VA Tech Wabag Executes Shareholders Agreement for Ghaziabad Bio-Gas Joint Venture

VA Tech Wabag Limited has formalized its joint venture partnership for a compressed bio-gas project through the execution of a shareholders agreement on April 09, 2026. The agreement involves VA Tech Wabag, PEAK Sustainability Venture Fund I, PEAK Sustainability Partners LLP, and the special purpose vehicle Ghaziabad Bioenergy Private Limited.

Joint Venture Structure and Shareholding

The shareholders agreement establishes the framework for the joint venture entity that was initially incorporated on February 16, 2026. The partnership aims to execute a Compressed Bio-Gas project on Build-Operate-Transfer basis at Dundaheda, Ghaziabad, Uttar Pradesh.

Parameter: Details Project Type: Compressed Bio-Gas (CBG) Execution Model: Build-Operate-Transfer (BOT) Location: Dundaheda, Ghaziabad, Uttar Pradesh SPV Name: Ghaziabad Bioenergy Private Limited

The initial shareholding structure reflects an almost equal partnership between the two main entities:

Shareholder: Equity Shares Share Value VA Tech Wabag Limited: 5100 shares INR 10/- each PEAK Sustainability Partners LLP: 4900 shares INR 10/- each

Key Agreement Terms

The shareholders agreement incorporates several significant provisions governing the relationship between the parties. Both VA Tech Wabag and PEAK will maintain the same proportion of nominee directors on the board of the SPV at all times, ensuring balanced governance structure.

The agreement includes important restrictions and rights:

Lock-in Period: Three-year restriction on shareholding transfers

Transfer Restrictions: Prior written consent required from all parties for share transfers

Right of First Refusal: Protection against unauthorized encumbrances

Economic Interest: Both partners agree to invest up to 50% economic interest each

Regulatory Compliance

The shareholders agreement execution fulfills the disclosure requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that the transaction does not constitute a related party transaction and is conducted in the ordinary course of business.

Strategic Implications

This joint venture represents VA Tech Wabag's expansion into the renewable energy sector, specifically compressed bio-gas production. The partnership with PEAK Sustainability demonstrates the company's commitment to sustainable energy solutions while leveraging specialized expertise in the bioenergy domain. The Build-Operate-Transfer model provides a structured approach to project execution and long-term operational management.

VA Tech WABAG has announced securing a consortium award for a 'Large' order to construct a 19 Million Litres Per Day wastewater treatment plant in Georgia. The project, funded by the European Investment Bank and valued between ₹250-600 crores, marks the company's strategic entry into the CIS region and strengthens its global presence in water technology solutions.

Project Overview and Scope

The contract has been awarded by United Water Supply Company of Georgia LLC for the development of a state-of-the-art wastewater and sludge treatment facility in Kutaisi, Georgia's third-largest city. The 19 MLD WWTP is strategically designed for future expansion up to a capacity of 56 MLD, demonstrating long-term scalability.

Project Parameter: Details Client: United Water Supply Company of Georgia LLC Capacity: 19 MLD (expandable to 56 MLD) Location: Kutaisi, Georgia Contract Value: ₹250-600 crores Funding: European Investment Bank Order Classification: Large (USD 30-75 Million range)

Technical Specifications and Features

The Engineering, Procurement & Construction scope encompasses comprehensive plant development including demolition of the existing facility, construction of the new WWTP, and installation of an effluent pipeline to the river. As the consortium leader, WABAG will undertake complete project execution from design to commissioning.

The plant incorporates advanced technological features:

Advanced mechanical and biological treatment with nutrient removal based on activated sludge process

Final sedimentation and UV disinfection systems

Sludge treatment facilities with solar sludge drying systems

Odour control systems and associated pumping infrastructure

Comprehensive training programs for client personnel

Project Timeline and Execution

Phase: Duration EPC Completion: 36 months O&M Supervision: 12 months Total Project Duration: 48 months

WABAG's responsibilities extend beyond construction to include supervision of Operation & Maintenance for 12 months, ensuring seamless project handover and operational efficiency.

Strategic Market Entry

This project represents WABAG's inaugural entry into the CIS region and Georgian market, expanding the company's international footprint. The order falls within the 'Large' category for international projects, defined as orders ranging between USD 30-75 Million.

Mr. Mahmut Gedek, Chief Executive Officer - Europe Cluster, commented on the development: "We are proud to secure the Kutaisi WWTP contract, marking WABAG's entry into Georgia, and we thank our customer for their trust. Leveraging our experience, we have delivered a technically robust and commercially competitive solution ensuring safe discharge into the River Rioni, and sustainable sludge management."

Environmental and Social Impact

The project is designed to deliver significant environmental benefits through safe discharge into the River Rioni and sustainable sludge management practices. The advanced treatment systems will provide lasting environmental, health, and social benefits to Kutaisi residents, aligning with sustainable development objectives and modern wastewater treatment standards.

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