Utility services across three atolls are set to come under new management following an agreement between Fenaka Corporation Limited and the State Electric Company Limited (STELCO), marking a significant shift in the provision of essential services outside the capital region.
Under the arrangement, STELCO will assume responsibility for electricity, water and sewerage services across 25 islands in Baa, Lhaviyani and Meemu atolls, with the transition expected to be completed within 30 days.
Agreement Formalised
The handover was formalised at a signing ceremony attended by senior officials from both companies. Fenaka’s Deputy Managing Director Adam Thaufeeg and STELCO’s Deputy Managing Director Dr Ali Azuwar signed the agreement on behalf of their respective organisations.
Speaking after the signing, Thaufeeg said the transition is aimed at ensuring uninterrupted service delivery while improving operational efficiency across state-owned utilities.
He noted that the move aligns with the government’s broader objective of strengthening public services under the direction of President Mohamed Muizzu.
Expansion of STELCO’s Network
With the addition of the three atolls, STELCO’s service coverage will expand significantly, bringing the total number of islands under its operations to 61.
The company already provides services in Greater Malé and several other atolls, and officials say the latest expansion will further enhance its capacity and reach.
Focus on Service Improvements
STELCO said the transition presents an opportunity to further develop and upgrade utility services in the newly added regions, with plans to enhance infrastructure and service delivery over time.
Meanwhile, Fenaka indicated that scaling back its operational footprint would allow the company to focus on strengthening internal management and improving performance in the areas it continues to serve.
Part of Wider Reforms
The handover forms part of a broader set of administrative changes aimed at improving the efficiency of state-owned enterprises and ensuring sustainable service delivery nationwide.
Both companies have assured residents in the affected atolls that services will continue without disruption during the transition period.
