The performance of gas turbines, operated either as a simple cycle or a combined cycle, is critically constrained by the prevailing ambient temperature, particularly in arid and tropical climates. This paper investigates the option of cooling the intake air to the compressor of the gas-turbine system using an absorption chiller in order to increase the gas turbine capacity. High-temperature waste heat from the exhaust gas may be utilized to produce steam in a recovery boiler. Part of the steam produced could then be used to drive a lithium-bromide double-effect absorption chiller which in turn could cool the incoming air. An analysis carried out by taking the weather data of Bangkok (Thailand) indicates that reducing the temperature from ambient condition to 15-degrees-C could help to increase the instantaneous power output between 8 and 13%. As an outcome, as much as 11% additional electricity could be generated from the same gas turbine power plant. A simple economic assessment indicates that the proposed scheme will require a minimal investment as compared to the commissioning cost of a new gas turbine unit to meet the corresponding capacity increment. The latter will need nearly four times higher intial cost than the amount estimated for the proposed scheme. Thus, implementation of such a system would significantly abate the negative impact of the ambient temperature, while providing an economically and environmentally attractive option for energy producers in most developing nations of the world which are located in arid and tropical zones.