Paunglaung Hydropower Project is the largest project in terms of foreign trade and economy in Yunnan Province and also the largest Chinese export of complete set of power station equipment and technology to Southeast Asia. The installed capacity is 280MW (4×70MW) while the total contract value is USD 170 million. The project was financially supported by Chinese Government on the seller’s credit basis and had drawn the highest consideration and attention from both Chinese and Myanmar governments. Myanmar government even placed it in the top priority list of the Special Project Committee. The Directors of Chinese State Department instructed the Economic and Trade Department to be responsible for the project directly and Yunnan Provincial Government was required to supply coordination, support and supervision with the purpose of completing the project successfully.

Paunglaung hydropower project is situated in the center of Myanmar and between the two big cities of Yangon and Mandalay. It is 12 miles from Pyinmana Township, 10 miles from the main electric power network of the nation and in the center of electric load. After being connected with the power network, its coverage scope of power supply can reach 90% of the country. The conditions for construction and power transmission are very desirable. Great installed capacity: 280MW. Upon completion, Paunglaung Hydropower Station has become the biggest one in Myanmar and increased the installed capacity of 34.2% of the nation. Consequently, it has greatly eased the tension of the shortage of power supply in Myanmar and been conducive to the development of Myanmar industry, agriculture, communication, culture, education, medical care and hospitality and tourism, which will help to improve the people’s life and increase the employment by a large number of people. This station has the function of irrigation and can cover a very large irrigation area. The highest water level deposit in the station’s reservoir can be up to 690 million cubic meters that supply a total irrigation area of 21520 hectares. As a result, a great deal of land has been turned into fertile field and agriculture of this region has been greatly developed.