Employment Performance Contract Sample Template Page 8
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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
ARTICLE 6: Power Company COMMERCIAL FREEDOMS
Power Company shall operate as a commercial business concern in accordance with the relevant
Laws of [country]. Power Company shall operate with commercial freedom in the areas
enumerated below.
6.1
Staffing Decisions
Power Company shall be free to employ or terminate, promote or demote such employees as shall
be necessary for the pursuit of its commercial objectives and efficient discharge of its functions as
approved by its Board from time to time, subject to the provisions of the relevant statutes on
employment.
6.2
Staff Remuneration
Power Company shall be free to determine and set levels of compensation and remuneration for
its staff including the payment of performance incentives as provided in this contract and as shall
be approved by its Board from time to time. However, such payments shall have to be consistent
with Power Company's annual budget as approved by Government. Payments of bonuses under
this contract will be made on the basis of an audit report on performance approved by a
committee comprising the MoE and MoF representatives.
6.3
Commercial Contracts other than for Generation of Electricity
Power Company shall be free to award Contracts to suppliers based on a competitive tender
system and with due regard to fair market prices, as shall be necessary for the proper discharge of
its objectives and functions.
6.4
Electric Power Purchase Agreements
Power Company shall be free to negotiate power purchase agreements (PPAs) with UTILITY for
all its power plants, as mutually agreed between the two companies and consistent with sound
commercial principles.
6.5
Short Term Investments
Power Company shall be free to make short term investment decisions in accordance with the
best commercial principles.
6.6
Disposal of Equipment or Assets
Power Company shall have the right to dispose of equipment and assets, which its Board may
deem unproductive, inefficient or uneconomic to maintain.
PPP in Infrastructure Resource Center for Contracts, Laws and Regulations (PPPIRC)
Reviewed: Victoria R. Delmon, LEGPS
February 2008
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