PACRA Maintains Entity Ratings of Habibullah Coastal Power Company (Private) Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- November 06, 2020 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

Habibullah Power's Gas Supply Agreement (GSA) with Sui Southern Gas Company Limited (SSGCL), expired in Sep 2019. The company applied for renewal of GSA in Mar 2018. The company is in negotiation with SSGCL for finalization of GSA. In 2019 Economic Coordination Committee (ECC) has approved the proposal by power division for supply of gas to plant for interim period of 3 to 6 months which was further extended by CPPAG only for the period of 12 months. Due to non-availability of gas, company's generation during the period was zero.

The Company enjoys significant strategic advantage due to its location. There is no other power generation facility in the close vicinity of Quetta which makes HCPC Power Plant a must run facility for stability of national grid and power security of Quetta City. The company's project debt has been paid and it only borrows to meet its short term needs or for BMR purposes. Consequently, the Company continues to enjoy sound coverages, underpinned by leveraged structure. The company has sizeable liquidity available (cash and cash equivalents PKR ~1,465mln).

There is uncertainty as to the timely finalization of GSA with SSGCL. The...