Guddu, Sindh: The federal government has formally launched the procurement process to rehabilitate the fire-damaged Steam Turbine-16 (ST-16) at the 747 MW Guddu Power Plant, inviting international competitive bids for the project. The turbine and its associated generator have remained out of service since a July 2022 fire.
Because of the outage, the plant is currently operating in open-cycle mode at around 450 MW. Once ST-16 is restored and the plant returns to full combined-cycle operation, its output is expected to reach the designed 747 MW, effectively restoring another 297 MW of capacity.
According to the Power Division, rehabilitation could reduce the plant’s generation cost from Rs13.87 to Rs9.68 per unit, a reduction of Rs4.19 per unit. Its dispatch merit-order position could also improve from around 11th to approximately 7th, allowing greater use of the lower-cost generation.
International bids are due by October 7, 2026, while the targeted commissioning of the rehabilitation work is December 2028. The procurement has been structured as an EPC turnkey project covering the damaged turbine and allied equipment.
