Wabag achieves financial closure in a Clean Ganga HAM project
Ropes in IFC, Tata Cleantech Capital for debt portion
Va Tech Wabag Ltd, a leading player in water technology space, has completed the financial closure for its Hybrid Annuity Model (HAM) project received from Kolkata Metropolitan Development Authority.
The company has also raised debt from International Finance Corporation (IFC) and Tata Cleantech Capital Ltd (TCCL) for the project.
Wabag had earlier signed a ₹575 crore HAM concession agreement under the Namami Gange programme administered by the National Mission for Clean Ganga (NMCG) which included the scope of engineering, supply and construction of new sewage treatment plants, renovation and up-gradation of existing sewage treatment plants, rehabilitation of pumping stations and other associated infrastructure in Kolkata.
Wabag will undertake EPC portion of this project over 24 months followed by O&M of 15 years.
Treating sewage flow
Once complete, the project with a cumulative wastewater treatment capacity of 187 MLD will contribute to reducing the discharge of untreated sewage into the Ganga from Bengal by around 15 per cent.
The EPC portion of the project is to be funded by a mix of NMCG grant, equity and debt.
About 40 per cent of EPC cost will be funded by NMCG grant during the construction period and balance 60 per cent will be funded by a mix of debt and equity.
The debt will be funded by a consortium of IFC and TCCL.