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Va Tech Wabag has achieved financial closure for its hybrid annuity project received from Kolkata
Metropolitan Development Authority.
The company had earlier signed a Rs. 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 execute Engineering, Procurement and
Construction (EPC) portion of this project over 24 months followed by O&M of 15
years. Once complete, the project with a cumulative wastewater treatment capacity
of 187 MLD will contribute to reducing the discharge of untreated sewage into the
Holy Ganga from the state of West 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. 40 per cent of EPC cost will be funded by NMCG grant during the
construction period and balance 60 per cent to be funded by a mix of debt and
equity.
The project debt requirement
will be funded by a consortium of International Finance Corporation (AFC) and
Tata Cleantech Capital (TCCL).
In line with the asset light principle of WABAG, the company has signed an agreement with Kathari Water Management (Kathari Water), a wholly owned subsidiary of EverSource Capital, fund manager
for Green Growth Equity Fund (GGEF') who will be the company's investment partner in the
project. GGEF is established with anchor investment from National Investment and
Infrastructure Fund (NIIF) anchored by Government of India and Foreign,
Commonwealth & Development Office (FCD0), Government of UK.
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