Government Plans Utility Service Overhaul with STELCO to Absorb FENAKA Corporation

Minister of Climate Change, Environment and Energy Ali Shareef has convened a high-level meeting with the heads of the nation's primary utility providers to streamline and improve the delivery of essential services across the Maldives. The discussions focused on enhancing the quality and reliability of water, sewerage, and electricity services for citizens. The meeting brought together the managing directors of State Electric Company (STELCO), Malé Water and Sewerage Company (MWSC), and FENAKA Corporation, alongside senior ministry officials to identify critical service gaps and implement corrective measures. In a significant structural shift, the government has decided to dissolve FENAKA Corporation and transfer its entire portfolio of services to STELCO. This consolidation aims to create a more accountable institutional framework for utility management. FENAKA currently provides essential services to 127 islands, and the transition is expected to centralize oversight and improve operational efficiency. Minister Shareef emphasized that providing convenient and reliable essential services remains a top government priority, urging all relevant institutions to adopt a collaborative approach to overcome systemic challenges. Beyond structural changes, the government is prioritizing the expansion of electricity capacity to support island repopulation efforts. A key pillar of this strategy is the transition to sustainable energy; the Maldives aims to replace 33 percent of the energy consumed during peak hours with renewable sources. To this end, STELCO and FENAKA have already begun deploying solar-power solutions across numerous islands, reducing the nation's reliance on imported fossil fuels.