Hybrid Annuity model is a mix of the EPC (engineering, procurement and construction) and BOT (build, operate, transfer) models.
In this model the project cost is shared by the government and the private player in ratio of 40:60, respectively.
The private player is responsible to construct and hand over the roads to the government which will collect toll.
Private player is paid a fixed sum of economic compensation (called ‘annuity’) by the government for a fixed tenure. The private player which demands the lowest annuity (in bidding) gets the contract.
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