Visakha Water Reclamation to raise $21 mn from IFC

The International Finance Corporation (IFC) is planning to invest around $21 million in a water treatment project of Visakha Water Reclamation Infrastructure Private Limited (VWRIPL), a special purpose company promoted by Chennai-based Eco Protection Engineers Private Limited (EPEPL) and AV Rambabu Infra Private Limited.

The estimated cost of the project is around $30 million. The proposed IFC investment is a $10.5-million 'A' loan from IFC's own account, and a 'B' loan/parallel loan for $10.5 million. IFC also said that its participation will bring familiarity with doing such industrial water reuse projects and crowd in commercial bank finance in the subsector.

The project is located in Visakhapatnam, Andhra Pradesh. The project will utilise the sites of the city's existing Laxmi Talkies sewage treatment plant and Appu Ghar sewage treatment plant.

VWRIPL was set up to develop a 63 MLD (million litres per day) tertiary treatment plant (TTP) in Visakhapatnam.

IFC said that this project will enable industries to free up the usage of fresh water of around 60 MLD which would result in improved water supply for the 1.8 million residents of Visakhapatnam.

The company has signed a 26-year Concession Agreement with the Greater Visakhapatnam Municipal Corporation (GVMC) to develop the project. GVMC, which is responsible for the supply of clean water and the treatment of wastewater for the city of Visakhapatnam, has envisaged this concession as a method to conserve water through recycling and reuse of Visakhapatnam's waste water by supplying treated water for industrial consumption.

VWRIPL will be responsible for the operations and maintenance of two existing sewage treatment plants ('STP's), and undertaking the design, finance, construction, operations and maintenance of the TTP, and supplying tertiary treated water for industrial consumers.