Press Release

Update on Instrument Rating of Neelum Jhelum Hydropower Company (Pvt.) Limited

Karachi, August 18, 2023: VIS Credit Rating Company Limited (VIS) notes that Neelum Jhelum Power Station has resumed normal operations on August 09, 2023 after completion of the recovery activities. The project was shut down on July 04, 2022 due to an unforeseen incident at Tailrace Tunnel, halting energy supply to the national grid. As represented by management, debt servicing during the tenure of the shutdown was arranged through monthly receipt of outstanding receivables from CPPA-G. The trustee has confirmed collection of up to date principal and interest payments in the DPA, including the last payment due at end-Jun’23. The last instrument rating of Neelum Jhelum Hydropower Company (Pvt.) Limited (NJHPC) of ‘AAA’ (Triple A) with a ‘Stable’ outlook was announced on January 12, 2023.

The rating assigned to the Sukuk issue take into account unconditional and irrevocable first demand guarantee issued by the President Islamic Republic of Pakistan (on behalf of the Government of the Islamic Republic of Pakistan) (GoP) covering issue amount of the Sukuk along with profit payments. GoP would immediately pay the entire called amount once the demand notice from the trustee is received. Ratings also incorporate strong financial muscle and implicit support from the parent entity, Water and Power Development Authority (WAPDA), in the form of equity injection and funding support.

For further information on this rating announcement, please contact the undersigned (Ext: 207) at 021-35311861-64 or email at

Sara Ahmed

VIS Entity Rating Criteria: Corporates (May 2023)
Rating the Issue (Nov 2021)
VIS Rating Scale

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