Fenaka denies halting Hoarafushi bottling plant, says layoffs due to lack of work

Fenaka Corporation has denied claims that the water bottling plant being developed in Haa Alif Hoarafushi has been suspended, stating that recent employee dismissals were due to a lack of work.

In a press release issued last night, Fenaka said the plant established under a 2019 agreement with the Hoarafushi Council and supported by the Indian government has not been halted, contrary to rumors circulating about it.

According to the company, although the project officially began in 2019, almost no progress was made in the first two years apart from the fencing of the 20,000 to 30,000 square foot site allocated for the facility.

Fenaka said that, to date, it has spent MVR 30 million on the project. By the time of the 2023 presidential election, only 70 percent of the work had been completed. The total cost of the plant is estimated at MVR 36.7 million, with MVR 9 million contributed by the Government of India, MVR 2.4 million from the Hoarafushi Council, and MVR 34.3 million funded by Fenaka.

Despite having set up office furniture inside the facility, the company said the majority of the necessary equipment remains uninstalled and several interior works remain unfinished, making it impossible to begin operations.

Fenaka said its board decided to proceed with the project, but due to the current financial situation, the company cannot continue paying employees who have no work assigned.

“The company assures that the project will continue without interruption in accordance with this decision,” the statement read.

Fenaka also said a technical team will go to Hoarafushi to assess the remaining requirements for project completion. Work is expected to resume next month, and recruitment will begin once the plant is ready for operation.

The statement comes after the opposition Maldivian Democratic Party (MDP) expressed concern over the reported suspension of the project and the dismissal of workers. MDP claimed the move deprived the island of much-needed economic activity and job opportunities.