PACRA Maintains AAA Rating for WAPDA Dasu TFC-E

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has announced the continuation of its AAA rating for the WAPDA Dasu TFC-E, underscoring the strategic importance of the Pakistan Water and Power Development Authority (WAPDA) in the nation’s hydropower and water resource development.

The rating, which remains stable, reflects WAPDA’s critical role as the sole platform for these national projects. The Government of Pakistan (GoP) backs most of WAPDA’s initiatives through various financial mechanisms, including grants, re-lending, loans, and a favorable tariff scheme covering operational costs and ensuring reasonable returns on investments.

The TFC rating benefits from an unconditional and irrevocable guarantee provided by the GoP, which covers the total outstanding amount and related profit components. This guarantee ensures immediate payment by the government upon demand from the issue agent.

WAPDA has established a Debt Payment Account (DPA) with the Facility Agent, supporting systematic financial planning for upcoming installments. Regular deposits ensure that the account accumulates sufficient funds to meet future obligations.

The Dasu project has achieved significant progress, with 24.25% physical and 71.24% financial completion. Key accomplishments in fiscal year 2024 include acquiring the necessary 5,031 acres of land and completing critical infrastructure components such as the Upstream Starter Dam, Project Colony Phase-A, the excavation of the 765 KVA Switchyard, and the Left Bank Traffic Tunnel.

The project is primarily financed through WAPDA’s internally generated cash and borrowing, with bonds issued under both Islamic and conventional terms. The continued government support and oversight underline WAPDA’s expected full ownership and control in the foreseeable future.