Engineering, Procurement & Construction is the oldest and simplest model through which projects are floated by government agencies/ authorities. EPC Contracts simply states to do particular work (generally construction & maintenance) following specific standards, at the quoted rates. Time is always an important factor and meticulous schedules and milestones are made to check the progress of construction work.
National Highway Development Program and other governmental agencies are following the PPP (Public Private Partnership) model to attract private investment, improve efficiencies and reducing costs. The PPP model works on DBFOT (Design, Built, Finance, Operate & Transfer) / HAM (Hybrid Annuity Model) / TOT (Toll Operate Transfer) models.
It enables cost efficiencies for government to reduce upfront capital expenditure and provides the private sector with a great opportunity to add value by innovating and optimizing execution and operations.
We are one of the very first companies to work with several organizations on BOT / OMT model and have complete the concession period of 4 projects successfully.
The OMT model is similar to the BOT model except that OMT does not require the concessionaire to construct the highway, which is the case in the BOT model. This is expected to lead to better maintenance and hence smoother and more efficient flow of traffic on national highways.
Earlier different agencies were appointed on annual basis, for maintenance and toll collection, through a tendering process. Overall it used to be a time consuming exercise and there was no assurance regarding the quality of the maintenance of the highways. Unlike this, in an OMT model, the concessionaire takes charge of the maintenance for a fixed concession period which ranges from four to nine years. This includes undertaking periodic as well as annual maintenance works, traffic incident management and ensuring smooth flow of traffic. For revenue generation the concessionaire is be given rights to collect toll fees from road users.
We are one of the largest OMT concessionaires in NHAI OMT project having 7 OMT projects, maintaining close to 4000 Lane kms of highway under the OMT scheme across the country, and have successfully completed and handed over 4 OMT packages to NHAI.