The state owned utility company, the Fenaka Corporation, has begun a MVR35 million (US$2.2million) project to provide potable water to all the residents of Addu City.
Inaugurating the project in Addu City last night, environment minister Thoriq Ibrahim said the state funded project will be completed by the end of 2015.
A sewerage system is to be established on Hithadhoo, and the government has taken a loan from the OPEC fund to establish sewerage systems in the remaining islands of the atoll, he said.
The total cost of establishing water and sewerage systems in Addu City amounts to MVR600 million (US$39 million), he explained.
The former Southern Utilities Limited (SUL) company, along with UK’s Biwater International Ltd had begun a US$42 million project to improve the atoll’s supply of drinking water and sewage treatment in 2010.
Biwater International was to establish desalination plants to provide potable water and install sewage treatment plants, pump stations, and pipe work systems.
SUL was to contribute US$15 million and Bywater was to invest US$27 million but the project soon stalled as a result of mismanagement, said Thoriq.
The Fenaka Corporation was established to take over from the seven utility corporations established during the administration of former President Nasheed.