President Dr. Mohamed Muizzu has announced that the government will dissolve Fenaka Corporation and the Road Development Corporation (RDC), as part of a major restructuring of state-owned enterprises aimed at cutting waste and improving efficiency.
Speaking at a press conference on Monday, President Muizzu said Fenaka’s utility operations will be transferred to State Electric Company Limited (STELCO), while RDC’s road construction responsibilities will be handed over to Maldives Transport and Contracting Company (MTCC).
The decision effectively consolidates overlapping state functions under larger existing companies, representing a significant change to the structure of government-owned enterprises.
President Muizzu said the restructuring would also involve streamlining the workforce and adjusting company sizes to match their operational requirements.
“With this transition, the workforce will be streamlined, the companies will be right-sized, and wasteful expenditures will be reduced,” the President said.
Fenaka currently provides electricity, water and sewerage services across numerous islands outside the Greater Malé region, while RDC has been responsible for road development projects across the country.
The government has been pursuing broader reforms of SOEs as it seeks to strengthen their financial management, reduce unnecessary expenditure and improve the delivery of public services.
Under the announced restructuring, STELCO will take over Fenaka’s utility responsibilities, while MTCC will absorb RDC’s road development mandate.
