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2 January 2007 - Media outlets in Myanmar have reported the signing of an agreement between Myanmar and neighbouring China to build a 600 MW hydropower plant in northeastern Myanmar.
Myanmar and China have signed an agreement for a 600 MW hydropower project on the Shweli River in northeastern Myanmar near the Chinese border, Myanmar state-run media reported Monday.
Representatives of the two sides signed the agreement for the project on the Shweli River at a ceremony in the country's new capital Naypyitaw on Saturday. The Shweli No. 1 Hydel Power Project will be implemented about 27 km southwest of Nahkam, a small town in Myanmar's northeastern Shan State, near the border with China's Yunnan Province.
Upon completion the project will be capable of generating 4022 GWh of electricity annually to Myanmar's heavily overloaded national grid system, according to the state-run newspaper New Light of Myanmar.
Myanmar faces constant power shortages as consumption has increased 3.7 times while the installed power capacity has increased only 2.5 times over the past two decades, according to official figures.
The country has an installed capacity of 1701 MW but the plants actually produce around 1000 MW most of the year due to unstable water levels at dams.
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