News Desk
DUBAI — The first batch of ambulances procured under a Maldivian government initiative has passed inspection in Dubai. Maldives Ports Limited (MPL), the state-owned enterprise is overseeing the purchase. Eighteen vehicles were examined by a joint team from MPL and the Health Ministry, marking a key milestone in the plan to deliver 56 ambulances to islands across the country.
President Dr Mohammed Muizzu has pledged that more than 60 islands will receive ambulances before the end of the year, prioritising communities where existing vehicles are damaged or out of service.
While the initiative has been broadly welcomed, the decision to award the contract to MPL has stirred unease among local business owners and small-to-medium enterprises (SMEs). The concern lies not in the need for ambulances, but in the growing tendency of state-owned enterprises (SOEs) to secure government contracts outside their traditional scope — often without competitive bidding.
Under President Muizzu’s administration, SOEs have increasingly taken on roles once reserved for private contractors and sector-specific agencies. Critics argue that this trend undermines the private sector, stifles innovation, and concentrates public procurement within a handful of government-linked entities.
MPL, historically responsible for port operations, has recently expanded into health logistics and procurement. Its involvement in the ambulance deal reflects a broader shift in how public services are being delivered — one that some view as streamlined, but others see as exclusionary.
The pattern extends beyond MPL. Maldives Airports Company Limited (MACL), whose core mandate is managing the country’s international airports, has ventured into education infrastructure, urban development, and regional infrastructure.
In October, MACL signed an agreement with Maldives National University to build a hotel school and resort in L. Hulhimendhoo. The project aims to bolster human capital in the tourism sector, offering specialised training for Maldivians. It also marks MACL’s first foray into education infrastructure— a domain traditionally managed by private developers.
That same month, MACL launched a new subsidiary, Peninsula Infrastructure Pvt Ltd, to oversee land reclamation and city-building projects. The company is expected to lead dredging operations for Hulhumalé Phase 3, Fushiggaru Falhu, and the government’s flagship housing initiative, Rasmale’. MACL has committed USD 70 million to the venture, signalling a significant expansion into urban development.
Beyond dredging, MACL has taken on city infrastructure projects, including the construction of outdoor gyms across multiple islands. It has also absorbed the regional airports company as a subsidiary, positioning itself as a central player in domestic aviation development.
In February, MACL signed an agreement with Maldives Transport and Contracting Company to develop a new airport in R. Fainu — a project previously stalled due to environmental concerns. By September, it had entered into a formal agreement with the Ministry of Finance to build and operate an airport in Th. Vilufushi, complete with a runway, passenger terminal, and support infrastructure. The scope of the project is typically handled by specialised development agencies, not the national airport operator.
Taken together, these moves have raised eyebrows among local contractors and trade analysts. Many argue that SOEs are absorbing contracts well beyond their original remit, distorting the competitive landscape and sidelining private sector players who might otherwise bid for such projects.
In the context of the ambulance procurement deal awarded to MPL, the trend becomes clearer: state-owned enterprises are increasingly being used as vehicles for delivering public infrastructure, often bypassing local companies and SMEs. The centralisation of state contracts within a few government-linked entities risks creating an uneven playing field — one where efficiency may come at the cost of inclusion.
