VA Tech Wabag ties up with Norfund, two others to bid for municipal water projects
Water technology major VA Tech Wabag has entered into an in-principle agreement with Norway’s sovereign investment fund Norfund and two other global investors to bid for capital projects in the municipal sector.
The dedicated municipal sector consortium will commit equity investment of up to $100 million in capital projects over a three to five-years period across key geographies.
Chennai-based VA Tech Wabag will be the technical partner and provide EPC (engineering, procurement and construction) and O&M (operations and maintenance) services. The company said it would also make a minority investment in the platform, consistent with its asset-light strategy, according to an official statement.
The name of the other two international investors as well as the maximum amount of equity, or financial contribution, that VA Tech Wabag would make in municipal projects has not been revealed.
The statement said the proposed platform will focus on leveraging the combined expertise and resources of VA Tech Wabag and its partners to address the growing demand for advanced water treatment technologies and infrastructure. By uniting capabilities, the platform will target key opportunities in municipal sector, supporting sustainable water management and contributing to economic development.
The term-sheet outlines the framework for collaboration and represents an important step toward formalizing the partnership to accelerate the delivery of transformative projects in key regions. The establishment of this platform reflects VA Tech Wabag’s ongoing dedication to maintaining its core focus on the water sector and fostering growth through strategic financial partnerships, the statement said.
“This step of signing the term-sheet with strong global partners to establish the municipal platform underscores our commitment to addressing global water challenges by leveraging cutting-edge technology and expertise. This initiative reflects our asset-light strategy, emphasizing partnerships that combine Wabag’s technical excellence with the financial strengths of our collaborators to accelerate impactful and sustainable water solutions”, said VA Tech Wabag Whole-time Director & Chief Growth Officer S Varadarajan.
