Hybrid Annuity Model (HAM)

The Hybrid Annuity Model (HAM) is a public-private partnership model used in infrastructure projects, particularly in the transportation sector, in India.

Under the HAM, the government bears a portion of the project cost upfront while the private sector partner invests the remaining amount.

Once the project is operational, the government pays the private sector partner a predetermined annuity over the project's concession period.

This model reduces the financial burden on the government while providing a steady income stream to the private sector investor.

HAM has been instrumental in accelerating infrastructure development in India by leveraging both public and private resources effectively.