The government has invited international competitive bids to rehabilitate the fire-damaged Steam Turbine 16 at the Guddu 747 MW Power Plant, a project expected to restore 297 MW of generation capacity and reduce the plant’s generation cost by Rs. 4.19 per unit.
The rehabilitation is expected to bring the plant’s generation cost down from Rs. 13.87 per unit to Rs. 9.68 per unit. The Power Division said the procurement process covers ST 16 and allied equipment and has been structured as an EPC turnkey project.
The steam turbine and its associated generator have remained out of service since a fire incident in July 2022. The plant has consequently been operating in open cycle mode at around 450 MW and currently ranks around 11th in the dispatch merit order because of its relatively high generation cost.
Following technical studies, integrity assessments and an engineering review, the Power Division has initiated the international competitive bidding process. The deadline for bid submissions has been set for October 7, 2026, while rehabilitation works are targeted for commissioning by December 2028.
Once ST 16 is restored, the plant is expected to return to full combined cycle operation and reach its designed output of 747 MW. Its position in the dispatch merit order could also improve to approximately seventh, allowing the system operator to replace more expensive sources of electricity.
The rehabilitation would add 297 MW to the plant’s current output, representing an increase of about 66 percent. The Power Division said the additional lower cost generation would allow the government to make greater use of an existing power asset rather than relying solely on new generation capacity.
The project is also considered important for the national transmission system because Guddu is located at a key point in the north south power flow corridor.
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