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Va Tech Wabag completes financial closure for its BUIDCO project

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Capital Market
Last Updated : Mar 30 2021 | 6:50 PM IST

In partnership with PTC India Financial Services

Va Tech Wabag has completed the financial closure for its hybrid annuity model project received from Bihar Urban Infrastructure Development Corporation.

WABAG had earlier secured a contract worth Rs 1,187 crore order from Bihar Urban Infrastructure Development Corporation ('BUIDCO') under the prestigious National Mission for Clean Ganga ('NMCG') Scheme to develop Sewage Treatment Plants ('STR) 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 River Ganga.

WABAG will execute Engineering, Procurement and Construction ('EPC') portion of Sewage Treatment Plant under HAM, this 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.

This project comprises of a Design, Build and Operate (DB0') scope worth Rs 940 crore and Hybrid Annuity Model (HAM) scope worth around INR 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.

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First Published: Mar 30 2021 | 6:29 PM IST

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