Addu City Council has revealed it has decided to terminate the agreement to establish a Neighbourhood Fish Processing Plant in Hithadhoo.
The council stated it made the decision to terminate the agreement with the contractor due to delays in establishing the plant. The council stated it will also be working to recover USD 58,000, which was provided to the contractor from the Addu City Trust Fund.
In May 2020, a local company was contracted to complete construction and open a Neighbourhood Fish Processing Plant in Hithadhoo within 280 days. Mayor of Addu City Ali Nizar said repeated meetings with the contractor El Naathu Maldives Private Limited and consultant Riyan Private Limited have resulted in no progress, as revealed in the progress reports. The council and the consultant company have been left with no option but to terminate the agreement with the contractor, he said.
The project is being funded under the Memorandum of Understanding (MoU) signed on March 17, 2019, for the Indian Grant Assistance for Implementation of High Impact Community Development Projects through local bodies. Projects currently in progress under the scheme include the construction of three fish-processing plants in Maradhoo, Hithadhoo, and Hulhudhoo in Addu City
The plants to be established in Addu City are expected to produce 20 tonnes of ice and preserve 10 tonnes of fish products. Addu City Council stated the plants will allow the city to buy and process 400 to 800 tonnes of fish products.