Daily Point 2243 - Hybrid Annuity Model (HAM)

 

The Banking Tutor 

Daily Point 2243 

Hybrid Annuity Model (HAM) 

The Hybrid Annuity Model (HAM) is a public-private partnership (PPP) model used in India for highway construction, which combines elements of the Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT) models. Under this model, the government funds 40% of the project cost as support during construction, and the private developer receives the remaining 60% in annuity payments over the life of the project (typically 15 years). Toll collection is the responsibility of the government, and this structure helps share the risk between the government and private developers

Sekhar Pariti

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