Hybrid-Annuity-Model (HAM) project

Ministry of Jal Shakti

WHAT

India’s First Sewage Treatment Plant (STP) to be completed under the Hybrid Annuity (HAM) Based Public-Private Partnership Model is inaugurated in Sarai, Haridwar.

• This Plant is based on advanced aerobic biological process, Sequential Batch Reactor (SBR) process, capable of removing the nutrients during treatment and is a 100% eco-friendly project.
• This plant will be maintained and operated for a period of 15 years.

Hybrid-Annuity-Model-Programme

HYBRID-ANNUITY-MODEL (HAM)

• HAM is a mix of EPC (engineering, procurement and construction) and BOT (build, operate, transfer) models.
• Under the EPC model, NHAI pays private players to lay roads. The private player has no role in the road’s ownership, toll collection or maintenance (it is taken care of by the government).
• Under the BOT model though, private players have an active role — they build, operate and maintain the road for a specified number of years — say 10-15 years — before transferring the asset back to the government.
• Under BOT, the private player arranged all the finances for the project, while collecting toll revenue or annuity fee from the Government, as agreed. The annuity fee arrangement is known as BOT-Annuity; essentially, the toll revenue risk is taken by the government, while the private player is paid a pre-fixed annuity for construction and maintenance of roads.
• Now, HAM combines EPC (40 percent) and BOT-Annuity (60 percent). On behalf of the government, NHAI releases 40 percent of the total project cost. It is given in five tranches linked to milestones. The balance 60 percent is arranged by the developer.

Source: PIB

READ MORE PIB UPDATES

• Investor Education & Protection Fund Authority
• Neutrino Observatory in Tamil Nadu
• National Florence Nightingale Awards
• The Transgender Persons (Protection of Rights) Bill, 2019
• Tarapur Atomic Power Station (TAPS) Project
• Human Space Mission: Gaganyaan