Evaluating the Hybrid Annuity Model (HAM) for Highway Infrastructure Development: A Case Study of Gujarat, India

ABSTRACT Infrastructure development is a critical driver of economic growth, requiring efficient financing mechanisms for large‐scale projects. In India, traditional models like Build–Operate–Transfer (BOT) and Engineering, Procurement, and Construction have faced financial distress and delays. The Hybrid Annuity Model (HAM), introduced in 2016 as a Public–Private Partnership framework, seeks to balance risk‐sharing between the government and private sector. This study critically evaluates HAM's financial and operational effectiveness in Gujarat's highway sector, comparing it primarily to BOT. Using content analysis, thematic coding, and comparative analysis, we examine HAM's impact on project timelines, risk allocation, and private sector participation. Results show HAM improves project completion rates and mitigates revenue risks but faces challenges, such as land acquisition delays, inflationary pressures, and declining private interest. Policy recommendations include clearer risk‐sharing frameworks, inflation‐adjusted annuities, and regulatory reforms.