The Hybrid Annuity Model for Public-Private Partnerships in India’s Road Sector: Lessons for Developing Asia

The Hybrid Annuity Model (HAM) has significant potential to enable developing members of the Asian Development Bank to boost investments in public infrastructure through public-private partnerships. The paper identifies the key drivers and innovative features of HAM. The innovative features include financial risk sharing between the government and private sector, amenable qualification criteria to sustain the supply and demand base beyond large companies, high project readiness requirements, and flexibility elements to promote innovation. The paper makes suggestions for enhancing the adoption of HAM in other sectors and countries.