City-based Va Tech Wabag Ltd (Wabag) has partnered PTC India Financial Services Ltd (PFS) to achieve financial closure for its Hybrid Annuity Model (HAM) project received from Bihar Urban Infrastructure Development Corporation (BUIDCO).
As per the agreement, an amount of ₹86 crore will be funded by PFS and Wabag will invest ₹29 crore in one or more tranches. PFS is a leading green infrastructure finance company that provides a vast array of services to the entities in infrastructure sector.
Wabag had earlier bagged the ₹1,187 crore order from BUIDCO under the National Mission for Clean Ganga (NMCG) scheme to develop Sewage Treatment Plants (STP) of 150 MLD capacity along with sewerage network in the Digha and Kankarbagh zones of Patna, S. Varadarajan, director and chief growth officer, Wabag told reporters.
This project comprises of a design, build and operate of ₹940 crore and HAM of ₹247 crore. The EPC portion of HAM is to be funded through a mix of NMCG grant, equity and debt. About 40% will be funded by the grant during construction period and balance will be funded by a mix of debt and equity.
“We are happy to start this long term partnership with PFS, a leading financial institution in the infrastructure space. With this, Wabag has successfully achieved the financial closure of its second HAM project within this financial year,” he said.
