PACRA Maintains AAA Rating for WAPDA Dasu TFC-D, Citing Strategic Importance and Government Support

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has upheld the AAA rating for the WAPDA Dasu TFC-D, a debt instrument, underscoring the strategic significance of the Pakistan Water and Power Development Authority (WAPDA) as the country’s primary vehicle for hydropower and water resource development. The rating, which remains stable, reflects the robust financial backing and favorable tariff policies provided by the Government of Pakistan, ensuring a steady return on investment for WAPDA’s ambitious projects.

According to Pakistan Credit Rating Agency Limited, the rating decision highlights WAPDA’s critical role in Pakistan’s hydropower expansion, notably the Dasu Hydropower Project. Located on the Indus River in Dasu Kohistan, approximately 350 kilometers from Islamabad, Dasu is poised to become the nation’s second-largest hydropower facility. Launched in 2017, the project is scheduled for completion in May 2027 and will be developed in two stages, with a total capacity of 4,320 MW. The project’s first stage, comprising 2,160 MW, has achieved significant progress, with 22.36% of physical work completed.

The financing for Stage-I involves a combination of WAPDA’s internally generated funds and significant borrowing, accounting for 15% and 85% of the funding, respectively. Additionally, the project benefits from an unconditional and irrevocable government guarantee, which ensures payment of the total outstanding amount of the TFC and related profits. This guarantee, along with WAPDA’s strategic Debt Payment Account, reinforces investor confidence in the project’s financial stability.

Significant milestones have been achieved, including the acquisition of 5,031 acres of land, completion of key infrastructure components, and excavation work for essential facilities. Looking forward, WAPDA plans further developments, including dam abutment excavations and the establishment of a 132KV transmission line. The government is expected to maintain full ownership and oversight of the project, solidifying its commitment to the country’s energy infrastructure expansion.

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