D. The important exit clauses of the agreement are as if under: in the TOT model, the right to collect and usurp royalties for certain operational projects of national motorway (NH) built from public funds is allocated, for a predetermined concession period, to licensed dealers (developers/investors) for payment of a lump sum to NHAI. This transfer of rights is based on the potential for toll revenue from identified NH projects. The operating and maintenance obligations (O-M) of these projects must be met by the dealer until the concession deadline. Dealers of such projects are designated as part of a pre-defined implementation framework and approved as part of a transparent and consistent procurement process. B. In addition, under Article 23 of the agreement, the dealer must receive payment in 5 terminals equal to a rate of 8% (eight percent) of Bid`s project costs adjusted for the price index, under the following conditions: for HAM projects, the due retirement dates are clearly stated in the concession agreement, which, as explained above, are semi-annual for a period of 15 to 20 years from the cod date, therefore the invoices must be paid to the contractor n. or before those deadlines. First, public roadworks were carried out using the traditional model of the Engineering Procurement and Construction (EPC), which freed up 100% of payments made by governments that contracted and during the construction period. Due to the growing demand for infrastructure and lack of resources, the government turned to the BOT (Build, Operation Transfer) model, which allowed the contractor to build the roads and obtain the right to collect the toll for a period of 15 to 30 years and recover its costs.
Some projects have also been published as part of the BOT annuity system. For many reasons, these long-term projects have not proved financially viable and the banks have been disinterested in financing, and the contractors have also felt that it is not financially viable. In 2016, the government arrived with the new HAM (Hybrid Annuity Model) mode “Currently, the target review takes place in the ninth, tenth and eleventh years from the date of the concession agreement, in order to record changes in traffic growth during the concession period. The revision of the five-year trial date is clearly positive, as projects that are fundamentally weak due to lower-than-expected base traffic would have the potential to increase the concession period at an early stage; On the basis of which lenders can consider extending the duration of the debt in order to align the obligations with the tolls and thus reduce the cash flow burden,” said Rajeshwar Burla of Icra.