The government's new concession agreement for developers of highway projects is a huge improvement over the existing one, with a number of innovative features. However, considerable spadework will still have to be done to ensure successful implementation of projects. Else, it will meet the same fate that has befallen the recently legislated Electricity Act which, though rich in innovation and reforms, has hardly made a difference to the ailing power sector. The new agreement seeks to induce greater private sector participation in the highway business. Traffic risk, which the private sector has shied away from, is sought to be mitigated by ensuring it is not open- ended