The 4 x 70MW project was contracted and built by China’s Yunnan Machinery and Equipment Import and Export Corporation (YMEIEC). The power plant, which costs US$160M, is located 16km due east of Pyinmana.

The contract for the power plant was signed by YMEIEC and the state-run Myanmar Electric Power Enterprise in October 1998. Under the contract, the Chinese side was to provide the complete set of machinery and equipment, design underground factory and direct work implementation.

The Paunglaung plant is among the 11 large hydroelectric power projects totalling 2000MW under implementation for national power grid and regional use.

According to official statistics, Myanmar’s present total installed generating capacity has reached 1200 MW , a two-fold increase since 1988.