Government transfer not the reason for changes to sewerage project in Addu: Fenaka Corporation

Fenaka Corporation has said that the change of government was not the reason behind the changes to the water and sewerage system project in Addu City, carried out by Southern Utilities and UK company Biwater.

Fenaka Corporation said in a press statement issued today that the changes had to be made due to Biwater’s failure to provide the $27 million for the project as previously agreed.

According to the statement, it was decided in January 2012 to remove the work on the sewerage system plus the installation of sewerage treatment plants in Addu City, and the water and sewerage work in Fuvahmulah; and to include only the water project for Addu City in the project.

The statement also informs that thus far, the amount spent on the project is $15 million which was assigned in the State Budget, and that efforts are under way to obtain more finance.

Fenaka Corporation also said that the previous management of Southern Utilities Ltd had violated the policies on such projects as well as the Environmental Protection Agency’s policies.

Fenaka Corporation has made the decision to solve these issues, prior to proceeding with the project.

The statement also says that Fuvahmulah was removed from the project before the government changed, due to Biwater’s failure to provide finances as per prior agreements.