India : Wabag Clean Water Supply Project

Nonsovereign Project | 56155-001

The proceeds of the ADB loan will be utilized to finance the funded long-term working capital requirements of the company to execute engineering, procurement, and construction and operation and maintenance contracts in the water and wastewater treatment segment in India.

Project Details

  • Project Officer
    Agrawal, Keshari Nandan
    Private Sector Operations Department
    Request for information
  • Approval Date
    14 November 2022
  • Country/Economy
    India
  • Sector
    • Water and other urban infrastructure and services
Project Name Wabag Clean Water Supply Project
Project Number 56155-001
Borrower / Company VA Tech Wabag Limited
Country / Economy India
Location Nation-wide
Type or Modality of Assistance
7744 Debt Security Ordinary capital resources INR 2,000.00 million Signed
Operational Priorities OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
Sector / Subsector

Water and other urban infrastructure and services / Urban sewerage
Gender Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Agrawal, Keshari Nandan
Project Sponsor(s) VA Tech Wabag Limited
Description The proceeds of the ADB loan will be utilized to finance the funded long-term working capital requirements of the company to execute engineering, procurement, and construction and operation and maintenance contracts in the water and wastewater treatment segment in India.
Objectives and Scope

Impacts. The project is aligned with the following impacts: (i) improved water supply and proper sewerage facilities in India provided (National Water Policy 2012), and (ii) minimum ecological flows in the river Ganga maintained with the aim of ensuring water quality and environmentally sustainable development.

Outcome. The project will have the following outcome: operation of wastewater/sewage services increased. Supported by the ADB loan to Wabag to augment its working capital requirements, it is expected that the company will be able to commission six new sewage treatment plants by 2026.

Outputs. The project will have the following outputs: (i) installation of sewage treatment plants supported (with three engineering, procurement and construction (EPC) contracts expected to be executed to install six new sewage treatment plants), (ii) local employment generated, and (iii) gender equality at Wabag supported.
Linkage to Country/Regional Strategy The project aligns with ADB's Water Policy, which emphasizes integrated water management, water conservation, and system efficiencies. The project is consistent with ADB's Strategy 2030 through its support for river preservation and cleaning. It relates to two of the seven operational priorities (OPs) under Strategy 2030: (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability (OP 3), and (ii) making cities more livable (OP 4). It contributes to ADB's ambition to provide climate finance of $100 billion cumulatively from 2019 to 2030, since $1.2 million of the ADB loan contributes to ADB's climate financing. The project is also aligned with ADB's Asian Water Development Outlook 2020, particularly key dimension 2 (economic water security) and key dimension 3 (urban household water security). The project will also contribute to ADB's operational goal of scaling up private sector development and private sector operations. The project is aligned with ADB's country partnership strategy for India, 2018-2022, particularly pillar 2 (providing inclusive access to infrastructure networks and services) and pillar 3 (addressing climate change and increasing climate resilience).
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects ADB has undertaken due diligence and reviewed the potential environment and social (E&S) impacts of the project and the measures to avoid, minimize, mitigate, and compensate for adverse impacts in the safeguard reports and plans. The E&S measures and the institutional capacity and commitment of Wabag to manage the project's E&S impacts are deemed adequate. This will be further augmented once Wabag hires a corporate social expert as per ADB's requirement. ADB proceeds will not be utilized to execute contracts with activities categorized A for their environmental impacts.
Involuntary Resettlement ADB proceeds will not be utilized to execute contracts with activities that entail involuntary resettlement impacts and are therefore categorized A or B.
Indigenous Peoples ADB proceeds will not be utilized to execute contracts with activities that, directly or indirectly, affect indigenous peoples and are therefore categorized A or B.
Stakeholder Communication, Participation, and Consultation The project has undertaken and will continue to undertake meaningful consultation with project stakeholders to provide updates about the project and to provide an avenue for stakeholders to raise queries or concerns regarding the project.
Timetable for assistance design, processing and implementation
Concept Clearance 03 Jun 2022
Credit Committee Meeting 11 Oct 2022
Approval 14 Nov 2022
Last PDS Update 14 Nov 2022

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Wabag Clean Water Supply Project: Report and Recommendation of the President Reports and Recommendations of the President Oct 2022
Wabag Working Capital Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Oct 2022

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Wabag Working Capital Project: Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Oct 2022

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.