The Jawaharlal Nehru Port Authority (JNPA) has proposed changes to hybrid annuity mode (HAM) for dredging, reclamation and construction of shore protection bund under the Vadhvan Port Project. The proposal includes:
- Adopting a 60:40 payment structure, instead of the 40:60 model used by the National Highways Authority of India (NHAI). Under this, the first 60 per cent of the project cost will be paid over three years to align with the construction period, and the remaining 40 per cent will be paid during the maintenance period, spanning five to seven years.
- Reducing the concession period of 15 years currently set by the NHAI for HAM road projects to 8-10 years so that payment timelines are shorter and the initial payout percentage for the project is higher.
- Excluding maintenance dredging from the scope of work during the maintenance period, with the contractor responsible only for maintaining the shore protection elements.
Besides, the JNPA is expected to finalise the HAM model soon and submit it to the Ministry of Ports, Shipping, and Waterways, which will then forward the proposal to the Public-Private Partnership Appraisal Committee for approval before issuing the tender.