Master developers in Ajman are planning to set up their own captive power plants and district cooling units despite being assured by the Ajman government on fulfilment of infrastructure requirements, Emirates Business has learnt.
"We have assurances from the government on supply of electricity and other infrastructure requirements. But we are looking at other options such as having our own captive power plants and cooling facilities," Fahad Sattar Dero, Chief Executive Officer, Sweet Homes Real Estate, said.
"A few companies have approached us and have promised us to build the infrastructure in a short span if that is required. We do believe that the government will fulfil the assurance but having our own plants is an option that we are considering," he said.
"There is no shortage of water, but there is some worry about electricity. The government is already investing a lot in developing the infrastructure and we certainly are not going to face any problems," Yasser A Alnemer, General Manager, Berjal Properties, said.
In May, the Saudi-based real estate developer launched Berjal City, a Dh15 billion project in Ajman. The developer has confirmed that they got government assurance for supply of sufficient power. The project, which covers 30 million square feet of land, will have 123 plots for construction of residential and commercial towers, ranging between 19 and 60 floors.
Rami M Dabbas, Chief Executive Officer of Aqaar Properties, said that getting adequate power and water supply is a challenge, built the government is looking at various options.
"Power and water are a real challenge. The government of Ajman will not allow this problem to form an obstacle for the developments in the emirate. The government is studying this issue seriously and has given it top priority. Officials are discussing ways to attract investment in this vital sector. Even developers are encouraged to invest in this service sector," he said.
Real estate prices in Ajman are expected to skyrocket following the introduction of the new property law in the emirate. Industry experts say a property boom is under way in the northern emirates, with prices in Ajman likely to rise by 100 per cent in six months.
In March, President His Highness Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi, ordered the allocation of Dh16bn to develop infrastructure in the Northern Emirates. The move was aimed at accelerating economic progress and the construction boom.
Ajman Municipality and Planning Department Director Mohammed bin Omair had announced earlier the launch of infrastructure projects worth Dh200m.