Power Division invites international bids to rehabilitate Guddu plant steam turbine

The Power Division has invited international competitive bids for the rehabilitation of the steam turbine at the 747MW Guddu Power Plant, a project expected to restore additional generation capacity and reduce the plant’s electricity production cost.

 

According to an official statement, the procurement process for the rehabilitation of Steam Turbine-16 (ST-16) and associated equipment has been launched following technical assessments, integrity evaluations and an engineering review.

 

The rehabilitation has been structured as an engineering, procurement and construction (EPC) turnkey project, with international firms invited to participate in the bidding process. The deadline for bid submissions is October 7, 2026, while completion and commissioning are targeted for December 2028.

 

ST-16 and its associated generator have remained non-operational since a fire in July 2022. Consequently, the Guddu plant is currently operating in open-cycle mode at approximately 450MW, resulting in relatively high generation costs.

 

The plant currently ranks around 11th in the country's power dispatch merit order. Once the steam turbine is restored and the facility returns to full combined-cycle operation, its output is expected to rise to the designed capacity of 747MW, potentially improving its position to around seventh in the merit order.

 

The rehabilitation is expected to add approximately 297MW of generation capacity, representing a roughly 66% increase over the plant's current output. This would allow the government to extract greater value from an existing power asset without the need to construct a new generation facility.

 

The Power Division estimates that the project could reduce Guddu's generation cost by Rs4.19 per unit, from the current Rs13.87 to around Rs9.68 per unit. The lower cost is expected to improve the plant's competitiveness and enable it to displace more expensive generation from the national grid.

 

Officials described the rehabilitation as strategically important because of Guddu's location along a key north-south electricity transmission corridor.

 

Returning the plant to full combined-cycle operation is expected to strengthen grid reliability, improve operational flexibility and enhance the system operator's ability to manage electricity flows between the northern and southern regions.

 

The project forms part of the government's broader strategy to maximise utilisation of existing generation assets, improve power-sector efficiency and reduce electricity generation costs for consumers.