CHALLENGES FACED IN PPP AND HAM MODEL AND THE NEED FOR AN ALTERNATIVE
Abstract
Public Private Partnership Model (PPP) by Ministry of Road Transport and Highways (MORTH) renewal was undertaken by introduction of the hybrid annuity model (HAM) wherein government decided to share the risk of financing by contributing 40% towards the project. With the launch of this scheme more than fifty percent projects got green signal in 201617 under the HAM scheme. This work compares these two models by undertaking a questionnaire survey from the key stakeholders involved in such projects and identifies challenges & risk faced and issues pertaining to delays and success of the proposed model. The outcome from the work highlights that funding has been a major challenge faced by PPP projects and thus innovation into the model is necessary. There also seems to be a lack of transparency in the entire process which makes it riskier for the private investor. It is also concluded from the work that financial risk is predominant whether it is a PPP or HAM model and thus a search for a new sustainable model that is sustainable is essential.
References
Villani, E., Greco, L., Phillips, N., 2017, Understanding value creation in public-private partnerships: a comparative case study, Journal of Management Studies, 54(6), 876-905.
https://doi.org/10.1111/joms.12270
Burke, R., Demirag, I., 2017, Risk transfer and stakeholder relationships in public private partnerships. Account Forum, 41, 28-43.
https://doi.org/10.1016/j.accfor.2016.06.004
Shrestha, A., Chan, T.-K., Aibinu, A.A., Chen, C., Martek, I., 2017, Risks in PPP water projects in China: Perspective of local governments, Journal of Construction Engineering and Management, 143 (7), 05017006.
https://doi.org/10.1061/(ASCE)CO.1943-7862.0001313
Mathur, S., 2017. Public-private partnerships for Municipal Water Supply in Developing Countries, Cities, 68, 56-62.
https://doi.org/10.1016/j.cities.2017.05.007
Janssen, R., Graaf, R., Smit, M., Voordijk, H., 2016, Why Local Governments Rarely use PPPs in their Road Development Projects, International Journal of Management Project and . Bussiness, 9 (1), 33-52.
https://doi.org/10.1108/IJMPB-06-2015-0043
Gupta Anil Kumar, Trivedi M.K. and Kansal R.,2013, Risk Variation Assessment of Indian Road PPP Projects, International Journal of Science, Environment and Technology, Vol.2, No 5, pp 1017 -1026.
Suhaiza Ismail Fatimah AzzahraHaris, 2014, Rationales for public private partnership (PPP) implementation in Malaysia, Journal of Financial Management of Property and Construction, Vol. 19.Iss 3 pp. 188 - 201
https://doi.org/10.1108/JFMPC-04-2014-0006
Lakshmanan L.,2008, Public Private Partnership in Indian Infrastructure Development: Issues and Options, Reserve Bank of India Occasional Papers, Vol. 29, No. 1.
Mahalingam Ashwin,2010, PPP Experiences in Indian Cities: Barriers, Enablers, and the Way Forward, Journal of Construction Engineering and Management, ASCE, pp 419-429.
https://doi.org/10.1061/(ASCE)CO.1943-7862.0000130
Tharun Shastry L.,2014, A Study on Public-Private Partnerships with Reference to Indian Infrastructural Projects, International Journal of Business and Management Invention, Vol. 3, Issue 10, pp 56-62.
Wadeswer Ashwini, Darade Milind M., and Patil Shreedhar, 2016, "A Hybrid Model of PPP and EPC Contracts for Highway Construction in India, International Journal of Multidisciplinary Research Hub, Vol.3, Issue 6.
Public Private Partnerships, India Database, Government of India, Ministry of Finance, Department of Economic Affairs.
NHAI Concession Agreement 5/2010, Six laning of Indore - Dewas Section of NH-3from Km 577.550 to Km 61O and Km 0 to Km 12.6 (Approx. Length 45.05 Km) in the State of MP under NHDP Phase-V to be executed as BOT (Toll) project on Design,Build, Finance, Operate and Transfer "DBFOT" Pattern.
R.Shankar Raman (2017), Live Mint (ePaper),https://www.livemint.com/Companies/.../HAM-is-not-a-sustainable-model-LT.html
Vatsala Kamat, HAM Road Projects are in Jam as Land Acquisition Issues Persist, Mar 2019, https://www.livemint.com/market/mark-to-market/ham-road-projects-are-in-jam-as-land-acquisition-issues-persist-1551652524852.html
Copyright (c) 2019 Journal of Civil Engineering, Science and Technology
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Upon acceptance of an article, the corresponding author on behalf of all authors will be asked to complete and upload the Copyright Transfer Form (refer to Copyright Issues for more information on this) alongside the electronic proof file.
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and refer the publication in the Journal.
2) For open-access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds the copyright or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subjected to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) are responsible to ensure their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. The corresponding author has obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If the submitted manuscript includes materials from others, the authors have obtained permission from the copyright owners.
5) In signing this statement, the author(s) declare that the researches which they have conducted comply with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving humans or the use of animal samples must obtain approval from the Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that they have no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor(s) or UNIMAS Publisher.
