Employment Performance Contract Sample Template Page 3
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12This document has been prepared for the purposes of the
PPP IN INFRASTRUCTURE RESOURCE CENTER FOR CONTRACTS, LAWS AND REGULATIONS (PPPIRC)
website. It is a sample document FOR REFERENCE PURPOSES ONLY and SHOULD NOT BE used as a "model".
The inclusion of any legal materials on the PPPIRC website does not mean that they are in any way approved,
endorsed or recommended by the World Bank Group or its affiliates. Legal advice should be sought to determine
whether a particular legal document is appropriate for any given project, and how the specific terms of the document
should be adapted to fit the circumstances of that project
2.2
The Power Company
The Power Company as a signatory to this Contract shall undertake to honour its obligations as
spelt out in this Contract.
ARTICLE 3: PURPOSE AND DURATION OF THE PERFORMANCE CONTRACT
3.1
Purpose
3.1.1
This Contract is Intended to:
(a)
encourage Power Company to attain maximum performance based on sound
commercial principles consistent with its role and objectives as a parastatal
company for generation of electricity in [country] at cost effective prices for sale
to UTILITY.
(b)
enable GOVERNMENT to Institute changes in the management of the electric
power generation assets with a view to enabling Power Company to effectively
generate electricity at least cost consistent with the general economic
performance of the domestic economy.
(c)
provide a mechanism for Power Company to plan and operate within a suitable
managerial, financial and policy framework and a fair assessment of Power
Company's performance. It is expected that this Contract will help to achieve the
following results:
(i)
establishment of a formal arrangement for the Government, as
the sole shareholder in Power Company, to objectively assess the
operational and financial performance of Power Company
consistent with sound commercial principles;
(ii)
development of an incentive system for Power Company
management based on the achievement of good operational,
economic and financial performance; and,
(iii)
explicit and clear definition of Power Company's mission and
objectives.
3.1.2
This Contract is not intended to exempt Power Company from any regulatory
requirements imposed by any law, existing from time to time in [country], in respect of the
operations of the electric power sub-sector.
3.2
Duration
3.2.1
This Contract shall remain in force for an initial period of three years (3) from the date of
its signing by all the concerned parties.
PPP in Infrastructure Resource Center for Contracts, Laws and Regulations (PPPIRC)
Reviewed: Victoria R. Delmon, LEGPS
February 2008
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