COMPARISON OF VARIOUS PPP MODELS IN ROAD SECTOR

[Link] COMMERCIAL DATAS BOT ANNUITY BOT TOLL EPC HAM TOT

1 Development Risk Concessionaire Concessionaire Concessionaire Concessionaire NA

2 Financing Risk Concessionaire Concessionaire Authority Concessionaire (60%) Concessionaire

Authority (40%) Commented [NA1]: Check

3 Traffic Risk Concessionaire Authority Authority Authority Concessionaire Commented [NA2]: Please check

4 O&M Risk (Time & Concessionaire Concessionaire Authority Concessionaire Concessionaire

5 Revenue Collection Authority Concessionaire Authority Authority Concessionaire

6 Construction Risk Concessionaire Concessionaire Authority Concessionaire NA

7 Concession period ~20-25 years Max 30 years Not required 15 years post 30 years
construction

8 Bid parameter (Award Grants (Lowest Revenue share Concession fee Grants Concession fee
criteria) Annuity)
9 Revenue Annuity payment Toll collection Contract amount Annuity payment Toll collection

10 Bid value Lowest bid Highest revenue sharing Lowest Tariff Lowest bid Highest revenue sharing
(Lowest Annuity) bid requested bid

11 Payment schedule Semi annual Annuity Tolling (Max 30 years) Authority pays the Semi annual Annuity One time upfront payment
Contract price to NHAI. Toll collection for
bidders.

12 Termination payment Concessionaire Concessionaire Authority Authority Authority will pay 70% of
upon Concessionaire adjusted bid value
default Commented [NA3]: In case of termination payments, please
summarise the clauses under Force Majeure, Authority Default and
Concessionaire default, i.e. the formula for determining termination
payments
13 Termination payment Authority Authority Authority pays Authority pays debt Authority will pay 105% of
upon Authority valuation of unpaid due/x% of bid due free cash flow for
default works project cost (which ever unexpired period
is lower) as per
payment milestone less
insurance cover to
Concessionaire

14 Termination payment Concessionaire bears Authority/Concessionaire Authority pays Authority pays to 80% of unexpired cash flow
upon Force Majeure risk through insurance bears respective costs valuation of unpaid Concessionaire less insurance cover
event (Non Political work to
event) concessionaire

15 Termination payment Authority bears the 50% cost exceeding Authority pays dues & Authority pays to the 100% of unexpired cash
upon Force Majeure risk & reimburse the insurance cover is reasonable costs to concessionaire flow less insurance cover
event (Indirect reimbursed to
Political event) concessionaire Concessionaire if event concessionaire
happens post financial
closure

16 Challenges faced by Financial risk Traffic revenue risk & Contruction risk Construction & Traffic revenue risk & One
Bidders Financial risk maintenance risk time upfront payment

17 Challenges faced by Toll revenue risk - Financial risk Toll revenue risk -
NHAI Commented [NA4]: Need to elaborate on challenges faced by
bidders/NHAI under each model in the present scenario

18 Bank Guarantees for -Value: Atleast 1% of project estimated cost.

-Bank guarantee: Nationalised bank with a net worth atleast 1000Cr.

19 Bank Guarantees for -Value: Atleast 1% of project estimated cost but always higher than bid security.
Performance security
-Validity: Min 1 year.

-Bank guarantee: Nationalised bank with a net worth atleast 1000Cr.

TABLE 1 – COMPARISON OF VARIOUS PPP MODELS IN ROAD SECTOR