President Dr Mohamed Muizzu has announced a sweeping restructuring of the country’s decentralised governance system, declaring that atoll councils will be abolished next year and that funding for city and island councils will be doubled.
The reforms, which the president described as essential to achieving genuine financial empowerment for local authorities, will take effect with the next annual budget.
Addressing residents in Bileffahi, Shaviyani Atoll, President Muizzu confirmed that the block grant allocation for councils will rise from 5 percent to 10 percent. He linked the increase directly to the dissolution of atoll councils, saying the redistributed funds would flow to city and island councils.
“As we move forward with the dissolution of the atoll councils, the budgetary allocations subsequently made for city councils and island councils will involve an increase in the percentage currently afforded to the island councils,” President Muizzu said. “Consequently, the total funding received by the island councils will increase proportionally.”
The government has framed financial empowerment of councils as a central objective, with the president urging local authorities to use the expanded allocations to maximise benefits for citizens.
The reforms also alter the criteria for calculating block grants. Last September, President Muizzu announced that allocations would no longer be based on population ratios but instead on land area, a change he said would ensure a fairer distribution of resources.
Women’s development committees (WDCs) are also set to receive increased funding beginning next year. The president described this as part of his broader goal of ensuring “genuine empowerment” within the decentralised system.
He pointed as well to administrative changes aimed at reversing the traditional flow of governance. Councils once had to travel to Malé to meet with central authorities. Now, government officials are travelling to the atolls, a shift the president said was already proving beneficial.
At the same community meeting, the government launched a major infrastructure initiative with the signing of an agreement to develop and operate Bileffahi Airport. The project, commissioned to the Maldives Airports Company Limited (MACL), began immediately with land reclamation.
The plan calls for reclaiming 36 hectares of land within eight months, followed by the construction of a 1,500-metre runway and supporting facilities.
President Muizzu announced that the airport would be completed and operational within 30 months, stressing that the project was advancing at speed after years of unfulfilled promises by previous administrations.
“The entirety of the airport development work for this project will be finalised within a maximum duration of two and a half years,” he assured. “This endeavour will now proceed without any interruption, maintaining a rapid pace. We will soon witness the successful completion of this undertaking. This represents a matter of significant importance to the citizens. The resulting acceleration in the island’s development is highly anticipated.”
The president also outlined a series of additional projects for Bileffahi. The Malé Water and Sewerage Company (MWSC) has been tasked with developing water and sewerage systems, while the Maldives Transport and Contracting Company (MTCC) will address longstanding harbour issues, including the harbour channel, which the president pledged to resolve by the end of February. Plans also include a dedicated boatyard and measures to mitigate coastal erosion.
In education, MTCC will complete four stalled classrooms at Bileffahi School and construct four more, bringing the total to eight.
The island’s health centre will be expanded into a 16-hour facility, with new wards, consultation rooms, and private rooms. Staffing and service enhancements are expected to begin early next year, even before construction is complete.
Additional projects include the construction of a modern mosque, the development of a football field, and the allocation of budgetary resources for handball and volleyball courts.
During his visit, President Muizzu met with the Bileffahi Island Council, the women’s development committee, and institutional leaders. Council members pressed for the expedited completion of stalled projects, including water and sewerage systems, harbour upgrades, and permanent solutions for coastal erosion. They also requested the expansion of the multipurpose hall, additional classrooms, extended health centre hours, improved services in newly populated areas, and a proper waste management facility.
The women’s development committee highlighted the need for a dedicated workspace and an indoor gym for women.
President Muizzu also attended the groundbreaking ceremony for a new police station in Bileffahi. The project, entrusted to the Fenaka Corporation, is part of the government’s broader initiative to establish police stations and posts on all inhabited islands, thereby expanding law enforcement presence nationwide.