Questions: National Highways projects are executed on how many modes?
Ans: NHs projects are executed on mainly three modes, i.e.,
(i) Build Operate and Transfer (BOT),
(ii) Hybrid Annuity Model (HAM) and
(iii) Engineering Procurement and Construction (EPC).
Concession period for projects including maintenance on Build Operate and Transfer (BOT) is 15 to 20 years and on Hybrid Annuity Model (HAM) is generally 15 years. Concessionaire is responsible for maintenance of the respective NHs stretches within the concession period of the project. Only in case of EPC projects, Defect Liability period (DLP) is 5 years for the bituminous pavement works and 10 years for concrete pavement works.
For Toll-Operate-Transfer (TOT) and InvIT projects, concession period including maintenance is for 20 to 30 years. Concession period for Projects on Operate, Maintain and Transfer (OMT) is generally 9 years.
For all remaining sections of NHs stretches where DLP period has ended or is not under any concession period of BOT/HAM/TOT/InvIT project, Government has taken a policy decision to undertake maintenance works through Performance Based Maintenance Contract (PBMC) or Short Term Maintenance Contract (STMC). While STMC works are generally undertaken for a contract period of 1-2 year, PBMC works are undertaken for a contract period of about 5-7 years.
Sl.No. | Question | Clue |
1 | What is BOT? | Build Operate and Transfer (BOT): Concession period for projects including maintenance on Build Operate and Transfer (BOT) is 15 to 20 years |
2 | What is HAM? | Hybrid Annuity Model (HAM): Concession period for projects including maintenance on Hybrid Annuity Model (HAM) is generally 15 years. 40% the Project Cost is to be provided by the Government as Construction Support during the construction period and the balance 60% as annuity payments over the operations period along with interest thereon to the concessionaire. |
3 | What is EPC ? | Engineering , Procurement and Construction(EPC): Only in case of EPC projects, Defect Liability period (DLP) is 5 years for the bituminous pavement works and 10 years for concrete pavement works |
4 | What is DLP? | Defect Liability Period(DLP) |
5 | What are TOT and InvIT Projects? | For Toll-Operate-Transfer (TOT) and InvIT projects, concession period including maintenance is for 20 to 30 years. |
6 | What is OMT? | Operate, Maintain and Transfer (OMT): Concession period for Projects on Operate, Maintain and Transfer (OMT) is generally 9 years.
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7 | What is PBMC or STMC? | Performance based Maintenance Contract (PBMC). Short Term Maintenance Contract (STMC): STMC works are generally undertaken for a contract period of 1-2 year, PBMC works are undertaken for a contract period of about 5-7 years.
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| 8 | Design Build Finance Operate and Transfer (DBFOT) |
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