Guddu Thermal Power Plant: CPGCL urges SBP to grant LC approval in favour of GE

ISLAMABAD: The Central Power Generation Company Limited (CPGCL) has approached the State Bank of Pakistan (SBP) for approval to establish Letter of Credit (LC) of $ 12,630,944 in favour of General Electric for procurement of critical parts for Guddu Thermal Power Plant, well informed sources told Business Recorder.

According to the CPGCL, 747 Guddu Combined Cycle Power Plant (CCPP) is an efficient power plant and falls in the top ten plants viz-a-viz efficiency and plays an important part in meeting the country’s energy requirements.

Chief Executive Officer (CEO), CPGCL, Junaid Ahmed Baig, in a letter to the SBP further noted that the Inquiry Committee (IC) constituted by the prime minister to probe the reasons/ causes of the countrywide breakdown on January 23, 2023, approved by the federal Cabinet, recommended that “the activation of 74 MW, CCPP, Guddu is necessary to avoid any future blackouts in the country”.

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Keeping in view the facts and critical conditions, the CEO CPGCL requested the SBP to accord approval of the case on urgent basis to bring back Gas Turbine (GT) to service to provide cheaper electricity in the country and to provide much needed stability to the National Grid to prevent possible country wide blackouts.

The issue of Guddu Power Plant had been discussed in Senate Standing Committee on Power which accused both the administration of power plant and the O&M supplier of equally responsibility for malfunctioning of power, which ultimately caught fire. However, no action has been taken against the high-ranking responsible officials and only low-ranking officials were removed.

Copyright Business Recorder, 2024