To ensure that these infrastructure assets function effectively and are well maintained, the project will build on the innovative Hybrid Annuity Model (HAM) of public private partnership introduced under the ongoing NGRBP, and which has become the solution of choice for sewage treatment investments in the Ganga Basin. Under this model, the government pays a private operator 40 per cent of the capital cost to build a sewage treatment plant during the construction period; the remaining 60 per cent is paid as performance-linked payments over 15 years to ensure that the operator runs and maintains the plant efficiently.

The $400 million operation includes a proposed Guarantee of up to $19 million to backstop the government’s payment obligations for three Hybrid-Annuity-Model Public Private Partnership (HAM-PPP) investments on the Ganga’s tributaries. The $381 million variable spread loan has a maturity of 18.5 years including a grace period of 5 years. The $19 million Guarantee Expiry Date will be 18 years from the Guarantee Effectiveness Date.