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WABAG secures financial closure of its second HAM project; partners with PTC India Financial Services

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Chennai, Mar 30 (PTI) Water treatment player VA Tech WABAG Ltd has completed the financial closure for its Hybrid Annuity Model project, received from the Bihar Urban Infrastructure Development Corporation, officials said on Tuesday.

The city-based company had secured a Rs 1,187 crore contract from the Bihar Urban Infrastructure Development Corporation under the National Mission for Clean Ganga scheme to develop 150 MLD capacity sewage treatment plants, along with sewerage network of over 453 km, in the Digha and Kankarbagh zones of Patna.

WABAG, as per the project, will execute engineering, procurement and construction portion of the sewage treatment plant under the hybrid annuity model over 24 months, followed by operation and maintenance of 15 years.

The project comprises a design, build and operate model and the engineering, procurement and construction portion of the Hybrid Annuity Scope is to be funded through a mix of grant from the National Mission for Clean Ganga, equity and debt.

About 40 per cent would be funded by NMCG grant in construction phase and 60 per cent through a mix of debt and equity.

To meet the project debt funding requirement, WABAG has partnered with infrastructure finance company PTC India Financial Services (PFS).

'It is yet another proud moment for WABAG to achieve financial closure of second HAM project in succession under the current context in the country.

We are happy to have PFS as our partner for financing the debt portion of this project', WABAG, Head-Capital Projects, Director, S Varadarajan.

'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.

PTC India Financial Services Ltd, MD, Pawan Singh said, 'PFS, with this debt funding to the STP project of VA Tech WABAG re-affirms its commitment to support upcoming environment friendly green infrastructure projects in the country'. PTI VIJ APR ADMINISTRATOR APR ADMINISTRATOR