Answer:

♤ The hybrid annuity model was proposed by the Government in 2014 to reduce risks in public private partnership format is likely to provide impetus for the next wave of PPP road projects.

♤ The model is a mix of EPC and BOT formats, with the government and the private enterprise sharing the total project cost in the ratio of 40:60, respectively.

♤ A Hybrid annuity contract gives flexibility to allocate funds to both fixed and variable (which are risky, but can give higher returns) annuity components.