Energy projects by utilities companies have not commenced: Ministry

Housing Ministry has said that agreements were signed between foreign companies and utilities companies by Nasheed’s administration for large projects to provide sustainable electricity in Maldives; however none of these projects have commenced so far.

State Minister for Housing Abdul Matheen Mohamed told reporters today that out of the projects which were announced to begin in the past three years or so, none of those which were to be carried out by utilities companies and foreign groups have commenced. This may be due to the projects being announced swiftly, without conducting the proper studies.

Matheen is doubtful that these projects will begin – the fact that they have remained stagnant for over two years means that there are serious problems associated with them. He added that there was no money for these projects when they were initiated.

“The proposals for large projects should be studied well. They will not invest a hundred million dollars if there is little benefit for them. A lot of these projects were announced swiftly, that’s why we are facing these difficulties. I think there must be serious problems, since they haven’t commenced for more than two years,” Matheen said.

Assistant Director of Housing Ministry Ahmed Ali said that the projects are held up because not enough planning went into them.

“Most MOUs with foreign companies for these projects were signed by utilities companies. Out of these projects, the ones by STELCO and the Ministry are underway,” Ahmed Ali said.

The projects which have not commenced are one by Upper North Utilities Limited in collaboration with an American Company to provide utility services in that area; a project by the same company with Renewable Energy Maldives to install a solar energy system in Hdh. Kulhudhuffushi; an agreement by Northern Utilities Company with a Korean company to provide utility services in that area; a project by the same company with a foreign company to install a wind farm in Lh. Hinnavaru; two projects by Upper South Utilities Limited; and a project by Southern Utilities in Addu.

The Ministry also noted that the project to install a 75 megavolt wind energy system in Gaafaru lagoon was started in collaboration with Falcon Energy; however this project is also currently halted.

Housing Ministry said that the projects currently underway are the project by Male’ City Council and Thilafushi Corporation in collaboration with an Indian Company to produce energy from waste material, a projects by Housing Ministry to produce renewable energy, a project to produce solar power in six Maldivian islands by STELCO and Renewable Energy Maldives, and a project by STELCO in collaboration with a Chinese company.