Awarding of road projects

A new mode of delivery under public-private partnership (PPP) mode, namely Hybrid Annuity Model, is being considered for awarding road projects for implementation, Pon Radhakrishnan, Minister of State for Road Transport & Highways, said. Under the model, 40 per cent of the project cost is to be provided by the government to the concessionaire during the construction period in five equal instalments. The remaining 60 per cent is to be arranged in the form of debt and equity to be compensated over 15 years as bi-annual annuities. Radhakrishnan also said the government has taken a number of steps to minimise project delays during construction of the highways.