Funds available at lower rates: The EPC mode of highway construction is a better option than the hybrid annuity one because the government can raise funds for these contracts at a much lower rate than a private company.
Increase liquidity for the private companies: Further EPC helps contracting companies to increase liquidity enabling them to further invest in a public-private partnership project.
Revival of the private sector interest: The model helped in reviving the private sector interest in infra projects as the uncontrollable risks such as traffic estimation, land acquisition and environmental approval rests upon the government.
Less chance of disputes: Under the EPC model as compared to Hybrid annuity model there are less chance of dispute between the government authority and private concessionaire.
