AALRT Management Contract

Contract management plan

Amendments

S/N Description
1 Yearly budget
2 Payment
2 Contract agreement
3 Contract come to full
force and effect when
Contract agreement
Action Status Remark
Approved & disbursed
Perform the services in conformity in all
respects with the provisions of the contract
& payable under the provisions of the
contract at the times and in the manner
prescribed by the contract
2a - 2g read and construed as part of this
agreement
Signed by both parties
Performance guarantee submitted by MC
MC receives 12% advance payment upon
submission of unconditional advance
payment guarantee as per
SCC34.11&SCC34.12
 Contract negotiation
S/N Description Action Status Remark
1 Organization Prepare & submit
2 Representatives primary means for communication
23 counterpart local ERC will nominate according to
managers the min requirement in the TOR
The MC shall be fully responsible
to transparently engage to their
Chinese counter parts
The shall assure the transfer of
knowledge, skill, work attitude
and discipline in traceable and
measurable manner
This part of managerial knowledge
and capability transfer shall be
given critical attention by the MC
and should be reported in a
separate chapter in the progress
report
The GM Will report and responsible to
ERC DCEO- operation
The MC Prepare strategic plan of AALRT
in accordance with this MC
DCEO O&S Shall agree, by making
adjustments if necessary, up on the
strategic plan of AALRT
The GM Based on the strategic plan,
Prepare annual budget and after
deliberation by the executive
management team, will submit it
to ERC management for approval
Responsibility matrix
GM Prepare and submit
5 years operation plan and budget
Prepare & submit organizational
design including job description,
staffing plan and recruitment
requirements
Train seconded and other
Ethiopian staff as per TOR
Prepare and submit timely
performance reports (physical &
financial) and operation
documents
Issue all insurance policies as
instructed in this contract
Operate current account of
AALRT service
Discharge all duties, levies and
taxes according to national laws
and Ethiopian customs and
revenue authority directives
Execute AALRT O&M services as
per contract
Responsible for all matters related
to AALRT
Report to DCEO- O&S
Represent MC in the steering
committee
Payment terms & conditions Each semester up on official
request by MC & subjected to
performance evaluation by
employer
Financial management of ERC will open two accounts:
AALRT Account 1: for annual budget
deposit & operated by joint
signatories ( one CH & one Et
form AART service management
staff)
Account 2 to deposit all revenue
collections and is exclusively
operated by ERC. The MC shall
collect and all revenues and
deposit in this account.
 Scope of management contract (TOR)
S/N Description Action Status Remark
1 Organizational structure and Managerial Define/identify
resources for each function
2 Work plan for each processes Develop
3 Required personnel for each processes Define
4 Testing and start up phases of operation Assist ERC
5 Preoperational phase Manage
6 5 years strategic business plan Develop
7 Maintenance plan for both rolling stocks and Develop
infrastructure assets Execute
8 Both lines (NS&EW) Operate
9 Spare parts inventory Manage
10 Spare parts supply chain together with its Manage
supporting IT
11 Marketing and sales operation Manage
12 Train control Manage
13 Total safety of the rail system Manage
14 Finance and accounts Manage
13 Human resources Manage
14 Security Manage
15 Know how transfer and training Organize
Know how transfer and training Operate
16
17
Deliverables (Final minutes of meeting on contract negotiation)