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Planning Minister against SOEs entering construction sector

Malika Shahid
18 May 2022, MVT 12:31
Mohamed Aslam, Minister of National Planning, Housing and Infrastructure
Malika Shahid
18 May 2022, MVT 12:31

Minister of National Planning and Housing Mohamed Aslam has said that state-owned enterprises (SOE) entering into the construction sector is not encouraged.

Speaking at the parliament, Aslam stated that the government holds no policy encouraging SOEs established to provide other services to enter the construction industry.

Aslam said that the ministry has not encouraged companies such as State Electric Company Limited (STELCO) and Fenaka Corporation Limited as well as POLCO and SIFCO to enter construction business.

However, the recent construction project of MNDF flats were awarded to SIFCO as the security forces refused to allow any other company to work on the project.

"They are not legally prohibited to take on such projects, but I believe they shouldn't enter other sectors which is not in their mandate. It is also good to have legal obstructions to prevent this" Said Aslam.

The planning minister stated SOEs entering the construction industry might lead to a loss of focus on their original mandates.

Aslam said that some state owned companies have carried out some construction projects and that sub contracts have been signed after taking up the work on several occasions.

As part of the Hiyaa Project conducted by the previous administration in Hulhumale' Phase two, land has been given to state-owned companies to build housing units. To date, State Electric Company Limited (STELCO), Maldives Water and Sewerage Company (MWSC), Maldives Ports Limited (MPL) and Maldives Airports Company Limited (MACL) have also constructed flats.