VA Tech Wabag shares gain after winning EPC contract for Hadda ISTP project in Saudi Arabia

Shares of VA Tech Wabag Ltd. gained over 2% in early trade on Wednesday, December 24, after the company said it was declared the preferred bidder for Hadda ISTP project in Saudi Arabia.

The Saudi Water Partnership Company declared The developer consortium of Metito Utilities Ltd., Etihad Water and Electricity Company PJSC and SkyBridge Ltd. Company as the preferred bidder for the Hadda

Independent Sewage Treatment Plant (ISTP) project, for which WABAG is the preferred engineering, procurement and construction partner.

The project is to be developed under a 25-year build, operate and transfer model by the developer consortium.

The EPC scope of work includes the design, engineering, procurement and construction of the treatment facilities, which includes a sewage treatment plant with an initial treatment capacity of 100,000 metric cube per day expandable to 250,000 metric cube per day, an advanced treated sewage effluent reuse system and comprises a large storage tank and a 38km transmission pipeline with a throughput capacity of 350,000 metric cube per day.

The commencement date of the project is yet to be announced.

"This selection reinforces our strong presence in the Middle East and our growing partnership in Saudi Arabia," Rohan Mittal, the company's head of strategy and business growth in GCC, said.

Shares of VA Tech Wabag were trading 1.1% up at ₹1,308 apiece around 9.25 am on Wednesday. The stock has declined 22.6% this year, so far.