Our Expertise

BOT Space

We command a significant market share in the BOT – Hybrid Annuity space of road construction. Our project portfolio in this space comprises of 1 prominent BOT project in Baramati and 10 Hybrid Annuity projects aggregating Rs 7,942 crores covering 1893 lane km.
Moving Ahead with Renewed Vigour :
In the Build-Operate-Transfer (BOT) space, we are handling Operations, Maintenance and Toll Collection of the road assets. We currently have one long-term BOT project in a strategic location – the Baramati project in Maharashtra, covering 42 lane Kms and 5 toll collection plazas. and 10 Hybrid Annuity projects aggregating Rs 7,942 crores covering 1893 lane km.

Hybrid Annuity Projects

National Highways Authority of India (NHAI) and Ministry of Road Transport and Highways (MORTH) began awarding projects under HAM model since November 2015. Under this model, 60% of the total project cost to be contributed by developer and balance 40% to be invested by the Government during construction period in five equal instalments linked to project milestones. The Government / NHAI will collect the toll under HAM model and pay the developer annuity payments over 15 years as 30 bi-annual annuity payments. The developer will also receive bi-annual O&M payments. Going forward, over 80% of the road projects are proposed to be awarded under EPC and Hybrid Annuity Model (HAM) routes.
(All project payments are inflation indexed.)
MEP’s successful in HAM space
  • In 2016, we foresaw an exciting opportunity in the Hybrid Annuity space of road construction and already hold a significant market share in this space. Out of the 16 projects that we bided for in the HAM space, we were awarded 10 projects, an healthy strike rate of 60%.
Some of the key advantages of the Hybrid Annuity Model
1. Reduced initial capital outflow for Authority compared to EPC mode
2. Easier debt servicing by concessionaires during the initial years of project compared to BOT / OMT (Toll) projects
3. Additional comfort to Lenders in case of termination during construction period.
4. Reduced equity investments by developers
5. Opportunities for IDFs and InvITs for long term investments in the sector post construction completion with reduced risk perception
6. Private Sector not required to bear the traffic risk