STELCO assumes utility services in Meemu Atoll islands

The State Electric Company Limited has officially taken over utility services in inhabited islands of Meemu Atoll, excluding M. Mulah, as part of a government programme to transfer utility operations from FENAKA Corporation Limited.

The transfer forms part of an agreement signed in April under which utility services in Baa, Lhaviyani and Meemu atolls will be moved from FENAKA to STELCO.

The arrangement covers electricity, water and sewerage services across 25 islands.

The handover of services in Meemu Atoll was formalised through the signing of an operational agreement between the two companies.

The agreement was signed by STELCO Managing Director Ali Azwar and FENAKA Managing Director Mohamed Afeef Hussain.

With the transfer, STELCO has assumed responsibility for utility services in the islands of Dhiggaru, Kolhufushi, Maduvvari, Muli, Nalafushi, Raiymandhoo and Veyvah.

According to STELCO, administrative and technical preparations for the transfer of services in M. Mulah, as well as the remaining islands in Baa and Lhaviyani atolls, are continuing in line with the implementation schedule.

Once the transition is completed, STELCO's service network will extend to 61 islands.

The company's operational coverage will include the Greater Malé region, Kaafu Atoll, Alif Alif Atoll, Alif Dhaalu Atoll, Vaavu Atoll, and the newly added islands in Baa, Lhaviyani and Meemu atolls.

Sources familiar with the restructuring process have indicated that the government plans to consolidate utility operations by assigning specific regions to each utility provider.

Following the completion of the transfers, FENAKA is expected to continue providing utility services in 131 islands across the Maldives.

As part of its restructuring efforts, FENAKA has introduced a voluntary separation programme for employees. Under the scheme, staff who choose to leave the company are offered a severance payment equivalent to four months of salary.

The company has stated that the programme has received applications from employees.