Fenaka Corporation on Thursday contracted China's Dongfang Electric Corporation to improve electricity services in the interconnected islands of Addu city.
Dongfang Electric was tasked with building a 32-megawatt power plant and upgrading the distribution system for the connected islands in order to solve the problem of recurring power cuts.
Dongfang Electric will finance the project with Fenaka to make payments after 12 years, according to the state utility company.
The project is to be carried out in phases with two 9.8 gen sets and two 5.8 gen sets to be installed in the first phase.
Speaking at the agreement signing ceremony, Fenaka Managing Director Muaz Mohamed Rasheed said the power plants would be developed with modern facilities, after which Addu's electricity problems would be solved for the next 20 or 25 years.
"This is a project where the capacity will be upgraded to 50 megawatts. When Hulhudhoo-Meedhoo is connected to the interconnected islands via a bridge, electricity service will also be provided to those two islands," Muaz said.
Addu Mayor Ali Nizar said previously that the city could face a major disaster if adequate efforts are not undertaken at present to solve the electricity problem.
Addu has faced recurring power cuts over recent weeks and the problem has not been fixed.
