Myanmar Electric Power Enterprise (MEPE), a state owned power utility, and the Yunan Machinery Import and Export Corporation, have signed a contract to design and build the 280MW-capacity Paunglaung hydro power project in Pyinmana, near Mandalay.

According to the US$160M contract, the Yunan company is to provide machinery and equipment for the power station, design the underground power house, and manage the project.

The Chinese side will extend export credit, while the Myanmar side will be responsible for annual interest of 2.75%. The repayment term is 10 years, with a grace period of 5 years.

YMEIEC has been co-operating with Myanmar in building hydro stations since 1989, and has exported to the country complete sets of equipment for 17 small and medium power stations. The stations together account for almost 95% of Myanmar’s successful hydro power projects.