Hydropower, Naung Pha

A memorandum of understanding (MoU) was signed for Naung Pha (sometimes spelt Nong Pha) hydropower project in 2010. The government owns 15% of the project, with the rest of the shares owned by Hydrochina Corporation and International Group of Entrepreneurs (IGE), a Myanmar-based conglomerate.

An estimated 90 percent of the power will be exported  to China. The project was still at the feasibility study stage as of 2016. Australia's Snowy Mountain Engineering Corporation (SMEC) is currently conducting the Environmental and Social Impact Assessment in the highly militarized area. However, there has been local opposition to the project. Shan community groups also expressed their concern about the Naung Pha dam and the risks of local villagers, environment and the free flow of Thanlwin.  

In July 2016, the government announced it had suspended the Naung Pha hydropower project. The suspension does not appear to be targetted specifically at hydropower, though, as another 20 projects in other industries, such as hotels, were also frozen at the same time. Following the suspension, local activists called for wider freezes on hydropower in Shan State, particularly along the Thanlwin river.