PACRA updates Short Term Entity Rating of Liberty Wind Power 1 Limited

LWP1 operates a 50MW wind power plant at Jhimpir, Sindh, under a 25-year Energy Purchase Agreement (EPA) with Central Power Purchasing Agency–Guarantee Limited (CPPA-G), ensuring assured offtake and predictable revenue streams. The project’s approved cost base of USD 62.36 mln, coupled with a levelized tariff of PKR 8.1272/kWh under a cost-plus framework, provides strong visibility and stability of long-term returns by ensuring recovery of approved costs along with a defined margin. This structured tariff mechanism supports predictable cash flows, while ownership concentration under Liberty Mills Limited, a core entity of the Liberty Group, further enhances financial flexibility and operational oversight, thereby reinforcing the Company’s overall risk profile. During FY2025, power generation stood at 126 GWh (FY2024: 155 GWh), reflecting variation in wind resource availability, resulting in revenues declining to PKR 1.9bln from PKR 2.5bln; however, despite lower dispatch, cash flow generation remained adequate with funds from core operations (FCFO) of PKR 1.43bln against finance costs of PKR 0.70bln. Liquidity is sound and working capital requirements primarily managed through internal cash generation and minimal reliance on external borrowings, while available credit lines provide additional cushion for future needs, if required. Scheduled amortization reduced project debt to PKR 8.80bln from PKR 9.49bln, alongside an improvement in shareholders’ equity to PKR 3.41bln, supporting gradual deleveraging. The assigned upgrade in the short-term ratings reflects the recent tariff true-up determination notified by NEPRA, which has enhanced visibility over approved project costs and strengthened recovery mechanisms through indexation of O&M expenses, exchange rate movements, and debt-servicing components, thereby reducing regulatory uncertainty and supporting stability of future cash flows; the ratings also derive comfort from the Company’s predictable cash flow profile, strong sponsor backing, comfortable liquidity, and continued adherence to scheduled debt servicing.
Going forward, the ratings derive support from the Company’s contracted revenue structure, predictable cash flow profile, and defined debt repayment schedule under the project financing framework. The ratings will remain supported by continued operational performance, adherence to financial discipline, and stability of the regulatory environment governing tariff recovery mechanisms.

About the Entity
Liberty Wind Power-1 Limited is an independent power producer incorporated to develop, own and operate a 50MW wind power plant. The project achieved commercial operations in April 2022 and supplies electricity to the national grid under a regulated tariff framework. The Company’s operations are supported by long-term O&M arrangements, comprehensive insurance coverage, and a structured financing plan comprising both local and foreign currency debt with defined amortization schedules. Mr. Azam Sakrani is the CEO of the Company. He is supported by the experienced management team. comprises qualified professionals with sufficient experience.