Chinese Vice premier Wu Yi and Myanmar Premier Khin Nyunt attended the grand signing ceremony in Premier's Office in Rangoon , capital of Myanmar at noon 12 on March 24, 2004, covering intent of economic and trade cooperation and 21 contracts of major projects. This marks another tide of bilateral trade between China and Myanmar . During the ceremony, General Manager Mr. Lu Wenjun, Deputy General Manager Mr. Zhu Xu of CHMC and Ministry of Electric power of Myanmar signed two main contracts of mechanical and electrical equipment and metal structure supply.

KUN hydroelectric power station situates at KUN CHAUNG River near PYU town of Bagu province in Myanmar , 220 km to the northeast of Rangoon. It is a pressurized power station with gross water head of 117 meters. The project includes low pressure steel pipelines, intake tunnel and penstock, total length of 2700 meters，total capacity of 60 MW, including 3 x 20 MW  vertical type mixed flow generating units，8km 230kV transmission line. The manufacturer of main machines is Tianjin Alsthom Hydropower Equipment Co., Ltd. It is scheduled to complete this project in 2007. At present, the civil work has proceeded for about 3 years, the intake tunnel has been drilled.  

The Hydroelectric Bureau of the Ministry of Electric power of Myanmar is responsible for all the civil design and construction of the dam, channelization diversion, and workshop buildings etc., CHMC is responsible for the structure design, supply of power station workshop building, the design of the power generating station system, the design for the 8 kilometer 230kV transmission line, sewage grid, waste water gates, the pressurized steel pipelines, tunnel steel lining, the related complete set of equipment as well as sea transportation and technical guidance for erection and commissioning.

Signing of contract of KUN  hydroelectric power station marks the successful breakthrough of CHMC in hydroelectric field, and serves as a favorable reference for other hydroelectric and transmission projects.