Gov’t Contracts Chinese Firm for Power Plant Development in Addu City

The government has entered into a contract with Dongfeng Electric International from China for the construction of a 30-megawatt power plant. 

The agreement, finalised today, marks a significant step towards addressing the long-standing energy deficit in the upper-southern city.

Managing Director of Fenaka Corporation, Muaz Mohamed Rasheed, highlighted the prolonged challenges faced by Addu City due to inadequate electricity supply. Despite previous administrations’ efforts to mitigate the issue, Rasheed expressed optimism that the newly initiated power plant project would provide a sustainable solution for the next 25 years.

The proposed power plant, described as state-of-the-art, is expected to have a capacity of 30 megawatts, according to Rasheed. He affirmed that the implementation of the project in multiple phases would effectively address Addu City’s electricity needs.

Rasheed emphasised the broader impact of the project, stating that it would extend electricity services to the nearby islands of Addu City, with future provisions for Hulhudhoo and Meedhoo once connected to the mainland via a bridge.

Regarding financing, Rasheed clarified that the initiative is contractor-funded, with Fenaka Corporation committed to repaying the project cost over a period of 12 years. He assured that the funding arrangement would not adversely affect the corporation’s financial standing.

While Fenaka Corporation has engaged Dongfeng Electric to address Addu City’s electricity shortfall, President Dr. Mohamed Muizzu acknowledged the prevalence of electricity outages in various islands. He underscored the government’s ongoing efforts to address the nationwide issue of deteriorating power infrastructure.