Hybrid Annuity Mode (HAM) - Engineering, Procurement and Construction (EPC) model - Build-Operate-Transfer (BOT) model
Hybrid Annuity Mode (HAM) - Engineering, Procurement and Construction (EPC) model - Build-Operate-Transfer (BOT) model Introduction: The Hybrid Annuity Mode (HAM) is a public-private partnership (PPP) model used for building highways in India. It combines features of both the Engineering, Procurement and Construction (EPC) model and the Build-Operate-Transfer (BOT) model . Here’s how it works in simple terms: Cost Sharing : The government pays 40% of the project cost during the construction phase in installments. The remaining 60% is arranged by the private concessionaire (developer) through debt and equity. Risk Sharing : The traffic risk (toll collection risk) is borne by the government . The developer is paid back through fixed semi-annual payments (called annuities) by the government, along with interest on the balance 60%. Revenue Model : Unlike the BOT (Toll) model, where the private party collects tolls and bears the traffic risk, under HAM the government collects tol...