The President's Office in the government gazette said the Cabinet, on September 27, decided to award the lagoon to XEMC Windpower Co. Ltd to produce 15-20 megawatts of electricity using renewable energy resources under a Build and Operate agreement. The President's Office, however, did not disclose the period of the agreement. The Cabinet made the decision because State Electric Company Limited (STELCO) is required to provide 25,000 square metres of land to the Chinese company, the Office added. State Trading Organisation (STO) earlier said it was studying Bodugiri in order to transfer its oil storage facility in Kaaf atoll Funadhoo to the lagoon.