Describe how the Hybrid Annuity Model (HAM) can address the challenges faced by the BOT and EPC models of infrastructure development through public-private-partnership.
Approach of the Answer
- Introduction: Introduce with the definition of HAM and write other PPP models.
- Body: In the body, first, discuss the functioning of BOT and related issues, then discuss EPC and the problems. Subsequently, discuss how HAM is addressing these challenges.
- Conclusion: Conclude appropriately with the success of HAM.
Answer
Hybrid Annuity means that the government makes payment in a fixed amount for a considerable period and then in a variable amount in the remaining period. This hybrid type of payment method is called Hybrid Annuity Model (HAM). It was introduced by the government to revive PPP in highway ....
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