.9% discount if
the cars were paid for in advance – we accepted that offer. I won’t say how much we projected
the price to be but what we are paying is lower than that projection.
With this said, I am pleased to announce the further expansion of the Government’s EV fleet in partnership with Auto Solutions Ltd, by the purchase of thirteen (13) Hyundai KONA EV’s to
replace the Government ministerial fleet at a cost of $579,996.95 or $44,615.15 cents each.
As I have said before, the current cars frequently break down with increasing regularity.
Replacement parts to carry out the necessary repairs are becoming a challenge to procure due
to the age of the vehicle and can take months to be imported. In fact, out of the 13-car fleet, six
are out of service due to maintenance and repairs. The newest Toyota Corolla model vehicle used in the ministerial fleet is more than 12 years old.
Last week, a Minister drove into the Cabinet Office and their vehicle lost all transmission
control. When car was placed in reverse – the car continued to drive forward, when the car was
placed in neutral, the car continued to drive forward. As shocking and dangerous as this may
sound, this is not the first time that this has happened. About a year ago, the same issue took
place with another vehicle. This car is 20 years old.
With regard to the electrical infrastructure for these newly acquired assets, EV charging
stations have been installed at the Sessions House parking areas. This is in addition to charging stations already installed at the Cabinet Office and the Workforce Development parking lot.
With the assistance of Auto Solutions Ltd, it is anticipated that these new purchases will save
the Government approximately $55,000 per vehicle over its respective lifetime in maintenance and fuel costs, giving a total savings of $715,000 for the thirteen cars. Additionally, with the discount received for purchasing the vehicles in bulk, the Government essentially received 1 free vehicle.
So, you will see 4 cars here today – the remainder will arrive 3 at a time – over the next few weeks with the next batch due September 30th. Ministers are being introduced to the new car and provided with an orientation before being assigned one. Three of these will be assigned to the 3 ministers that have the oldest cars – 24 years and the fourth vehicle will be used for the orientation of other ministers.
Before I invite Glen Smith, the managing director of Auto Solutions, to speak, I would like to take the opportunity to thank his team for being an instrumental partner in this initiative and we look forward to working with them over the next few years.
The adoption of EVs supports Bermuda’s environmental goals by reducing emissions and
promoting cleaner air. As I said before, the Lower fuel and maintenance costs will provide
financial savings for the Government, allowing more resources to be allocated to other
endeavors.
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