Liberty Wind Power-1 Limited (“LWP1” or “the Company”) is a 50MW renewable energy independent power producer located at Jhimpir, District Thatta, Sindh. The plant achieved Commercial Operations Date on 9 April 2022 and supplies electricity to the national grid under a long-term offtake arrangement.

The Company operates under a cost-plus tariff framework approved by National Electric Power Regulatory Authority (NEPRA). The generation tariff stands at PKR 7.331/kWh for years 1–10 and PKR 2.4026/kWh for years 11–25, with a levelized tariff of around US cents 4.78/kWh at financial close. The recently notified true-up decision retains quarterly indexation for O&M, exchange rate and debt servicing components, while insurance costs are treated on a pass-through basis. This structure provides revenue visibility and partial protection against inflation and currency risks, thereby stabilizing long-term cash flows.

The project carries an agreed dollar IRR of 14% as determined by the regulator. Returns remain supported by contracted dispatch and indexed tariff components, subject primarily to operational availability and wind resource variability.

LWP1 is majority owned by Liberty Mills Limited, a core entity of the Liberty Group, holding approximately 99.9% shareholding. Ownership remains concentrated and unchanged, ensuring strategic alignment and direct sponsor oversight.

Stability is underpinned by a long-term Energy Purchase Agreement with Central Power Purchasing Agency Guarantee Limited (CPPA-G) for a 25-year tenure from COD (2022–2047). The agreement provides guaranteed offtake and compensation mechanisms for non-project missed volumes, materially mitigating demand and counterparty risks. Stability of sponsors and association with an established industrial group further strengthen business continuity and financial flexibility.

The sponsors possess longstanding operational experience across manufacturing and industrial sectors with a demonstrated record of disciplined financial management. Diversification into the power segment reflects their ability to execute capital-intensive projects and manage regulated infrastructure assets effectively.

Sponsor financial strength remains adequate to provide both ongoing and contingency support. The group’s diversified and profitable operations enhance the Company’s credit profile and provide comfort in stress scenarios, reducing reliance solely on project-level cash flows.

The board is comprised primarily of sponsor representatives, ensuring direct strategic oversight and alignment with shareholder objectives.

Board members and senior management comprise sponsor representatives with extensive experience across finance, banking, and industrial operations. Their backgrounds support effective oversight of regulatory compliance, financial management, and operational performance of the project.

Regular reviews of plant performance, budgets and operational metrics are undertaken, enabling timely intervention and structured governance.

Financial statements are audited by Yousuf Adil Chartered Accountants, who have issued an unqualified opinion for the period ended June 2025, supporting reliability of reported information.

The Company maintains a clearly defined organizational structure with delineated responsibilities and direct reporting to the board.

The Company maintains a lean, sponsor-led management structure overseeing finance, compliance, and contract administration, with primary focus on regulatory adherence, treasury control, and monitoring of outsourced technical operations. The framework has supported uninterrupted operations and timely debt servicing since COD.

Management has ensured uninterrupted plant operations and continued adherence to scheduled debt repayments, reflecting prudent oversight.

Routine O&M activities are undertaken through specialized third-party contractors, while financial and administrative controls remain internally managed, providing an adequate control framework.

The EPA with CPPA-G provides contracted offtake for 25 years with protective clauses for non-project missed volumes, ensuring predictable revenues and limiting commercial risk.

Operations and maintenance are executed under long-term agreements with Siemens Gamesa Renewable Energy and Orient Energy Systems. The contracted model supports sustained plant availability, technical reliability, and effective mitigation of operational risk across the 25-year PPA term.

Wind resource variability remains an inherent characteristic of wind power operations. During FY2025, generation stood at 126 GWh compared to 155 GWh in FY2024, reflecting changes in wind availability, which correspondingly influenced output and energy revenues during the period.

Comprehensive insurance coverage is maintained for material damage, third-party liability and business interruption, mitigating operational contingencies.

Wind energy represents a modest but gradually expanding share of Pakistan’s generation mix, supported by policy backing and long-term contracted revenue structures under EPA arrangements. Sector performance remains sensitive to wind resource variability, which directly influences plant dispatch and utilization levels. During FY2025, the Company generated 126,037 MWh compared to 154,837 MWh in FY2024, resulting in a capacity utilization factor of 28.78% versus 35.25% last year. The decline reflects lower wind resource availability during the period and is consistent with inherent variability associated with wind-based generation.

Actual generation during FY2025 stood at 126,037 MWh, compared to 154,837 MWh in FY2024, reflecting a year-on-year decline in output. The reduction in generation correspondingly affected energy revenue for the period, as dispatch remains directly linked to wind resource conditions and grid demand.

Under the approved tariff framework, the benchmark net annual plant capacity factor is 38%, with required plant availability of 97%. During FY2025, the Company reported an actual capacity utilization factor of 28.78%, compared to 35.25% in FY2024, remaining below the benchmark level. Variations in capacity utilization reflect wind resource conditions, which remain outside management control, while operational availability continues to be maintained under contracted O&M arrangements.

Total project cost stands at approximately USD 62.36 million, financed through a mix of around 80% debt and 20% equity. The debt portfolio comprises foreign currency financing and local SBP-refinanced borrowings with defined amortization schedules. Both facilities are repayable in quarterly installments, supporting predictable deleveraging over the project life.

Liquidity remains adequate. Trade receivables stood at PKR 965 million, while the Company carries no short-term borrowings. Current assets of PKR 1.23 billion comfortably exceed current liabilities of PKR 243 million, indicating a strong short-term coverage position and supporting operational flexibility.

Operating cash flows moderately in line with reduced generation. Free Cash Flows from Operations declined to PKR 1,432 million compared to PKR 1,962 million in FY24. Nevertheless, internal cash generation continues to support debt servicing and operational needs. Scheduled debt repayments resulted in net financing outflows during the year.

Free Cash Flows from Operations moderated to PKR 1,432mln (FY25) from PKR 1,962mln (FY24) due to lower dispatch. Finance costs of PKR 701mln resulted in coverage of approximately 2.1x. The Company continues to maintain a Payment Service Reserve Account equivalent to two quarterly installments, supporting debt servicing resilience.

Total borrowings reduced to PKR 8.8bn from PKR 9.5bn reflecting scheduled amortization. Shareholders’ equity increased to PKR 3.41bn. The resulting capital structure shows gradual deleveraging and improving gearing, supporting long-term sustainability.