Paunglaung (II) Hydropower Project, also known as Upper Paunglaung Hydropower Project, is located at N19°45′ and E96°40′, a boundary area between Mandalay Division and Shan State in the Union of Myanmar.

On June 3, 2005, the Department of Hydroelectric Power (DHP) under the Ministry of Electric Power of the Union of Myanmar issued a letter of intent to YMEC, and clearly expressed its willingness to award the Contract to YMEC. On September 2, 2005, YMEC submitted the draft contract to DHP.

On February 14, 2006, YMEC and DHP formally signed the Contract for Upper Paunglaung Hydropower Project at the Great Hall of the People in the presence of the Chinese and Myanmar premiers.

Upper Paunglaung Hydropower Station in Myanmar with the total capacity of 140MW------It was started to be constructed in 2006 and has been planned to be completed for generation in 2010. UREC has contracted for the design, manufacture, supply, installation, commissioning and operation instruction of the whole set of mechanical and electric equipment on the basis of Seller’s Credit.