In large skillet, heat 2 tablespoons olive oil over medium-low heat and add chopped peppers and onion. Season with salt and pepper. Sauté for few minutes until soft, about 6 minutes. Add water and continue to simmer for 15 minutes.

Cook pasta according to package instructions, reserving 1 cup of pasta cooking water before draining.

While pasta is cooking, transfer sauce to blender or food processor and puree, slowly adding remaining 2 tablespoons of olive oil and 1/4 cup of pasta cooking water, until sauce is creamy. Return sauce to simmer, add shrimp. Cook until pink, 2 to 3 minutes.

Add drained pasta to sauce and stir to combine. Adjust consistency with some of reserved pasta water, if needed.

Garnish with fresh basil and serve.