August 16, 2018
Bangla Govt to initiate new model for infrastructure construction
The Bangla Government has decided to initiate a new model for its infrastructure construction projects. According to senior Government officials, this model, called HAM or Hybrid Annuity Model would prove to be a major help for the State Government infrastructure projects for the construction of roads, bridges, culverts, flyovers, etc.
The model is a mixture of the EPC (Engineering, Procurement and Construction) and BOT (Build-Operate-Transfer) models. Under this model, 40 per cent of the money required for a project would be provided by the State Government and the 60 per cent by the private partner or, partly by the private partner and by the Government through a bank loan.
The money invested by the private concern would be returned by the State Government within a specified time. Also, unlike a BOT project, all responsibility for a project would a taken by the Government.
For these reasons, following this model would reduce the risks faced by private companies, according to the Government officials, and hence would draw many more to participate in Government projects.