A Chinese company has been contracted a project of power generation and distribution in Addu City, by the government of Maldives.

While the signing ceremony of the Framework Agreement took place at Maagiri Hotel in capital city Malé on Wednesday, the project is deemed a massive leap to resolve the drawn-out electricity issues facing residents of the southernmost city.

China’s Dongfang Electric International Corporation was tasked with the generation and distribution of 20-megawatt power to the entirety of Hithadhoo city.

The special signing ceremony was joined by a few parliamentarians as well as Minister of Economic Development, Fayyaz Ismail.

The project, the Economic Ministry revealed, will in turn lead to a kick-start in economic development projects the government has envisioned for the southernmost city.

Further, the ministry added that the project will “act as a catalyst” in achieving the southern economic development plan once in action, via a Twitter post.

The project in question, is anticipated to commence within the next two months.

Speaking to press after the signing ceremony, Minister Fayyaz revealed that hopes are high that once the project is completed, the electricity issues surfacing for the city will be resolved once and for all.

Fayyaz stated that bringing a solution to the electricity issues facing the entire nation is an important priority for President Ibrahim Mohamed Solih within his five-year tenure.

Further, he added that it is one of the current government’s pledges to establish four economic hubs in the country, out of which one is in Addu. Highlighting that electricity is important for economic development and even carrying out economic activities, Fayyaz stated that if the project is carried out successfully, electricity issues will not surface in the city for the next 15 years or so.

While the project is being carried out in cooperation with FENAKA Corporation, the company’s Managing Director Ahmed Saeed Mohamed revealed that the company aims to initiate a project to change 70 percent of Addu City to solar energy in the near future. He added that a 10-megawatt solar project is expected to commence in Addu in the near future.

In addition, Saeed said that modern networks will be established along with a network upgrade. Further, the entire city will be linked with fiber optic cable under the project.

Although the agreement highlights that 20-megawatts of power will be generated across the city under the project, 36-megawatt will be generated by the end of the project, said Saeed.

Also at the press conference, Addu City Mayor Abdulla Sodiq revealed that electricity issues are one of the biggest hindrances in the city’s development. He went on to express gratitude on behalf of the city residents for the initiative.