Government to dissolve Fenaka and RDC, merge operations into STELCO and MTCC

President Dr. Mohamed Muizzu announced today that the government plans to dissolve Fenaka Corporation and Road Development Corporation (RDC), merging their respective operations into State Electric Company (STELCO) and Maldives Transport and Contracting Company (MTCC).

The President cited the financial instability of both companies as a key factor behind the decision, with both carrying substantial debt built up over recent years.

Fenaka currently serves as the electricity provider for islands across the Maldives, while STELCO provides electricity to the Greater Male' Region. Fenaka's debt has been reported at roughly MVR 3.8 billion in recent years, including unpaid bills owed to more than 1,090 suppliers and contractors, alongside loans exceeding MVR 1 billion. Under the planned merger, Fenaka's island electricity operations would be absorbed into STELCO.

Similarly, RDC is responsible for road development across the country, a function MTCC also carries out. RDC posted a loss of MVR 229 million last year, with total expenses of MVR 443 million against revenue of MVR 409 million, and currently carries short-term debt of roughly MVR 636 million. Under the plan, RDC's operations would be merged into MTCC.