Terms of Reference
for consulting services
Facilitation and Training during the Pilot Program
for
Performance-based Management and Maintenance of Roads
I.
Introduction
The Government of the United Republic of Tanzania seeks to increase the efficiency and
effectiveness with which the management and maintenance of the country’s road network is
carried out. This is motivated by the recognition that the road network constitutes the
country’s single largest asset, and that a less-than-optimal system for the management and
maintenance of that asset generally will result in huge losses for the national economy. This
occurs not only in the form of road deterioration and massive reductions in road asset value,
but even more so in the form of increased vehicles operation costs which have to be borne by
road users and which reduce the competitiveness of the national economy in an increasingly
global economy.
The Government intends to combine well-known and traditional methods of road
rehabilitation and reconstruction, with new concepts and instruments for road asset
preservation. In particular, the Government is launching (on a pilot basis) six packages for
the Performance-based Management and Maintenance of Roads (PMMR) covering
about 1100 km of the National Road Network. This should avoid a premature deterioration
of those roads and assure that road users can count on a level of service which is adequate
for their needs, and at the same time keeping down the cost for providing those service
levels.
The Government is planning to sign the following PMMR packages:
Package 1: Mwanza West (208.04 km)
Package 2: Mwanza East (138.93 km)
Package 3A: Rukwa (…… km)
Package 3B: Rukwa (……. km)
Package 4: Tanga West (246.74 km)
Package 5: Tanga East (120.06 km)
[Insert map taken from Technical Report showing locations of packages in the country.)
The Government is further planning to sign three supervision contracts with local consulting
firms, one each for the Tanga, Mwanza and Rukwa regions. Each of the three contracts will
cover the supervision of the two PMMR packages located in the respective regions:
Supervision contract for Tanga Region covers packages 4 and 5.
Supervision contract for Mwanza Region covers packages 1 and 2.
Supervision contract for Rukwa Region covers packages 3A and 3B.
The introduction of PMMR will be accompanied by a process of facilitation, training and
capacity-building, in support of the various parties involved (contractors, local consultants,
TANROADS staff, etc.). An international consultant will be hired for this purpose, and the
present TOR’s describe the tasks to be carried out by the international consultant.
II.
Background: Concept and characteristics of PMMR contracts
Performance-based contracting for the management and maintenance of road networks is a
relatively new concept designed to increase the efficiency and effectiveness of road
maintenance operations. It should ensure that the physical condition of the roads under
contract is adequate for the need of road users, over the entire period of the contract which is
normally several years. This type of contract significantly expands the role of the private
sector, from the simple execution of works to the management and conservation of road
assets.
In traditional contracts for maintenance works, the Contractor is responsible for the
execution of works which are normally defined by the Road Administration or the Employer,
and the Contractor is paid on the basis of unit prices for different work items, i.e. a contract
based on “inputs” to the works. While this modality often brings improvement over forceaccount maintenance practices, the results are in many cases still less-than-optimal. The
problem is that the Contractor has the wrong incentive, which is to carry out the maximum
amount of works, in order to maximize its turnover and profits. Under this traditional way of
“contracting out” maintenance works, it has been observed that even if a lot of work is
carried out and much money is spent, the overall service quality for the road user depends on
the quality of the design given to the Contractor who is not accountable for it and the results
are sometimes not satisfactory.
Performance-Based Management and Maintenance of Roads tries to address the issue of
inadequate incentives. During the bidding process, contractors compete among each other by
proposing a fixed monthly lump-sum price per km of road to be paid to them. It is important
to understand that contractors are not paid directly for “inputs” or physical works (which
they will undoubtedly have to carry out), but for achieving specified service levels, i.e., the
initial rehabilitation of the road to pre-defined standards (if so required by the bidding
documents), the maintenance service of ensuring certain service levels on the roads under
contract and specific improvements (if so required by the bidding documents), all
representing outputs or outcomes. The monthly lump-sum remuneration paid to the
Contractor will cover all physical and non-physical maintenance services provided by the
Contractor, except for unforeseen emergency works which would be remunerated separately.
The initial rehabilitation works which have been explicitly specified by the Employer in the
contract are quoted on the basis of measurable output quantities and paid as performed. In
order to be entitled to the monthly payment for maintenance services, the Contractor must
ensure that the roads under contract comply with the service quality levels which have been
specified in the bidding document. It is possible that during some months he will have to
carry out a rather large amount of physical works in order to comply with the required
service levels, and very little work during other months. However, his monthly payment
remains the same as long as the required service levels are complied with.
A fundamental feature of the performance-based contract is that the Contractor is
responsible for designing and carrying out the actions he believes are necessary in order to
comply with the service levels stated in the contract. The service levels are defined from a
road user’s perspective and may include factors such as average travel speeds, riding
comfort, safety features, etc. If the service level is not achieved in any given month, the
payment for that month may be reduced or even suspended.
Under the performance-based contract, the Contractor has a strong financial incentive to be
both efficient and effective whenever he undertakes work. In order to maximize profits, he
must reduce his activities to the smallest possible volume of intelligently designed
interventions, which nevertheless ensure that pre-defined indicators of service level are
achieved and maintained over time. This type of contract makes it necessary for the
Contactor to have a good management capacity. Here, “management” means the capability
to define, optimize and carry out on a timely basis the physical interventions which are
needed in the short, medium and long term, in order to guarantee that the roads remain above
the agreed service levels. In other words, within the contract limitations and those required
to comply with local legislation, technical and performance specifications and environmental
and social regulations, the Contractor is entitled to independently define: (i) what to do, (ii)
where to do it, (iii) how to do it, and (iv) when to do it. The role of the Road Administration
and of the Employer is to enforce the contract by verifying compliance with the agreed
service levels and with all applicable legislation and regulations.
Maintaining a road network includes both routine and periodic tasks. Routine maintenance
consists of many different tasks frequently necessary to maintain the function of the road
(such as pothole repairs, cleaning of drainage, sealing of cracks, cutting of vegetation, etc.).
Periodic maintenance consists of predictable and more costly measures of a less frequent
nature designed to avoid road degradation (such as grading, drainage work, resurfacing,
asphalt concrete overlays, etc.). Intelligent management, the timeliness of interventions and
the adequacy of technical solutions are critical. It is expected that the use of private
specialized firms under performance-based contracts will unleash significant efficiency
gains, and stimulate innovation in comparison with traditional road administration practices.
Minimum road conditions and service levels are defined through performance measures, and
these are used under the performance-based contract to define and measure the desired
performance of the Contractor. In the Performance-Based Management and Maintenance
Contracts, the defined performance measures are thus the accepted minimum thresholds for
the quality levels of the roads for which the Contractor is responsible.
The performance criteria should ideally cover all aspects of the contract and take account of
the fact that different sub-areas within the contract area might require different service
levels. Criteria can be defined at three levels (although simpler contracts will not use all of
the criteria identified below):
(a)
Road User Service and Comfort measures, which can be expressed in terms such
as:
 Road Roughness
 Rutting
 Skid resistance
 Vegetation control
 Visibility of road signs and markings
 Availability of each lane-km for use by traffic
 Response times to rectify defects that compromise the safety of road users
 Attendance at road accidents
 Drainage off the pavement (standing water is dangerous for road users)
(b)
Road Durability measures, which can be expressed in terms such as:
 Longitudinal profile
 Pavement strength
 The extent of repairs permissible before a more extensive periodic maintenance
treatment is required
 Degree of sedimentation in drainage facilities
(c)
Management Performance measures, which define the information the Employer
requires both to govern the asset during the term of the contract, and to facilitate the
next tender round. Requirements should include:
 Delivery of regular progress reports to the Road Controlling Authority
 Inventory updates and other data sharing requirements
 Maintenance history (so subsequent bidders can price the work).
To avoid ambiguity, all performance measures must be clearly defined and objectively
measurable.
Under the terms of the contract, the Contractor will also be responsible for the continuous
monitoring and control of road conditions and service levels for all roads or road sections
included in the contract. This will not only be necessary to fulfill the contract requirements,
but it is an activity which will provide him with the information needed in order to be able
(i) to know the degree of his own compliance with service level requirements, and (ii) to
define and plan, in a timely fashion, all physical interventions required to ensure that service
quality indicators never fall below the indicated thresholds. Under the performance-based
contract modality, the Contractor will not receive instructions from the Employer concerning
the type and volume of works to be carried out. Instead, all initiative rests with the
Contractor who should do whatever is necessary and efficient to achieve the quality levels
required. This concept is expected to lead not only to significant efficiency gains, as
mentioned earlier, but also to technological innovation.
Although the design of the works to be carried out is under the responsibility of the
Contractor, this type of procurement requires good preparatory engineering work. It is
necessary to prepare comprehensive information on the actual condition of the roads covered
by the contract. If initial rehabilitation works are required, the Employer should define the
level of quality (or standard) to be achieved by the Contractor for delivery and completion
during this initial phase of the contract. If improvement works are sought, a well-designed
bill of quantities defining specific outputs for bidders to price and, later on, allow
measurement and payment of the Contractor, is of paramount importance. Emergency works,
although impossible to quantify in advance, will certainly be necessary. To allow bidders to
offer prices a unit price bill of quantities (similar for civil works under unit prices) with
quantity estimates should be prepared for bidders to price for bid evaluation purposes. Later
on, these unit prices and real measured volumes of works executed will be used for
payments. Another important area requiring sound engineering advice is to define if the
initial rehabilitation works should be included in the contract or be carried out in advance
under a separate “standard” civil works contract. This decision depends in each case on the
risks that the Borrower (and his advisor) understands as possible to be administered costeffectively by the Contractor. In general, if those initial works represent more than 40% of
the contract value, the risks may be too high and an initial separate contract may be
warranted. However, if the Employer wants to have initial rehabilitation works based on a
pre-defined design and use this document to connect it to future maintenance by the same
Contractor, the documents need to be adapted. In this case, the bill of quantities for initial
rehabilitation works should be modified to become similar to those for emergency works and
the measurement and payment clauses should be modified for an “input” type contract.
When Initial Rehabilitation Works and Improvement Works are not specified in the bidding
document, it is expected that in order to comply with the contract, the Contractor will most
likely have to carry out different types of works, including some small initial rehabilitation
and improvements, routine maintenance activities and periodic maintenance works. The
definition of the exact nature of the works, their timing, their costing and their
implementation is left to the judgment of the Contractor. This means that his capacity must
be above the usual capacity of a traditional civil works contractor. In fact, an essential
attribute is the capacity to manage roads, while the actual physical execution may either be
carried out by the Contractor himself, or by different specialized firms participating in a
Joint Venture with the main contractor, or under subcontracts. Joint Ventures may include
Engineering firms and medium, small and even micro-enterprises. Consequently, a welldesigned prequalification process is highly recommended in order to ensure that only
qualified bidders participate in the bidding process, even though, the present bidding
document can also be used when post-qualification is envisaged. In the design of the
prequalification requirements the borrower should consider if the experience of specialist
sub-contractors (like an engineering consultant) should be allowed to be added to those of
the applicants. The activities which may be delegated by the main contractor to
subcontractors not participating in the prequalification process should be listed in the Special
Conditions of Contract and bidders should be alerted about this point in the Bid Data Sheet.
The agreed monthly payment for maintenance works and services will be made to the
Contractor if he has complied, during the month for which the payment is to be made, with
the agreed service quality levels on the road network under contract. Together with his
monthly invoice, the Contractor will report the result of his own evaluation of compliance
with the required service levels, based on his own monitoring system which is mandatory.
His statement will then be verified by the Employer or his representative (supervision
consultant) through inspections. If the service quality levels are not met, payments are
reduced, based on a schedule given in the contract. Payments may even be suspended, and
the contract cancelled, if the contractor fails during an extended period to achieve certain
minimum thresholds values of service levels. The contract describes the formulas used to
calculate payment reduction and potential contract suspensions.
The Sample Bidding Document for PMMR contracts can be found on the World Bank’s
Procurement website: http://www.worldbank.org/html/opr/procure/contents.html
III.
Objectives
In view of the above, the Government of the United Republic of Tanzania seeks to employ
the services of a qualified international consulting firm to provide facilitation and training
services during the period of execution of the six pilot PMMR packages.
The successful introduction of the PMMR concept makes it necessary that each of the
various parties involved knows its role and plays it adequately. The facilitation and training
services to be provided by the consultant have the objective to help all parties involved to
adequately play their role, through
 Coaching
 Training
 Promoting dialog and exchange of information
The main parties involved in, and affected by the PMMR contracts are:
Contractors: In the context of PMMR contracts, the “contractor” is defined as the signatory
of the contract. This can be a civil works contractor, but it can also be an engineering
consulting firm, an asset management firm, or a joint venture of the above, and it can also
involve banks or other financial institutions. The contractor’s role is to comply with the
provisions of the contract.
Supervision Consultants: The verification of compliance of the contractor with contractual
obligations (such as service levels) is in principle the responsibility of TANROADS, but
TANROADS will hire local consulting firms for this purpose. In the context of PMMR
contracts, the role of supervision consultants is essentially to verify the contractor’s
compliance with service levels, which is substantially different from their traditional role of
“directing” works execution.
TANROADS: The road agency represents the “owner” of the road asset and must defend
the public interest. Under the PMMR concept, the TANROADS transfers a part of its role to
contractors and consultants, but retains the overall responsibility for road asset management
and preservation. TANROADS staff manages the contracts of both the contractor and the
local supervision consultant, and should also maintain a dialog with road users.
Road Users: The satisfaction of road user needs is the centerpiece of the PMMR concept.
Road users normally pay (directly or indirectly) for the service of an adequate road. In
Tanzania, this is done through a fuel levy collected into the Road Fund. Feedback from road
users will be important to assess the success or failure of each PMMR contract. Road users
can also participate informally in the verification of the contractor’s compliance with service
levels.
III.
Scope of Services
As mentioned above, the role of the consultant consists essentially of three groups of
activities, namely:
Task Group A:
Task Group B:
Task Group C:
Facilitation, mentoring and coaching
Formal training
Promoting dialog and exchange of information
The scope of services for the each of the three groups of activities is described below. In
order for the consultant to fully understand the requirements of the present TOR’s, it is
indispensable that he is familiar with and fully understands the concept of PMMR.
Task Group A: Mentoring and coaching
Task A1:
Provide neutral advice.
The consultant’s main role is that of a facilitator, mentor, coach and neutral advisor for all
parties involved. In order to be able to do so, he must be fully familiar with the PMMR
concept in general, and have detailed knowledge of the specific PMMR packages and
supervision contracts under execution in the country. He shall take care not to take sides in
disputes, and shall not carry out any of the roles and responsibilities of any of the parties
involved. Good judgment by the consultant is essential; he/she must be proactive without
interfering with the role of any of the parties involved. He shall respond to verbal and
written requests for advice from contractors, consultants and road agency staff. He shall also
actively follow up on the execution of each PMMR contract, and proactively offer advice if
in his view problems are likely to occur, or have occurred. Based on his observations, he
shall identify needs for formal training and respond through training courses (see Task
Group B).
Task A2:
Prepare information about mentoring role, and disclaimer.
The consultant shall prepare and periodically update a very brief information document for
contractors, consultants and TANROADS staff describing his role as facilitator, mentor and
coach, including his contact address, telephone number, e-mail address, etc. This will
include a legal agreement to be signed by the parties involved which protect him or anybody
else from claims which could result from advice or information given by him.
Task A3:
Establish and maintain accessibility.
The consultant’s role of facilitating, mentoring and coaching requires that he is accessible to
all persons requiring his advice and mentoring. For this purpose, he will establish an office
equipped with E-Mail, Fax and telephone, and ensure that these are functional at all times.
This office will be in a neutral location outside the TANROADS premises. The consultant
shall respond in a timely fashion to request for advice, and keep a daily log of requests
received and answered.
Task A4:
Field visits
The consultant will regularly visit the sites of all PMMR contracts in the country and meet
contractors, consultants, TANROADS staff and road users. He will proactively seek on site
information about the execution of PMMR contracts and possible problems and conflicts
which would require solutions. If problems or conflicts are encountered, he will advise the
parties involved, with the objective of promoting adequate solutions within the framework of
the respective contracts. It is expected that the consultant will spend about 40% of his time
on field visits. During field visits, the consultant should also carry out informal adhoc
training for site personnel. He should also participate as a passive observer in the formal
verification of service levels on the roads, in order to detect any problems in the
comprehension of the PMMR contracts by any of the parties. He shall talk to road users in
order to get to know their opinion on road conditions and the success or failure of the
PMMR contracts.
Task Group B:
Formal training
Task B1:
Development of formal training courses.
During the initial three months of his assignment, and ideally before the actual startup of the
PMMR contracts, the consultant will develop formal training courses for the staff of
contractors, consultants and road agency professionals. These courses shall bring together
professionals from all of the above groups, and cover all aspects of PMMR, including
subjects such as (i) PMMR concept and approach, (ii) administration of PMMR contracts,
(iii) planning and design of interventions needed to comply with required service levels, (iv)
verification and control of service levels, etc. The consultant will develop the course content
and the training materials for each course, including handouts to participants. For the
execution of this task, it is expected that the consultant shall include in his team an
experienced training specialist.
Task B2:
Carry out formal training courses.
Throughout the contract period, the consultant shall periodically hold the formal training
courses, in such a way that each course is offered at least once a year, and more often if
needed. This task will include: (i) planning of schedule of courses, (ii) publishing of course
schedule in local press, (iii) identification and invitation of potential participants, (iv)
logistical organization of courses, (v) execution of courses, including evaluation by
participants. The courses will be held by the Team Leader with support from the Training
Specialist. The courses will primarily be held for professionals directly involved in the
execution of the PMMR pilot contracts (from contractors, consultants and TANROADS).
However, courses should also be open to outside participants, possibly against the payment
of a fee. It is expected that approximately 180 person-days of formal training shall be held
each year, with each course having about 20 participants.
Task Group C:
Promoting dialog and exchange of information
Task C1:
Prepare and distribute newsletter
The consultant will prepare and distribute on a quarterly basis a newsletter destined for the
key stakeholders (contractors, consultants, TANROADS, Ministry of Works, road users,
etc.) presenting (i) the progress of each PMMR contract, (ii) a summary of problems
encountered and solutions found, (iii) information about key personnel active in each
contract, including contact addresses, etc.
Task C2:
Organize events for discussion and exchange of information
The consultant shall periodically organize events (workshops or similar) for discussion and
exchange of information between stakeholders involved in the execution of PMMR
contracts. These can be formal or informal events.
IV.
Other information and requirements
Staffing. The consultant’s team is expected to consist of the following personnel:
 Team Leader: The Team Leader should preferably be an experienced road engineer,
and in addition possess the qualifications needed to enable him or her to adequately
play the role of facilitator, mentor and coach as required by these TOR’s. He should
also have experience in contract management, including the interpretation of
administrative clauses of contracts. Inter-personal and communication skills, and a
balanced personality are of utmost importance.

Training specialist: The training specialist should have significant experience in the
development and execution of professional training courses.
Duration of the assignment and payment terms. The overall duration of the assignment is
expected to be five years.
 During the first 30 months (2.5 years) of the assignment the Team Leader shall be
required to be resident in the host country. During the following 2.5 years the team
leader shall carry out periodic quarterly visits to the host country of approximately
four weeks each. The total input of the Team Leader during the five-year period is
expected to be 42 man-months, almost all of which will be in the host country.
 The Training Specialist is expected to participate on a full time basis during the
initial four-month period of the contract, in particular for the development of the
formal training courses (Task B1) and also to participate in the execution of training
courses. During the remainder of the five-year contract period, the Training
Specialist shall intervene periodically to help carry out formal training courses and
also to update training material, course content etc. The total time input of the
Training Specialist is expected to be 20 man-months during the five year contract
period.
It is estimated that the consultant’s total time input will be 62 man-months. Payment of the
consultant service will be on the basis of the time actually used (time-based contract.)
Consultant’s price. The financial offer of the consultant shall include and specify all cost
items, such as salaries and other staff remunerations, domestic and international travel costs,
accommodation, per-diem, local transportation, office costs, reproduction of reports, holding
of workshops, field visits, etc. Taxes and duties shall be shown separately. Any cost item
not specified in the consultant’s offer shall be deemed to be included in other cost items for
which a price has been quoted. Invoicing of the consultant’s services will be quarterly.
V.
Documents to be produced by the consultant
The consultant shall produce the following documents:
 Training course materials (as per Task B1)
 Brief quarterly summary of the consultant’s activities (to coincide with invoicing
period), and the general progress of the PMMR pilot contracts, problems encountered
and solutions found, etc.
 Mid-Term report (after 2.5 years) presenting a thorough and up-to-date analysis of
the PMMR pilot program
 Final Report, presenting an updated thorough analysis of the PMMR pilot program