Press Release

VIS Reaffirms Entity Ratings of Enertech Water (Pvt) Limited

Karachi, September 11, 2025: VIS Credit Rating Company Limited (‘VIS’) reaffirms Entity Ratings of EnerTech Water (Private) Limited (‘EnerTech’ or ‘the Company’) at 'AA/A1' (‘Double A/’A One’). Medium to long term rating of ‘AA’ indicates high credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on June 06, 2024.

EnerTech is a private limited company incorporated in Pakistan in December 2019. The Company’s principal activities are to construct, own, operate and maintain a Water Supply System having a total capacity of 45 CUSECS consisting of 60.5 km long water pipeline from Nabisar to Vajihar in Thar, Sindh, Pakistan. The Company is a wholly owned subsidiary of EnerTech Holding Company Kuwait (the ‘Holding Company’), which in turn is wholly owned by National Technology Enterprise Company, with ultimate ownership held by Kuwait Investment Authority (the ‘Ultimate Holding Company’). The holding companies are incorporated and registered in Kuwait. The registered office of the Company is located in Karachi, Pakistan.

The ratings reflect strong sponsor support, underpinned by its ownership structure that traces between the Government of Sindh (GoS) and Government of Kuwait through Enertech Holding Company. The ratings also capture the project’s strategic importance, as the Nabisar-Vajihar water supply system is essential for sustaining operations in the Thar Coal Block - I and ensuring energy security for the national grid. Risk is further moderated with the project attaining advance stages of completion and through long-term agreements with the GoS, which guarantees cost recovery via capacity charges covering financing, operations, and other fixed financial obligations. Additionally, the presence of standby credit facilities, insurance arrangements, and performance bonds provide significant comfort to lenders by mitigating payment delays and construction risks. The reliance on established EPC and O&M contractors backed by a major Chinese state-owned enterprise provides further comfort.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Corporates

https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright September 11, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.