British electricity firm International Power has joined forces with two Japanese companies to buy a 40 per cent stake in the Umm Al Nar power and water plant from the Abu Dhabi Electricity and Water Authority.

The consortium, led by the British firm and including Tokyo Electric Power Company (Tepco) and Mitsui & Co Limited, has signed agreements to expand the plant and sell the entire power and water output to the Abu Dhabi Water and Electricity Company (ADWEC) under a 23-year deal.

The cost of the project, which will involve developing a new power and water plant alongside the existing facility, will amount to some $2.1 billion, International Power said.