PACRA Maintains Entity Ratings of Quaid-e-Azam Solar Power (Pvt.) Limited.

Quaid-e-Azam Solar Power (Pvt.) Limited ("QASPL" or "the Company") operates a 100MW solar plant, which was established by the Government of Punjab (GoPb) and began operations in July 2015 under the Renewable Energy Policy 2006. The Company’s ratings are strongly supported by its association with the GoPb and the security provided by a long-term, 25-year Energy Purchase Agreement (EPA) with CPPA-G, which effectively mitigates business and economic risks. Additionally, sovereign guarantees on the power purchaser’s payment obligations provide further stability to the ratings. The involvement of TBEA Xinjiang Sunoasis Company Limited, a globally recognized O&M operator with extensive international experience, contributes positively to the Company’s operational performance. The ratings also reflect QASPL's consistent adherence to performance benchmarks in power generation, which is supported by its healthy cash flow generation. QASPL has successfully repaid a significant portion of its debt, with only PKR 1,336 million remaining. This outstanding amount is scheduled for repayment on July 16, 2025.Showcasing a strong financial profile and effective working capital management. The company meets the majority of its working capital needs through internal cash flow generation, which strengthens its financial position and creates opportunities for further expansion. However, management is not currently pursuing expansion due to a lack of available opportunities.
Key considerations for maintaining the financial ratings include consistent payment receipts, timely debt repayments, and the ability to meet operational performance benchmarks, all while sustaining a strong liquidity position. However, external factors such as unfavorable changes in the regulatory framework or shifts in the Company's financial profile could impact the ratings.

About the Entity
Quaid-e-Azam Solar Power Limited (QASPL) was incorporated in 2013 and operates a 100MW solar plant located in Cholistan, Punjab. The total cost of the project was PKR 15,130 million, with 75% of the funding, amounting to PKR 11,137 million, provided through debt financing from the Bank of Punjab. The project was successfully commissioned in July 2015. The Company’s Board of Directors (BoD) consists of twelve members, excluding the CEO. Of these, five members represent the Government of Punjab through various ministries, while seven are independent directors, including the chairman. The CEO of the Company, Mr. Muhammad Badar ul Munir, leads the Company with the support of an experienced management team.