Utico has announced investments of nearly AED1.2 billion ($326 million) in new utility projects across the UAE to meet the growing regional demand for water and power.

The projects include a water transmission and storage project between Ras Al Khaimah and Sharjah and a desalination facility to be set up in Ras Al Khaimah.

The company said in a statement that work has started on the AED410 million Ras Al Khaimah-Sharjah water transmission project, which can carry 50 million gallons of water either way and will have a final storage capacity of 100 million gallons once operational.

It added that the project will be implemented in two phases and will be completed in 18-32 months with the pipeline operational in June 2017.

Once deployed, the project will provide continuous water supply to more than one and half million residents in Sharjah and Ras Al Khaimah, working closely with the Sharjah Electricity and Water Authority (SEWA) and the Federal Electricity and Water Authority (FEWA).

Richard Menezes, Utico's managing director, said: "The remarkable growth of population in Ras Al Khaimah, Umm Al Quwain, Ajman and Sharjah puts an increasing demand for water, both for consumption as well as industrial purposes.

"Once the project is completed, it will supply uninterrupted water to the residents and companies in the two regions."

The investment in the RAK-Sharjah water transmission and storage project is in addition to the AED719 million investment in a water desalination project that Utico announced a few months ago.

A joint venture with Spanish utilities leader Grupo Cobra will see a 22 million gallon capacity plant being set up in Ras Al Khaimah and will be fully operational in 2018.

Menezes added that Utico was also on course to set up a 40MW solar power plant for which several bidders are vying for the contract.