The government has decided to dissolve Fenaka Corporation and transfer all of its utility services to the State Electric Company Limited (STELCO), President Dr Mohamed Muizzu has announced.
The decision was announced during a press briefing as part of a broader plan to restructure state-owned enterprises and reduce operational costs.
Under the restructuring, STELCO will take over the electricity, water and sewerage services currently provided by Fenaka, with the aim of establishing a single utility provider serving islands across the Maldives.
President Muizzu said technical experts had advised that maintaining Fenaka in its current form was not financially sustainable. He also pointed to duplication and high expenditure within state-owned companies as reasons for the restructuring.
The government has previously begun transferring Fenaka’s utility operations to STELCO. Services in several atolls, including Baa, Lhaviyani and Meemu, have already been moved under STELCO as part of the ongoing restructuring programme.
The President said the restructuring will also involve reducing and right-sizing the workforce, with a sufficient number of employees to be retained while others may leave as the companies are reorganised.
The government expects the consolidation to reduce unnecessary expenditure and duplication while improving the efficiency of utility services across the country.
The decision forms part of a wider state-owned enterprise restructuring plan announced by the government, which also includes dissolving the Road Development Corporation and transferring its operations to the Maldives Transport and Contracting Company (MTCC).
