PPP stands for Public Private Partnership, which means an arrangement between a Government / statutory entity / Government owned entity on one side and a private sector entity on the other, for the provision of public assets and/or public services, through investments being made and/or management being undertaken by the private sector entity, for a specified period of time, where there is well defined allocation of risk between the private sector and the public entity and the private entity who is chosen on the basis of open competitive bidding, receives performance linked payments that conform (or are benchmarked) to specified and pre-determined performance standards, measurable by the public entity or its representative.
Public Private Partnership – Project means a project based on a contract or concession agreement between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges.
The Features of PPP/Hybrid Annuity Model (HAM):
As per the design, the government will contribute to 40% of the project cost in the first five years through annual payments (annuity).
The remaining payment will be made on the basis of the assets created and the performance of the developer.
Here, hybrid annuity means the first 40% payment is made as a fixed amount in five equal installments whereas the remaining 60% is paid as variable annuity amount after the completion of the project depending upon the value of assets created.
As the government pays only 40%, during the construction stage, the developer should find money for the remaining amount. Here, he has to raise the remaining 60% in the form of equity or loans.
The private developer will recover his investment from the government by receiving annuity payments over a period of 15 years.
We are the first ever Concessionaire in India who has completed the construction of 82 MLD STP at Haridwar, Uttarakhand (68 MLD STP at Jagjeetpur & 14 MLD STP at Sarai) on PPP / HAM Model. 68 MLD STP at Jagjeetpur was inaugurated by Hon. Prime Minister of India & 14 MLD STP at Sarai was inaugurated by Majesty King of Sweden.
Why HNB ?
We are the first ever Concessionaire in India to have completed and commissioned STP under PPP/HAM model.
We are responsible for delivering truly working assets to our clients.
We have in-house capabilities to offer all activities ranging from Design, Procurement, Construction up to Commissioning of the project. We have deep expertise in Financing of PPP Projects.
We have demonstrated of proven track record of successfully delivering PPP projects on time with highest standards of quality.
Our Projects are “Turn-Key” type projects which signifies that our clients get a fully completed project that can be put into operation with the simple turn of a key.