Baluchaung No.1 Hydropower Plant was built in 1987 with Japanese official development assistance (ODA) Loan, and started operating in 1992. The Sedawgyi Hydropower Plant was built in 1984 with a loan from the Asian Development Bank, and started operating in 1989.

Operation life time of Baluchaung No.1 and Sedawgyi Hydropower station was last over 30 years. Although it have many life times, there was no maintenance. The machine was facing damages frequently. There was not only power losses but also commercial losses for government. So it is require to make rehabilitation case for these power station.

Considering the growing demand for electricity, and expected long time for constructing new power plant, there is a strong need for improving the electric power supply by rehabilitating the existing facilities, as quick measures to deal with the current and future increase in electricity demand.

The Government’s National Electrification Plan aims to electrify more than 7 million households and achieve access to electricity for 36 million people by 2030.The lectrification rate should be increased and performed up to 500,000 new connections per year by 2020, and stay at least at that level for another ten years