Austrian Development Bank Oesterreichische Entwicklungsbank AG (OeEB) has lent 13 million euros for a Namami Gange's sewage treatment project (STP) in West Bengal.
Oesterreichische Entwicklungsbank AG (OeEB) has presented the complete amount as a loan making it the first European DFI lending for National Mission for Clean Ganga (NMCG's) Hybrid Annuity Model (HAM) projects. The water utility firm implementing the project, Vishvaraj Environment Pvt Ltd (VEPL), told the media that it has received the loan for Namami Gange's sewage water treatment for Maheshtala in South 24 Parganas district in HAM and public-private partnership (PPP) model. The project cost is to be financed by a mix of NMCG Grant, Equity, and Debt, with the total project debt of over Euro 13 million to be financed by OeEB, and Deloitte is the financial advisor for this loan transaction. VEPL, through its subsidiary Maheshtala Waste Water Management Pvt Ltd (MWWMPL), had earlier inked a Rs 273 crore HAM concession deal under the Namami Gange programme administered by the NMCG with Kolkata Metropolitan Development Authority (KMDA ) for designing, financing, building the sewage treatment plants, pumping stations and other associated infrastructure at Maheshtala. The municipal wastewater management market on hybrid annuity-based PPP mode (HAM) is maturing with the rising participation of bidders in every project. The company is happy to note the Development Bank of Austria's funding for this project which signifies the growing credibility of the HAM model, NMCG Director-General G Asok Kumar said. Member of OeEB's Executive Board Sabine Gaber said Clean water is essential for human health, climate, environment, biodiversity and agricultural productivity, and food security. The company is therefore happy to help this important project that contributes to the Clean Ganga programme of the Indian Government, Gaber said. Image Source