Business News | ADB, Wabag Sign USD 25 Mln Debt Facility for Sanitation, Water Security in India
Get latest articles and stories on Business at LatestLY. The financing will be used for long-term capital requirements for engineering, procurement, and construction, and the subsequent operation and maintenance of the sewage treatment plants.
New Delhi [India], November 26 (ANI): The Asian Development Bank (ADB) has signed a USD 25 million debt with VA Tech Wabag Limited (Wabag) to support sanitation and water security through the development of new sewage treatment plants in India.
Wabag is a leading player in India's water industry, with expertise spanning almost a century. Wabag offers a complete range of technologies and services for total water solutions in both municipal and industrial sectors.
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The financing will be used for long-term capital requirements for engineering, procurement, and construction, and the subsequent operation and maintenance of the sewage treatment plants.
ADB said it would also provide technical assistance of up to USD 35,000 to enhance Wabag's capacity to assess and mitigate environmental and social risks for future projects.
"The disposal of wastewater without proper treatment has put significant pressure on India's already scarce water resources and the quality of those resources," said ADB's Private Sector Operations Department Director General Suzanne Gaboury.
"This project is ADB's first private sector financing in India's water sector and will help to crowd in urgently needed international and domestic financing for the sector to ease water stress as demand increases," Gaboury said.
ADB said India is facing severe water stress, with demand expected to surpass the available water supply by 2030.
Less than 30 per cent of the water released back into rivers is treated, rendering about one-third of river water unfit for human consumption. Private water companies face difficulties in raising long-term working capital financing due to perceived high risks and low interest among domestic financing institutions, as the sector presents limited opportunities for profit, ADB said in a statement on Friday.
"This is a proud moment for Wabag as we add another feather to our cap with this strategic funding from ADB that validates our mission and focus on clean, green, and sustainable water technologies," said Wabag's Managing Director and Group CEO Rajiv Mittal.
Wabag has over 1,600 professionals spread over 25 countries across 4 continents, as well as research and development centres in Austria, India, and Switzerland. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)