Gammon infra eyes two road projects

Gammon Infrastructure hopes to win at least two out of about a dozen road projects that the government is all set to award on Hybrid Annuity Model (HAM) in the near future, Managing Director, KK Mohanty said, claiming that the government has embarked on an ambitious target of adding 30 km of network every day and adopted the HAM to attract private developers, who have been shying away from taking up projects on Built Operate Transfer (BOT) basis mainly because of the risks like delay in clearances and approvals. As delays in clearances and subsequent cost escalations, developers were reluctant to take up projects on BOT basis. As a result, the government also started awarding contracts on Engineering Procurement Construction (EPC) basis. However, the recent introduction of the HAM model has given boost to the private sector as the government's plan is to award over 12 projects, which are likely to be out for bids soon and the company will compete at least half a dozen of them. The company will evaluate the projects that would come up later this year.