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

INVITATION FOR TWO-STAGE BIDDING

Tender Reference No.: ERC/BDD/EP/B060/2026

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 Operation and Management Service Agreement.

2. Background

ERC owns a range of workshop facilities equipped with mechanical, electrical, and fabrication machinery that were originally installed for railway infrastructure development and maintenance activities at the Kombolcha Depot Workshop.

Following changes in operational requirements, project implementation schedules, and the completion or suspension of certain project activities, a significant portion of these valuable assets has remained idle for an extended period.

Prolonged idling exposes these public assets to physical deterioration, vandalism, theft, and loss of value. ERC is therefore proactively seeking private sector partners to transform these underutilized assets into productive economic resources. This initiative aligns with ERC's strategic objective of preserving public investment, generating non- fare-box revenue, and contributing to economic growth and industrial development.

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:

Capital Investment

• Provide revolving operational funds and working capital.
• Rehabilitation and Maintenance
• Commission and operationalize workshop assets.
• Rehabilitate damaged assets.
• Perform routine and major maintenance.

Security

• Secure workshop assets and facilities.
• Protect railway infrastructure outside the contract scope.
• Participate in joint technical coordination and maintenance planning.

Operations and Commercialization

• Manage and operate workshop facilities.
• Develop and implement a commercial business plan.
• Provide workshop services and manufacturing activities.
• Market services and maximize revenue generation.
• Coordinate operations through joint ERC-Operator mechanisms.

Personnel Management

• Recruit, manage, and supervise all required personnel.
• Bear all personnel-related costs and obligations.

Reporting and Transparency

• Maintain operational and financial records.
• Submit periodic operational and financial reports.
• Facilitate ERC inspections and audits.
• Insurance
• Maintain comprehensive asset and liability insurance coverage.
• Ensure compliance with required insurance standards.
• The procurement covers assets located in the following corridor:

Awash-Kombolcha-Woldiya-Hara Gebeya (Akwh) Corridor Depot Workshop Machinery Assets

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 June15, 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 Operation and Management Service Agreement"

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 June 24, 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: June 24, 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 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 Procurement Team, EP, Tel. +251114620049

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: 2026-06-24
• Bid closing time: 10:00
• Bid opening: 2026-06-24 10:30
• Region: Addis Ababa
• Publishing entity: Ethiopian Railways Corporation
• Buyer TIN: 0004722443
• Published: Jun 14, 2026
• Posted at: 2026-06-15T09:19:47.000Z