CPGCL urges SBP to approve $12.6m LC for critical parts to revive Guddu Power Plant

The Central Power Generation Company Limited (CPGCL) has formally appealed to the State Bank of Pakistan (SBP) for urgent approval of a Letter of Credit (LC) valued at $12.63 million for the purchase of essential parts from General Electric (GE) to restore operations at the Guddu Thermal Power Plant. 

The CPGCL states that the 747 MW Guddu Combined Cycle Power Plant (CCPP), one of Pakistan’s top ten most efficient plants, is vital for meeting the nation’s energy demands.

In a letter to the SBP, CPGCL CEO Junaid Ahmed Baig referenced a federal Inquiry Committee report approved by the Cabinet, which identified the full reactivation of the Guddu plant as crucial for averting widespread blackouts. 

The inquiry followed the January 23, 2023, nationwide blackout, which underscored the need for reliable backup in the National Grid. Baig emphasized that securing the GE parts is essential for bringing Guddu’s Gas Turbine (GT) back online, thereby offering Pakistan a cheaper and stable electricity supply.

The Senate Standing Committee on Power has also reviewed the Guddu plant’s reliability issues, including operational setbacks and a recent fire, attributing fault to both plant management and its operations and maintenance provider. The committee criticized the lack of accountability among senior officials, as only junior staff faced disciplinary measures following the incident. 

CPGCL’s request aims to address these systemic issues and align with the government’s strategy to bolster energy security across the national grid.