The hybrid annuity model announced by the Government that proposes to reduce risks in public private partnership format is likely to provide impetus for the next wave of PPP road projects, said ICRA. The model is a mix of EPC and BOT formats, with the government and the private enterprise sharing the total project cost in the ratio of 40:60, respectively. National Highways Authority of India (NHAI) had recently laid down the guidelines for the hybrid annuity model (HAM) in which the government funding to the extent of 40 per cent of the project cost will come in five equal instalments during the construction period, thus reducing the financial burden on concessionaire during the project implementation phase. ´When compared with EPC projects, shift to HAM would ease the cash flow pressure on NHAI. Moreover, spends can be recovered to an extent through tolling of these stretches by NHAI itself. Therefore, NHAI´s own upfront funding requirement will be lower in case of hybrid annuity compared with EPC mode,´ ICRA´s Senior Vice-President Rohit Inamdar said.
FlashNews:
15th Cement EXPO to be held in March 2025 in Hyderabad
IIFCL raises Rs 1,500 crore through bonds/debentures
Metro Rail sustainability suffering from affordability & connectivity
Dr E Sreedharan, India’s ‘Metro Man’ & India’s Top Metro Rail CEOs converge in Mumbai for CW Metro Rail Conference
Road Contracts awarded drop to less than half!
Synergy Steels clinches Award for Best Environment & Pollution Control Practices, 2023
Will QCBS phase out L1 for Infrastructure Procurement?
Vinita Singhania receives Lifetime Achievement Award at the 7th Indian Cement Review Awards
Indian Cement Industry Set to Build 100-150MT Capacity
DPIIT, Ministries & FIRST Construction Council to discuss sustainability with cement industry captains at Cement EXPO 2023 on Dec 14-15
Avoid Tunnel Vision Syndrome
World Cement Association Founder Director to be star speaker at Indian Cement Review Conference 2023 at 14th Cement EXPO, Delhi
Jury selects Indian Cement Review award winners; Awards to be presented at Cement EXPO 2023
14th Cement EXPO to kick-start from Dec 14, 2023 in New Delhi
Indian road sector: Highway of economic growth
Innovations in CE to meet tomorrow’s infrastructure needs
Unlocking investment potential in the North East region
Why carbon data is the key to improving sustainability and reducing emissions
Infrastructure: The growth catalyst of Indian economy
Home » Hybrid annuity model for PPP projects
Leave a Reply
You must be logged in to post a comment.