Q62) A new Hybrid Annuity Model has been adopted by the Ministry of Road Transport and Highways to maximize the quantum of implemented projects within available financial resources of the Government. As per this model which of the following statement is incorrect?
Q62) A new Hybrid Annuity Model has been adopted by the Ministry of Road Transport and Highways to maximize the quantum of implemented projects within available financial resources of the Government. As per this model which of the following statement is incorrect?
The correct option is B 60% the Project Cost is provided by the Government as ‘Construction Support’ to the private developer during the construction period and the balance 40% as annuity payments over the concession period
Ans:62)(b) A new Hybrid Annuity Model has been adopted by the Ministry of Road Transport and Highways for implementation of highway projects in order to encourage private sector participation through adequate incentives. The objective is to maximize the quantum of implemented highway projects within available financial resources of the Government. As per this model, 40% the Project Cost is provided by the Government as ‘Construction Support’ to the private developer during the construction period and the balance 60% as annuity payments over the concession period along with interest on outstanding amount to the concessionaire. Concessionaire remains responsible for Operation and Maintenance (O&M) till the end of the concession period and there is separate provision for O&M payments by the Government to the concessionaire. Project costs are inflation indexed (through a Price Index Multiple) and the toll are collected by the Authority, as such the concessionaire does not have to bear the traffic and inflation risks.
60% the Project Cost is provided by the Government as ‘Construction Support’ to the private developer during the construction period and the balance 40% as annuity payments over the concession period
Ans:62)(b) A new Hybrid Annuity Model has been adopted by the Ministry of Road Transport and Highways for implementation of highway projects in order to encourage private sector participation through adequate incentives. The objective is to maximize the quantum of implemented highway projects within available financial resources of the Government. As per this model, 40% the Project Cost is provided by the Government as ‘Construction Support’ to the private developer during the construction period and the balance 60% as annuity payments over the concession period along with interest on outstanding amount to the concessionaire. Concessionaire remains responsible for Operation and Maintenance (O&M) till the end of the concession period and there is separate provision for O&M payments by the Government to the concessionaire. Project costs are inflation indexed (through a Price Index Multiple) and the toll are collected by the Authority, as such the concessionaire does not have to bear the traffic and inflation risks.
