ABU DHABI, March 25 (Reuters) - Abu Dhabi has folded utility Abu Dhabi Water & Electricity Authority (Adwea) into the emirate’s newly established department of energy as part of a consolidation of state-owned entities, a spokesman for the department said on Sunday.
The Regulation & Supervision Bureau (RSB), which oversees water, waste water and electricity in Abu Dhabi, will also become part of the energy department.
Oil-rich Abu Dhabi has seen some of its largest firms merge in the last two years as part of a strategic review in response to an oil price slump.
Two of the UAE’s biggest banks, National Bank of Abu Dhabi and First Gulf Bank, were merged to create First Abu Dhabi Bank . International Petroleum Investment Company (IPIC) was merged with Mubadala. This month, Abu Dhabi Investment Council was taken over by Mubadala Investment Company.
Last month, President Sheikh Khalifa, in his capacity as ruler of Abu Dhabi, issued a series of laws establishing a number of government departments for the emirate, including the Department of Energy.
“In accordance with the law, Adwea and the RSB will, effective February 20, 2018, be under the newly created department of energy,” the spokesman of the Abu Dhabi Department of Energy told Reuters.
All of Adwea’s assets, rights and obligations will be transferred to the Energy Department, which will be responsible for strategic plans for the entire energy sector in Abu Dhabi.
The state-owned utility owns 74.1 percent of Abu Dhabi National Energy Company (TAQA). With this move, Abu Dhabi-listed TAQA, effectively, comes under the department of energy.
Adwea also owns 10 power and water desalination plants. Earlier this year, it invited bids to build one of the world’s largest desalination plants. Adwea is building one of the world’s largest solar power plants which is scheduled to be completed in the second quarter of 2019. (Reporting By Stanley Carvalho & Davide Barbuscia, editing by Jane Merriman)