Hybrid model turns out a big draw

Highway Projects on Hybrid Annuity Model

After initial hiccup, the hybrid annuity model for awarding highway contracts introduced by the government is turning out to be a big draw as it is attracting more and more infra builders and bidders in the road sector, ratings agency ICRA said in a recent report, adding that in beginning with no bids for the first project under the Hybrid Annuity Model (HAM) and modest participation (average of 3 bids for the first few projects) during January-March 2016, National Highways Authority of India with aggressive promotion of the model, through awareness campaigns to lenders and developers has yielded rich dividends. On this score, the recent bids witnessed good participation from 9 or more bidders per project and the response from the bidders is turning out to be very encouraging by the day, it added.