PACRA Affirms AAA Rating for WAPDA’s Sukuk Amid Progress on Dasu Hydropower Project

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the AAA rating for the Pakistan Water and Power Development Authority’s (WAPDA) Sukuk issued in May 2017. The rating underscores WAPDA’s strategic significance in developing Pakistan’s water and hydropower resources, supported by substantial government funding and favorable tariff schemes.

According to Pakistan Credit Rating Agency Limited, the Sukuk, valued at PKR 15,000 million, was issued to finance Stage-I of the Dasu Hydropower Project, which is set to become the country’s second-largest hydropower facility. The project, launched in 2017 and slated for completion by May 2027, is being developed in two stages, with Stage-I contributing 2,160 MW of the total 4,320 MW capacity. The Dasu project, located on the Indus River in Dasu Kohistan, Khyber Pakhtunkhwa, has achieved significant milestones, including over 22% physical progress and nearly 64% financial progress.

WAPDA’s Sukuk benefits from an unconditional and irrevocable guarantee by the Government of Pakistan, which ensures the payment of the outstanding Sukuk amount and related profits. WAPDA also maintains a Debt Payment Account to manage upcoming payments, reflecting its commitment to financial discipline and project management. The ongoing support and oversight by the government affirm WAPDA’s crucial role in the country’s infrastructure development.

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