How to determine KPIs in Multi-Annual Infrastructure Contract – Case Montenegro

The transition to a contractual relationship between government and Infrastructure Manager under Directive 2012/34 /EU requires the possession of contract management skills and the development of key performance indicators (KPIs). Previous activities related to the Multi Annual Infrastructure Contract (MAIC) have been exclusively in the field of the Annual Infrastructure Maintenance Program implementation (railway maintenance, public procurement, and supervision of civil works implementation). However, under Directive 2012/34/EU it is necessary to introduce a system of performance indicators for upgrading/modernize infrastructure to obtain value for money. The paper presents a systematic approach in determining the KPIs and their merits on the example of a contract between the Government of Montenegro and the Railway Infrastructure manager of Montenegro (ŽICG JSC) with the aim to improve the operation and quality of services of ŽICG JSC and the condition of railway infrastructure in Montenegro as well. Keywords – Key performance indicators, railway infrastructure Multi-annual contract. Keywords – Key performance indicators, railway infrastructure Multi-annual contract.