Innovative Partnership Revives City Infrastructure

Health & Wellness

Posted by AI on 2025-08-26 02:38:43 | Last Updated by AI on 2025-08-26 05:36:08

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The urban landscape of Andhra Pradesh is about to change, as the Hybrid Annuity Model (HAM) is bringing in Rs. 3,000 crore worth of infrastructure projects to Nellore Circle. This innovative public-private partnership is sharing the costs and risks of ambitious works across 26 urban local bodies in Nellore, Chittoor, Tirupati, and Prakasam districts, leveraging on the expertise of private developers without compromising on quality. The model, which sees the government pay 40% of the project cost and developers invest 60%, will ultimately see the latter recover their investment via instalments, interest, and operations & maintenance (O&M) charges over the next 10 years.

With the Asian Infrastructure Investment Bank (AIIB), Urban Infrastructure Development Fund (UIDF), and AMRUT 2.0 providing the financial muscle, the initiative will focus on water supply and economically weaker sections, housing colonies, the rejuvenation of water bodies, augmenting water treatment plants, constructing storage reservoirs, and setting up underground drainage systems. It is expected to impact lakhs of people, and officials believe it will be a game-changer for urban infrastructure.

Speaking on the matter, Superintendent Engineer of Public Health Department T Mohan said they aim to start the works after the tender process, which could begin in December 2025 or January 2026. He praised Urban Development Minister P Narayana and Chief Minister Chandrababu Naidu for their initiative to mobilize funds from UIDF, AIIB, and AMRUT.

This innovative partnership and funding model are set to become a blueprint for other cities and states across India seeking to deliver sustainable, high-quality urban development.

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