2.7.3. Need of this Model

Under the existing public private partnership model called build-operate-transfer, the developer absorbs most of the risks—financial, operations and maintenance and revenue. Developers

have shied away from the BOT (build operate and transfer) model due to the slowdown in the economy, which not only hampered fund-raising, but also hit toll collection, due to lower traffic flow. The poor cash flows burdened existing projects’ ability to service debt.

With this new model, the idea is to provide a transparent, time-bound mechanism to fast-track decision making and anticipating solutions to issues that could arise through a built-in approach.