Quaid-e-Azam Solar Power (Pvt.) Limited (“QASPL” or “the Company”) was incorporated as a private limited Company under the repealed Companies Ordinance, 1984 (Now the Companies Act, 2017) on September 16, 2013. The principal activity of the Company is to build, own, operate and maintain a solar power plant having a total capacity of 100 MW in Lal Sohanra, Cholistan, Bahawalpur. The Company achieved Commercial Operations Date (COD) on July 15, 2015.

QASPL has been provided a reference levelized tariff of 14.15 US¢ (PKR 14.8591) per KWh. Tariff control period is 25 years from the COD. However, after the continuous indexation, the Company is receiving the tariff of PKR29.6125 for the period of Jan-Mar 2025.

The project entered into an Energy Purchase Agreement (EPA) with the Central Power Purchasing Agency (Guarantee) Limited (“CPPA-G”) and an Implementation Agreement with the Alternative Energy Development Board (“AEDB”), based on the 2016 Upfront Solar Tariff set by NEPRA. QASPL's primary source of revenue is generated through the sale of electricity to CPPA-G. Initially, the Return on Equity (ROE) for the project was set at 17% by NEPRA, but this was later revised to 12%.

QASPL is a public-sector, for-profit company established by the Government of Punjab. It is entirely owned by the Government of Punjab through its Energy Department.

The stability of Independent Power Producers (IPPs) is largely derived from the agreements in place between the Company and the power purchaser. Furthermore, the strong affiliation of the Government of Punjab with the Company significantly enhances its credibility and financial security. This government backing provides additional assurance, reinforcing the company’s overall stability and reliability in the energy sector.

QASPL demonstrates strong business acumen by effectively tapping into the growing demand for renewable energy in Pakistan. As a wholly owned subsidiary of the Government of Punjab, QASPL leverages its strategic position to lead solar energy initiatives. With a commitment to sustainable energy production, the Company aligns its business model with the global transition to clean energy, positioning itself for long-term growth. By combining government support, innovative financing solutions, and strategic planning, QASPL is not only addressing the nation's energy needs but also setting the pace for environmental impact. This approach gives QASPL a competitive edge in the rapidly evolving energy market, balancing profitability with sustainability, and solidifying its role as a key player in Pakistan’s renewable energy sector.

QASPL’s financial strength is bolstered by its ownership under the Government of Punjab, which provides a strong foundation of financial stability and credibility. The government’s involvement ensures access to public funds, favorable financing terms, and a long-term commitment to the project. With the government’s ability to secure capital and its strong support for renewable energy initiatives, risks are minimized, and the plant’s viability is reinforced. This backing enhances the plant’s financial security, ensuring its long-term sustainability and success.

The Board of Directors (BoD) of QASPL consists of twelve members, excluding the CEO. The board includes five members representing the Government of Punjab, from key ministries such as Energy, Finance, Planning & Development (P&D), the Punjab Board of Investment and Trade (PBIT), and Industries. These government representatives ensure alignment with provincial policies and provide essential support. The board also has seven independent directors, including the Chairman, who bring diverse expertise from various industries, including finance, energy, and business management. The balance between government representation and independent directors ensures that the board is equipped to guide QASPL toward sustainable growth while adhering to public and private sector goals.

Mr. Zaheer Ahmed Ghanghro is a seasoned professional with over two decades of experience in the power generation sector. Currently serving as the Chairman of the BoD, he brings a wealth of expertise in strategic leadership and operational management. Mr. Ghanghro has previously held prominent roles, including Chairman of Quaid-e-Azam Thermal Power (Pvt.) Limited and CEO of Halmore Power Generation Company. His exceptional track record in corporate governance, combined with his extensive industry knowledge, continues to drive the success and growth of the organizations he leads.

The BoD upholds effective governance through seven key committees: Risk Management, Audit, Human Resources, Finance & Procurement, Corporate Social Responsibility (CSR), Grievance Redressal Committee (GRC), and Nomination. These committees are tasked with overseeing crucial areas of the organization, strengthening decision-making processes, risk management, and strategic alignment, while fostering transparency, accountability, and sustainable long-term success.

BDO Ebrahim & Co. Chartered Accountants, an ICAP QCR-rated firm and classified in category "A" by the State Bank of Pakistan, issued an unqualified audit opinion on the Company’s financial statements for the period ending June 30, 2024.

IPPs typically have a flat organizational structure, concentrating on finance and technical personnel. The engineering, construction, and operations of the plant are usually outsourced to specialized contractors. Similarly, QASPL oversees the Engineering, Procurement, and Construction (EPC) and Operations & Maintenance (O&M) contractors through a reputable foreign independent engineering technical advisor.

The management team is led by Mr. Muhammad Badar ul Munir, the Chief Executive Officer (CEO). Mr. Munir is a Chartered Accountant and a member of the Institute of Chartered Accountants of Pakistan (ICAP). He has been with the Company for over 10 years, initially serving as the Chief Financial Officer (CFO) before being promoted to the position of CEO in 2021. Under his leadership, the Company’s operational structure is effectively managed, with each department head reporting directly to him.

The management of QASPL is focused on key areas such as technical operations, finance, and overall, Company management. Their expertise ensures efficient decision-making and execution of strategic goals. The clear reporting structure enhances accountability, contributing to the Company's growth, stability, and success.

The Company has a robust Management Information System (MIS) that allows management to efficiently monitor operations and ensure effective coordination with the O&M operator. Additionally, the Company’s internal audit department conducts pre-audits and has outsourced the internal audit function to Ilyas Saeed & Co. to assess and manage operational risks.

The 25-year EPA with CPPA-G ensures a stable revenue stream for the Company, with payment obligations guaranteed by the Government of Pakistan. Unlike other thermal plants that receive both energy and capacity payments, the agreement includes only energy payments.

The O&M of the plant is outsourced to TBEA Xinjiang Sunoasis Company Limited, with staff experienced in solar energy. The O&M operator ensures the plant meets performance benchmarks. Solar plants require less effort for O&M compared to thermal plants, with tasks including fortnightly module cleaning and checks on inverters and cables. Maintenance is carried out alongside normal operations, ensuring continuous plant performance throughout the year.

QASPL is located in Lal Sohanra, Cholistan, Bahawalpur, an area known for its favorable solar irradiation. Solar energy generation is primarily influenced by two factors: solar irradiation and temperature. QASPL has employed single axis technology, which will help the plant to effectively utilize solar energy. This technology allows the plant to effectively capture and utilize solar energy by adjusting the orientation of the solar panels, maximizing exposure to sunlight throughout the day.

QASPL has adequate insurance coverage for business interruptions, property damages etc. as per EPA and lenders facility agreements.

Pakistan's power generation in FY-2024 dropped by 1.9% to 127,160 GWh, marking the second consecutive annual decline, driven by higher electricity costs, rising inflation, and reduced economic activity. Hydropower remained the largest contributor, making up 31% of total generation, followed by RLNG and nuclear power, each accounting for 19%. Local coal-based power plants contributed 12%, with the rest supplied by other thermal sources, including imported coal. A small portion comes from renewable resources like wind and solar.

During FY24, the Company generated 155.32 GWh (FY23: 160.96 GWh, FY22: 164.77 GWh) and maintained the availability as per agreed parameters. The benchmark generation for the QASPL is 153GWH. This decline in output is attributed to reduced demand from the Power Purchaser.

The required availability for QASPL under the EPA is 75%. The Company's required availability and efficiency remained above the required benchmark.

The project’s financial structure consists of 75% debt financing, totaling PKR 11,137 million, provided by the Bank of Punjab. This loan has a 10-year tenure, with quarterly repayments and a one-year grace period. The remaining 25%, amounting to PKR 3,810 million, was funded by the Government of Punjab. The project’s debt is set to be fully repaid by the end of FY25, demonstrating the Company’s strong financial management and its ability to meet debt obligations efficiently.

As of December 2024, the Company’s receivables amounted to PKR 1,451 million, a decrease from PKR 2,175 million at the end of June 2024. This reduction in receivables signifies effective cash flow management and the Company’s ability to collect payments in a timely manner, enhancing its overall financial efficiency.

The Company effectively manages its working capital requirements through internal cash flows and has not utilized any working capital lines. As of December 2024, the Company’s net working capital cycle has reduced to 111 days, down from 174 days at the end of June 2024. This improvement is attributed to the consistent and timely payments received from the Power Purchaser, which has enhanced the Company’s cash flow management.

In 1HFY25, the Company’s free cash flows from operations (FCFO) increased to PKR 2,333 million, compared to PKR 2,174 million in the same period of the previous year (FY24: PKR 5,037 million, FY23: PKR 4,459 million). As a result, the interest coverage ratio (FCFO/Finance Cost) improved to 12.8x, up from 5.3x in 1HFY24 (FY24: 7.1x, FY23: 6.7x), demonstrating the Company’s strong ability to meet its financial obligations.

The project was initiated with an approved cost of PKR 15,130 million, structured with a 75:25 debt-to-equity ratio. A total equity of PKR 3,810 million has been injected by the equity sponsors. Currently, the Company only carries project debt, which is scheduled to be fully repaid by the end of FY25. As of December 2024, the Company's leverage stood at 7.0%, reflecting a consistent decrease on account of timely debt repayments (FY24: 11.4%, FY23: 20.5%).