Patna: With the state government deciding to adopt Hybrid Annuity Model (HAM) for road construction across the state, the cabinet on Tuesday approved two road projects worth Rs 9960 crore for Ganga Path projects in Munger and Bhagalpur district. The Hybrid Annuity Model (HAM) is a public-private partnership (PPP) model primarily used in infrastructure projects, particularly for highway construction in the country.
It approved Rs 5119 crore for the development of Munger (Safiyabad)-Bariyarpur-Ghorghat-Sultanganj (42 km) and Rs 4849 crore for Sultanganj-Bhagalpur-Sabour(40.80 km) under Ganga Path Project that will be executed on Hybrid Annuity Model (HAM). Under the project, alternate bypass and Ganga Path along river Ganga will be constructed in order to provide smooth and safe ride in both Munger and Bhagalpur districts.
Talking to reporters here, Road Construction Minister Nitin Nabin said that announcement has already been made in the state assembly that the government would adopt HAM for the construction of roads, bridges and expressways. This model is based on deferred payment system.
Nabin said that under Hybrid Annuity Model (HAM), the project’s period is that of four years while it is the contractor’s responsibility to maintain the project for 15 years after its completion.
In HAM, the government provides 40 per cent of the project cost during construction, while the private developer/contractor funds the remaining 60 per cent, the minister said adding that the 60 per cent cost with interest would be returned to the contractor in next 15 years.
The operation and maintenance of the road project will be done by the contractor for 15 years, he added.
The state government will have the right for toll collection under HAM and the same assets will be returned to the government after 15 years.
In order to make Bihar a developed state, the state government has decided to carry out road construction work of international standards in line with the Centre’s guidelines in this regard and JP Ganga Path project is the first such project in this direction. The construction of at grade road and elevated road along river Ganga from Digha to Koilwar has been initiated on Hybrid Annuity Model (HAM), the minister said.
Apart from this, two such road projects namely Munger (Safiyabad)-Bariyarpur-Ghorghat-Sultanganj (42 km) worth Rs 5119 crore and Sultanganj-Bhagalpur-Sabour(40.80 km) worth Rs 4849 crore will built along river Ganga on HAM model. The two projects together cost Rs 9960 crore.
Road Construction department’s Secretary Sandeep Kumar R Pudakalkatti, Bihar Rajya Pul Nirman Nigam Ltd Chairman Shirsat Kapil Ashok and others were also present on the occasion.
