CHALLENGES FACED IN PPP AND HAM MODEL AND THE NEED FOR AN ALTERNATIVE

Abstract

Public Private Partnership Model (PPP) by Ministry of Road Transport and Highways (MORTH) renewal was undertaken by introduction of the hybrid annuity model (HAM) wherein government decided to share the risk of financing by contributing 40% towards the project. With the launch of this scheme more than fifty percent projects got green signal in 201617 under the HAM scheme. This work compares these two models by undertaking a questionnaire survey from the key stakeholders involved in such projects and identifies challenges & risk faced and issues pertaining to delays and success of the proposed model. The outcome from the work highlights that funding has been a major challenge faced by PPP projects and thus innovation into the model is necessary. There also seems to be a lack of transparency in the entire process which makes it riskier for the private investor. It is also concluded from the work that financial risk is predominant whether it is a PPP or HAM model and thus a search for a new sustainable model that is sustainable is essential.