THIS DOCUMENT HAS BEEN PREPARED FOR THE PURPOSES OF THE

PPP IN INFRASTRUCTURE RESOURCE CENTER FOR CONTRACTS, LAWS AND REGULATIONS.

IT IS FOR GENERAL GUIDANCE PURPOSES ONLY AND SHOULD NOT BE USED AS A SUBSTITUTE
FOR SPECIFIC LEGAL ADVICE FOR A PROJECT.
Sample Terms of Reference Rail Sector
Strategy for Pilot PSP in Rail sector
For Technical Assistance
1. State Railways of Growthland (SRG)
The State Railways of Growthland (SRG) is the state-owned enterprise with primary
responsibility for rail services in Growthland. At present, SRG is directly responsible
for services over a network of !"" km of track. #t employs $",%"" staff and serviced
&".! m passen'er and !".!$ m frei'ht ton per ann(m in )***. +peratin' reven(e in
the financial year ended )*** was Gr,ollars -,$%! million. #n )**., SRG provided $.$
/ of the services to passen'ers (sin' p(blic transport in Growthland (all modes) and
).. / of the frei'ht ton carried. Road transport dominates the transport sector with
b(s and car for passen'ers and tr(ck for frei'ht leadin' the way. #n )***, Government
spend on maintenance and new roads was Gr,ollars %*,!" million.
2. Challenges facing SRG
SRG faces a n(mber of challen'es. #t is c(rrently operatin' at a si'nificant ann(al
deficit of appro0imately Gr,ollars % billion. 1ares have been fro2en for some time and
there is c(rrently no clear policy or f(ndin' mechanism to s(pport rail services. #t is
not c(rrently viewed as a preferred method of travel for passen'ers nor is it
competitive with road ha(liers for frei'ht b(siness.
Si'nificant investment is needed in both track and rollin' stock in order to improve
service 3(ality. 4(rrent service levels are deemed poor and are declinin'. 5annin'
levels and 3(ality of e0istin' personnel are also pressin' iss(es facin' the railway.
Government does not have the allocated reso(rces to rectify this position.
3. The Reform Process
#n response to these challen'es, SRG s(pported by the Growthland Government and
the Re'ional ,evelopment 6ank, has instit(ted a policy of ma7or reforms with the aim
of creatin' a s(stainable and c(stomer foc(sed railway service which can contrib(te
effectively to Growthland8s wider transport needs. This process commenced with the
appointment of advisers in April )*** to address the short term cash flow crisis facin'
the SRG. S(bse3(ently, a consorti(m of specialist advisers was appointed in 5arch
!""" to form(late lon' term strate'y and str(ct(ral options for reformin' SRG and
introd(cin' 9rivate Sector 9articipation (9S9). These advisers completed their work
in :ovember !""". All initiatives (nder the (mbrella policy of reforms are bein' led
by a senior a'ency called reportin' directly to 4abinet called the +ffice of ;conomic
Reform and #nfrastr(ct(re 9rivati2ation (+;R#9). The Transport 4ommittee of the
+;R#9 is overseein' all rail, port, airport, metro and toll road initiatives in close
collaboration with the relevant line ministries.
Government is now ready to implement a comprehensive pro'ram of restr(ct(rin',
foc(sin' on the establishment of commercially foc(sed and operated b(siness (nits
and sim(ltaneo(s pilotin' of 9S9 with a foc(s on implementin' si'nificant chan'e
within the ne0t two years. As a start, introd(ction of a pilot pro'ram of 9S9 is
sched(led to be implemented within - months of year !""!. #n order to proceed to
fast track 9S9 immediate restr(ct(rin' of the whole ind(stry has been identified as the
main priority.
PPP in Infrastrutur! R!s"ur! C!nt!r f"r C"ntrats# La$s an% R!&u'ati"ns (PPPIRC) Vit"ria Ri&*+ D!',"n# LEGPS
-tt./00$$$.$"r'%*an1."r&0 ppp D!!,*!r 2334
THIS DOCUMENT HAS BEEN PREPARED FOR THE PURPOSES OF THE
PPP IN INFRASTRUCTURE RESOURCE CENTER FOR CONTRACTS, LAWS AND REGULATIONS.
IT IS FOR GENERAL GUIDANCE PURPOSES ONLY AND SHOULD NOT BE USED AS A SUBSTITUTE
FOR SPECIFIC LEGAL ADVICE FOR A PROJECT.
Sample Terms of Reference Rail Sector
. !"#ecti$es of this Cons%ltancy
The primary ob7ectives of this cons(ltancy are to<
= #dentify a core b(siness (nit eli'ible for pilot 9S9 initiative>
= Set o(t the plan for cond(ctin' the pilot 9S9 initiative.
Re3(ired deliverables are set o(t in more detail below.
&. PSP 'ast(trac) !ption
As mentioned above, the Growthland Government intends to implement f(ll-fled'ed
9S9 as soon as the SRG restr(ct(rin' is finali2ed. #n order to achieve this 'oal the
Government has decided to p(rs(e a d(al track approach to reform. This involves
overall restr(ct(rin' of SRG8s b(sinesses with a parallel strate'y involvin' the pilotin'
of certain services for earlier 9S9 with the medi(m term 'oal of introd(cin' f(ll 9S9.
1ast track introd(ction of 9S9 is e0pected to take place as a priority in a core b(siness
defined as rollin' stock operations of passen'ers and or frei'ht, or b(ndled track and
rollin' stock operations of a line or se'ment of SRG.
#t is envisa'ed that the pilot 9S9 schemes will involve si'nificant risk transfer to the
private sector?s(ch as thro('h a concession or sale?whilst deliverin' efficiency 'ains
on both financial and operational performance.
The 4ons(ltant will be re3(ired to assess and advise on the selection of fast track
candidate b(siness (nits and to assist SRG to carry o(t the pilot privati2ation as part of
this phase of the st(dy. This will involve developin' transparent selection criteria for
selectin' the aspects of SRG to be privati2ed and s(pportin' viability analysis from a
financial, commercial, operational and marketin' perspective. The o(tp(t will be a
strate'y for deliverin' a si'nificant portion of SRG8s above rail b(siness or a key
se'ment into the private sector within * months of the completion of this st(dy.
*. Reg%latory and +egal ,rrangements
A separate Terms of Reference has been iss(ed for the establishment of a re'(latory
str(ct(re the rail sector of Growthland. #t will be the responsibility of the cons(ltant
hired (nder these Terms of Reference to coordinate with the other advisors and
ens(re that a re'(latory arran'ement will be delineated that will serve the fast-track
privati2ation pro'ram witho(t interferin' in the lon'-term arran'ements. This
coordination will be facilitated by the +ffice of ;conomic Reform and #nfrastr(ct(re
9rivati2ation8s Transport 4ommittee.
-. !%tp%ts
Specific deliverables will incl(de<
= development of selection matri0 for identifyin' fast-track tar'ets>
= s(pport to mana'ement in selectin' fast-track candidate(s)>
= action plan for introd(ction of 9S9>
= framework tender doc(ments, incl(din' a preliminary information memorand(m>
= timetable for tenderin'>
= checklist of tender doc(ments> and
= ToR for appointment of transaction advisers to mana'e tender@concession process.
Page 2 of 4
PPP in Infrastrutur! R!s"ur! C!nt!r f"r C"ntrats# La$s an% R!&u'ati"ns (PPPIRC) Vit"ria Ri&*+ D!',"n# LEGPS
-tt./00$$$.$"r'%*an1."r&0 ppp D!!,*!r 2334
THIS DOCUMENT HAS BEEN PREPARED FOR THE PURPOSES OF THE
PPP IN INFRASTRUCTURE RESOURCE CENTER FOR CONTRACTS, LAWS AND REGULATIONS.
IT IS FOR GENERAL GUIDANCE PURPOSES ONLY AND SHOULD NOT BE USED AS A SUBSTITUTE
FOR SPECIFIC LEGAL ADVICE FOR A PROJECT.
Sample Terms of Reference Rail Sector
At the end of this work mod(le SRG sho(ld be in the position to la(nch a tender
process at the earliest opport(nity for the selected fastAtracked b(sinesses. This
mod(le will not involve the act(al tenderin' process which will form the core of the
ne0t phase of work to be covered in a separate ToR the form(lation of which (with
the specific ob7ective of meetin' the nine month deadline referred to above) will,
however, form part of this assi'nment.
.. /anagement Plan
Qualifications
The assi'nment is for a team led by a senior rail sector specialist s(pported by
ind(stry financial and operational analyst(s) as well as a 9S9 specialist. The senior
sector specialist sho(ld have e0tensive e0periences with definin' operational
arran'ements for railroads and with best practices for instit(tional arran'ements for
private operators. The financial analysts and 9S9 sho(ld hold the re3(isite skills to
model the different b(siness (nits and determine the appropriate (nit to be sp(n-off.
The 9S9 specialist sho(ld have e0tensive e0perience in the desi'n of privati2ations and
concessions so as to facilitate the strate'y desi'n once the (nit has been selected.
Duration and Levels of Effort
#t is e0pected that the cons(ltancy will last abo(t ). weeks from mobili2ation to
completion. The cons(ltancy is estimated to re3(ire appro0imately -" person@weeks
in total, incl(din' )" person-weeks for the lead sector specialist, !" person-weeks for
operational specialists> !! person-weeks for financial specialists and . person-weeks
for the 9S9 e0pert.
0. Proposal Str%ct%re and Scoring Criteria 1s%"#ect to proc%rement regime of
awarding a%thority2
Type of Contract and Budget
As mentioned in the attached ,ata Sheet, the selection method will be B(ality and
4ost 6ased.
After the technical bids have been ranked, all firms@consortia with technical proposals
scorin' over ." percent will be invited to participate in the 9(blic +penin' of the
financial proposals. At that sta'e, the 1inancial Scores will be calc(lated and added to
the technical scores accordin' to the followin' wei'htin'<
= Technical 9roposal< . /
= 1inancial 9roposal< )/
#f the financial proposal of the firm with the hi'hest combined score has been
calc(lated witho(t error (rates, levels of effort, fees, e0penses, per diem, ta0es, etc.),
then that firm will be invited to enter into ne'otiations with the Government of
Growthland to cond(ct the cons(ltancy.
Technical Proposal
The Technical 9roposal sho(ld contain<
= a brief back'ro(nd on the proposed cons(ltin' team specifyin' the de'ree to
which the firms and individ(als have collaborated on past assi'nments>
= a proposed approach or work plan that elaborates and@or improves (pon the
approach and o(tline provided in these ToR>
Page 3 of 4
PPP in Infrastrutur! R!s"ur! C!nt!r f"r C"ntrats# La$s an% R!&u'ati"ns (PPPIRC) Vit"ria Ri&*+ D!',"n# LEGPS
-tt./00$$$.$"r'%*an1."r&0 ppp D!!,*!r 2334
THIS DOCUMENT HAS BEEN PREPARED FOR THE PURPOSES OF THE
PPP IN INFRASTRUCTURE RESOURCE CENTER FOR CONTRACTS, LAWS AND REGULATIONS.
IT IS FOR GENERAL GUIDANCE PURPOSES ONLY AND SHOULD NOT BE USED AS A SUBSTITUTE
FOR SPECIFIC LEGAL ADVICE FOR A PROJECT.
Sample Terms of Reference Rail Sector
= a mana'ement plan that relates the team members to the tasks to be performed
and describes each team member8s planned contrib(tion to the analysis in
person@days in Growthland and at home and accordin' to task>
= firm 3(alifications of each corporate member of the consorti(m>
= f(ll cv8s of each individ(al cons(ltant who is proposed>
= Gantt or bar charts detailin' the d(ration of each task and the involvement of
individ(als over time.
Financial Proposal
The 1inancial 9roposal sho(ld contain<
= 1ee breakdown< ,aily rates and n(mbers of days, by task, of each member of
the cons(ltin' team
= ;0penses< All meals, hotel, travel, incidentals, comm(nication, prod(ction,
facilities and other e0penses anticipated for the pro7ect>
= 4alc(lation of total cost.
Proposal evaluation
The technical proposal will be scored as follows.
= 9roposed Approach (val(e added of work plan, ori'inality)
) points ()/)
= 9roposed 5ana'ement 9lan (levels of effort, (se of key staff, field time, previo(s
e0periences workin' as a team, appropriateness of assi'nments)
)" points ()"/)
= 1irm ;0perience
! points (!/) of which<
- Rail operations and mana'ement )" points ()/)
- 1inancial and operational modelin' of railroads points (/)
- 9rivati2ation e0perience (in transport, and in re'ion) )" points ()"/)
= 4(rric(l(m Citae +f 9roposed Staff
" points ("/) of which<
- Dead rail operations specialist )& points (!"/)
- +perational specialist@s )) points (!"/)
- 1inancial specialist@s )) points (!"/)
- 9S9 Specialist )) points ()"/)
13. S%"mission information
The ori'inal and $ copies of the technical proposal as well as the ori'inal and $ copies
of the financial proposal sho(ld be sent 7ointly in separate envelopes to the followin'
address<
+ffice of ;conomic Reform and #nfrastr(ct(re 9rivati2ation
5inistry of 1inance 4omple0
4apital 4ity
Rep(blic of Growthland
Attention< Transport 4ommittee< Rail 9S9
9roposals m(st arrive at +;R#9 no later than )&"" ho(rs on )! Ean(ary !""!.
Page 4 of 4
PPP in Infrastrutur! R!s"ur! C!nt!r f"r C"ntrats# La$s an% R!&u'ati"ns (PPPIRC) Vit"ria Ri&*+ D!',"n# LEGPS
-tt./00$$$.$"r'%*an1."r&0 ppp D!!,*!r 2334