19 May 2008

Utility Problems

It seems that the lesser Emirates of Sharjah and Ajman are having public utiilty issues. It is taking as long as five years to get electricity, water and sewage connections to new construction projects There are some 30 high rise apartment buildings in Sharjah and Ajman that are unoccupied because of it. The story is here.

The problem is not the result of slow bureaucracy but a reflection of municipal systems that do not have the capacity to keep up with the demands of the rapidly growing emirates. Ahmed Al Abdullah, CEO of New Dubai Property, which operates in Sharjah and Ajman, said population growth had made it difficult to resolve a current lack of capacity despite efforts to expand infrastructure in both emirates.

Some developers are thinking about building their own power plants. The promise that power is about to be provided is a commodity that increases the value of a property before anything is built.

This problem is the canary in the mineshaft giving warning about the runaway growth in the Emirates and failure of infrastucture to keep pace.

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