Question

Q. To de-risk the private sector’s investment in the infrastructure segments, this model of PPP has been conceived. Under this model, the government contributes 40% of the project cost in the first five years through an equated annual payment and also ensures that clearances and land are readily available.

Which of the PPP models given below best represent the above statement?

• A. HAM model
• B. BOT model
• C. BOOT model
• D. EPC model

Answer 1

The correct option is A HAM model

Explanation:

• The government has come up with a new model of the PPP named the Hybrid Annuity Model. This is brought in to de-risk the private sector’s investment in the infrastructure segments; this model of PPP has been conceived. Under this model, the government contributes 40% of the project cost in the first five years through an equated annual payment and also ensures that clearances and land are readily available. After the twin balance sheet crisis and many infrastructural projects being in limbo, the private sector participation in the infrastructure sector was drying up, and hence to correct that, the government has come up with this model.