Paunglaung (II) Hydropower Project, also known as Upper Paunglaung Hydropower Project, is located at N19°45′ and E96°40′, a boundary area between Mandalay Division and Shan State in the Union of Myanmar.

On June 3, 2005, the Department of Hydroelectric Power (DHP) under the Ministry of Electric Power of the Union of Myanmar issued a letter of intent to UREC clearly expressing its willingness to award the Contract of building Paunglaung (II) Hydropower Station to UREC. On September 2, 2005, UREC submitted the draft contract to DHP.

On February 14, 2006, UREC and DHP formally signed the Contract for Upper Paunglaung Hydropower Project at the Great Hall of the People in the presence of the Chinese and Myanmar premiers.