Va Tech Wabag is in a bright spot today morning, rising 6% to hit an intraday high at Rs.256.10 and is currently trading 4.5% higher at Rs.253 levels.

The market is happy that it has completed financial closure for its Hybrid Annuity Model (HAM) project received from Bihar Urban Infrastructure Development Corporation (BUIDC0).

WABAG had earlier secured a contract worth Rs.1,187 crore order from BUIDCO under the National Mission for Clean Ganga Scheme to develop Sewage Treatment Plants (STPs) of 150 MLD capacity along with sewerage network of over 453 km in the Digha and Kankarbagh zones of Patna, one of the most populous cities on the banks of River Ganga.

WABAG will execute Engineering, Procurement and Construction portion of Sewage Treatment Plant under HAM, over 24 months followed by O&M of 15 years. The STPs will produce renewable energy from biogas to run the plants leading to lower operational expenses.

This project comprises of a Design, Build and Operate scope worth Rs.940 Crore and HAM scope worth around Rs.247 Crore.

The EPC portion of the Hybrid Annuity Scope is to be funded through a mix of NMCG Grant, Equity and Debt. 40% will be funded by the NMCG grant during construction period and balance 60% will be funded by a mix of debt and equity.

To meet the project debt funding requirement, WABAG has partnered with PTC India Financial Services.