Actis is expanding its footprint in India with the acquisition of a portfolio of operational Hybrid Annuity Model (HAM) road projects from Patel Infrastructure Ltd. (PIL), an Indian EPC developer and contractor.
The assets, awarded by the National Highways Authority of India (NHAI), are highly attractive given the availability-based fixed revenues with interest rate indexation features, according to Actis.
HAM is a mode of delivery comparable to a public-private partnership launched by the Indian government in 2016 with the aim of sharing financial risk with the developers. In a HAM project, the concessioning authority — in this case NHAI — shares a portion of the total project cost during the construction phase. NHAI would pay a portion of the total project expenditure, to be released in installments based on the completion of targeted project milestones, and the road developer finances the remaining project costs.
Actis has finalized the acquisition of two