Hybrid Annuity Contracts in India Road Projects: Do They Offer “Value for Money"?
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This paper examines the question if the hybrid annuity model (HAM) as applied in public–private partnership projects results in a “value for money” (VFM) paradigm.
The hybrid annuity model is a popular type of public–private partnership that has been used in India for roads and is being attempted in other sectors. This paper examines whether hybrid annuity contracts provide value for money. It deconstructs and evaluates the costs of such contracts in India. It finds that the model in its current format does offer value for money and suggests ways of enhancing this.