Many hybrid annuity road projects achieve financial closure

HAM projects are ones in which govt pumps in up to 40% of the total cost of the project

At a time when bankers are wary of financing hybrid annuity road projects, mid-sized companies have achieved financial closure under this mode.

The National Highways Authority of India (NHAI) and the road ministry are of the view that the de-risking aspect in hybrid annuity model (HAM) projects is higher than in build-own-operate (BOT) contracts and hence, funding is not an issue.

HAM projects are ones in which the government pumps in up to 40% of the total cost of the project.

According to an official, of the 26 HAM projects awarded so far, 17 have tied up funds. He added