VA Tech Wabag, the Chennai-based multinational in water and wastewater treatment, has bagged a contract to operate and manage Istanbul’s entire wastewater system.

Wabag’s Turkish subsidiary is handling the operation and maintenance of Istanbul’s wastewater infrastructure for the local utility, Istanbul Water and Sewage Administration.

The project involves treatment and disposal of over 5 million cubic metres of domestic and industrial effluent generated by the city daily, which has a population of over 16 million. Istanbul also generates nearly half of Turkey’s industrial output.

The infrastructure includes three central treatment plants, 50 supplementary treatment plants and nine pre-treatment plants with a capacity to handle over 850,000 cubic metres daily and a 23 MW biogas power plant. Over a thousand people are employed in this project.

Rajiv Mittal, Managing Director and Group CEO, VA Tech Wabag, told BusinessLine that the subsidiary won the bid in an international tender floated by the local administration. The subsidiary has been handling the operation and maintenance for over six months as part of a two-year contract that is extendable. The contract value is over $50 million (about ₹200 crore) a year with payments made monthly by the utility. ISKI is among the richest utilities in Turkey and payments are prompt, he said.

For the ₹2,400-crore Wabag this is a novel initiative and will benefit the company as it establishes its capability to handle utility scale wastewater projects for entire cities. In India, companies typically handle operation and maintenance of a few plants as utilities give out such contracts piecemeal.

As the government of India looks at developing modern urban infrastructure through projects such as the smart cities mission and AMRUT (Atal Mission for Rejuvenation and Urban Transformation), companies with a track record in handling utility scale project will have a competitive edge, he said.

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