Ekopak Partnership with unnamed infrastructure partner for WaaS developments

Ekopak just announced a long term strategic partnership with an unnamed European infrastructure partner for the development of (large) WaaS projects. Many details are still unknown and management was not (yet) available for comments. The partnership introduces a minimum of €150m in off balance sheet funding over the next three years that will be deployed through dedicated asset companies financed with senior non recourse debt and majority equity from the infrastructure partner. As part of the partnership, Ekopak will act as EPC provider, leading the sourcing, development, and delivery of projects. The asset companies will own the resulting water solution assets. Ekopak will receive milestone-based payments during construction, supporting its working capital profile. In addition, Ekopak will provide long-term operations and maintenance (O&M) services. It is unclear whether the announcement implies all necessary (permitting) hurdles for Waterkracht have been taken. We will overhaul our model once further detail is received from management. We applaud the partnership with a financially strong partner to develop large WaaS projects. As it is unclear how much of the profits & cash flows will have to be shared with the partner we stick to our Hold for now.