PACRA Maintains the rating of WAPDA - Dasu Consolidated TFC - PKR 35.2bln

The Water and Power Development Authority ("WAPDA") issued five TFCs in series A–E, cumulatively amounting to PKR 35.2bln. These TFCs were floated at different intervals, beginning in May 2017 and ending in May 2024. Each of these instruments had been accorded the highest credit rating of AAA by PACRA. TFC issuances were primarily undertaken to partially finance stage-1 of the Dasu Hydropower Project ("Project"). To streamline its debt profile and reduce administrative complexities, WAPDA consolidated all five outstanding TFCs into a single, unified instrument. This new instrument was titled the “WAPDA - Dasu Consolidated TFC - PKR 35.2bln,” from May 06, 2025. All original terms, obligations, and rights of stakeholders remain unchanged and fully enforceable. As of Nov'25, total principal amounting PKR 11bln and profit amounting to PKR 20bln have been paid by WAPDA. The assigned rating of the consolidated TFC reflects the unconditional and irrevocable GoP guarantee, covering both principal and profit, with payments made immediately upon demand. To support timely servicing, WAPDA maintains a DPA under lien with the Investment Agent. During each month, WAPDA deposits an amount equivalent to 1/6th of the upcoming installment into the DPA, so that the aggregate amount available in the DPA on the upcoming Installment date is equal to the relevant upcoming Installment. The cost of this Project stood at PKR 1.74trln in Dec’25, a 258% increase from the original PKR 486bln approved in 2014. Key factors for this significant cost escalation include difficulties in land acquisition, inflationary price escalations, and security-related costs. WAPDA's development portfolio is largely financed through GoP grants, re-lending, and loans, highlighting strong sovereign support. Additionally, it is supported by a well-structured tariff framework that guarantees cost recovery and enables fair returns, thereby reinforcing WAPDA's financial strength and enhancing its capacity to execute large-scale infrastructure projects. The Project is financed through a mix of WAPDA internally generated cash and borrowings i) Long-term (local & foreign) ii) Bonds Issuance (Islamic & Conventional). The completion timeline of Dasu Project - Phase 1 has been extended from Dec'27 to Nov'28 due to land, security, and flood-related challenges. As of Feb'26, the physical progress of the project stood at 30% and financial progress stood at 26%. During FY25, WAPDA recorded revenue of ~PKR 115bln and profit of PKR 60bln. (SPLY: PKR 73bln in revenue and PKR 78bln in profit).
Given its crucial role and the Government’s strong support and direct oversight, full ownership and control are expected to remain with the Govt. in the coming years.

About the Entity
WAPDA, an autonomous body, was established by the WAPDA Act of 1958 to develop and maintain Pakistan's water and power resources. The total generation capacity of WAPDA is 9459MW.

About the Instrument
WAPDA has consolidated five TFCs to single, unified instrument under the title "WAPDA - Dasu Consolidated TFC" ("TFC") of PKR 35.2bln in May'25 to finance the Dasu project. The Dasu Hydropower Project, launched in 2017 on the Indus River in Kohistan, KP, is set to be Pakistan's second largest hydel power generation project with a total capacity of 4,320 MW (2,160 MW in Stage-I). Expected to complete by Nov'28, it will generate about 21,485 GWh annually, with stage-I involving a hydraulic structure and underground power facilities. The latest profit payment of PKR 1.7bln and principal payment of PKR 1.9bln has been made in Nov'25.