Techniques of Hybrid Annuity Mode Tender for Implementing Highway Projects
Keywords:
Hybrid Annuity Model, highway projects, tendering techniques, risk distribution, public-private partnership, infrastructure financingAbstract
The Hybrid Annuity Model (HAM) has emerged as a significant financing and procurement approach for highway development in India, blending the strengths of the Engineering, Procurement and Construction (EPC) and Build-Operate-Transfer (BOT) models. This study examines the techniques of HAM tendering in implementing highway projects, with a focus on risk distribution, cost efficiency, and long-term sustainability. Under HAM, the government provides 40% of project cost as construction support, while the concessionaire finances the remaining 60%, recoverable through semi-annual annuity payments and toll-free operations. Tendering techniques emphasize transparent bidding, revenue certainty, and balanced allocation of risks related to land acquisition, financing, and operations. By ensuring faster financial closure, predictable cash flows, and reduced exposure to traffic risks, HAM has encouraged greater participation from private developers and financiers. This paper highlights the procedural framework, evaluation parameters, and implementation challenges of HAM tenders, providing insights into its effectiveness for accelerating highway infrastructure development.
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