Public Private Partnership

Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, in cases where the agency doesn’t have the budget for a lump-sum payment.
For more info: https://www.investopedia.com/terms/p/public-private-partnerships.asp

ADVANTAGES OF HYBRID ANNUITY MODEL – HAM

Provides Liquidity to Client and Private Player Financial Risk is shared between Client and Private Player Performance Driven Private Partner continues to bear the Construction and Maintenance Risk Bid parameter – lowest of sum of Project cost O&M cost Power & Land Hence the focus is on the “Life Cycle Cost” At the end of the …

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EPC vs HAM – Key Factors

Parameter EPC model HAM model Capital Expenditure Funding 100 per cent funded by Government Authority during initial construction period Only 40 per cent of capex to be funded by Government Authority during construction period; Remaining 60 per cent is the private financing by private developer during the construction period Capital Expenditure Optimisation EPC model focus …

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RISE OF PPP MARKET: INVESTMENT/DEVELOPER BASED MODEL

PPP Journey – India Evolution of PPP Water Sector 1990’s Bangalore bulk water supply project Hyderabad bulk water Pune distribution, treatment, bulk water Goa bulk water Early initiative on PPP (failed) High tariff Political opposition Credit quality Lack of project preparation 2000 Not many initiatives due to earlier failure Sangli distribution, treatment and bulk water …

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