Lahore, April 28, 2023 (PPI-OT): Jhimpir Power Private Limited (JPL) is operating a 49.735MW wind power plant, located in Jhimpir, District Thatta, Sindh. The project is established under the Renewable Energy Policy 2006 by the Alternative Energy Development Board (AEDB). The plant achieved its commercial operations date (COD) in March 2018. Under the signed PPA with CPPAG, the plant will provide electricity to the national grid for a period of 20 years from the COD. The Government of Pakistan has provided a sovereign guarantee against dues from CPPA-G.
The project revenues and cash flows are exposed to wind risk and operational risk. The operational risk aspect is mitigated by achieving benchmarks of availability and efficiency as agreed in the Energy Purchase Agreement (EPA). The working capital requirements are fulfilled through in-house adequate cash flow generation. Net cash from operating activities of the Company stood at ~PKR 2,449mln for CY22 (CY21: ~PKR 1,901mln).
During CY22, the plant delivered total energy of 138.7GWh (CY21: 159.9GWh) to the national grid. The change in output delivered is subject to wind speed patterns in the region. JPL is successfully making repayments against its project debt (USD 93.5mln) that is entirely obtained from US International Development Finance Corporation (DFC). The company has successfully repaid approximately 41.05% of its long-term project debt which adds positively to the financial risk profile.
Upholding operational performance in line with agreed performance levels is important. Receipt patterns from power purchaser, debt repayment behaviour, and liquidity cushion would impact the directions of ratings. Going forward, timely repayment of a significant portion of project debt along with meeting operational benchmarks will contribute towards driving the ratings upwards.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com