In which of the following construction models, the government insulates the contractor from financial risk?

Engineering, Procurement and Construction (EPC) model

Hybrid Annuity Model (HAM)

Build-Operate-Transfer (BOT) model

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Question

Under the Engineering, Procurement and Construction (EPC) model, the government pays the entire cost, thereby insulating the contractor entirely from financial risk.
Under the Hybrid Annuity Model (HAM), 40 per cent of the project cost is paid by the government as construction support to the private developer, and the remaining 60 per cent is to be arranged by the developer.
Under the Build-Operate-Transfer (BOT) model, a private player is granted a concession to finance, build and operate a project for a specified period of time (20- or 30-year concession period), with the developer recouping the investments by way of user charges or tolls charged from customers using the facility, and thereby taking on a certain amount of financial risk.

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Under the Engineering, Procurement and Construction (EPC) model, the government pays the entire cost, thereby insulating the contractor entirely from financial risk.
Under the Hybrid Annuity Model (HAM), 40 per cent of the project cost is paid by the government as construction support to the private developer, and the remaining 60 per cent is to be arranged by the developer.
Under the Build-Operate-Transfer (BOT) model, a private player is granted a concession to finance, build and operate a project for a specified period of time (20- or 30-year concession period), with the developer recouping the investments by way of user charges or tolls charged from customers using the facility, and thereby taking on a certain amount of financial risk.

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