Government launches international bidding to rehabilitate fire-damaged Steam Turbine-16 and return plant to full combined-cycle operation
ISLAMABAD: The government has formally launched the procurement process for the rehabilitation of the damaged Steam Turbine-16 (ST-16) at the Guddu power plant, with the project targeted for commissioning in December 2028.
The move follows a detailed technical study, engineering review and comprehensive integrity assessment conducted by the Power Division to determine the rehabilitation requirements for the steam turbine and associated equipment.
International competitive bids have now been invited for an EPC turnkey rehabilitation package covering ST-16 and allied equipment. Bids are due by October 7, 2026.
Guddu plant operating below full capacity
ST-16 and its associated generator have remained out of service since a fire in July 2022, leaving the plant operating in open-cycle mode.
The facility currently generates around 450MW and is positioned approximately 11th in the dispatch queue. Its electricity is relatively expensive compared with other available generation sources.
Once the damaged steam turbine is restored and the plant returns to full combined-cycle operation, its generation capacity is expected to reach its designed 747MW.
The restored plant is also expected to improve its merit-order position to around seventh, enabling the system operator to utilise a larger block of comparatively lower-cost electricity and reduce reliance on more expensive generation sources.
Rehabilitation to add 297MW
The restoration of ST-16 is expected to provide an additional 297MW of generation capacity compared with the plant’s current output.
According to the Power Division, the additional capacity represents an increase of approximately 66% over current generation. This would enable Pakistan to derive greater value from an existing power asset rather than relying solely on new generation projects.
The rehabilitation is therefore expected to improve generation efficiency and potentially reduce the overall cost of electricity dispatched to the national grid.
Strategic importance for national grid
The project also carries strategic importance because the Guddu power complex is located at a critical point in Pakistan’s transmission network and north-south power flow corridor.
Restoring the plant to full capacity is expected to provide the national grid with greater operational flexibility and resilience by adding a substantial block of generation at an important location within the transmission system.
The Power Division’s decision to proceed with the rehabilitation follows its comprehensive assessment of the plant and forms part of broader efforts to maximise the use of Pakistan’s existing generation assets.
The government expects that restoring damaged capacity can improve system efficiency and provide additional electricity to consumers without requiring the immediate construction of entirely new generation infrastructure.
With international bidding now under way and commissioning targeted for December 2028, the rehabilitation of ST-16 is set to become an important project in efforts to strengthen Pakistan’s power supply and make more efficient use of existing generation capacity.