Hybrid Annuity Projects: - 'Study of HAM in Highway Construction Projects-Owner and Contractor Prospective'

Abstract

India has embarked on a brisk pace of highway development following the policy change in the mid-1990s that gave a high priority to highway development in India. The National Highway Development Programme (NHDP) was launched in 1997 to develop a large highway network in a relatively short period of time. The Public Private Partnerships (PPP) model was adopted for highway development in India, given the intrinsic advantages associated with it over conventional models. Pursuant to the policy decision, a large number highway development contracts were awarded under the Build, Operate and Transfer (BOT) variant of PPP model and other variants with further development of policy’s Design, Build, Finance, Operate and Transfer (DBFOT) models were awarded and finally now National Highway Authority of India (NHAI) has adopted Hybrid Annuity Model (HAM) for highway development at rapid pace. This paper first discuss the various features of HAM in road sector of India, later it compares the Hybrid Annuity Model (HAM) with the conventional DBFOT model of road development so as to find out the advantages and risk associated with HAM both for client & contractor prospective, which will help the stake holders to analyze the latest trends of HAM projects awarded by NHAI.

Keywords: Road Development, Highway, NHAI, HAM, DBFOT, Risk