Airports India - - WONDERFUL WORLD -

A. MORTH is pro­mot­ing in­no­va­tive project im­ple­men­ta­tion mod­els like the Hy­brid An­nu­ity Model to en­cour­age in­vest­ments in high­way sec­tor. B. This model has been adopted for im­ple­men­ta­tion of high­way projects in or­der to max­i­mize the quan­tum of kms im­ple­mented within the avail­able fi­nan­cial re­sources of the gov­ern­ment. C. Bid pa­ram­e­ter is life cy­cle cost i.e. (NPV of the quoted bid project cost + NPV of the O&M cost for the en­tire O&M pe­riod). D. Con­ces­sion­aire re­ceives 40 per cent of project cost from author­ity dur­ing con­struc­tion pe­riod as con­struc­tion sup­port, thereby re­duc­ing his ex­po­sure and risk. E. Con­ces­sion­aire is re­spon­si­ble

for de­sign­ing, build­ing, fi­nanc­ing (60 per cent of the project cost), op­er­at­ing and trans­fer­ring the project at end of oper­a­tions pe­riod (15 years). F. Amount fi­nanced by con­ces­sion­aire dur­ing con­struc­tion pe­riod is to be re­cov­ered from author­ity through an­nu­ity pay­ments along with in­ter­est pay­ments (@ bank rate + x%) on re­duc­ing bal­ance method. G. O&M re­spon­si­bil­i­ties are with the con­ces­sion­aire with sep­a­rate pro­vi­sions for O&M pay­ments. H. Pro­vi­sion ex­ists for in­fla­tion

ad­justed project cost over­time.

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