Cube Highways To Acquire A Hybrid Annuity Model Project In Tamil Nadu, India
Last update: 07/02/2019
SINGAPORE, Feb 7 (Bernama) -- Cube Highways and Infrastructure III Pte. Ltd. (Cube Highways) has signed an agreement with KNR Constructions Limited and KNR Srirangam Infra Pvt. Ltd. to acquire a new highway project in India. Using the Hybrid Annuity Model (HAM), the project will construct and operate nearly 160 lane-kilometers in the state of Tamil Nadu.
HAM projects are a hybrid between conventional EPC contracts and BOT (Annuity) projects using an innovative concession model developed by the National Highway Authority of India (NHAI). Under the concession, 40 percent of project cost will be paid by NHAI during the construction phase with the balance distributed as regular annuity payments on a fixed amortization schedule over a 15-year operational period. The new HAM business line created within Cube Highways demonstrates the ability of a platform led strategy to identify and capitalize on specialized investment opportunities within a sector.