The government has invited international competitive bids to rehabilitate the fire-damaged Steam Turbine-16 at the Guddu 747 Power Plant, a project expected to cut its generation cost by Rs4.19 per unit, from Rs13.87 to Rs9.68, while restoring 297 megawatts of generation capacity.

The Power Division said that the turbine and its associated generator have remained out of service since a fire in July 2022, forcing the plant to operate in open-cycle mode at about 450 MW. The plant currently ranks around 11th in the dispatch queue because of its relatively high generation cost.

Once the turbine is rehabilitated and the plant returns to full combined-cycle operation, its output is expected to rise to its designed 747 MW, while its merit-order position could improve to approximately 7th, allowing the system operator to replace more expensive sources of electricity.

Following detailed technical studies, integrity assessments and an engineering review, the Power Division has initiated an EPC turnkey procurement process for rehabilitation of ST-16 and allied equipment. International competitive bids have been invited, with Oct. 7, 2026, set as the deadline for submission. The targeted commissioning date for the repair works is December 2028.

The restored turbine would provide an additional 297 MW, equivalent to a 66 per cent increase over the plant's current output of about 450 MW, according to the Power Division. The project is also expected to strengthen the national grid. Guddu is located at a key point in Pakistan's transmission network and the north-south power-flow corridor, making the restoration of its full generation capability important for grid flexibility and operational resilience.

The Power Division said the initiative reflects the government's focus on maximising existing generation assets, reducing power costs and improving system efficiency rather than relying solely on new generation capacity.