GNN Issues India’s First Certified Green Municipal Bond for Sustainable Water Management
In a major move for India’s sustainable urban development, Ghaziabad Nagar Nigam (GNN) has successfully issued the country's first Certified Green Municipal Bond. This achievement is part of the broader objectives of the Swachh Bharat Mission-Urban and marks a significant step towards financing environmentally responsible infrastructure. GNN has raised ₹150 crore through this innovative bond, which will be used to fund the development of a state-of-the-art Tertiary Sewage Treatment Plant (TSTP) in the city.
The TSTP, designed to handle an impressive 40 million liters per day (MLD) of wastewater, is a technologically advanced facility that utilizes cutting-edge Membrane Filtration Technologies, including microfiltration, ultrafiltration, nanofiltration, and reverse osmosis (RO). These sophisticated filtration methods ensure that the treated water meets high standards for reuse, particularly in industrial applications. The plant is integrated into a comprehensive 95 km pipeline network, which will provide treated water to over 1,400 industrial establishments in Ghaziabad. This initiative not only addresses the growing demand for water but also promotes efficient water use, a crucial element of sustainable urban planning.
The financing structure of the TSTP project follows the Public-Private Hybrid Annuity Model (PPP-HAM), a financial model that allows for the sharing of risks and responsibilities between the public and private sectors. The innovative model has secured 40% of its funding from municipal sources, with the remainder raised through private investment. This approach has allowed for the efficient execution of the project, and the bond issuance further demonstrates the strong confidence investors have in Ghaziabad's sustainable water management efforts.
With the establishment of this plant, Ghaziabad is making significant strides in urban water management. The city has partnered with over 800 companies to provide 9.5 MLD of tertiary treated water, enhancing its position as a leader in water reuse. In recognition of these efforts, Ghaziabad was awarded the Best Municipal Treated Water Reuse Award at the Water Digest World Water Awards for 2024-25. This accolade highlights the city’s commitment to not only addressing the water needs of its industries but also to promoting the reuse of treated water, a critical element of water conservation in an increasingly resource-scarce world.
In addition to national recognition, the TSTP project has garnered international attention. A delegation from West Suffolk College in England recently visited Ghaziabad to examine the city's sustainable development initiatives. The delegation’s interest in the city’s water management model reflects the global importance of such innovations in urban infrastructure and underscores Ghaziabad’s role as a model for sustainable development in India and beyond.
The issuance of India’s first Certified Green Municipal Bond is a significant step in the country’s journey towards sustainable urban development. It sets a precedent for future green investments in municipal projects and encourages other cities to adopt similar initiatives to address the challenges of urbanization, water management, and sustainability. By integrating cutting-edge technology, innovative financing models, and a commitment to environmental responsibility, Ghaziabad is paving the way for a more sustainable urban future.
