State Electric Company (STELCO) has officially assumed responsibility for utility services across Haa Alif Atoll, taking over operations previously managed by Fenaka Corporation as the government moves ahead with restructuring utility service provision in the Maldives.
The transition marks another significant step in the government’s plan to transfer Fenaka’s operations to STELCO, expanding the latter’s responsibilities beyond its established service areas.
In a statement, STELCO confirmed that it has commenced providing utility services in the islands of Haa Alif Atoll following the formal handover.
The company said efforts to bring existing services in the atoll into line with its operational standards began immediately after the transfer, in accordance with a decision by President Dr Mohamed Muizzu.
STELCO said its priority is to ensure that residents have access to reliable, sustainable and high-quality essential services, while addressing longstanding challenges affecting utility infrastructure in island communities.
The transition covers electricity, water supply and sewerage services, with the company preparing and implementing measures to improve infrastructure and service delivery across the atoll.
According to STELCO, several initiatives are being planned to modernise existing systems and develop longer-term solutions to difficulties experienced by residents.
The company said the improvements are intended to strengthen the reliability and efficiency of utility operations, rather than simply transferring responsibility for existing services from one state-owned enterprise to another.
The handover follows the government’s decision to reorganise utility service provision in the atolls, with the stated objective of improving operational efficiency and ensuring more consistent service standards across the country.
Fenaka Corporation has historically been responsible for electricity generation and distribution, as well as water and sewerage services, in numerous inhabited islands outside the Greater Malé region.
However, the government has begun transferring its operations to STELCO as part of a wider restructuring of the state-owned utility sector.
The transition represents a substantial expansion of STELCO’s operational responsibilities, requiring the company to manage utility infrastructure across geographically dispersed island communities.
Unlike utility networks serving densely populated urban areas, infrastructure in the atolls often operates through separate island-based systems, creating additional challenges in maintenance, equipment management and service continuity.
Ensuring reliable electricity generation and maintaining water and sewerage infrastructure are particularly important for communities that depend on these services for daily household needs, public institutions and local businesses.
STELCO’s expansion into Haa Alif Atoll comes shortly after the company officially assumed responsibility for the electricity distribution network in Hulhumalé Phase 2.
The two developments reflect the company’s growing role in managing essential utility infrastructure across different regions of the Maldives.
The government has also been advancing plans to transfer Fenaka’s remaining operations to STELCO, with the broader restructuring expected to change how electricity and other essential services are administered in the atolls.
As part of the transition, STELCO has been working to assess existing infrastructure and align operations with its service requirements.
The takeover represents a major milestone in the government’s utility sector restructuring, with STELCO now responsible for services previously operated by Fenaka in Haa Alif Atoll.
