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China's DEC contracted for Addu electricity project

Mariyam Malsa
24 October 2019, MVT 13:58
Economic Minister Fayyaz Ismail (C) speaks at the ceremony held to award the 20MW Power Generation and Distribution Project for Addu City to DEC of China. PHOTO/MIHAARU
Mariyam Malsa
24 October 2019, MVT 13:58

The government, on Wednesday, awarded a USD 37 million (MVR 570 million) project to ensure electricity provision for Addu, to Dongfang Electric Corporation (DEC) of China.

According to Ministry of Economic Development, the project was handed over under a contractor finance policy under which DEC will initially fund the project. The government will subsequently repay the Chinese company within an allotted time frame of ten years.

While the project was awarded without a bidding process, Economic Minister Fayyaz Ismail stated that DEC was chosen after considering the company's capacity to fund the project, previous experience and the overall proposed cost.

He added that the company was also currently working to establish a high voltage power cable connecting capital city Male' and its reclaimed suburb Hulhumale'. The project was granted during the administration of former President Abdulla Yameen Abdul Gayoom.

The Economic Ministry stated that the project would commence within the upcoming two months and be completed in one year and three months under the oversight of Fenaka Corporation.

The minister added that the project would boost production capacity to 36 megawatts and facilitate electricity provision in Addu City for the upcoming 15 years. While Addu requires a minimum of eight megawatts, only seven megawatts are produced at present, causing frequent power cuts.

Managing Director of Fenaka Ahmed Saeed Mohamed revealed that the DEC project would facilitate changes to the electrical system in Addu after a lag of 23 years.

He assured that the project would result in the creation of a modern network and the establishment of a fibre optic cable connection throughout the entire system.

The Managing Director further added that a 10-megawatt solar energy programme was scheduled as part of the DEC project, along with an initiative to shift 70 percent of energy production in Addu to solar power.

Speaking at the agreement-signing ceremony held at Maagiri Hotel in Male', the Economic Minister stated that electricity provision shortages were a considerable issue across the country and guaranteed that the current administration would solve the problem by the conclusion of its five-year term.

Furthermore, the Minister reiterated the government's intention to establish four economic hubs throughout Maldives, adding that the southernmost atoll of Addu was one of the designated areas.

He reasoned that adequate electricity provision was crucial to the numerous development projects planned for Addu.

"In addition to providing the service for citizens, electricity shortage issues must be solved for economic activity to take place".

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