Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

Railway Reform: Toolkit for Improving Rail Sector Performance
Annex 4: Concession Contract Guide
Prior to the commencement of the Term, the Authority and the Concessionaire
should agree on the format for quarterly reports. By a date certain in the third
month after the commencement of the Term and every three (3) months thereinafter,
the Concessionaire should submit to the Authority, a report in the agreed
form. The report might reasonably cover progress in the development, financing,
construction, and commissioning of the New Upgrades and the renewal, maintenance
and operation of the Below Rail Infrastructure. Similarly, the report might
provide details of main railway activities during the period—volume of traffic,
changes in traffic or activity from the previous period, and for the same period
during the preceding year, fees, revenues, expenditures, and other key metrics
data.
The Concessionaire could reasonably be required to carry on its business and affairs
with due diligence and efficiency, in accordance with sound international
financial and commercial standards and practices, and fully account for all aspects
of its business as follows:
• The Concessionaire should prepare and submit to the Authority within a
specified number of months of the end of each financial year a copy of the
Concessionaire’s audited financial statements that have been or are to be
submitted to state tax authorities and that have been drawn up by an internationally
recognized accounting/auditor firm registered in the host country in
accordance with international accounting standards and host country laws.
Financial statements would include balance sheet, profit and loss account,
and cash flow statement, together with any explanatory notes or variations
from international accounting standards used to comply with host country
law.
• In addition to financial statements, the annual reporting to the Authority
might include the following information and metrics.
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Freight tons, ton-km, passengers and passenger-km carried;
Locomotive-km for passenger and freight service;
Freight ton-km per employee and passenger-km per employee;
Revenue and costs by service or activity;
Actual vs. planned maintenance and details of asset breakdowns that
have affected services;
Summary of events and causes of cancellations and late running, together
with complaints received and actions taken and summaries of user satisfaction
surveys;
Summary of accidents and incidents, causation and consequences (serious
accidents should have been reported to the relevant Ministry as soon
as they occurred and would be an issue for the Safety Board);
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