Finance ministry asks MACL to transfer waste management to WAMCO
According to sources, MACL chose a private contractor for waste disposal due to the high rates proposed by WAMCO.
Finance ministry instructed the Maldives Airports Company Limited (MACL) to transfer waste disposal responsibilities for Velana International Airport (VIA) to the Waste Management Corporation (WAMCO).
The directive came in a letter signed by state finance minister Hussain Sham Adam and sent to MACL on Saturday.
The decision follows concerns over the high costs associated with MACL’s current arrangement for waste disposal. Under a contract awarded to I&C Trading Pvt Ltd in October, MACL has been incurring daily expenses of MVR 250,000, amounting to approximately MVR 14 million over six months.
According to sources, MACL chose a private contractor for waste disposal due to the high rates proposed by WAMCO.
WAMCO initially requested MVR 2,060 per tonne for waste management services, a price MACL deemed unfeasible.
However, the economic council of the President's Office intervened in May, setting a fixed rate of MVR 2,660 per tonne for waste disposal for all government entities utilising WAMCO’s services.
Despite this intervention, MACL continued its agreement with I&C Trading, leading to higher overall costs. This prompted the finance ministry to step in and order the termination of the private contract, citing the need for consistency with the economic council’s pricing decision.
In its letter, the finance ministry emphasised the importance of adhering to the established government rate and instructed MACL to transfer all waste management activities to WAMCO.
“In accordance with the decision of the economic council, you are requested to entrust all waste management activities of your company to Waste Management Corporation Limited at the prescribed rate,” the letter stated.
Following this directive, MACL terminated its agreement with the private contractor.
The move is expected to reduce the financial burden on MACL, which has been spending significantly more under its current arrangement compared to the fixed rate established for WAMCO’s services. With a daily expense of MVR 250,000 under the private contractor, MACL’s waste management costs have far exceeded what they would have been at the rate of MVR 2,660 per tonne.
This development underscores the government’s efforts to streamline waste management services and ensure cost efficiency across public enterprises. It also highlights the challenges faced by government entities in balancing service quality with financial prudence.
