VA Tech Wabag bags huge order under National Mission for Clean Ganga

31 Mar 2021 CW Team

Water treatment company VA Tech Wabag has secured a contract worth Rs 1,187 crore order from Bihar Urban Infrastructure Development Corporation (BUIDCO) under the National Mission for Clean Ganga (NMCG) Scheme to develop Sewage Treatment Plants (STP) of 150 million litres per day (MLD) capacity along with sewerage network of over 453 km in the Digha and Kankarbagh zones of Patna.

The company will execute the engineering, procurement and construction (EPC) part of the STP under the hybrid annuity model (HAM), along with this project over a period of 24 months. This would be followed by operations and maintenance (O&M) of 15 years.

The STPs will produce renewable energy from biogas to run the plants leading to lower operational expenses.

This project comprises a Design, Build and Operate (DBO) scope worth Rs 940 Crore and HAM scope worth around Rs 247 crore.

The EPC portion of the HAM scope is to be funded through a mix of NMCG grant, equity and debt. An NMCG grant will fund 40% of the segment during the construction period, and the remaining 60% will be funded by a mix of debt and equity.

WABAG has partnered with PTC India Financial Services Limited (PFS) to meet the project’s debt funding requirement.

PFS is a green infrastructure finance company that provides a vast array of services to the infrastructure sector entities while contributing to the country's sustainable development goals.

PFS extends debt, mezzanine and bridge finance to projects in renewable power generation, transmission, distribution, road HAM/annuity projects, sewage treatment projects, water supply projects, e-mobility projects, among others, with an aim towards financing sustainable green infrastructure projects and other economic strategy sectors.

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