During the registration ceremony of Thoddoo Utility Company: The company plans to offer a number of services. Photo/Economic Ministry

Thoddoo makes history as first island with council company

Councilman Karam said that a managing director was appointed for Thoddoo Utility Company after a public announcement.

20 December 2022

The first local council authority’s company registered under the Local Council Act, which allows councils to set up a company to provide commercial services, was registered on Monday.

The first local authority company registered by the economic ministry was the AA. Thoddoo Council, Thoddoo Local Authority Company. On Monday, a function was held at the Economic Ministry to hand over the company's registration.

  • Economic minister Fayyaz Ismail handed over the company's registration to the council 

  • Economic Minister Fayyaz said the companies set up in the councils would open up new opportunities in rural areas. 

  • Thoddoo council informed the minister about what the company plans to do and how it will run the company.

President of Thoddhoo Council, Ahmed Karam, said that with the registration of the company, the island will progress once the quality of services provided to the people is improved and is provided on a commercial basis. Karam also assured that the company will not indulge in activities like getting into private businesses.

Here's what the company plans to do:

  • making and maintaining a museum

  • providing waste management services

  • maintain the harbour and provide some services at the port

  • Marketing and public relations of Thoddoo's tourism brand

  • maintenance of roads 

  • maintenance of public parks and tourist beaches 

  • providing support for sustainable agriculture; establishing a central system to provide water to crops

  • construction and operation of convention centre

  • building a fibre network

  • building a tree nursery

  • building and running a daycare centre

  • running Thoddoo pre-school

Karam said that a managing director was appointed to the company after a public announcement. He added that members representing the general public on the company's board were also taken on the same lines.

"The government's concern is that if such a company is formed, small businesses will be destroyed. What we have decided to do is do what the people of the island don't do as businesses, and doing what is required to be provided as service," Karam said.

Many councils have approached the economic ministry to set up a utility company. Last year, the Economic Ministry came out with a set of rules for registration of utility companies with the local body.