VA Tech Wabag shares gained 1% on Monday, trading at ₹1,289.80, after the company announced it has secured a repeat large order from the Saudi Water Authority. The engineering, procurement and construction (EPC) contract is for an advanced technology brackish water reverse osmosis (BWRO) plant with a capacity of 50 million litres per day at Aljouf in Saudi Arabia.

Project Details and Timeline

The company has received a letter of award for the comprehensive water treatment facility, which will be designed, supplied, constructed and commissioned over a 14-month period. The following table outlines the key project specifications:

Advanced Technology Implementation

The facility will treat raw water supplied from bore well fields containing rare elements, requiring robust pre-treatment processes. The treatment system will utilize ceramic membrane technology followed by micron cartridge filtration and reverse osmosis to ensure long-term reliability and sustainable water supply for the region.

VA Tech Wabag classifies international orders in the $30 million to $75 million range as "large" orders. The contracting formalities will commence following the letter of award, with the effective execution date to be announced after contract signing.

Strategic Positioning

"The award reflects Saudi Arabia's proactive adoption of next-generation water treatment technologies and further reinforces VA Tech Wabag's leadership in advanced technology solutions such as BWRO, SWRO and recycle-and-reuse systems," said Phani Sathish Kadiyala, the company's country manager and branch GM for Saudi Arabia.

This development follows the company being declared the preferred bidder for the Hadda ISTP project in Saudi Arabia last week, demonstrating continued momentum in the Middle Eastern market.

Market Performance

Despite the positive news, VA Tech Wabag shares remain down 23% year-to-date. However, the repeat order from the Saudi Water Authority reinforces the company's competitive position in securing large-scale water infrastructure contracts in key international markets.

VA Tech Wabag , a global leader in water and wastewater treatment solutions, has been declared the preferred Engineering, Procurement and Construction (EPC) partner for the Hadda Independent Sewage Treatment Plant (ISTP) Project in the Kingdom of Saudi Arabia. This significant development follows the announcement by the Saudi Water Partnership Company (SWPC) that a Developer Consortium has been named as the Preferred Bidder for this strategic infrastructure project.

Project Overview and Consortium Details

The Hadda ISTP Project will be developed by a Developer Consortium comprising Metito Utilities Limited, Etihad Water and Electricity Company PJSC, and Sky Bridge Limited Company.

Technical Scope and Infrastructure

The EPC scope as proposed in the bid encompasses comprehensive infrastructure development for the treatment facilities. The project includes:

• Design, engineering, procurement, and construction of a sewage treatment plant
• Daily capacity ranging from 100,000 to 250,000 cubic meters
• Advanced treated sewage effluent (TSE) reuse system
• Large storage tank
• Extensive 38km transmission pipeline network

The technical specifications demonstrate the project's scale and importance in Saudi Arabia's water infrastructure development. The initial treatment capacity of 100,000 m³/day provides substantial wastewater processing capability, while the expansion potential to 250,000 m³/day ensures long-term scalability to meet growing regional demands.

Project Timeline and Implementation

The commencement date of the project will be announced following the execution of concession agreements and financial closure by the Developer Consortium. VA Tech Wabag has indicated that further updates and developments will be shared in due course as the project progresses through its preliminary phases.

Strategic Significance

Commenting on this development, Mr. Rohan Mittal, Head-Strategy and Business Growth-GCC, emphasized the strategic importance of the project. He stated that being associated with a project of such strategic importance represents both an honour and a responsibility that the company takes very seriously. The selection reinforces VA Tech Wabag's strong presence in the Middle East and its growing partnerships in Saudi Arabia.

Mr. Mittal expressed gratitude to the Developer Consortium and SWPC for the confidence placed in the company and looked forward to collaborating closely to deliver this landmark infrastructure to the highest standards of performance and reliability.

Company Background

With over a century of expertise, VA Tech Wabag operates as a global leader in water technology, delivering innovative and sustainable solutions for both municipal and industrial needs. As a pure-play Indian Water Technology Multinational, the company provides end-to-end water solutions tailored to diverse requirements across the world.

VA Tech Wabag manages every phase of the water value chain from design, engineering, supply, and construction to installation, commissioning, and long-term operations across multiple business models. Driven by a strong culture of innovation, the company operates cutting-edge R&D centres and maintains a significant portfolio of intellectual property rights. Its vision aligns with the United Nations Sustainable Development Goals and core ESG principles, with emphasis on conservation, resource optimisation, recycling, and reuse.