The Ethiopian Railways Corporation (ERC) invites eligible bidders for the selection of operators for an Asset Rehabilitation, Operation and Management Service Agreement for assets along the Awash - Kombolcha - Woldiya - Hara Gebeya (AKWH) and Addis Ababa

INVITATION FOR TWO-STAGE DIDDING

Tender Reference No.: ERC/BDD/EP/B055/2026

1. Invitation

The Ethiopian Railways Corporation (ERC) hereby invites eligible and qualified bidders to submit proposals for the selection of operator(s) for an Asset Rehabilitation, Operation and Management Service Agreement.

2. Background

The Ethiopian Railways Corporation (ERC) owns a portfolio of construction machinery, heavy trucks, and industrial plant equipment deployed along major railway corridors, including the Awash - Kombolcha - Woldiya - Hara Gebeya (AKWH) and Addis Ababa - Djibouti corridors.

Following the completion of major railway projects, a portion of these assets has become underutilized, creating risks of deterioration and loss of value, while also presenting opportunities for commercial utilization,

To optimize asset use and recover value. ERC intends to engage qualified private sector operator(s) under an Asset Rehabilitation, Operation and Management Service Agreement. The selected operator(s) will be responsible for the rehabilitation, operation, maintenance, and commercial deployment of the assets at their own cost and risk, in return for agreed commercial arrangements.

The engagement will be implemented through a long-term contractual arrangement with defined performance and operational requirements.

3. Scope of Work

The selected operator(s) will be responsible for the comprehensive management and commercial utilization of the assets, including but not limited to:

Rehabilitation and Restoration: Conduct technical assessment and undertake necessary repairs and refurbishment to restore assets to operational condition

Operation and Deployment: Efficiently deploy and operate machinery and equipment for commercial purposes across relevant sectors

Maintenance Management: Implement preventive and corrective maintenance systems to ensure reliability, safety, and longevity of the assets

Asset Security and Safeguarding: Establish and maintain adequate measures to protect assets from theft, vandalism, misuse, and deterioration

Commercialization and Revenue Generation: Develop and implement business strategies to maximize asset utilization and generate sustainable revenue streams

Logistics and Asset Tracking: Manage mobilization, utilization tracking, and reporting systems for effective asset control and performance monitoring

Compliance and Reporting: Ensure compliance with applicable laws and standards, and provide regular operational and financial reports to ERC

The procurement is divided into the following lots:

Lot 1: Awash-Kombolcha - Woldiya - Hara Gebeya (AKWH) Corridor Assets

Lot 2: Addis Ababa- Djibouti Corridor Assets Bidders may participate in one or both lots.

4. Procurement Method: Two-Stage Bidding

This procurement shall be conducted in accordance with Article 33 of Directive No. 1070/2025 using a Two-Stage Bidding Procedure:

Stage One-Technical Proposal (Without Price)

Bidders shall submit technical proposals only

Proposals shall include methodology, technical approach, and operational concepts

No financial proposal or bid security is required at this stage ERC may conduct discussions with bidders to clarify and refine proposals

Stage Two-Final Bids

Only bidders whose Stage One proposals are found responsive will be invited

Invited bidders shall submit:

Final technical proposals

Financial proposals (e.g.. revenue-sharing or fixed return models)

Required bid security

5. Eligibility Requirements

• Bidders must meet the following requirements:
• Valid Grade-1 General Contractor License (or equivalent)
• Valid and renewed business license
• VAT registration and valid tax clearance certificate
• Tax Identification Number (TIN) Certificate
• Proof of registration in the Federal Public Procurement Authority (FPPA) Suppliers List

Demonstrated access to minimum working capital

Audited Financial Statements/Reports/ Formal letters from a recognized bank confirming available credit lines or liquid balances/ Debt Financing Mechanisms

Proven experience in: Asset management/ Equipment operation/ Infrastructure or industrial project execution

No record of significant contract default or legal disputes

6. Bidding Documents

A complete set of the Stage One Bidding Document (Technical Requirements/TOR) may be obtained from: the Ethiopian Railways Corporation, Engineering Procurement Team, Block No. 10, starting April 27. 2026, during regular working hours (9:00 AM-5:00 PM GMT+3) Addis Ababa time

Location: Ethiopian Railways Corporation Kirkos Sub-City. Woreda 10, Meshualekiya Addis Ababa, Ethiopia

7. Submission of Stage One Proposals

Technical proposals must be submitted in a sealed envelope clearly marked:

"Stage one proposal - two-stage bidding for Asset Rehabilitation, Operation, and Management

Services (lot no.)" Submission Address:

The envelope that carries the bid document should be addressed to:

To: Ethiopian Railways Corporation

Attention: ERC-Business Development Division- Engineering Procurement Team

Address: Addis Ababa, Ethiopia, P.O. Box: 27558/1000

Street Address: Kirkos Sub-City, Woreda 10, Meshualekiya, Sierra Leone Street

Telephone: +251-114-702058/+251-114-702051.

Fax: +251-114-702044

Email: erailways@erc.gov.et.

Submission deadline: Technical proposals for the first stage must be submitted in hard copy to the address below no later than 10:00 AM on May 7, 2026. Late submissions will be rejected and returned unopened.

Bid Opening

Stage One technical proposals will be opened in the presence of bidders' representatives who choose to attend at: Time: 10:30 AM: Date: May 7, 2026: Location: ERC Head Office, block-10, Room-97

8. Evaluation of Stage One Proposals

Stage One technical proposals will be evaluated using a weighted scoring system with a total of 100 points, based on criteria specified in the bidding document. A minimum qualifying score of 70 points will be required to proceed to the next stage.

Based on the evaluation results, the highest-ranked bidders (typically 5-7 firms, depending on the level of competition) will be invited to participate in Stage Two of the bidding process.

9. Rights of the Corporation

Ethiopian Railways Corporation reserves the right to accept or reject any stage one proposal, cancel the selection process, or reject all proposal at any time

10. Contact Information

For further information, please use the following contact information:

To: Ethiopian Railways Corporation

Attention: Engineering Tel..+251912688502

Address: Kirkos Sub-City. Woreda 10. Meshualekiya. Addis Ababa. Ethiopia

Telephone: +251-114-702058/+251-114-702051,

Email: erailways@erc.gov.et

Notice: Potential bidders are responsible for any costs incurred during the preparation or submission of the proposal.

Tender details

• Deadline: 2026-05-07
• Publishing entity: Ethiopian Railways Corporation
• Published: Apr 26, 2026