Water treatment company Va Tech Wabag’s share price gained 4.5 percent intraday on January 17 on the BSE after the company announced getting a $100-million order in the United Arab Emirates, its first such work in the Gulf nation.
"WABAG has secured an order worth about $100 million towards engineering and procurement activities in relation to 120 million gallons per day (MiGD) Hassyan Sea Water Reverse Osmosis (SWRO) in the United Arab Emirates (UAE)," the pure-play water technology group said in a BSE filing.
The order was secured from Green EPC (a Utico FZC subsidiary), which is the prime engineering, procurement and construction (EPC) contractor for the project, the company added.
The Dubai Electricity and Water Authority (DEWA) selected Utico FZC as the preferred bidder to build the SWRO plant and operate it for 35 years, under the independent water producer (IWP) model, wherein DEWA would off-take 100 percent of water.
The desalination plant is to be commissioned in phases by March 2024 and would be the largest IWP in Dubai.
Va Tech Wabag said the project was part of Dubai's Clean Energy Strategy 2050 initiative to maximise the use of green energy for the production of desalinated water and aims to use solar power to supplement the energy requirement of the plant during day time.
"This is a significant break-through for WABAG in the UAE enabling us to showcase our technical capabilities and innovative solutions to ensure timely completion of this prestigious, challenging and fast track Desalination project of national importance with team Utico & Green EPC," said Deep Raj Saxena, CEO Middle East & Africa Cluster – VA Tech Wabag.
Wabag acts as a systems specialist and full service provider with a focus on the planning, installation and operation of drinking and wastewater plants for local government and industry in the growth markets of Asia, North Africa, Middle East, the Central and Eastern Europe. Since 1995, it has completed over 900 water and wastewater plants worldwide.
At 12.18 pm, the stock, which has rallied 17 percent in last month, was trading 2.02 percent higher at Rs 340.85 on the BSE.
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