Executive Summary: "Twenty six miles east of Burma?s new capital Naypyidaw, a fertile valley with a population of over 3,500 is soon to be flooded to boost power to Burma?s military leaders. The Upper Paunglaung dam, being built with Chinese investment in the Pyinmana Hills of southern Shan State, will produce 140 MW of electricity and store water to increase the generating capacity of the Lower Paunglaung Dam, completed in March 2005, which currently powers Naypyidaw. The reservoir of the 99-meter-tall dam will flood twelve villages and submerge over 5,000 acres of fertile farming land. The villagers, comprising some of the few remaining indigenous Kayan Lahta people, were never consulted about the dam plans, and have been offered no compensation. Instead, since 2004, when the dam construction began, they have faced an encroachment of Burma? Army troops, and accompanying forcec labour and other abuses. The deployment of Burma Army troops along the Paunglaung River is in direct contravention of the ceasefire agreement reached between the main Kayan resistance army, the Kayan New Land Party (KNLP), and the Burmese military regime in 1994, which had granted the KNLP control of this area. The regime has now seized most of the former KNLP territories in the Pyinmana Hills. Ironically, the KNLP was first set up ir 1964 in protest at the building of Burma?s first major hydropower project, the Mobye Dam, which flooded 114 villages, and the electricity from which was mostly sent to the capital Rangoon. Over forty years later, the Kayan people?s rights are being abused in the same way, as they find themselves dispossessed of their? lands and their resources being siphoned off at gunpoint, this time to the military regime?s new capital Naypyidaw. The Kayan Women?s Union calls on the Burmese military regime and Chinese investors to immediately stop construction of the Upper Paunglaung Dam. There has been no transparency in the planning and implementation th project, and no informed consent by affected villagers. We also demand an end to the Burma Army invasion of Kayan territories and the grave human rights abuses being inflicted on our people."