Wabag secured a contract worth Rs 1,187 crore from BUIDCO under the National Mission for Clean Ganga (NMCG) scheme to construct 150-MLD sewage treatment plants (STPs) and a 453-km sewerage network in Patna’s Digha and Kankarbagh areas. Patna is one of the most populated cities along the Ganga’s banks.
VA Tech Wabag, a Chennai-based pure play water technology firm, announced on Tuesday that it had completed the financial closure of its Bihar Urban Infrastructure Development Corporation-funded hybrid annuity model (HAM) project (BUIDCO). Wabag has partnered with PTC India Financial Services (PFS), a leading green infrastructure financing firm, to meet the project debt funding requirement. PFS will invest up to Rs 86 crore in Wabag’s DK Sewage Project SPV. Wabag will put Rs 29 crore into the SPV as equity.
Wabag secured a contract worth Rs 1,187 crore from BUIDCO under the National Mission for Clean Ganga (NMCG) scheme to develop sewage treatment plants (STPs) of 150-MLD capacity along with sewerage network of over 453 km in the Digha and Kankarbagh zones of Patna, one of the most populous cities on the banks of the Ganga.
The Bihar project includes a Rs 940 crore design, build, and operate (DBO) scope and a Rs 247 crore hybrid annuity model (HAM) scope. The NMCG grant, equity, and debt will be used to fund the EPC portion of the hybrid annuity scope. During construction, the NMCG grant will cover about 40% of the cost, with the remaining 60% covered by a combination of debt and equity.
“Wabag will complete the EPC portion of the STP under the HAM project in 24 months, followed by 15 years of O&M. The STPs will use biogas to generate renewable energy to power the plants, resulting in lower operating costs. We are happy to start this long-term partnership with PFS, a leading financial institution in the infrastructure space. With this, Wabag has successfully achieved the financial closure of its second HAM project within this financial year,” Rajneesh Chopra, global head, business development, VA Tech Wabag, said.
Last month, Wabag completed its first hybrid annuity model (HAM) project with the Kolkata Metropolitan Development Authority (KMDA). IFC and Tata Cleantech Capital (TCCL) have agreed to invest around Rs 176 crore in debt into the Ganga STP Project, a special purpose vehicle set up to carry out the HAM project.
“With this debt funding to the STP project of VA Tech Wabag, PFS reaffirms its commitment to support upcoming environment friendly green infrastructure projects in the country,” said Pawan Singh, MD and CEO of PTC India Financial Services.