The OPRC (Output and Performance Based Road Contract) for the M06 Highway is the first of its kind in Ukraine, and is undertaken by our Company as a pilot project. The project, which has a duration of seven years, involves the construction, maintenance & repair, rehabilitation, routine inspection and winter maintenance of, as well as managerial responsibility for a 187-kilometer section of the M06 Kyiv-Chop Motorway, the main connection of the capital Kyiv with Ukraine’s neighbors to the west, Poland and Hungary.
Distinct from FIDIC contracts, Output and Performance Based Road Contracts (OPRC) have been launched by the World Bank in 2006 with the aim of engaging the private sector in the maintenance and repair of state roads. The OPRC concept can be summed as an initiative to assign the repair, maintenance and improvements of state roads in developed and developing countries to the private sector, which also undertakes any additional constructions as directed by the employer to improve the quality of the road, while also managing the road in question for a period of 5 to 10 years.
In traditional road maintenance-management contracts, payments to contractors are calculated using unit prices for the work delivered, while in an OPRC, payments are based on the contractor’s performance in maintaining and managing the road subject to the contract. In other words, the contractor is not paid for monthly progress on the works done, but rather receives a fixed monthly payment for the delivery of its tasks as specified in the contract, and is subject to a permanent penalty on this payment if it fails to meet the maintenance & management criteria.
Currently, there are many OPRC projects underway in the U.S., Canada, Brazil, Argentina, Sweden, Finland, the UK, Australia, New Zealand and a number of African countries, while Ukraine has been introduced to the OPRC concept by ONUR Taahhüt.
M06-OPRC project stands out as a hybrid, as the contract specifies both an unit price for road works, and a fixed price for road maintenance & management commitments.
The project is under development, and has reached a maximum staff of 180.
Project Specifications;
- Contract Works
Engineering, Purchase, Construction, Operation
- Employer
The State Road Agency of Ukraine (Ukravtodor)
