VA Tech - HAM Projects

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VA Tech Wabag (“Wabag”) provides lifecycle solutions in the water and waste water treatment space, including engineering, procurement and construction (EPC) and operation and maintenance (O&M) services, across India, South East Asia, Middle East, Africa, Europe and Latin America. Wabag’s projects include: (a) drinking water treatment; (b) industrial water treatment; (c) desalination of sea and brackish water; (d) water reclamation to potable water; (e) municipal wastewater treatment; (f) industrial wastewater treatment; (g) sludge treatment and resource recovery; and (h) industrial water reuse and recycling.  Kathari Water Management Private Limited (“KWMPL”) is a portfolio company of the Green Growth Equity Fund (“GGEF”). GGEF is a green energy focused fund which shall invest in scalable operating companies and platforms across renewable energy, energy efficiency, energy storage, e-mobility, resource conservation and associated value chains in India. The anchor investors of GGEF are National Investment and Infrastructure Fund, India’s first infrastructure specific investment fund set up by Government of India, and Foreign, Commonwealth and Development Office, Government of UK. GGEF is managed by its investment manager, EverSource Capital Private Limited Capital, a joint venture between Everstone Capital, a private equity firm with business in South East Asia, and Lightsource BP, a solar energy company in Europe.   Wabag  subsidiary company M/s Ganga STP Projects Private Ltd (GSPPL or the company) is the successful bidder for National Mission for Clean Ganga (NMCG/Namami Gange) build own operate (BOO) project bid out by Kolkata Municipal Development Authority (KMDA) on public private partnership (PPP) basis in Howrah in India. NMCG’s Namami Gange program is a World Bank funded project and all projects to be bid out under NMCG Namami Gange program have to meet the World Bank Safeguard Policies. NMCG KMDA project that GSPPL has won is the first such project for Wabag, where it will be the developer, owner and operator of an asset. Before this, Wabag has only been undertaking EPC and O&M projects. Further, KWMPL proposes to acquire significant shareholding in GSPPL, subject to fulfilment of conditions by Wabag.. Accordingly, both Wabag and KWMPL will together be referred to as Sponsor through out this document. NMCG/KMDA Howrah project comprised of three sub-projects located at Baranagar (South Dum Dum Municipality), Arupara (Howrah Municipality) and Bally (Bally Municipality), and it involves: (a) construction, operation and maintenance of sewage treatment plants (STP) of 40, 65 and 60 million liters per day (MLD) capacity at Bally, Arupara and Baranagar respectively; (b) rehabilitation, operation and maintenance of 22 MLD Waste Stabilization Ponds (WSP) type STP at Bally; (c) rehabilitation, operation and maintenance of main and lifting stations in Bally, Arupara and Baranagar; (d) desilting of existing sewer line totaling to a length of about 11.6 km at various locations in Bally, Arupara and Baranagar; (e) dismantling and replacement of existing rising mains ranging between 450 to 900 mm diameter totaling to a length of 4.7 km at various locations in Bally, Arupara and Baranagar; and (f) replacement of existing sewer lines 300 to 1000 mm diameter totaling to a length of 9.86 km at various locations in Bally, Arupara and Baranagar (“NMCG/KMDA project” or the “project”). The STPs to be developed under NMCG/KMDA project will be built within the premises of existing STPs that had in the past been built and operated by KMDA. No land acquisition and involuntary resettlement is expected on account of the new STPs though involuntary economic displacement is expected on account of the project. The pipelines that have to be replaced and/or freshly laid will be laid under the carriageway of existing roads or within the right of way (RoW) of existing roads. Construction of this BOO project is expected to commence in October 2020, will take about 24 months and is expected to be commissioned in third quarter of 2022. While GSPPL is the concessionaire, Wabag will undertake EPC of the project and will be the O&M operator. The existing 40 MLD sewage treatment plant (STP) at Baranagar and its linked infrastructure (comprised of underground gravity sewer line network, four Interception & Diversion (I&D) structures, one Main Pumping Station (MPS), rising main from MPS to STP, defunct STP and the outlet pipe) were built in 1996 but have not been operational since 2018. At the 3.14 ha Baranagar site the project involves: development of a new 60 MLD capacity STP within the existing STP complex after completely demolishing the existing STP structures; upgrades of the existing sewerage system used to collect sewage, including rehabilitation of four existing interception and diversion (I&D) structures; laying of 1.5 km (approx.) of new sewer line in place of existing old/damaged sewer pipeline; laying of 2.7 km of raising main; replacement of 900 meters of existing sewer line; and rehabilitation of associated linked sewerage infrastructure (including desilting of existing trunk sewer lines, I&D structures, rising main, main pumping station). The existing STP is located in a bounded plot of 1.85 ha/4.57 acres. Of this 18681.3 m2 are occupied by KMDA for its recently built septage plant and the balance is available to GSPPL to build their STP. The septage treatment facility will be carved out of the existing STP site and will continue to be managed by KMDA The North and East boundaries of the STP facility premises adjoins an un-engineered municipal solid waste dump yard. Along the West boundary is a dirt road and an open channel, immediately beyond the dirt road, that carries sewage located about 20 m from the boundary of the STP site.  South boundary of the site has a bitumen topped road.  There are three settlements at a distance of 0.35 km to the East, 0.24 km to the West and 0.21 km to the North. There are several ponds typically used for fish culture and for washing/cleaning near the STP site, the nearest being 0.2 km to the East of the site. There are three schools located at 0.51 km and 0.58 km South West and 0.81 km North of the STP site. The treated sewage will be discharged into the Udaypur canal which is part of the Bagjola canal system.  The existing 45 MLD sewage treatment plant and linked infrastructure at Arupara (including underground sewer network, three Lifting Stations (LS) and two MPS) were constructed in 1970 The STP has been non operational since March 2018 and rest of the linked Infrastructures (LS, PS & MPS) are currently under operation. The proposed project at Arupara involves: construction and O&M of a new STP of 65 MLD capacity within the existing STP complex; 150 m3/day septage treatment facility; upgrades of the existing sewerage system used to collect sewage, including laying of 700 m of new gravity sewer line (of 700 mm diameter) in place of existing defunct sewage pipeline near one of the lifting stations; laying of 800 m of new gravity sewer line in place of defunct pipeline; and 1.2 km of desilting of existing pipeline inside the premises of M/s. Guest Keen Williams Limited’s abandoned factory; renovation of 650 m of 2.75 m diameter brick sewer near one of the MPS; and rehabilitation of associated linked sewerage infrastructure which include trunk sewer lines, lift stations and main pumping station. GSPPL will not demolish the existing STP related structures at the STP site. There is total 4.97 ha/12.28 acres of bounded land area available in the existing STP site. The new STP will be built where the sludge drying pond (19,200 m2) of the previous STP existed. Arupara STP site shares the boundary with Kolkata Police Training ground on the East and has residential areas adjoining the Southern boundary (nearest house about 70 meters). Along the West boundary is a road that separates another residential colony. There is an open low-lying area to the North of the site with a few ponds, which are used by local communities for bathing and washing. The nearest pond is 50 meters from the STP boundary. There are two temples that immediately adjoin the STP boundary. There are a few micro-small-medium scale enterprises within a 1 km radius of the STP site in various directions. The treated sewage will be discharged into the Howrah drainage channel. The existing waste stabilization ponds of the 40 MLD STP at Bally are spread over 20.3 ha (50.16 acres) comprised of two anaerobic, two facultative and two maturation ponds. The WSP and the linked infrastructure (underground I&D sewer, six LSs, one MPS) were installed and commissioned during 1995 and currently have minimal operation. The proposed Bally STP project involves: filling of parts of one anaerobic and one facultative pond of the existing WSP to reclaim 16,317 m2  of land and construction of the new 40 MLD STP on the reclaimed land; upgrades of the existing sewerage system used to collect sewage, including laying 3 km of new gravity sewage lines; laying of 1.8 km of new rising mains; renovation and desilting of existing gravity sewer line and gravity main; rehabilitation of existing lifting stations and outfall point; and rehabilitation and operation of the existing WSP with a capacity of 22 MLD (using the WSP ponds that remain after the partial filling up of two ponds to reclaim land). The plant is located in a low lying marshy wetland area. There are a number of ponds in the area, nearest of which is 0.29 km South East. The nearest residential settlement is 0.17 km to the East of the WSP. There are several industries 0.5 km North and South of the WSP site. The nearest school is 0.79 km from the site. The treated sewage will be discharged into the Pocha Khal/canal, which flows into Howrah drainage channel. At each of the three locations, the new STP that GSPPL will construct will include: preliminary treatment (grit removal); primary clarifier; secondary treatment (activated sludge process with aeration); chlorine contact of treated sewage water; treated sewage water disposal; sludge handling/pumping facilities; anaerobic sludge digester; gas holder; biogas scrubber (to remove hydrogen sulphide); digested sludge sump; centrifuge to dewater digested sludge with polymer dosing system; power generation (gas engine and generator unit); gas engine flue gas and radiator waste heat recovery system; water softener; flare (for emergency burning of gas when gas engine is down); and auxiliary units. To maintain the optimum performance of the anaerobic sludge digester, incoming sludge to digester will be heated through the waste heat of biogas engine flue gas. The project is currently at an early development stage and the sites including the rights-of-way for pipelaying are yet to be handed over to GSPPL on as is where is basis.  Construction is expected to last about 24 months.  IFC is considering subscribing to Non-Convertible Debentures (NCDs) issued by GSPPL to part finance the construction and O&M of the project.