In the TOT model, the right to collect and usurp royalties for certain operational projects of national highway (NH) built with public funds is granted to concessional dealers (developers/investors) predetermined with a prepayment of a lump sum to NHAI. This transfer of rights is based on the potential for toll revenue from identified NH projects. The operating and maintenance obligations (O-M) of these projects must be met by the dealer until the concession deadline. Dealers of such projects are designated as part of a pre-defined implementation framework and approved as part of a transparent and consistent procurement process. View YOG INFRA – This change is necessary for the calculation of completion costs to reflect payments for construction stones. No cash flow effect for developers among benchmark financial projections. . morth.nic.in/sites/default/files/Revisd%20MCA%20for%20HAM-Nov.pdf Ministry of Road Transport and Highways has implemented a hybrid annual model for the implementation of motorway projects, in order to encourage private sector participation through appropriate incentives. The goal is to maximize the amount of highway projects implemented in the government`s available financial resources.
Under this model, 40% of the project costs must be paid by the government as a “construction aid” for the private developer during the construction period, and 60% of the balance in the form of annuity payments during the concession period, as well as interest on the amount owed to the dealer. There is a separate provision for government payments made by the government to the dealership. The private party is not obliged to bear the risk of trafficking. All payments were indexed by a multi-price index, which is a weighted average of WPI and CPI (IW) at 70:30 bases. This reduces the risk of inflation for the developer. The Covid 19 pandemic hit society in an unexpected and unprecedented way. In order to stem its spread, the Indian Ministry of the Interior (MHA) ordered its decision of 24 March 2020 to order the closure of commercial and private facilities for a period of twenty-one days. Immediately thereafter, the Ministry of Highways and Highways (MoRTH) passed an ordinance of March 25, 2020 ordering the National Highways Authority of India (NHAI) to take action under the Regulation (including the suspension of tolls), adding that the predominant condition could be considered a “force majeure” under NHAI`s concession agreements with developers.
ABC Constructions (“Concessionaire”) won the project highway development offer on the HAM model; and the list below contains important assumptions that are generally taken up as part of each dealer`s preparation of the financial model for a HAM PPP project in the road sector. · Total project cost – 60% of the cost of the Bid project, or 60%-800 – Rs. 480 cr. Provision Update w.e.f. 10-Nov-20 – All costs associated with offshoring utilities are considered part of the cost of the Bid project. Based on the example of the case study, it is thought that rs. 800 cr. Rs. 10 cr. The costs of offshoring power lines are included. According to the definitions of the MCA and the example of the case study, YOG INFRA View – This change was made to the continuation of the design and operation of the project in the event of a dispute; However, the implementation of this provision will be a challenge for both parties.