To lure private risk capital into highway construction, the government has revised the concession terms for build operate transfer (BOT) projects. Liberal construction support, facility to borrow from non-bank lenders and enhanced compensation if the tariff projections are built into the revised model concession agreement (MCA).
The changes are expected to give greater comfort to bidders under pure-play public private partnership projects, and the government aims to invite bids for Rs 2.1 trillion of highway projects under the model.
