Modified versions of the BOT model are available to better meet the different types of projects and public-private partnership needs. In accordance with the revised model concession agreement, the project`s revenues will be assessed after five years. “Therefore, if there is a radical change in the toll, the concession period will be adjusted accordingly,” said a government official, who was informed of the plan. “Currently, targeted traffic testing takes place during the ninth, tenth and eleventh years from the date of the concession agreement to measure fluctuations in traffic growth over the concession period. The revision of the five-year trial date is clearly positive, as projects that are fundamentally weak due to lower-than-expected base traffic would have the potential to increase the concession period at an early stage; On the basis of which lenders can consider extending the duration of the debt in order to align the obligations with the tolls and thus reduce the cash flow burden,” said Rajeshwar Burla of Icra. Virendra D Mhaiska, The President and CEO of IRB Infrastructure, who recently distinguished himself as the highest supplier for the Bot Dankuni-Palsit project (63.83 km) and reporting a 4.5% sustainability grant, told the FE that the company has a preference for the BOT toll model, which allows investors to hold assets for more than 20 years , with a stable liquidity outlook for this period. He stated that the basic model and caps of variable concession times related to transportation would protect the interests of both the dealer and the NHAI. The graph below shows the contractual structure of a typical bot project or a typical concession, including loan agreements, the shareholder contract between the project company`s shareholders and the subcontracting of the enterprise and construction contract, usually between the project company and a member of the project company consortium. An important difference between a franchise concession and a concession offered is that the Authority is at the forefront of the definition of performance level and is ready to make payments, whereas the BOT-type authority imposes certain essential requirements and may not have direct financial responsibility.
An inter-ministerial group (IMG) has approved major changes to the Model Concession Agreement (MCA) for the construction of privately funded highways on the Build-Operate and Transfer (BOT) toll model, which contains a tax protection clause to address traffic risks. Concessions, construction transfer projects (BOOs) and DBO (design-build-operate) projects are types of production-oriented public-private partnerships. BOT and BOD projects generally include major projects and construction work, as well as long-term operations for new construction (green meadow) or major renovation and expansion projects (brown surfaces).