Maintenance responsibility: Further, the concessionaire maintains Hybrid-annuity contracts even after the completion of construction whereas EPC projects are handed over by contractors as soon as they are built and therefore the concessionaire’s responsibility is curtailed.
Financial efficiency/Cost overrun: In terms of financial efficiency hybrid annuity scores over EPC because the cost overrun in the latter is 20-25 per cent and is borne by the government or the NHAI. In a hybrid-annuity contract the cost overrun is the private player’s responsibility.
Way Forward
The government should continue to adopt the model, which help in bringing the efficiency in the infrastructural sector.
Moreover some of the noteworthy recommendations of Vijay Kelkar committee on PPP model such as Infra PPP review committee, Infra PPP dispute resolution agency etc. need to be adopted to fast pace the infrastructure creation.
