WABAG secures financial closure of its second HAM project; partners with PTC India Financial Services

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March 31, 2021 12:45 AM

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.

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.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.

Chennai-based pure play water technology company VA Tech Wabag on Tuesday said it had completed the financial closure of its hybrid annuity model (HAM) project received from Bihar Urban Infrastructure Development Corporation (BUIDCO). To meet the project debt funding requirement, Wabag has partnered PTC India Financial Services (PFS), a leading green infrastructure finance company, which will invest up to Rs 86 crore in the SPV of Wabag called DK Sewage Project. Wabag will invest Rs 29 crore as equity in the SPV.

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 comprises design, build and operate (DBO) scope worth Rs 940 crore and hybrid annuity model (HAM) scope worth around Rs 247 crore. The EPC portion of the hybrid annuity scope is to be funded through a mix of NMCG grant, equity and debt. Around 40% will be funded by the NMCG grant during the construction period and the balance 60% will be funded by a mix of debt and equity.

“Wabag will execute EPC portion of STP under HAM project over 24 months followed by O&M of 15 years. The STPs will produce renewable energy from biogas to run the plants leading to lower operational expenses. 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.

Wabag had secured the financial closure of its first hybrid annuity model (HAM) project received from Kolkata Metropolitan Development Authority (KMDA) last month. IFC jointly with Tata Cleantech Capital (TCCL) agreed to pump in around Rs 176 crore as debt into Ganga STP Project, an SPV formed to execute the HAM project.

Pawan Singh, MD &CEO – PTC India Financial Services, said: “PFS, with this debt funding to the STP project of VA Tech Wabag re-affirms its commitment to support upcoming environment friendly green infrastructure projects in the country.”

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