IFC, TCCL and EverSource to back WABAG's hybrid annuity model project

 

VA TECH WABAG Ltd ('WABAG'), a leading pure play water technology company, announced financial closure for its Hybrid Annuity Model (HAM) project received from Kolkata Metropolitan Development Authority (KMDA).

The project debt requirement will be funded by a consortium of International Finance Corporation (IFC) and Tata Cleantech Capital Limited (TCCL)

WABAG 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 upgradation 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. Forty 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.

Prasanth Prabhakaran, joint MD & CEO, YES Securities, said, “YES Securities is glad to act as an exclusive advisor to Eversource Capital for their investment in this marque project awarded to VA Tech Wabag. This project is one of the largest HAM-based sewage treatment plant under the Namami Gange Scheme. This transaction reiterates YES Securities as the preferred transaction advisor to marquee sustainability focused PE funds and further reinforces its strong capabilities and credentials in the environmental services sector.”

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