ANNUITY PPP

Annuity Concessions are a variant of the Build Operate Transfer (BOT) PPP model in which the private operator is remunerated via a fixed, periodic payment (“annuity”) from the government rather than through toll proceeds. Under these PPP contracts, the private operator is responsible both for constructing the road, as well as for operating and maintaining it for a fixed period of time. However, this option significantly reduces revenue risk for the private sector and also incentivizes…