VA Tech Wabag (Wabag), the Chennai-based public-listed pure-play water technology company, has entered into a memorandum of understanding (MoU) with Al Jomaih Energy and Water (AEW), a leading developer of energy and water projects in West Asia, under which both Wabag and AEW will cooperate on various aspects, including engineering, procurement, and construction (EPC), project development, and feasibility assessments for potential water projects.
The MoU was signed during the India-Saudi Investment Forum held on September 10 and 11, on the occasion of the G20 Summit, aiming to explore collaborative opportunities in water project development across Saudi Arabia and the broader West Asian region.
The collaboration will leverage the combined expertise of both organisations to tackle the pressing water challenges in the region. AEW will provide critical support related to local market intelligence, business development, and engagement with potential customers, off-takers, regulators, ministries, lenders, and suppliers in the region. Wabag will contribute technical and commercial expertise required for feasibility assessment and project development.
Pankaj Malhan, deputy MD & group CEO of Wabag, said: “The MoU will help both the organisations in exploring the feasibility of development and investment opportunities in water projects in the Kingdom of Saudi Arabia and other geographies in West Asia. We feel that we have aligned ourselves with the strategy of KSA Vision 2030 and will also help the country to achieve its sustainable goals.”
Wabag had in last month laid the foundation stone for South East Asia’s largest water desalination project in Chennai being built by the company with an investment outlay of Rs 4,400 crore.
The project marks a collaborative initiative between the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) and a joint venture led by Wabag with Metito Overseas Ltd (Metito) and Japan International Cooperation Agency (JICA).
Wabag secured the deal in March this year to design, build, and operate (DBO) a 400 million litres per day (MLD) seawater reverse osmosis (SWRO) desalination project. Funded by the JICA, the project will enhance Chennai’s water security by providing a stable source of drinking water through desalination.
Wabag had reported a consolidated profit after tax (PAT) of Rs 50 crore for the first quarter of FY24 as against Rs 30 crore in the corresponding quarter of last fiscal, registering an increase of 66.6%. Consolidated revenue from operations declined by 12.5% to Rs 552 crore from Rs 631 crore.