HAM projects: NHAI seeks to tighten criteria for bidders

As project awards by the National Highways Authority of India (NHAI) through the hybrid annuity model (HAM) is getting traction, the authority has proposed to tighten the minimum net worth crieria for bidders to ensure that the successful bidder does not falter on achieving financial closure and the project don’t get stuck after they are awarded.

The minimum eligibility criteria for HAM bidders comprises the threshold technical capacity and financial capacity or minimum net worth. The threshold financial capacity is 15% of the estimated project cost at the close of the preceding financial year. The NHAI wants the net worth threshold to be as on the day before the opening of the financial bids.