WABAG secures Rs 1,187 cr contract from Bihar Urban Infra Development Corp

Firm achieves financial closure of its second HAM project and partners with PTC India Financial Services

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 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') portion of Sewage Treatment Plant under HAM, along with this project over a period 24 months. This would be followed by 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 of a Design, Build and Operate (DB0') 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. 40 per cent will be funded by the NMCG grant during construction period and balance 60 per cent will be funded by a mix of debt and equity.

To meet the project debt funding requirement, WABAG has partnered with PTC India Financial Services Limited (PFS). PFS is a leading green infrastructure finance company which provides a vast array of services to the entities in infrastructure sector while contributing to the sustainable development goals of the country.

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