VA Tech Wabag shares gained over 2% in early trading on Wednesday, December 24, after the company announced it was declared the preferred engineering, procurement and construction partner for a major sewage treatment project in Saudi Arabia. The Saudi Water Partnership Company selected a developer consortium as the preferred bidder for the Hadda Independent Sewage Treatment Plant project, with VA Tech Wabag serving as their EPC partner.

Project Details and Scope

The Hadda Independent Sewage Treatment Plant project will be developed under a 25-year build, operate and transfer model by the developer consortium comprising Metito Utilities Ltd., Etihad Water and Electricity Company PJSC and SkyBridge Ltd. Company. The comprehensive EPC scope encompasses the design, engineering, procurement and construction of extensive treatment facilities.

Technical Infrastructure

The project includes several key components designed to handle substantial sewage treatment requirements. The facilities will feature a sewage treatment plant with scalable capacity, an advanced treated sewage effluent reuse system, a large storage tank, and an extensive transmission pipeline network. The infrastructure is designed to accommodate future expansion needs while maintaining operational efficiency.

Strategic Significance

Rohan Mittal, the company's head of strategy and business growth in GCC, emphasized the project's importance for VA Tech Wabag's regional presence. "This selection reinforces our strong presence in the Middle East and our growing partnership in Saudi Arabia," Mittal stated. The project represents a significant addition to the company's portfolio in the Gulf region.

Market Performance

Following the announcement, VA Tech Wabag shares were trading 1.1% higher at ₹1,308.00 per share around 9:25 am on Wednesday. Despite this positive development, the stock has declined 22.6% year-to-date. The company has not yet announced the commencement date for the Hadda ISTP project.

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.