Summary: The recent circular published by the Ministry of Road Transport & Highways in respect of dispute resolution process under the EPC, BoT and HAM projects, marks a significant policy shift with clear and direct implications for road developers and investors in the infrastructure sector developing road projects.Continue Reading NHAI’s Move to End Arbitration for Major Disputes: Reform or Reversal?
With a view to monetise the operational national highways, the National Highway Authority of India (NHAI) introduced the Toll Operate and Transfer (TOT) model for partnership with private developers in the road sector. Under this model, NHAI passes on the toll collection rights and operation and maintenance obligations for 30 years to the private developer against payment of upfront, one-time, lump sum concession fees quoted by the private developer as part of the comprehensive bidding process. Projects under this model are awarded as a bundle of operational national highways, which allows the investor to offset the risks of one project against another. Since existing and operational roads are auctioned under the TOT model, it does not need developers with construction skills to participate.
Continue Reading Toll Operate Transfer Model – Gateway to New Opportunities in Highway Sector