Thoddoo sets an example with Maldives first local authority company

Jun 20, 2023, 11:26 AM
Tourists in Thoddoo. -- Photo: Adhadhu

Tourists in Thoddoo. -- Photo: Adhadhu

An island with a population of about 2000 people set apart in Alif Alif atoll, the name of Thoddoo has always shone bright. It would not be wrong to say that Thoddoo has been foremost and exemplary in its vision for development with the powers granted by the decentralisation law.

Changing the outdated thinking for achieving development, Thoddoo has started work on standing on its own feet by creating a local authority company for the first time in the country.

Thoddoo council president Ahmed Karam said the Thoddoo Local Authority Company (TLAC) was established under Article 70 of the decentralisation law because providing services through a company instead of the council providing all services would offer major conveniences and pave the way for business opportunities.

Thoddoo. -- Photo: Miraan Nashim/ Adhadhu
Thoddoo. -- Photo: Miraan Nashim/ Adhadhu

Thoddoo. -- Photo: Miraan Nashim/ Adhadhu

"The company will be a 100 percent council company. A council member will be on the company's board. In the future, the council's role will be regulating," Karam said.

Karam said the council decided to assign 13 business activities to TLAC and has now assigned three activities. TLAC has been tasked with waste management, road repairs and the development and maintenance of the tourist beach. TLAC has since started work.

"Some assets of the council have also been handed over to the company. The company will be able to earn an income from it as well," Karam said.

TLAC's tasks

  • Mainteinance and management of a museum to be developed in Thoddoo
  • Thoddoo's waste management
  • Management of Thoddoo's harbor services
  • Marketing and public relations work on the "Thoddoo Maldives" brand
  • Maintenance and repair of Thoddoo's roads
  • Maintenance of Thoddoo's parks
  • Maintenance and development of Thoddoo's tourist beach
  • Establishment and maintenance of facilities for sustainable farming in Thoddoo
  • Establishment of a convention center in Thoddoo with rental opportunities for small and medium-sized businesses
  • Laying and managing a fiber link network in Thoddoo
  • Establishment and management of a nursery in Thoddoo
  • Establishment and operation of a daycare center in Thoddoo
  • Operation of a pre-school in Thoddoo

TLAC's different plans for raising revenue

An investment of MVR 10 million is needed to lay an open access network and make Thoddoo the first smart island in the country. TLAC plans to raise funds through the capital market or private placements in the Maldives and overseas. TLAC has made an announcement seeking a lead manager to offer advice and carry out the work of raising funds.

"A lot of services could be provided through the open access network and income could be earned as well. We are expecting that Dhiraagu, Ooredoo and Medianet will use this network. If we could get 20 or 25 percent from bills, that would be a good income," Karam said.

A farmer in Thoddoo. -- Photo: Miraan Nashim/ Adhadhu
A farmer in Thoddoo. -- Photo: Miraan Nashim/ Adhadhu

A farmer in Thoddoo. -- Photo: Miraan Nashim/ Adhadhu

An open access network has only been established in the country so far by Urbanco in Hulhumale'. The Thoddoo council has signed a two-year agreement with Urbanco for the technical assistance needed to lay and operate an open access network on the island.

A 172.6-hectare island with farming on a large scale, Thoddoo is also one of the islands where local tourism has been developing the fastest. While 58 guesthouses are in operation in Thoddoo, called "Fruit Island" by many tourists, about 30 more guesthouses are under construction.

A tourist exploring Thoddoo. -- Photo: Miraan Nashim/ Adhadhu
A tourist exploring Thoddoo. -- Photo: Miraan Nashim/ Adhadhu

A tourist exploring Thoddoo. -- Photo: Miraan Nashim/ Adhadhu

The Thoddoo council believes that a lot could be done by raising finances on its own without depending on the government for everything. This step taken forward by the Thoddoo council under the decentralisation law is exemplary.

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