The Ministry of Finance and Public Enterprises has stated that transferring some island services currently provided by Fenaka Corporation to Statel Electric Company Ltd (STELCO) could significantly reduce the government’s cost of generating electricity per unit.
Services provided by Fenaka from Baa Atoll to Meemu Atoll have now been handed over to STELCO.
Speaking on PSM News’ “Raajje Miadhu” programme, Deputy Minister at the Ministry of Finance and Public Enterprises, Ahmed Saaid Musthafa, said that the most important factor in this transition is ensuring that the public does not experience any disruption or decline in the quality of services currently being provided. He noted that both Fenaka and STELCO are working together to carry out this process as efficiently as possible. He further explained that the Ministry aims to align financial assistance to these companies with government policy, while encouraging them to operate more independently and efficiently.
Saaid highlighted that the Maldives is a country where a significant portion of government expenditure goes towards subsidies. He said that efforts to reduce subsidies are being carried out in a way that does not place additional financial burdens on citizens, such as higher utility bills. Instead, the focus is on improving efficiency, particularly in electricity provision.
He added that one of the most significant outcomes of this change is that STELCO will be able to focus on operations across a wider region. Since the company already operates in several atolls, including Kaafu, Alifu Alifu, Alifu Dhaalu, and Vaavu, expanding its responsibilities would not place an excessive burden on it.
Under this arrangement, electricity, water, and sewerage services in 25 islands across Baa, Lhaviyani, and Meemu Atolls will be transferred to STELCO. With this change, the number of islands served by STELCO including Greater Malé, Baa, Lhaviyani, Kaafu, Alifu Alifu, Alifu Dhaalu, Vaavu, and Meemu Atolls will increase to 61.