NHAI Revises Qualification Criteria for HAM Projects

In a strategic policy shift aimed at enhancing bidder selection and ensuring higher execution standards under the Hybrid Annuity Model (HAM), the National Highways Authority of India (NHAI) has issued Policy Circular bearing Reference No. 11.68/2025 dated August 6, 2025, introducing modifications to the standard Request for Proposal (RFP) criteria for HAM projects. These changes have been introduced in addition to the amendments set out by the Ministry of Road Transport and Highways (MoRTH) in its directive dated July 10, 2025, which modified the existing qualification framework for HAM projects.

Since the adoption of the HAM procurement model, the government has progressively refined eligibility criteria to encourage broader participation. However, concerns over the suitability and experience of certain bidders have prompted a re-evaluation. The revised norms are now intended to create a more robust pre-qualification framework, especially for technically demanding infrastructure works.

Following MoRTH’s policy review, these changes restrict over-reliance on relaxed conditions and improve the alignment between bidder capabilities and project demands.

The NHAI circular implements these decisions across all executing agencies with immediate effect.

Key Modifications Introduced

1. Clarified Definition and Evidence of “Similar Work”:
   • Clause 2.2.2(AA) has been revised to provide greater clarity on what constitutes a “similar completed work.” To qualify, the work must encompass all major components comparable to those envisaged under the project being tendered. Executed works that do not include all the major components will not be considered for eligibility.
   • Further, bidders must submit a specific Experience Certificate in the format prescribed at Annexure VII of Appendix-IA of the Model RFP for HAM Projects issued by MoRTH, in addition to the certificates from the statutory auditor or client (as provided in Annex IV). For projects executed under NHAI, the required certificate must be issued by the concerned General Manager (Technical) at NHAI Headquarters, upon recommendation by the respective Project Director.
2. Prohibition on Third-Party Financial Instruments:To reinforce financial stability, Clause 2.20.3 has been tightened to prohibit bid security, performance security and additional performance security sourced through third parties. This measure aims to improve transparency and bidder accountability.
3. Refined Attribution of Joint Venture (JV) Experience: In line with Clause 3.4.1(1), the prior provision permitting a JV member to claim experience based on work executed by other JV partners has been withdrawn. Now, under the revised provision, the project cost is restricted to the share of the applicant in the JV for determining eligibility as per provisions under Clauses 2.2.2 (AA) and 2.2.2. (AAA). This amendment ensures that credit for project execution is proportionately attributed, thereby enhancing the fairness and integrity of the evaluation process.
4. Broader Scope of Undesirable Practices: Under Clause 4.3(d), the scope of the term “undesirable practice” has further been expanded to include the following:
   • Any change of Engineering Procurement Contract (EPC) contractor without prior approval of the Authority; and
   • Engagement of another EPC contractor or subcontractor by the EPC contractor.

These additions are designed to prevent circumvention of the bidding process post-award and to uphold the spirit of competitive selection.

This circular reflects NHAI’s continued efforts to align its procurement ecosystem with MoRTH’s policy framework. By closing regulatory gaps and elevating qualification thresholds, the amendments aim to ensure that only competent and credible entities are entrusted with delivering critical national highway infrastructure.

Stakeholders are advised to immediately adapt their bid strategies and internal processes to conform with these updates.