Va Tech Wabag achieves financial closure of Clean Ganga project
Shares of VA Tech Wabag advanced 4% to Rs 251.90 on BSE, Wednesday after the company signed financing agreements for the development of a 100 million-litres-per-day sewage treatment plant at Digha and a 50-million-litres-per-day plant in the Kankarbagh area of Bihar’s Patna under the hybrid annuity-based PPP model (HAM).
Va Tech Wabag had won a contract worth Rs 1,187 crore under the National Mission for Clean Ganga (NMCG) scheme to develop sewage treatment plants (STP) of 150-million litres per day capacity along with the sewage network of over 453 kms in the Digha and Kankarbagh zones of Patna.
The company will execute the engineering, procurement and construction (EPC) portion of the STP under HAM over 24 months, followed by operation and maintenance of 15 years.
The sewage treatment plant will produce renewable energy from biogas to run the plants leading to lower operational expenses. The project comprises a design, build and operate (DBO) part worth Rs 940 crore and the HAM scope worth about Rs 247 crore.
The EPC portion of the hybrid annuity scope is to be funded through a mix of NMCG grant (40%) and 60% by equity and debt.
To meet the project’s debt funding requirement of about Rs 86 crore, Va Tech Wabag has partnered with PTC India Financial Services.
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