Abu Dhabi Water & Electricity Authority (Adwea) has agreed to transfer 90 per cent of its share in the Shuweihat 2 independent water and power project (IWPP) to state-owned energy investment firm Abu Dhabi National Energy Company (Taqa).

Under the original plan to develop the plant, Adwea would own 60 per cent of Ruwais Power Holding Company, the project company of Shuweihat 2. While France’s GDF Suez and Japan’s Marubeni, the developers of the plant, hold 20 per cent each.

GDF Suez originally owned 40 per cent of the project before it sold off half of its share to Marubeni in May 2009.

Once the transaction is completed Taqa will be the majority shareholder in the IWPP with 54 per cent of the project under its name.

Shuweihat 2 is currently under construction and is expected to be commissioned by the end of 2011. When complete it will have a capacity of 1,500MW of power and 100 million gallons a day (MIGD).

The facility reached financial close in October last year with a total of 14 banks putting forward $950 million long-term debt for the $2.6 billion project.