VA Tech Wabag Executes 50:50 JV Agreement with PEAK for Ghaziabad Bio-Gas Project

VA Tech Wabag Limited has formalized its joint venture partnership for a compressed bio-gas project through the execution of a shareholders agreement. The agreement involves VA Tech Wabag, PEAK Sustainability Venture Fund I, PEAK Sustainability Partners LLP, and the special purpose vehicle Ghaziabad Bioenergy Private Limited.

Joint Venture Structure and Partnership Details

The shareholders agreement establishes a 50:50 partnership framework for the joint venture entity that was initially incorporated. The partnership aims to execute a Compressed Bio-Gas project on Build-Operate-Transfer basis at Dundaheda, Ghaziabad, Uttar Pradesh, with equal control provisions ensuring balanced governance.

Parameter:	Details
Project Type:	Compressed Bio-Gas (CBG)
Execution Model:	Build-Operate-Transfer (BOT)
Location:	Dundaheda, Ghaziabad, Uttar Pradesh
SPV Name:	Ghaziabad Bioenergy Private Limited
Partnership Structure:	50:50 equal control

The initial shareholding structure reflects an almost equal partnership between the two main entities:

Shareholder:	Equity Shares	Share Value
VA Tech Wabag Limited:	5100 shares	INR 10/- each
PEAK Sustainability Partners LLP:	4900 shares	INR 10/- each

Key Agreement Terms and Governance

The shareholders agreement incorporates several significant provisions governing the relationship between the parties. Both VA Tech Wabag and PEAK will maintain the same proportion of nominee directors on the board of the SPV at all times, ensuring balanced governance structure with equal control mechanisms.

The agreement includes important restrictions and rights:

Terms:	Details
Lock-in Period:	3-year restriction on shareholding transfers
Transfer Restrictions:	Prior written consent required from all parties
Right of First Refusal:	Protection against unauthorized encumbrances
Economic Interest:	Both partners invest up to 50% economic interest each

Regulatory Compliance and Strategic Impact

The shareholders agreement execution fulfills the disclosure requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that the transaction does not constitute a related party transaction and is conducted in the ordinary course of business.

This joint venture represents VA Tech Wabag's expansion into the renewable energy sector, specifically compressed bio-gas production. The partnership with PEAK Sustainability demonstrates the company's commitment to sustainable energy solutions while leveraging specialized expertise in the bioenergy domain. The Build-Operate-Transfer model provides a structured approach to project execution and long-term operational management.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.68%	+9.35%	+14.93%	-5.48%	+3.52%	+425.39%

VA Tech WABAG has announced securing a consortium award for a 'Large' order to construct a 19 Million Litres Per Day wastewater treatment plant in Georgia. The project, funded by the European Investment Bank and valued between ₹250-600 crores, marks the company's strategic entry into the CIS region and strengthens its global presence in water technology solutions.

Project Overview and Scope

The contract has been awarded by United Water Supply Company of Georgia LLC for the development of a state-of-the-art wastewater and sludge treatment facility in Kutaisi, Georgia's third-largest city. The 19 MLD WWTP is strategically designed for future expansion up to a capacity of 56 MLD, demonstrating long-term scalability.

Project Parameter:	Details
Client:	United Water Supply Company of Georgia LLC
Capacity:	19 MLD (expandable to 56 MLD)
Location:	Kutaisi, Georgia
Contract Value:	₹250-600 crores
Funding:	European Investment Bank
Order Classification:	Large (USD 30-75 Million range)

Technical Specifications and Features

The Engineering, Procurement & Construction scope encompasses comprehensive plant development including demolition of the existing facility, construction of the new WWTP, and installation of an effluent pipeline to the river. As the consortium leader, WABAG will undertake complete project execution from design to commissioning.

The plant incorporates advanced technological features:

Advanced mechanical and biological treatment with nutrient removal based on activated sludge process
Final sedimentation and UV disinfection systems
Sludge treatment facilities with solar sludge drying systems
Odour control systems and associated pumping infrastructure
Comprehensive training programs for client personnel

Project Timeline and Execution

Phase:	Duration
EPC Completion:	36 months
O&M Supervision:	12 months
Total Project Duration:	48 months

WABAG's responsibilities extend beyond construction to include supervision of Operation & Maintenance for 12 months, ensuring seamless project handover and operational efficiency.

Strategic Market Entry

This project represents WABAG's inaugural entry into the CIS region and Georgian market, expanding the company's international footprint. The order falls within the 'Large' category for international projects, defined as orders ranging between USD 30-75 Million.

Mr. Mahmut Gedek, Chief Executive Officer - Europe Cluster, commented on the development: "We are proud to secure the Kutaisi WWTP contract, marking WABAG's entry into Georgia, and we thank our customer for their trust. Leveraging our experience, we have delivered a technically robust and commercially competitive solution ensuring safe discharge into the River Rioni, and sustainable sludge management."

Environmental and Social Impact

The project is designed to deliver significant environmental benefits through safe discharge into the River Rioni and sustainable sludge management practices. The advanced treatment systems will provide lasting environmental, health, and social benefits to Kutaisi residents, aligning with sustainable development objectives and modern wastewater treatment standards.