Malé water supply cut after fire at MWSC

Malé Water and Sewerages Company (MWSC) has cut off all water supplies in the capital Malé after underground cables connecting the switch room and generator caught fire.

Local media reported MWSC – the sole provider of clean desalinated water in the capital – as saying that the water services had to be cut off in order to control the damage and that the service was employing all available means to restart the service within the next few hours.

The company has announced that water will be made available temporarily between 8pm – 9pm this evening, and again between 8am and 9pm tomorrow.

Minister of Defence Colonel (Retired) Mohamed Nazim has declared the situation a disaster, setting up a task force and distributing free water via local shops. Local media has begun to report long queues forming outside shops to buy water as well as the price being increased in certain stores.

Police have confirmed one shopkeeper has been attacked, with Vaguthu reporting the assault as resulting from a failure to sell customers the desired amount of water.

Maldives National Defense Force (MNDF) spokesperson Major Hussain Ali told Minivan News that the fire was reported to the fire and rescue department at around 1.40pm.

“MNDF officers were on the scene shortly and started working on controlling the fire. The fire was completely extinguished at around 3.25pm,” said Major Hussain.

An MNDF press statement detailing the incident read that the firemen on scene removed some of the ducts in order determine the source of the fire and that a separate team were then called to clear the thick smoke observed in the area.

Police confirmed that they are now investigating the cause of the fire.

MWSC does not rely on electricity generated by State Electric Company but instead operates its own generators to provide electricity for the desalination plant.

Most households in the capital rely on MWSC for their daily water needs, with well water – the traditional method of acquiring water – having become unhygienic due to poor drainage and leakage of contaminants into groundwater.

*story updated at 8:15pm

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MCC laying pipes to prevent further flooding

Malé City Council (MCC) began laying underground pipes in the capital to prevent the persisent flooding of certain areas of the capital during rain showers.

Malé City Deputy Mayor Shifa Mohamed told Minivan News that the pipes are being laid with assistance from Malé Water and Sewerage Company (MWSC) at the areas worst affected by floods during bad weather.

“This is not permanent solution, but we believe that the pipes which are being laid underground will temporarily prevent severe flooding,” said Shifa.

Many major roads in the capital were severely flooded last Thursday (October 30) after a heavy downpour, disrupting transportation with much of the south-west of the 6km sq island left under water – a foot high in many places.

Shifa blamed poor planning and lack of maintenance as the lead cause in the flooding while stating that the drains on the sides of the roads have not been emptied in over 25 years.

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MWSC contracted to establish water and sewerage systems in three islands

The Ministry of Environment has on Monday contracted the state enterprise Maldives Water and Sewerage Company (MWSC) to build water and sewerage systems in three islands –  Mulah and Dhiggaru in Meemu Atoll and Maamigili in Alif Dhaalu Atoll.

The Environment Ministry stated that the main objective behind contracting the work to MWSC was to bring down the expenses that the state will need to spend on the projects, stating that the move saved 20 percent of the total cost.

The ministry further stated that physical work on the projects is expected to begin within a week from today.

MWSC stated that they have planned to complete the work in a period of 18 months. They further revealed that a total of MVR140 million (US$9 million) is estimated to be spent on the project.

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President reconstitutes tender evaluation board

President Abdulla Yameen yesterday reconstituted the tender evaluation board, appointing Deputy Tourism Minister Hussain Lirar its new chairman.

Other members appointed to the board were State Attorney Moosa Alim, Zeeniya Ahmed Hameed, deputy director general at the Housing Ministry, Ahmed Ifthihar, director at the Economic Ministry, Rilwan Adam, director at the Finance Ministry, Mohamed Ali, director general at the President’s Office, Ahmed Gasim, deputy director general at the Health Ministry, and Saudhulla Hilmy.

President Yameen also made a number of changes to the boards of eight public companies and state-owned enterprises through the privatisation board.

According to local media reports, Dhiraagu Chairman Ibrahim Athif Shukoor was replaced with Rilwan Shareef while a government representative on the Dhiraagu board, Ilham Hussain, was dismissed and replaced with Abdulla Ahmed.

Maldives Water and Sewerage Company (MWSC) Managing Director Mohamed Ahmed Didi along with five board members were also dismissed and replaced.

Among other companies that saw top level changes were the Maldives Marketing and Public Relations Corporation, Housing Development Corporation, Maldives Tourism Development Corporation, Gulhifalhu Investment, Hithadhoo Ports Ltd, Kulhudhufushi Ports Limited, and the Aasandha Company.

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President inaugurates MWSC Production Centre in Maafushi

President Mohamed Nasheed inaugurated the MWSC’s (Malé Water and Sewerage Company) Production Centre in Maafushi on Saturday, which will provide desalinated water to the residents of the island.

President Nasheed noted the government recognised basic utilities like water and sewerage were essential for the development and prosperity of the people.

He said the government was aiming to provide these services in a sustainable manner, but needed support from the private sector which is why the government is pursuing a policy of Public Private Partnerships (PPPs) to carry out developmental activities.

President Nasheed also said the government’s wish to create seven provinces was “not for political gain but for the benefit of all citizens.”

He said the government “does not desire to do anything through arguing and fighting in the People’s Majlis,” but is trying to do what is best for the citizens of the country.

He noted if anyone could explain why creating the provinces would obstruct the development of the country, “we are ready to concede.”

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Vice President urges companies to fulfil social responsibilities

Speaking at the 15 anniversary function of Malé Water and Sewerage Company (MWSC) at the Fen Building, Vice President Dr Mohamed Waheed urged all business organisations in the Maldives to give special attention to fulfilling their corporate social responsibility.

Dr Waheed said, as the largest water provider in the country, the MWSC was undertaking a great responsibility.

He called on the company to fulfill its social responsibility and keep in mind the greater benefit of the people, while still working to maximise its profit.

Dr Waheed said clean drinking water and more affordable and accessible services for the less fortunate of the country should be given special consideration.

He said access to clean drinking water and adequate sewerage facilities was a Constitutional right of Maldivians, and it is the state’s responsibility to provide these services.

Dr Waheed said the MWSC had been providing clean water for half the population, and added the government established provincial utilities companies to provide for the rest of the population.

Dr Waheed also presented the company’s annual employee awards.

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Govenment sells 20 percent of MWSC to Hitachi at same price

The ministry of finance has sold 20 percent of the Maldives Water and Sanitation Company (MWSC) to Japanese company Hitachi Plant Technology.

The deal was signed by Minister of Finance Ali Hashim and President of the Hitachi Company Masaharu Suvikawa in Male’ yesterday.

According to Fathmath Muaza, assistant director of the ministry of finance, the total sale was worth US$16 million, with 53400 shares sold at US$ 305.90 per share – the same price the government last bought them for.

Asked why the government has decided to sell part of a profitable business, Muaza said “At the end of 2008, the government had to buy back the shares it had with the Danish company [HOH Water Technology of Denmark] as per the [existing] joint venture agreement. All these years that company in Denmark held 24 per cent of the shares in MWSC.”

Mifzal Ahmed, investment advisor to the ministry of economic development, said Hitachi’s decision to purchase shares in MWSC shows that the foreign investment community regards the Maldives “as a very sound place to do business.”

” It also shows that large companies are interested in engaging with local companies to introduce new technologies, particularly environmentally friendly technologies, that will make a strong contribution to our goal of carbon neutrality by 2020,” Mifzal said.

“We are also confident that these technologies will result in a better quality of service to the people of the country at the most affordable price possible.”

Opposition

The government has previously come under fire for its privatisation plans.

In 2009, it was accused by the opposition DRP of using funds to the tune of US$20 million, allocated for tsunami relief on Meemu Kolhufushi and Thaa Madifushi, for purchasing the MWSC shares back from the Danish company.

DRP spokesman Ibrahim Shareef said “I don’t think this is a good idea at all, this money should have been used for the tsunami relief effort. Under the joint venture agreement, there is a buy back option for the Danish company, we didn’t have to buy back all the shares.”

Shareef said he thought the biggest problem with the deal was that all the shares were sold at the same price that the government bought them for.

“If they sold it at a premium it might have been a different story, and there wasn’t even an initial public offering.”

Transparency

Dr Mohamed Jameel Ahmed of the Dhivehi Qaumee Party, DQP, said he felt the deal was not transparent enough, had no regards for the impending privatisation bill, and questioned why the company was not open for public purchase.

“I don’t see the necessity of selling 20 per cent of a profitable company for US$16 million.”

Jameel said the deal seemed rushed and due to the lack of transparency, said he held a “strong suspicion [that there were] underhand deals”.

In addition, he said, “why was the deal rushed in a recessionary period as we would have got a better price if we had waited a few months?”

In response to these accusations, Mohamed Zuhair, the president’s press secretary, said “DQP is obviously an opposition party and they would refute governtment policy. We deny all allegations that the process is not transparent.”

Zuhair siad that the whole process was monitored through the privatisation committee, public private partnership, Invest Maldives and the ministry of finance.

Previously, the government sold seven percent of its shares in Dhiraagu to Cable and Wireess for US$ 40 million, a deal which was heavily criticised as many felt the deal was largely under valued.

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