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Addu power project awarded to Chinese company

Addu City's power generation and distribution project has been awarded to China's Dong Fang International for US$ 37.5 million.

The project was awarded without undergoing a bidding process.

The agreement was signed between the government and Dong Fang International at a ceremony held on Wednesday at Maagiri Hotel.

Economic Minister Fayyaz Imail, Addu City Mayor Abdulla Sadiq, Managing Director of FENAKA Ahmed Saeed Mohamed, and Addu MPs Mohamed Aslam and Ibrahim Nazil attended the signing ceremony.

Speaking at the ceremony, Mayor of Addu City Sadiq said the government aims to complete the project at the earliest.

"The biggest issue faced in carrying out economic activities, and in our daily lives is electricity issues. This project will resolve the issues and establish a modern power network. With the establishment of a powerhouse, it can power the whole of Addu City. Power required for the next 15 years can be produced", said Sadiq.

MD of Fenaka Ahmed Saeed said the project will commence in November and is expected to be completed within 15 months.

"When this powerhouse is completed, Addu city will be linked via fibre optic cable. Although 29 megawatts are included now, by the end of the project, 36 megawatts of power can be generated. We also aim to produce 70% of the electricity requirement in Addu city via solar. Hopefully, this too will be implemented soon", said Saeed.

Dong Fang company is also in charge of STELCO's fifth power project. The project was awarded to the company during former President Abdulla Yameen Abdul Gayyoom's administration for MVR 1.2 million. The project has been divided over three phases. Under the project, six generators of 89 mega watts have been installed, and a fuel farm and water desalination facility has been established.

Projects are awarded without undergoing the bidding process under certain policies. The projects are awarded by the Economic Council after assessing the proposals submitted by interested parties. A project to reclaim land in Gulhifalhu to build a harbor was awarded to a Dutch company on Tuesday under the same policy for US$ 53 million. While the project has been awarded to Royal Boskalis Westminster, Maldives Transport and Contracting Company owns largest dredger Mahaa Jarraf which was procured for US$ 36 million.