| Project Detail |
The proceeds of the ADB loan will be utilized to finance the funded long-term working capital requirements of the company to execute engineering, procurement, and construction and operation and maintenance contracts in the water and wastewater treatment segment in India.
Project Name Wabag Clean Water Supply Project
Project Number 56155-001
Borrower / Company VA Tech Wabag Limited
Country / Economy India
Location Nation-wide
Type or Modality of Assistance
7744 Debt Security Ordinary capital resources INR 2,000.00 million Signed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector
Water and other urban infrastructure and services / Urban sewerage
Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Agrawal, Keshari Nandan
Project Sponsor(s) VA Tech Wabag Limited
Description The proceeds of the ADB loan will be utilized to finance the funded long-term working capital requirements of the company to execute engineering, procurement, and construction and operation and maintenance contracts in the water and wastewater treatment segment in India.
Objectives and Scope
Impacts. The project is aligned with the following impacts: (i) improved water supply and proper sewerage facilities in India provided (National Water Policy 2012), and (ii) minimum ecological flows in the river Ganga maintained with the aim of ensuring water quality and environmentally sustainable development.
Outcome. The project will have the following outcome: operation of wastewater/sewage services increased. Supported by the ADB loan to Wabag to augment its working capital requirements, it is expected that the company will be able to commission six new sewage treatment plants by 2026.
Outputs. The project will have the following outputs: (i) installation of sewage treatment plants supported (with three engineering, procurement and construction (EPC) contracts expected to be executed to install six new sewage treatment plants), (ii) local employment generated, and (iii) gender equality at Wabag supported.
Linkage to Country/Regional Strategy The project aligns with ADBs Water Policy, which emphasizes integrated water management, water conservation, and system efficiencies. The project is consistent with ADBs Strategy 2030 through its support for river preservation and cleaning._It relates to two of the seven operational priorities (OPs) under Strategy 2030: (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability (OP 3), and (ii) making cities more livable (OP 4). It contributes to ADBs ambition to provide climate finance of $100 billion cumulatively from 2019 to 2030, since $1.2 million of the ADB loan contributes to ADBs climate financing._The project is also aligned with ADBs Asian Water Development Outlook 2020, particularly key dimension 2 (economic water security) and key dimension 3 (urban household water security)._The project will also contribute to ADBs operational goal of scaling up private sector development and private sector operations. The project is aligned with ADBs country partnership strategy for India, 2018-2022, particularly pillar 2 (providing inclusive access to infrastructure networks and services) and pillar 3 (addressing climate change and increasing climate resilience). |
