Assuming they're talking US dollars, that's roughly the price of a bike from the supermarket. Granted, it'll be a truly dreadful bike, but it'll be OK as basic transport. I don't understand the emphasis on cheapness. Making cheap bikes is a solved problem.
Don't get me wrong, I think a cardboard bike is cool. I'd be particularly interested to hear about what they've done about things like bearings and attaching tyres.
The green side of it is interesting, as is the idea of an explicitly disposable bike. If it's easier to manufacture locally, or on a small scale or whatever, that'd be something. But a bike for $60-90 is not a new idea. They're out there right now.