VA Tech Wabag wins order under NMCG
08 April 2021
Water treatment company VA Tech 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 million liters per day (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) part of the STP under the hybrid annuity model (HAM), along with this project for 24 months. This would be followed by operations and maintenance (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 a Design, Build and Operate (DBO) scope worth Rs 940 Crore and HAM scope worth around Rs 247 crore.
The EPC portion of the HAM scope is to be funded through a mix of NMCG grant, equity, and debt. An NMCG grant will fund 40% of the segment during the construction period, and the remaining 60% will be funded by a mix of debt and equity.
WABAG has partnered with PTC India Financial Services Limited (PFS) to meet the project’s debt funding requirement. PFS is a green infrastructure finance company that provides a vast array of services to the infrastructure sector entities while contributing to the country's sustainable development goals.