Four electricity plants with a total capacity of 740MW are to be built by the Ras Al Khaimah Government.
And plans for a 2,000MW plant to meet the needs of the emirate's future expansion are being studied, said Dr Khatir Massaad, economic advisor to the government and CEO of Ras Al Khaimah Investment Authority.
The first plant at Al Hamra, with a capacity of 120MW, will cost Dh440 million and will become operational in November.
"We have imported the necessary equipment, some of which is ready for installation," said Massaad. "We will start installation in the next two weeks."
An 80MW plant at Al Ghail Industrial City and another with a capacity of 40MW at Al Hamra will be ready for operation in June 2009. The combined cost of both plants will be $120m. And the fourth plant, with a capacity of 500MW, is due to open in September 2010.
Dr Massaad said the Ras Al Khaimah Government had appointed international consultants to set up of the power stations. The plants will be entirely owned by the government, which will charge customers the same as the Federal Electricity and Water Authority.
Al Ghail Industrial City will cover 128 million sq ft and has attracted Dh2.5bn of investment. Sixty per cent of the investors are Indian and the rest are from Gulf countries – mainly Saudi Arabia and Kuwait.
"We are keen to attract not just investment but long-term investment.
"We make economic feasibility studies of each application as we do not want our investors to lose but to make profits and benefit from continual growth. We have turned down some applications that were not economically viable.
"We advise investors about the types of businesses that would guarantee long-term capital growth. Investors should think of making returns in the long-term and not just consider the current market situation.
"The country is witnessing a property boom and as a result many people wish to invest in building materials. We suggest they not do so as the needs of the local market are already being met. Investors are advised to consider exporting to other markets and not just selling in the local market." Asked about cases in other emirates where projects had been delayed and even cancelled, Dr Massaad said: "We are not facing such a problem in Ras Al Khaimah as we carefully study our projects and our partners. We have not had any cancellations or delays."
He said a company that expressed an interest in building a space port in the emirate had not started work on the project.
"The government is not involved in, nor responsible for, the cancellation or delay of the project," he added.
Dr Massaad gave an update on the progress of various projects in Ras Al Khaimah. He said the construction of a road to the site of the Jebel Jais Mountain Resort in the Hajar Mountains was progressing and the project's master plan was being drawn up. The giant resort will have an outdoor snow ski slope and a cable car as well as a five-star hotel, villas and apartments.
The reclamation of land for Al Marjan Island is complete and the developers will move on to the site in September. And land reclamation for Dana Island will start in two weeks' time.