Explanation:

• Union Minister for Jal Shakti Gajendra Singh Shekhawat and Uttarakhand Chief Minister Trivendra Singh Rawat inaugurated the 14 MLD sewage treatment plant (STP) in Sarai village near Haridwar in the presence of Sweden’s King Carl XVI Gustaf and Queen Silvia.
• The Sarai STP is “the first-ever project in the country on a hybrid annuity PPP model (HAM)”.
• 34 STPs are being built in Uttarakhand at a cost of Rs 1,144 crore, besides crematoria and ghats on the Ganga. Of these, 23 have been completed.
• Once all the STPs become operational, there will be “considerable improvement in the water quality of Ganga,”.
• The Hybrid Annuity Model (HAM) is a mix of BOT Annuity and EPC models.
• The first 40 % payment is made as a fixed amount in five equal installments whereas the remaining 60 % is paid as a variable annuity amount after the completion of the project depending upon the value of assets created.
• The government contributes 40 % of the project cost in the first five years through annual payments (annuity). The developer must raise the remaining 60 % in the form of equity or loans. Remaining payment is made based on assets created and the performance of the developer.