The government has invited international competitive bids for the rehabilitation of Steam Turbine 16 (ST 16) at the Guddu 747 MW Power Plant, a project expected to restore 297 MW of generation capacity and significantly reduce the plant’s electricity generation cost.
According to the Power Division, the rehabilitation could reduce the plant’s generation cost by Rs. 4.19 per unit, bringing it down from the current Rs. 13.87 per unit to approximately Rs. 9.68 per unit.
The procurement process covers ST 16 and its allied equipment and has been structured as an engineering, procurement and construction (EPC) turnkey project.
Fire-damaged turbine has remained out of service
The steam turbine and its associated generator have remained out of operation since a fire incident in July 2022.
As a result, the Guddu power plant has been operating in open-cycle mode with an output of around 450 MW.
The plant currently ranks around 11th in the dispatch merit order, largely because of its relatively high generation cost.
The planned rehabilitation is expected to allow the facility to make better use of its existing infrastructure while reducing its dependence on more expensive sources of electricity.
International bidding process launched
Following technical studies, integrity assessments and an engineering review, the Power Division has now initiated the international competitive bidding process for the turbine rehabilitation project.
The government has set October 7, 2026, as the deadline for submission of bids.
The rehabilitation works are targeted for completion and commissioning by December 2028.
The project will cover the damaged steam turbine along with associated equipment required to restore the unit to operation.
Plant expected to return to full capacity
Once ST 16 is successfully rehabilitated, Guddu Power Plant is expected to return to full combined-cycle operation.
The facility would then be able to reach its designed generation capacity of 747 MW, compared with its current output of around 450 MW.
The restoration of ST 16 is expected to add 297 MW to the plant’s existing generation capacity.
This represents an increase of approximately 66 percent in the plant’s current output.
The additional capacity could also improve Guddu’s position in the electricity dispatch merit order.
According to the Power Division, the plant could move from around 11th position to approximately seventh, allowing the system operator to utilize Guddu more frequently in place of higher-cost electricity sources.
Generation cost expected to fall
One of the key benefits of the rehabilitation project is expected to be a reduction in electricity generation costs.
The plant currently generates electricity at an estimated cost of Rs. 13.87 per unit.
After the rehabilitation of ST 16, the expected generation cost is around Rs. 9.68 per unit.
This would represent a reduction of Rs. 4.19 per unit.
The lower cost could make the plant more competitive in the national electricity system and potentially allow the government to reduce reliance on more expensive generation sources when Guddu is available for dispatch.
Existing asset to provide additional power
The Power Division considers the project important because it would restore significant generation capacity using an existing power asset rather than requiring the development of an entirely new generation facility.
The rehabilitation would bring an additional 297 MW back into service and enable the plant to operate closer to its original design capacity.
The government expects the restored capacity to support electricity supply while improving the overall efficiency of the power generation system.
The project could therefore contribute to better utilization of existing infrastructure at a time when controlling generation costs remains an important challenge for Pakistan’s power sector.
Guddu’s strategic location
The rehabilitation is also considered strategically important for Pakistan’s national transmission system.
Guddu Power Plant is located at a key point along the north-south power flow corridor, making its generation capacity relevant not only for electricity production but also for the movement of power across the country.
Restoring the turbine could therefore strengthen the availability of electricity at an important location within the transmission network.
The government’s decision to proceed with international competitive bidding follows technical assessments of the damaged equipment and engineering reviews aimed at determining the requirements for rehabilitation.
With bids due by October 7, the project is now moving toward the procurement stage, while commissioning is targeted for December 2028.
If completed as planned, the rehabilitation of ST 16 would restore 297 MW of capacity, bring Guddu back to its designed 747 MW combined-cycle output and lower its expected generation cost by Rs. 4.19 per unit.
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