Repair work has begun on the Mobye Dam, which sustained extensive damage during attacks by armed groups in 2023, according to sources.

Restoration of the dam, which plays a vital role in flood control, hydropower generation, agriculture and inland water transportation, commenced in the 2026-2027 fiscal year. Damaged buildings, the dam structure and hydropower-related facilities will be repaired in phases in line with the annual budget.

During the attacks, 44 buildings at the Mobye Dam Control Station below the dam—including the guest house, office building, staff housing and storage warehouses—were destroyed. A departmental vehicle was burned, while transformers and equipment stored in warehouses were also damaged.

The attacks also destroyed the water diversion control room and its control systems, the waterway control room and its control systems, a 108-kVA generator, turbines, power lines, water supply facilities and other equipment. As a result, the sluice gates could no longer be operated efficiently, disrupting water regulation and release operations, while damage to the navigation lock affected inland water transport. Overall, the destruction of the Mobye Dam complex caused an estimated K10 billion in losses to the state.

Following improvements in the security situation, departmental staff were able to return to the dam on July 27, 2025. Personnel from the regional military command and the department cleared landmines around the site, while three departmental machines and vehicles were deployed to remove trees, bushes and other debris from the dam area. The Ministry of Electricity and Energy said reconstruction of facilities damaged by the armed groups will continue.

Located on the Biluchaung River, about 9.5 miles southeast of Pekhon Township in southern Shan State, the Mobye Dam is an earth-fill dam measuring 8,000 feet in length and 60 feet in height. It features four spillway gates and a navigation lock. Construction began in 1967 with state funding and was completed in 1970.

The dam stores and regulates 687,000 acre-feet of water to supply the Biluchaung Nos. 1, 2 and 3 Hydropower Plants, while also supporting irrigation for approximately 20,000 acres of farmland downstream.

In addition to electricity generation and irrigation, the Mobye Dam's navigation lock facilitates inland water transport and helps reduce environmental impacts on Inle Lake upstream. The reservoir also serves an important flood-control function by regulating water flows and reducing flood risks in downstream areas.