3 NG - nama.om · 400 KV grids at Duqm and Mahoot. This would result in introduction of five 400 kV...

NG - ANNUAL REPORT3 2019

THE BEST SUCCESSOR TO THE BEST PREDECESSOR

The Late Sultan Qaboos bin SaidMay God rest his soul in peace

His Majesty Sultan Haitham bin TarikMay God protect him

Nama Group is a leading reference forutility services excellence in the region


TABLE OF CONTENT

SUBJECT SECTION PAGE

About Nama Group

About Nama Group 12

Board Members 14

Leadership Team 15

Chairman’s Report 16

Governance Governance Report 20

Strategy

Our Strategy 28

Health, Safety and Environment (HSE) 30

Customer Services 34

Human Resource Development 36

FinancialPerformance

Financial and Operational Performance 40

Group Companies Performance 55

Sustainability Achievements of the Sustainability program

82

NAMA GROUPMISSION Leading and enabling the Group to deliver safe, reliable and sustainable electricity and water services to enhance value for Oman.

VISION Nama Group is a leading reference for utility service excellence in the region.

VALUES• Integrity• Professionalism • Respect



ABOUTNAMA GROUP

Nama Group (NG) was established as a result of restructuring the electricity and related water sector in 2004 and commenced its commercial operations on 1 May 2005.

NG’s operations are spread across generation, procurement, transmission, distribution and supply of electricity and related water services in the Sultanate.

The Group consists of: HOLDING COMPANY• Nama Holding (NH)

GENERATION COMPANIES• Wadj Al Jizzi Power Company (WJPCO)

• Al Ghubrah Power and Desalination Company (GPDC)

TRANSMISSION COMPANIES• Oman Electricity Transmission Company

(OETC)

DISTRIBUTION/SUPPLY COMPANIES (DISCOS):• Muscat Electricity Distribution Company (MEDC)• Mazoon Electricity Company (MZEC)• Majan Electricity Company (MJEC)• Dhofar Power Company (DPC)• Rural Areas Electricity Company (Tanweer)

PROCUREMENT OF POWER AND WATER• Oman Power and Water Procurement Company (OPWP)

TRAINING AND DEVELOPMENT• Numo Institute for Competency Development (NICD)

INFORMATION TECHNOLOGY• Nama Shared Services Company (NSS)

ABOUT NAMA HOLDINGNama Holding is a joint-stock company, registered in the Sultanate of Oman. The company commenced its commercial operations on 16 September 2003 and holds the shares of the Government in subsidiary companies. Nama Holding is responsible of implementing the Government’s policy on financing state-owned companies in the electricity and related water sector, supporting and implementing government privatisation policies for the electricity and water sector, drawing NG’ strategy which focusing on developing its business and supervising all the key strategic projects implemented by the subsidiaries.


Ministry of FinanceMinistry of Oil and Gas

Authority for Electricity RegulationNama Group

Oman Electricity

Transmission Company

Oman Power and WaterProcurement Company

Wadi Al JizziPower Co

Al Ghubrah Powerand Desalination Co

Private Sectorgeneration companies

Desalination

Generation Distribution SupplyRural Areas

Electricity Company(Tanweer)

MEDC

MZEC

MJEC

DPC

Distribution lines carry electricity to house

Neighborhoodtransformer steps

down voltage

Transmission linescarry electricitylong distances

TransformerSteps up voltage for

transmission

Power PlantGenerates Electricity

Customers

Residential

Industrial

Commercial

Agriculture

Government

CRT (Cost Reflected Tariff)

73.99%

0.04%

21.70%

0.74%

3.02%

0.87%

The electricity sector consists of three major organizations; the Ministry of Oil and Gas, the Authority for Electricity Regulation (AER), and Nama Group. The Ministry of Oil and Gas is responsible for electricity policy overview, while AER is in charge of regulating the electricity sector.

The Ministry of Finance is the shareholder of Nama Holding, which is the holding company of Nama Group. Nama Group acts as the sole provider of electricity distribution, supply, transmission and procurement. In the generation business, two generation companies operate under Nama Group, while other companies are Independent Private Projects (IPPs) contracted by OPWP.

Note: Royal Decree No. (40/2018) provided that all electricity-related powers and mandates formerly assigned to the Public Authority for Electricity and Water (PAEW), shall be transferred to the Ministry of Oil and Gas.


BOARD MEMBERS

AMAL HUMAID AL JABRIMEMBER

MULHAM BASHIR AL JARFMEMBER

H.E FAISAL KHAMIS AL HASHARDEPUTY CHAIRMAN

H.E HASSAN MOHAMMED AL LAWATICHAIRMAN

DR. ALI HAMED AL GHAFRI MEMBER


LEADERSHIP TEAM

MANSOOR AL HINAIVice President-Distribution

and Supply

IBRAHIM AL SULEIMANYExecutive Manager - Group

Human Resources

OMAR AL WAHAIBIChief Executive Officer

SUHAILA AL FARSI Executive Manager - Group

Governance andRisk Management

GHADA AL YOUSEFExecutive Manager-Group

Communication and Sustainability

Vinod Sadwani Acting Group Chief Financial

Officer

LINA AL FARSIActing Group Chief Auditor


CHAIRMAN’S REPORT

DEAR SHAREHOLDERS,On behalf of the Board of Directors of Nama Holding (NH), I extend my sincere condolences to His Majesty Sultan Haitham bin Tarik, the Royal Family, Omani people, and the Arab and Islamic nations on the passing of the founder of Oman’s modern renaissance Sultan Qaboos bin Said bin Taimur - may Almighty Allah rest his soul in peace - We pledge to continue our mission under the wise leadership of His Majesty Sultan Haitham bin Tarik - may Allah protect him.

I am pleased to present the annual report and the audited financial statements of Nama Group (NG), for financial year ended on 31 December 2019.

OPERATIONAL PERFORMANCEThe electricity sector and the related water sector continued to grow in 2019; reaching out to more customers and new geographical areas and increasing generation and supply of electricity and water production. In keeping with the growth in the electricity demand and meeting customers’ satisfaction, NG continued to invest in the electricity network. NG invested RO 285 million in network expansion in 2019 as the customer base increased by 4.7% to 1,276,932 as compared to 1,219,156 in 2018.

In addition, the electricity supply increased by 0.7% to 33,796 GWh against 33,562 GWh in 2018. As a foundation of our growth strategy, the Omanization percentage among the Group reached 95.1% by the end of 2019.

FINANCIAL PERFORMANCEThe implementation the new International Accounting Standard (IFRS – 16 Leases) on Group account in 2019 should be taken into consideration when comparing between 2019 and 2018 financial performance. The implementation of this standard resulted in a reduction NG’s operating revenue to RO 1.25 billion in 2019 as compared to RO 1.29 billion in 2018. The net profit after tax decreased by 15.4% to RO 60.4 million in 2019, compared to RO 71.4 million in 2018. The reduction in the net profit after tax is primarily driven the implementation of IFRS 16 in Oman Power and Water Procurement Company SAOC (OPWP), which caused an increase in the finance and depreciation costs.

On the other hand, the impact of IFRS 16 resulted in an increase in the total assets by 56.3 % from RO 4.4 billion in 2018 to RO 6.9 billion in 2019. The increase in the total assets is primarily driven by increase in Right of Use of assets in OPWP.

The investments in new generation capacity (3,283 MW) and expansion of electricity transmission and distribution networks and the increase in the cost of financing lead to an increase in the economic cost of electricity. This in turn lead to an increase in the electricity subsidy for the year 2019. by 10.9% to RO 624.7 million.

IMPLEMENTING NG STRATEGYIn response to the steady progress in customer


service and the growing demand for electricity and associated services, NG continued supporting its subsidiaries during 2019 to improve the quality of services and enhance customer satisfaction. NG’s distribution companies have achieved a remarkable progress in facilitating and increasing the quality of customer services. This has been achieved through enhanced operational efficiency, training and qualifying human resources and using modern technology, mainly in meter readings and billing systems, in addition to digital payment channels and call centers. As part of the continuous development efforts, an ambitious plan is being implemented to utilize various modern technologies to develop and improve the services offered to customers.

PRIVATIZATION OF ELECTRICITY SECTORAs mandated by the Government, NH announced the partial privatization of Oman Electricity Transmission Company (OETC). Accordingly, 11 Expressions of Interests were received from 16 international investors. After the evaluation process, NH announced the sale of 49% of its shares in OETC to State Grid International Development Ltd. (SGID) through the signing ceremony held in Muscat on 15 December 2019. State Grid International Development Ltd. (SGID), incorporated in Hong Kong, is the wholly owned subsidiary of the State Grid Corporation of China (SGCC), one of the largest operators of electricity transmission networks in the world. The OETC transaction is conditional only upon the approval of the Authority for Electricity Regulation, and (subject to satisfaction of this condition) completion is expected to occur in early 2020.

NH also announced the sale of 70% of its shares in Muscat Electricity Distribution Company as per the plan to privatize electricity distribution companies. It is planned to receive the bids and complete the privatisation transaction in the year 2020.

RENEWABLE ENERGY PROJECTSNama Group is executing several projects to implement Government Policy to achieve the target of producing 30% of the energy

consumed in Oman from renewable resources by the year 2030:

IBRI SOLAR PROJECTSWith a view of benefiting from the vast solar energy potential in Oman and also to meet the renewable energy targets of the country, NG, represented by Oman Power and Water Procurement (OPWP), has signed the Power Purchase Agreement with Shams Al Dhohor Generation Company which will build, own, operate and finance a 500MW Solar Independent Power Project at Ibri, under Oman’s well established Independent Power Projects (IPP) program. The project is scheduled to commence commercial operation in the second half of 2021.

DHOFAR WIND PROJECTDhofar Wind Project, a major renewable energy project which started its commercial operations in November 2019. The project has been implemented as a collaboration between the Rural Areas Electricity Company (Tanweer) and MASDAR of UAE. The development of this project is based on the long-term Power Purchase Agreement signed between OPWP and Tanweer. The wind farm consists of 13 wind turbines producing a capacity of 50MW.

MANAH SOLAR I & II IPPSOPWP announced the launch of two solar IPPs (Manah Solar I & II IPPs). The two projects will be financed, built, owned and operated by the private sector.

The projects will be located on adjacent sites in Ad’Dhakhiliyah Governorate, approximately 150 km from Muscat. Each project will have a generation capacity of 500 MW and the plan is to award the project in Q3 of 2020 to ensure that they are operating by Q4 2022.

WIND RESOURCE ASSESSMENT CAMPAIGN (WRAC)In early 2019, OPWP launched a Request for Proposal to provide Wind Resource Assessment Services, including the installation, commissioning, and operation & maintenance of wind resource monitoring stations, in addition to the collection and validation of


400 KV grids at Duqm and Mahoot. This would result in introduction of five 400 kV grid stations and almost 650 km of 400 kV overhead lines. The first phase of the engineering design work has been completed and all related tenders were floated. The full scope of the phase 1 of the project is expected to be completed by end of 2023.

SUSTAINABILITY POLICY PROJECTSIn 2019, we made a progress in our sustainability policy. We allocated RO 0.500 million for projects, programs, campaigns, donations and sponsorships that reflect social, economic, and environmental pillars of NG’s Sustainability Policy. These projects and programs contributed to promote the awareness in the society about electricity hazards, health and safety aspects. Moreover, several awareness sessions and programs have been conducted related to In Country Value (ICV) for capacity building and create business opportunities to increase the participation of the private sector.NG also conducted the National Electricity Conservation Campaign and supported the Omani youth to innovate solutions to conserve the environment.

ACKNOWLEDGMENT On behalf of the Board of Directors, I would like to take this opportunity to thank our shareholders and stakeholders who have contributed to our success. I also thank the Engineer Omar Khalfan Al Wahaibi the Group’s CEO, and the CEOs of our subsidiary companies, the management team and Group staff for their dedication and commitment to the continued growth of NG and the sector.

We will continue delivering our vision to enable progress and prosperity for our economy under the wise leadership of His Majesty Sultan Haitham bin Tarik – May Allah protect him.

Hassan Mohammed Ali AL LawtiChairman

high-quality wind resource data. The main objective of the WRAC is to obtain bankable wind resource data to support the future development of Wind Power Project(s) at each Project Area. A complementary objective would be to collect solar irradiation data to support the development of Wind and Solar Hybrid projects at the identified sites.

WATER PRODUCTION PROJECTSAL GHUBRAH-III DESALINATIONOPWP released the Request For Proposal(RFP) for the development of 300,000 m3/d desalination plant at Al Ghubrah in Muscat Governate in June 2019, and bids were received by end of 2019.

The project will follow the successful Independent Water Project (IWP) model established by the sector and will be built, owned and operated by the private sector and the scope of the projects includes financing, procurement, engineering, construction, operation and maintenance. The project is expected to be in operation by Q4 2023.

BARKA-V DESALINATIONOPWP released an RFP for the development of 100,000 m3/d desalination plant in Barka using the IWP model in May 2019 and bids were received in October 2019. The project is expected to be in operation by Q2 2022.

NORTH-SOUTH INTERCONNECTION PROJECTThe Interconnection Project is NG’s key initiative to integrate Oman’s two main systems, the Main Interconnected System (MIS) covering the northern half of Oman with the Dhofar Power System (DPS) in the south. The 400kV interconnection will interconnect with Petroleum Development Oman(PDO) network and will extend onward to Duqm and Mahoot area which are under Tanweer’s concession areas on which a major industrial and economic hub is under development. The implementation of the project will be done in phases. Phase 1 of the project focuses on connecting PDO via three 400 KV grid stations at Nehada, Barik and Suwaihat and further expanding the 400 KV network to Tanweer areas by constructing



GOVERNANCE REPORT

NAMA HOLDING’S PHILOSOPHY ON CODE OF GOVERNANCE

Nama Holding’s (NH) adheres to stringent corporate governance practices and standards to ensure consolidation of business objectives across all levels of the Group and enhance shareholders’ value. NH applies various processes, procedures and systems to ensure that all those working under its extensive umbrella act responsibly, and with great accountability, transparency and integrity.

NH’s Corporate Governance Policy has been built on international standards and principles, as well as the Code of Corporate Governance Code issued by the Ministry of Commerce and Industry for Public Listed Companies (SAOG). This policy has been developed and shared with all NG’s subsidiaries. Moreover, NH Board of Directors values the significance of corporate governance and its vital role in the Group’s business and mission to achieve sustainable development and prosperity.


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NH'S GOVERNANCE STRUCTURE

Ministry of Finance

Board ofDirectors

Board ofDirectors Office

Group HRCommittee

Major TenderCommittee

AuditCommittee

GroupInternal Audit

GroupChief Executive Officer

GroupCommunication

&Sustainability

GroupFinance

Supply &Distribution

GroupHuman

Resources

Group Strategic Planning and

Risk Management

WaterRestructioring Legal

ROLE OF THE BOARD OF DIRECTORS AND ITS COMMITTEES

• Board of Directors (BoD) NH’s BoD is responsible for the operations of NH and overseeing its subsidiaries. NH

Management, led by the CEO, is in charge of NH’s day-to-day operations, with oversight by NH’s BoD. The responsibilities of NH’s BoD towards NG include:

a) Nomination: Putting up recommendations to the shareholders on the nomination and removal of subsidiaries’ Board of Directors, where necessary, as well as determining their roles, responsibilities and mandates.

b) Strategy: Setting NG’s strategic direction and approving the strategy management framework.c) Group Image: Promoting and maintaining NG’s image internally and externally.d) Performance Management: Reviewing the performance of subsidiaries and their Board of

Directors, as applicable.e) Subsidiary CEOs: Appointing, re-appointing, and terminating subsidiary CEOs, where

necessary, in coordination with the subsidiary boards.f) Risk Management: Providing a framework of prudent and effective controls to enable NG to

effectively assess and manage risks.g) Group Policies: Defining and adopting NG policies, manuals, and frameworks to achieve

NG’s aims and objectives while upholding the principles of transparency, accountability and consistency.

h) Shared Services: Ensuring synergy among NG companies by adopting shared services-where possible - to optimize and avoid duplication of cost.

i) Internal Auditing: The NH Audit Committee is also responsible for audit operations at all NG’s LLC subsidiaries.

j) LLC Companies’ Governance: Approving the delegation of powers to NG’s LLC subsidiaries.

GOVERNANCE STRUCTURE:


SUB COMMITTEES OF THE BOARD The Board is responsible for the establishment and functioning of all Sub Committees, and the appointment of members to these committees and their compensation. The Board has delegated responsibilities to three Board sub committees namely Audit Committee, Group Human Resources Committee and Major Tender Committee.

• Audit Committee (AC) The Audit Committee is expected to ensure that adequate processes are in place to maintain compliance with regulatory requirements; enhance the effectiveness of internal and external auditors through coordination; protect them from the management’s undue influence, and provide the Board with subject matter expertise on governance and risk-related matters.

The Audit Committee shall have the following objectives:1. Monitor the integrity and accuracy of the Company’s financial statements and any formal notes on the Company’s financial performance and review significant financial reporting estimates contained therein;2. Review the Company’s internal financial controls, internal performance controls and risk management systems;3. Monitor and review the effectiveness of the Company’s internal audit function;4. Monitor and guarantee the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration relevant Capital Market Authority regulations, the Commercial Companies Law, the Sector Law, and any other relevant laws; and5. Adopt policies on the engagement of external auditors to supply non-audit services, taking into account the relevant ethical rules on the provision of non-audit services by the external audit firm.

• Group Human Resources Committee (GHRC) The GHRC is an NH board-level committee that considers matters related to the nomination of candidates to the boards and higher managements of both NH and its subsidiaries, as well as HR policies and other significant HR matters that require the attention of the Board of Directors.

GHRC’s objectives are:1. To assist the NH and NG subsidiary boards in carrying out their oversight responsibilities,

ensuring the independence and integrity of the Directors and the adequacy of the salary and remuneration strategy at NH and subsidiaries;

2. To support subsidiary boards in identifying appropriate candidates for board membership and to fill Director’s vacancies, as and when they arise; and

3. To assist NH and subsidiary boards in identifying appropriate candidates for managerial positions at NH and NG’s subsidiaries.

• Major Tender Committee (MTC) The purpose of MTC is to control, implement, execute and manage the Procurement Policy and system. Also to approve the process of related tenders.

BOARD OF DIRECTORS COMPOSITION Being an unlisted joint-stock company, NH is subject to the provisions of the Commercial Companies Law No. 18/2019 as amended and NH’s Articles of Association. In this context, NH’s Board is composed as follows:



1. NH’s Board is composed of 5 directors.2. The Board includes independent and non-executive independent directors.3. Non-executive independent directors do not perform any function in NH for which they

receive monthly or annual remuneration.

NOMINATION AND ELECTION OF DIRECTORS On nominating and electing directors, the terms and conditions set out in the Commercial Companies Law and its Implementing Regulations shall be complied with. NH is led by a strong and experienced Board. The directors bring diversity in expertise and perspective to the leadership of a complex and highly-regulated electricity sector.

ATTENDANCE OF DIRECTORS AT BOARD AND COMMITTEE MEETINGS IN 2019Member H.E. Hassan

Mohammed Al Lawati

H.E. Faisal Khamis Al Hashar

Mr. Mulham Basheer Al Jarf

Mrs. Amal Humaid Al Jabri

Dr. Ali Hamed Al Ghafri

Nama Holding BoD Meeting

Date Chairman Vice Chairman

Member Member Member

1st BOD Meeting 12.03.2019 Attended Attended Attended Attended -

2nd BOD Meeting 26.03.2019 Attended Attended Attended Attended Attended

3rd BOD Meeting 24.04.2019 Attended Attended Attended Attended Attended

4th BOD Meeting 08.07.2019 Attended Attended Attended Attended Attended


6th BOD Meeting 01.10.2019 Attended Attended - Attended Attended



Total Number of BOD Attended

8 8 7 8 7

Sitting Fees (OMR) 5,200 4,000 3,500 4,000 3,500

BOD Bonus (OMR 10,000 5,000 5,000 5,000 5,000

Internal Audit Committee (IAC)

IAC Meeting Date Member Chairman Member

1st IAC Meeting 12.03.2019 - Attended Attended Attended -

2nd IAC Meeting 24.04.2019 - Attended Attended Attended -

3rd IAC Meeting 30.07.2019 - Attended Attended Attended -

4th IAC Meeting 13.11.2019 - Attended Attended Attended -

Total Number of IAC Attended

4 4 4

Sitting Fees (OMR) 1,200 1,600 1,200

Major Tender Committee (MTC)

MTC Meeting Date Chairman Member Member

1st MTC Meeting 11.04.2019 Attended - - Attended Attended

2nd MTC Meeting 04.09.2019 Attended - - Attended Attended

3rd MTC Meeting 18.12.2019 Attended - - Attended -

Total Number of MTC Attended

3 3 2

Sitting Fees (OMR) 1,200 900 600


Group Human Resource Committee (GHRC)

GHRC Meeting Date Chairman Member Member Chairman

1st GHRC Meeting 06.03.2019 Attended - Attended Attended

2nd GHRC Meeting 07.08.2019 Attended - Attended Attended

3rd GHRC Meeting 1.12.2019 Attended - Attended Attended

Total Number of HRC Attended

3 3 3

Sitting Fees (OMR) 900 900 1,200

Nama Group Board of Direcotrs (NG BoD)

NG BOD Meetings Date Chairman Member Member Chairman

1st NG BoD Meeting

09.04.2019 Attended - Attended - Attended

2nd NG BoD Meeting

12.11.2019 Attended Attended - - -

Total Number ofNG BoD Attended

2 1 1 1

Sitting Fees (OMR) 1,300 500 500 500

Total should bepaid 2019

7,700 6,600 5,600 7,000 5,800

Paid for 2019 6,000 6,000 5,600 6,000 5,800

ANNUAL GENERAL MEETINGAnnual General Meeting (AGM) refers to the general meeting of the Company which is held annually. Article No. 172 of the Commercial Companies Law mandates Nama Holding to hold an AGM within 90 days from the end of each financial year. NH’s policy provides that the period between consecutive AGMs shall not exceed fifteen (15) months.

COMMUNICATIONS WITH SHAREHOLDERS AND INVESTORSPursuant to Royal Decree No. 78/2004, the Company shall maintain close ties with theMinistry of Finance (MoF), in its capacity as the owner, and communicates regarding allvarious policy issues. The Company also presents its annual report to the MoF.

GOVERNANCE BETWEEN NH AND ITS SUBSIDIARIESNH was established under the Sector Law and was given 99.99% ownership of all subsidiaries, with the exception of DPC where NH’s ownership is 99%. NH’s primary roles are:

1. As a majority shareholder in the subsidiaries and representative of the Government’s ownership, supporting and implementing the Government’s privatisation policy;2. As a service provider to the subsidiaries, providing central accounting and financial support services pursuant to NH’s responsibilities under the Sector Law;3. As the holding company of NG, it is responsible for developing and leading NG’s strategy; and4. As part of its strategic role, it is responsible for promoting and developing the highest standards of corporate governance across NG; including the appointment of all subsidiary boards in coordination with the MoF, pursuant to the Sector Law, and ensuring that an appropriate governance structure is in place in NH and its subsidiaries.

The following chart shows the governance structure adopted by the NH Board and its subsidiaries:


DISTRIBUTION OF SHARESBeing wholly-owned by the Government of the Sultanate of Oman, represented by MoF, NH directly reports to the shareholder through MoF.

STATUTORY AUDITORS Statutory auditors express an opinion on the fairness with which NH presents, in all material respects, its financial position, operating results, and cash flows in line with internationally-recognized accounting standards.

KPMG were the statutory auditors of NH during 2019. KPMG is a global network of professional firms providing Audit, Financial, Tax, Enterprise Risk Management and Advisory services to selected clients.

BUSINESS CONTINUITY AND RISK MANAGEMENTThe Business Continuity Management Framework (BCMF) is adopted to help NH to build its business continuity capability and ensure ongoing performance of essential functions and processes before, during and after any disaster or crisis that could result in business disruption. The BCMF was developed based on ISO 22301.

Enterprise Risk Management (ERM) at NH aims to strengthen governance at the Group level through implementation of ERM strategic initiatives. ERM main activities include:1) Designing, developing, implementing, maintaining and reviewing ERM policy, framework,

processes, procedures, documents and records to ensure relevance, appropriateness, completeness, effectiveness and alignment to NG’s Risk Management Policy;

2) Regularly implementing, maintaining and developing NH’s ERM Framework;3) Embedding Risk Management (RM) into NH processes such as planning, budgeting, reporting,

etc; and4) Raising awareness across NG by developing a Risk Maturity Model to measure quality of RM

activities and the extent to which they are embedded in the implementation.

CODE OF ETHICS AND BUSINESS CONDUCTThe Code of Ethics and Business Conduct (CEBC) applies to NG companies’ Boards of Directors and employees, as well as all consultants, contractors, suppliers and persons representing NG in their commercial operations. This CEBC:• Underlines NG’s commitment to ethics and compliance;• Sets forth basic standards of ethical and legal behaviour; and• Helps to detect and prevent misconduct.

WHISTLE BLOWINGTo ensure performance of duties under the best corporate governance practices, a Whistle Blowing Policy was developed in line with the Sector’s Policy Statement on Fraud Deterrence. This Policy aims at supporting NG’s mission and values and ensuring that NG’s directors, officers, current and former employees, suppliers, contractors, customers and clients report misconduct, wrongdoing, violations, and illegal practices as outlined in the policy on the designated third party website: http://wajib.nama.om/.

Subsidiary Board

Subsidiary CEO/GM Group CEO or Business Segment VP

NH Board


STRATEGY


NG STRATEGY


KEY STRATEGIC FOCUS AREA CORE OBJECTIVE

HSE PERFORMANCE NO HARM TO PEOPLE OR ENVIRONMENT

HUMAN RESOURCE DEVELOPMENT COMPETENT PERSONNEL

CUSTOMER EXPERIENCE SATISFIED CUSTOMER

SERVICE RELIABILITY ENSURE THAT ELECTRICITY IS ALWAYS AVAILABLE

COST OPTIMIZATION BEST COST PER UNIT

NAMA GROUP STRATEGYNama Holding works closely with all of its subsidiaries on developing strategies that serve NG’s overall mission and objectives. Together, we direct our efforts to achieve our vision of becoming a leading reference for utility services excellence in the region.

We ensure performance and capability development in five strategic focus areas to serve our growing customer base and effectively contribute to the economic development of Oman. Our strategies clearly reflect our commitment to meeting the expectations of our customers and embracing future challenges.

The above strategic focus areas and other financial and compliance objectives have been developed to provide NG’s companies with a strategic direction to be followed when developing their respective business plans. Furthermore, subsidiaries are encouraged to explore and identify additional strategies aiming at realizing their respective visions and meeting stakeholders’ expectations and requirements.

Our subsidiaries have aligned their strategic objectives to NG’s overall strategic direction. We have started benchmarking NG’s performance against regional utilities. It was then decided to expand our benchmarking initiative to include more international key utilities in the near future to ensure alignment with the new Government’s policy. This will enable us to boost our performance to meet international standards and adopt best practices. The outcomes of the yearly benchmarking exercise play a key role in shaping our future strategies and identifying key strategic initiatives that we need to develop or adopt.


HEALTH, SAFETYAND ENVIRONMENT


Based on our commitment to provide safe and sustainable electricity services to our customers, employees and contractors, Nama Group complies with the highest local and international standards to achieve the best levels of health, safety and environmental performance. Most NG companies have succeeded in renewing the international certifications such as OHSAS 18001, ISO 14001 (Environmental) and ISO 9001 (Quality) certifications. Group companies continuously update these international certificates as per the latest standards published by the relevant international organizations.

In 2019, the HSE Committee was formed to ensure continuous development and follow up of the progress made in achieving the desired results from the implementation of the Group HSE strategy. The Committee is responsible of implementing new initiatives that the Group may need to carry out to make improvements the workplace. The HSE Committee, which is led by one of the Group’s companies and alternate every two years, currently chaired by MEDC, is made up of members representing HSE managers from all Group companies. The committee is responsible of monitoring, directing and implementing HSE initiatives. It also submits periodic reports to NG management on the progress and challenges of the initiatives.

ACHIEVING INTEGRATION AND USING THE LATEST SYSTEMS AND TECHNOLOGIESHSE departments in all NG’s subsidiaries record all HSE statistics in Nama Integrated Management System (NIMS) to help senior managers follow up operations in real time to ensure a safe environment for all those working in the Group. In 2019, the Group focused on introducing fundamental improvements in three main areas:

1. Strengthening the leadership role of the HSE departments across all subsidiaries.2. Include HSE objectives as part of the operational objectives of all departments.3. Lessons learnt from incident investigations are shared to introduce improvements in HSE policies and systems.

HSE AWARENESS CAMPAIGNSNG implemented extensive HSE awareness campaigns that included most projects and operating areas. The awareness campaigns included field visits from HSE supervisors to oversee the progress made by the projects being implemented. The visits aimed to enhance compliance with the established laws and to instil an HSE culture among all employees at all levels and sites.

HSE TRAININGNG implemented a number of training programs for their employees and contractors’ staff to ensure safety in the workplace. According to 2019 data, there were 92 HSE training programs that benefited 2,557 and the total of 6,911 HSE training hours.

NAMA LIFE-SAVING RULES:Life-saving Rules stipulate zero tolerance for non-compliance of these controls. Workshops, training courses and field visits were implemented for NG’s teams and employees including contractors. An internal awareness campaign was also carried out by Nama’s Group Communication and Sustainability Department and a number of new HSE tools and technologies were approved.

Project statistics during 2018 and 2019:

Year Number of workshops

Participants from Nama Group only

Training hours

2019 92 2,557 6,911

2018 50 1,500 180

FATALITIES AND LTIS:NG places great importance on implementing HSE standards, as it considers them an integral part of the values and objectives of its operational activity. NG focuses mainly on ensuring no harm to people, reducing damage to the environment, and protection of assets. Despite the continuous improvements in HSE environment, some unfortunate incidents occurred that resulted in the death of three workers. NG spares no effort to extract lessons from such incidents that occur and puts additional controls in place to ensure non-recurrence.


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7

6

5

4

3

2

1

02018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019

MEDC MZEC MJEC DPC Tanweer GPDC OPWP OETC NSS NH NG

0 0 0.19 00 0 0 000.27 0.33 0.42 0.18

0.28

5.29

0.140.18

0.12 0.150.130.10

70

60

50

40

30

20

10

02018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019


3.61010.368

3.752 2.342 5.4120.506

15.904

0.166

61,981

20.289

4.1289.598

5.225 1.316 0.1895.675

9.647

0 0.067 0.112

39,503

3.545


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7

6

5

4

3

2

1

02018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019


0 0 0.19 00 0 0 000.27 0.33 0.42 0.18

0.28

5.29

0.140.18

0.12 0.150.130.10

70

60

50

40

30

20

10

02018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019


3.61010.368

3.752 2.342 5.4120.506

15.904

0.166

61,981

20.289

4.1289.598

5.225 1.316 0.1895.675

9.647

0 0.067 0.112

39,503

3.545

LOST TIME INJURY FREQUENCY (LTIF)

CUMULATIVE SAFE MAN HOURS (MILLION)


CUSTOMER SERVICE


100

90

80

70

60

50

40

30

20

10

0

Meter readingefficiency percentage

E-bills delivery percentage

E-payments percentage

Percentage of inquiries resolved in

less than 6 days

2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019

93.2%

57.3%

18.4%

31.3%

99%

28.1%

96.5%92.7%

CUSTOMER SERVICE ACHIEVEMENTS IN 2019

In-line with the rapid international developments in customer service and the increase in electricity demand, Nama Group’s distribution companies follow a strategy that focuses on re-engineering of processes and empowering of the Group’s human resources with an ultimate objective of achieving customer satisfaction.

The strategy includes programs that aim to improve the customer service cycle which covers meter reading, billing, collection and call centre. Each distribution company develops its own plan based on its customer requirements and needs. Support is provided to the subsidiaries to enable them to enhance the communication and engagement channels with customer.

In 2019, Nama Group expanded its payment channels to include our contractors and banks’ bill payment machines, smartphone apps and Nama E-portal. It resulted in a remarkable increase in the use of electronic channels by different customers. In addition, it helped to enhance customer satisfaction and saving

meter reading costs and bills distribution.

Based on the results of the periodic customer satisfaction surveys carried out at the Group level Customer satisfaction increased to 92% in 2019. Furthermore, the number of customers who opted for e-bill option increased to 57,3% while the meter reading coverage reached 93,2%. The percentage of bills that were adjusted based on customer complaints didn’t exceed 0.14% out of 14,909,372 bills issued in 2019.

The distribution companies are focused on enhancing the effectiveness of meter reading through the use of state-of-the-art technologies by introducing new devices for meter reading in addition to the introduction of smart meters that enable remote meter reading. The percentage of traditional meters was 91,9%, smart meters 2,4% while the prepaid meters formed 5.6% of the total number of meters. The prepaid meters proved to be a good option for residential complexes as tenants prefer using this type of meters to have electricity service on temporary basis.


HUMAN RESOURCE DEVELOPMENT


In 2013, Nama Group launched its human resource programme as a key pillar of its strategy; with the vision: “We strive to make Nama Group an ideal professional environment that applies the highest international standards, best practices and transparency in all human resources affairs” This vision can only be achieved by making human resources an effective partner in all operational processes and equipping employees with future competencies to keep abreast with the continuous technical developments in this field. NG invested RO 1,565,722 million in employees’ training and development in 2019 compared to RO 1,433,620 million in 2018, an increase of 9%.

NUMO INSTITUTE FOR COMPETENCIES DEVELOPMENT AND TRAINING AND DEVELOPMENT PROGRAMSNumo Institute for Competencies Development was developed with an aim of developing human resource competencies framework according to international standards. The Institute offers a number of training programs that serve to deliver their strategic and operational goals. The table below highlights the main training programs that were implemented in Numo Institute:

TOTAL NUMBER OF TRAINEES, TRAINING HOURS AND PROGRAMMES:

MAZOON ELECTRICITY COMPANY (MZEC) LEADERSHIP DEVELOPMENT PROGRAM “TATWEER”The Tatweer program is a competency-based training program in business administration. The MZEC program is specifically designed to enhance leadership skills of employees holding positions from section heads and above. The training was implemented by the Nomu Institute for Competencies Development in coordination with the Franklin Kofy Foundation, one of the global consulting and training leaders based in Dubai.

The program, which was launched in January 2019, included a ten-day intensive training in leadership skills for seven batches within one year. The total number of participants registered were 129 trainees, with each participant benefiting from 70 training hours.

The program focused on influencing skills and on defining clear measures of success by setting a plan for achieving them and prioritizing to achieve the most important goals. Additionally, to introducing participants to most effective methods of building close relationships. The program also

2019

4,093

2018

3,190

2019

78,001

2019

287

2018

59,696

2018

211

[Trainees][Training Hours][Training Programmes]

The total number of trainees increased by 28%

The total number of training hours increased by 31%

The total number of training programs increased by 36%



aimed at influencing others by developing a deep understanding of their needs and perspectives and developing innovative solutions that enhance diversity and satisfy all major stakeholders.

TANWEER AND DHOFAR POWER COMPANY LEADERSHIP DEVELOPMENT PROGRAM The program is concerned with developing leadership skills in the field of project management. The program included leaders from Tanweer and Dhofar Energy. The program was implemented in cooperation with Deshika Consulting and targeted more than 125 trainees in seven batches, each batch consisted of 18 trainees, with 70 training hours for each participant. To date, 54 participants successfully completed the program.

The objectives of the program include: equipping participants with the five leadership competencies, observing the current weaknesses and developing a plan to overcome them, understanding the work environment and the changes that should be made and how to achieve this, developing the workforce through understanding and applying engagement techniques, improving performance through training and continuous guidance for the team and preparing a plan for business to achieve success with all stakeholders.

THE APPLICATION OF “LEAN APPROACH” IN NAMA GROUPTo keep pace with the rapid global developments in the technical and technological areas and with a view to achieve a high level of flexibility through a well-studied methodology that is based on continuous improvement, customer satisfaction and productivity, NG applied the LEAN approach through NICD in 2019 across all its subsidiaries.

NG developed and implemented an integrated program to apply LEAN methodology over a period of 36 months (3 years) which commenced in November 2018 in cooperation with the “SSA Business Solutions”

During 2019, more than 334 employees were trained through an average of 574 training hours. The participants were divided into several levels (185 trainees at the yellow belt level and 109 trainees at the green belt level). The Group is working on the development of the content of the third level (the black belt) to qualify and train a group of employees to this level. So far, 118 work processes have been identified and work is under way to simplify and improve them. About 78 of these procedures were completed in NG.

NAMA’S OMANISATION ACHIEVEMENTS At NG, implementation the Omanisation plan is a priority across all business areas. NG depends on the capabilities of Omani cadres, especially in managing its projects and services. The Group also places full trust in the capabilities of the new Omani generations who can lead and can contribute to the growth of the national economy. NG made significant progress in its Omanisation drive in 2019 and achieved 100% Omanisation in executive leadership roles. NG has successfully increased the total Omanization to 95.1% of the group which is an increase of 0.7% compared to 2018.


FINANCIAL AND OPERATIONAL PERFORMANCE


GROWTH INCUSTOMER NUMBERS

4.7%

10.4% 56.3%99.9991%

OMANIZATION

95.1%

GROWTH INUNIT SOLD

0.7%

INCREASE IN GASCONSUMPTION EFFICIENCY

TRANSMISSIONNETWORK RELIABILITY

INCREASE INTOTAL ASSETS

RORO

FINANCIAL & OPERATIONAL PERFORMANCE HIGHLIGHTS




Subsidy49.92%

Water Soldto PAW11.51%

CustomerRevenue46.04%

(Operating income+ other)(7.46%)

2019

Subsidy43.66%

Water Soldto PAW10.30%

CustomerRevenue42.95%

(Operating income+ other) 3.09%

2018

TotalDirect Cost

45.09%

Finance Cost20.72%General and

Admin expenses9.84%

2019Depreciation11%

TotalDirect Cost

71.40%

General andAdmin expenses

9.09%

Finance Cost8.51%

2018Depreciation24.35%

Total Revenue in 2018 and 2019

Total Expenses in 2018 and 2019Expenses

Revenue

• Total Revenue in 2019: 1,251 Billion OMR• Total Revenue in 2018: 1,290 Billion OMR

• Total Expenses in 2019: 1,273 Billion OMR• Total Expenses in 2018: 1,217 Billion OMR

Note:Total Direct Cost includes:• Energy and water procurement costs• Repairs, spares consumption and maintenance costs• Other direct costTotal expenses increased by 4.6%

Note:• The Group’s total revenue decreased by 3.02%


TotalDirect Cost

45.09%

Finance Cost20.72%General and

Admin expenses9.84%

2019Depreciation11%

TotalDirect Cost

71.40%

General andAdmin expenses

9.09%

Finance Cost8.51%

2018Depreciation24.35%

2018 2019

RO36.26

RO37.67

2018 2019

155.85MILLION

OMR

67.44MILLION

OMR

in 2018 and 2019

in 2018 and 2019

Profit Before Tax

Cost per MWh Cost in 2018 and 2019

• Cost per MWh in 2019: 37.67 OMR• Cost per MWh in 2018: 36.26 OMR

Note:• Cost per MWh increased by 3.9%

Note:• Profit before tax decreased by 56.7%

• Total Profit Before Tax in 2019: 67.44 Million OMR • Total Profit Before Tax in 2018: 155.85 Million OMR

Cost MWh per Category



1000

900

800

700

600

500

400

300

200

100

0

Subsidy (OMR Millions) Subsidy per Customer (OMR/Customer) Subsidy per Unit (OMR/MWh)

18

16

14

12

10

8

6

4

2

0

20192018

462

563.29M

16.7818.48

489

624.7M

MEDC22.69%TANWEER

18.20%

2018 MZEC35.12%

DPC7.88%

MJEC16.11%

MEDC20.94%TANWEER

19%

2019 MZEC30.93%

DPC7.70%

MJEC21.43%

Subsidy per Unit Sold in 2018 and 2019:

Subsidy per Customer in 2018 and 2019:

Subsidy per Company in 2018 and 2019:

• Subsidy per Unit in 2019: 18.48 OMR • Subsidy per Unit in 2018: 16.78 OMR

• Subsidy per Customer in 2019: 489 OMR • Subsidy per Customer in 2018: 462.04 OMRNote:• Subsidy per Unit increased by 10.9% • Subsidy per Customer increased by 5.8%

• Total subsidy in 2019: 624.7 Million OMR• Total subsidy in 2018: 563.29 Million OMR


Industrial0.08%

Agriculture1.64%

Commercial 9.93%

Residential44.53%

CRTCost Reflected Tariff

38.26%

Government5.56%

2019

Industrial0.05%

Agriculture1.63%

Commercial 9.70%

Residential45.65%

CRTCost Reflected Tariff

37.13%

Government5.85%

2018

MEDC

DPC8.49%

MJEC28.37%

TANWEER3.20%

34.38%

MZEC25.56%

2018

MEDC

DPC9.1%

MJEC27.56%

TANWEER3.26%

34.05%

MZEC26.03%

2019

33,796(GWH)

2019

33,562(GWH)

2018

Unit Sold in 2018 and 2019: Unit Sold

Unit Sold (GWh) per Category in 2018 and 2019

Unit Sold (GWh) per Company in 2018 and 2019

• Unit Sold (GWh) in 2019: 33,796 • Unit Sold (GWh) in 2018: 33,562

Notes: • Unit Sold increased by 0.7%.


Residential73.63%

Government3.02%

CRTCost Reflected Tariff0.87%

Agriculture0.74%

Industrial0.04%Commercial

21.70%2019

Residential73.99%

Government3.12%

CRTCost Reflected Tariff0.87%

Agriculture0.75%

Industrial0.04%Commercial

21.24%2018

2019

TANWEER 3.26%

MEDC 31.82%

DPC 9.49%

MJEC19.61%

MZEC 35.82%

2018

TANWEER 3.26%

MEDC 31.87%

DPC 9.42%

MJEC19.62%

MZEC 35.83%

1,276,932CUSTOMERS

2019

1,219,156CUSTOMERS

2018

Number of Customers in 2018 and 2019 Customers

Customers per Company

Customers per Category

• Total Number of Customers in 2019: 1.276.932• Total Number of Customers in 2018: 1.219.156

Note: • Number of customers was increased by 4.7%.


2018COMPANY 2019

MEDC 6.72%

MZEC 12.37%

MJEC 8.10%

DPC 8.78%

6.77%

12.09%

10.91%

10.23%

10

9

8

7

6

5

4

3

2

1

0

2018 2019

9.02%8.78%

9.6%10.23%

MIS DPC

9.67%

2019

9%

2018

Electricity Losses Electricity Losses in 2018 and 2019

Electricity Losses per Company in 2018 and 2019

Electricity Losses per Network in 2018 and 2019

• MIS and DPC Electricity Losses in 2019: 9.67%• MIS and DPC Electricity Losses in 2018: 9%


• Gas Consumption in 2019: 20.21 MM Sm3/day• Gas Consumption in 2018: 22.37 MM Sm3/day

Notes: • Gas Consumption Efficiency increased by 10.4% compared to 2018.

Power Generated by Nama Group

Power Generated and Purchased by IPPs

Total Power Generated

Power Generated (GWh)

2,150

34,916

37,066

2018

791

36,441

37,232

2019

Gas consumption per M3/MWh

2018 2019

231

207

Power Generated

Gas Consumption

Power Generated in 2018 and 2019

Gas Consumption in 2018 and 2019


Project NameSr. #

The first phase of the engineering design work has been completed North-South Interconnection Project.

OPWP has signed the Power Purchase Agreement with Shams Al Dhohor Generation Company which will build, own, operate and finance a 500MW Solar Independent Power Project at Ibri, under Oman’s well established Independent Power Projects (IPP) program.

Dhofar Wind Project, a major renewable energy project, started its commercial operations. The project has been implemented as a collaboration between Tanweer and MASDAR of UAE.

OPWP announced the launch of two solar IPPs (Manah Solar I & II IPPs). The two projects will be financed, built, owned and operated by the private sector.

OPWP launched a Request for Proposal to provide Wind Resource Assessment Services, including the installation, commissioning, and operation & maintenance of wind resource monitoring stations, in addition to the collection and validation of high-quality wind resource data.

OPWP released the Request For Proposal(RFP) for the development of 300,000 m3/d desalination plant at Al Ghubrah in Muscat Governate.

OPWP released an RFP for the development of 100,000 m3/d desalination plant in Barka.

1

2

3

4

5

6

7

20192019OTHERS 0.48%

OETC 21.66%

DPC6.29%TANWEER

16.52%

MJEC15.24%

MZEC29.18%

MEDC 10.08%

20182018OTHERS 0.93%

OETC 37.49%

DPC4.48%TANWEER

4.05%

MJEC13.70%

MZEC27.18%

MEDC 12.16%

20192018

285MILLION

OMR

378MILLION

OMR

MAJOR NETWORK PROJECTS AND ACHIEVEMENTS IN 2019:

Capital Expenditure Total Capital Expenditure in 2018 and 2019:

Distribution of the Capital Expenditure per Company:

• Total Capital Expenditure in 2019: 285 Million OMR • Total Capital Expenditure in 2018: 378 Million OMR


2018 2019Total Capacity (MW)

Total 8,351 10,927

Average Demand (MWh) 3,748 3,748

Growth (%) 4,7% 0%

Peak Demand (MW) 6,168 6,353

Growth (%) 0,8% 3%

20192018Demand

Average Demand (MWh) 354 393

Growth (%) [3.8%] 10%

Peak Demand (MW) 539 549,5

Growth (%) [2.4%] 2%

20192018Demand

Supply and Demand Electricity Supply and Demand in 2018 and 2019:

Contracted: Electricity Supply

Electricity Demand-MIS

Electricity Demand-DPC


GROUP FINANCE PROJECT (LAMAR)Nama Group is a growing entity that plays a major role in the economy of the nation. NG invested heavily in capital expenditure to expand and develop its networks and systems to satisfy market needs and demands.

Availability of capital funding is critical to achieving NG’s mission. NG made significant progress in Lamar Project since its launch in 2014. Led by Nama Holding, NG successfully raised 1.75 billion OMR from various funding sources and tenures. Diversification of sources, optimisation of rates and hedging of interest rates helped NG achieve its target financial cost metrics in comparison to their allowed price control returns.

The fundraising programme will further support NG’s capital expenditure for distribution and transmission network, and refinance the existing short-term borrowings.

LAMAR FUNDS RAISED (2015-2019)

2015• Completed OETC bonds for RO 385 million • Completed MEDC Financing Scheme for

170 million OMR • Completed MZEC Financing Scheme for

240 million OMR.

2016• Completed MJEC Financing Scheme for

127 million OMR • Completed DPC Financing Scheme for

100 million OMR.

2017• Completed OETC bonds for 192.5 million

OMR • Completed MZEC sukuk for 192.5 million

OMR • Completed MEDC Financing Scheme for

81.2 million OMR.

• Completed MJEC Financing Scheme for 63.5 million OMR

• Completed DPC Financing Scheme for 41.1 million OMR.

2018• Completed Tanweer Financing Scheme for

154 million OMR.

2019During 2019, Nama Holding led the Subsidiary companies to organize Bridge loans for an amount of $482.5 million on short-term basis based on the strategic direction to defer long-term borrowing until 2020 to be raised in sync with the privatization program. An amount of $482.5 was raised for the following companies during 2019

• OETC: $169m

• MZEC: $155m

• MEDC: $75.4m

• MJEC: $83.1m

Total Funds raised: 1.93 Billion OMR

1.93BillionOMR


NG COMPANIES’PERFORMANCE


WAJPCO 2018 2019

Revenue OMR’000 9,338 -

Net profit before tax OMR'000 (8) 97

EBIT Margin OMR'000 (7) (1,058)

Capital investment/expenditure OMR'000 6 (1,062)

Omanization% 91% 60%

Total Number of Employees 32 5

Total Safe Working Hours 140,704 37,020

Number of Lost Time Injury - -

Electricity Generated (GWh) 141 -

Plant Availability% average 91% 0%

Note: Plant operations were discontinued on 30 September 2018


GPDC 2018 2019

Revenue OMR'000 42,996 -

Net profit before tax OMR'000 (2,113) 8,925

EBIT Margin OMR'000 (1,883) 9,971

Capital investment/expenditure OMR'000 - -



Total Safe Working Hours 7,058,913 94,463

Number of Lost Time Injury - -

Electricity Generation (GWh) 1,346.00 -

Water Production (M.CuM) (Million Cumbic Meter) 26.10 -

Plant Availability Power% 91% 0%

Plant Availability Water% 92% 0%

Note: Plant operations were discontinued on 30 September 2018


OPWP 2018 2019

Revenue OMR'000 815,946 735,735

Net profit before tax OMR'000 (1,732) (41,273)

EBIT Margin OMR'000 16,758 84,450

Capital investment/expenditure OMR'000 688 -



Total Safe Working Hours 20,289,669 5,675,169

Number of Lost Time Injury 1 1

Power Generation in Main interconnection system (MIS) (GWh) 32,835

32,834

Cost per Unit (OMR/MWh) in MIS 16.569 17.01

Power Generation in Dhofar (GWh) 3,143 3,442

Cost per Unit (OMR/MWh) in Dhofar 31.63 30.36

Power Generation in Musandam (GWh) 344 394

Cost per Unit (OMR/MWh) in Musandam 39.72 45.67

Water Produced (Cu.M,000) 313,747 340,198

Cost of Water (OMR/CuM) Per Unit 0.4684 0.391


OETC 2018 2019

Revenue OMR'000 88,884 114,936

Net profit before tax OMR'000 32,872 50,962

EBIT Margin OMR'000 39,887 61,081

Capital investment/expenditure OMR'000 141,725 62,931





Regulated Units Transmitted (GWh) 35,326 35,452

Peak load (MW) 6,922 7,108

System Reliability Index% 99,999% 99,999%

Transmission Loss% 1,36% 1,11%


MEDC 2018 2019

Revenue OMR'000 330,335 351,171


EBIT Margin OMR'000 23,800 26,681





Lost Time Injury 1 0

Number of Units Sold - GWH 11,538 11,507

Economic cost per Unit Sold OMR PER MWH 28,549 30,355

Subsidy per MWh Sold (OMR/MWh) 10,28 11,62

Government Subsidy (OMR 000's) 118,595 133,678

Number of Customers 388,548 406,274

Actual Meter Reading% (Per AER) 94,63% 93,79%

Number of Complaints Logged 2,087 1,533

Complaints closed on time% (Within 10 working days) 100% 100%

SAIFI (System Avarage Intruption Frequancy Index) 1,13 1,0

CAIDI (Customer Avarage Intruption Duration Index) Minutes 94,07 103,6

SAIDI (System Avarage Intruption Duration Index) Minutes 106,3 103,6

Distribution Loss% 6,72% 6,77%


MZEC 2018 2019

Revenue OMR’000 320,120 337,248

Net profit before tax OMR’000 23,613 23,341

EBIT Margin OMR’000 45,250 47,049

Capital investment/expenditure OMR’000 102,751 84,403

Omanization% 98.12% 98.36%





Cost per Unit Sold OMR PER MWH (Ops cost/RUS) 29.63 30.43

Subsidy per MWh Sold (OMR/MWh) 23.06 21.96

Government Subsidy (OMR 000’s) 197,809 193,205


Actual Meter Reading% 94% 94%

Number of Complaints Logged 617 94

Complaints closed on time% 99% 100%

SAIFI (System Avarage Intruption Frequancy Index) 1.86 1.74

CAIDI (Customer Avarage Intruption Duration Index) Minutes 101.03 89.67

SAIDI (System Avarage Intruption Duration Index) Minutes 188.21 155.63

Distribution Loss% 12.4% 12.09%


MJEC 2018 2019

Revenue OMR'000 257,041 267,849


EBIT Margin OMR'000 28,132 21,781







Cost per Unit Sold OMR Per MWh 24,10 26,18


Total Subsidy 90,758 133,878



Number of Complaints Logged 2,714 3,317


SAIFI (System Avarage Intruption Frequancy Index) 4.37 4,07


SAIDI (System Avarage Intruption Duration Index) Minutes 192.24 141,9



DPC 2018 2019

Revenue OMR'000 93,317 103,651


EBIT Margin OMR'000 11,622 12,645

Capital investment expenditure OMR'000 16,976 17,945






Cost per Unit Sold OMR Per MWH 24,09 24,97


Government Subsidy (OMR 000's) 44,411 48,114





SAIFI (System Avarage Intruption Frequancy Index) 1,65 1,71


SAIDI (System Avarage Intruption Duration Index) Minutes 220,09 205,76



RAECO 2018 2019

Revenue OMR’000 125,666 139,748

Net profit before tax OMR’000 12,610 7,419

EBIT Margin OMR’000 19,295 21,195

Capital investment/expenditure OMR’000 15,305 15,078




Electricity Generated (GWh) 775 790


Cost per Unit Sold OMR PER MWH 76,56 123

Water Produced (M. CuM) Million Cumbic Meter 3,94 3,64

Number of Water Sold (M. Cu.M) 3,73 3,4

Subsidy per MWh Sold (OMR/MWh) 95,53 104

Government Subsidy (OMR 000’s) 102,507 118,667


Actual Meter Reading (%) 79,6% 88%


Complaints closed on time (%) 95,9% 77,5%

CAIDI (Customer Avarage Intruption Duration Index) minutes 119,9 113


Numo Institute for Competency Developmentالمهــــــــارات لـتـنـميـــــــــة نمـــــــــو مـعــهـــــــد

NICD 2018 2019

Revenue OMR'000 1,434 1,560

Net profit OMR'000 126 -109

EBIT Margin OMR'000 136 -92

Capital investment/expenditure OMR'000 65 20



Total Safe Working Hours 1,260 1,260


Number of Training Hours 59,696 78,001

Number of training Days 543 661

Number of Training man Days 8528 11143


SUSTAINABILITY REPORT 2019


Dear Shareholders,Since its launch in 2014, NG’s Sustainability Policy has continued to achieve its goals; demonstrating significant progress in implementing and sponsoring sustainability projects in Oman during the past five years.

The Group remains committed to creating a positive impact on all segments of the local community. This commitment is an integrated system based on the three pillars: economic, social and environmental pillars.

The Group’s Sustainability Policy is in line with the Government’s program to ensure sustainability across all areas of the Sultanate’s development. NG implements its sustainability program through partnerships and incubating budding entrepreneurs. It also supports other local programs through sponsorships and participations.

NG continues to deliver its program by

having it core values: integrity, respect and professionalism at the heart of each project, and supporting Oman’s development by providing safe, reliable and sustainable electricity and water services. To achieve this, the following resources have been allocated:

1- 0.5% of the Group’s net profit, with a maximum of OMR500,000 (whichever is lower).2- Assigning one working day per employee per year to volunteering activities.

To benchmark its performance, NG follows the Global Reporting Initiative (GRI) sustainability reporting guidelines. The reports are developed based on the listed standards and covers NG’s disclosures of performance in the electricity utilities sector. The Group has released three GRI reports to date and it is committed to engaging with all stakeholder to prioritize sustainability indicators and work towards improving performance in all key areas of interest.


The stakeholder priorities based on the GRI report 2018:

Material Issues Corresponding GRI G4Standards Material Aspect

Boundaries

Youth Development Local Communities Community partners and NGOs

Risk Management Anti-Corruption Shareholders

Capacity building and directemployment opportunities(job creation)

Local Communities Community partners and NGOs, Government

Punctuality of service delivery Economic Performance Shareholders

Compliance with Regulations Governance Government, Employees

Energy market structure and regulation Market Presence Government

Reliability and availability Market Presence Government, Shareholders

Security, affordability andsustainability of electricity supply

Security Practices Government

State policies Governance Government

Empowering volunteers in thecommunities

Indirect Economic Impacts Community partners and NGOs

Impacts on Living Standards inOur Communities

Local Communities Community partners and NGOs

Energy Consumption Energy Environmentalists

Water Consumption Water Environmentalists

Entrepreneurship Indirect Economic Impacts Community partners and NGOs

Technology Local Communities Community partners and NGOs

Environment and biodiversity Biodiversity Community partners and NGOs

Fair Selection of Suppliers Procurement Practices Suppliers

Occupational Health, Safety andEnvironment

Occupational Health and Safety

Suppliers, Employees

Company Management Strategy Shareholders

Economic Performance Economic Performance Shareholders

Productivity Economic Performance Shareholders

Providing correct financial information Economic Performance Shareholders

Recycling and Disposal Materials Environmentalists

Return on Investment Economic Performance Shareholders

Shareholder returns, includingdividends

Economic Performance Shareholders


Sound Governance Governance Shareholders

Strategy and growth plans Strategy Shareholders

Omanisation and ICV Indirect Economic Impact Government, Shareholders

HSE Occupational Health and Safety

Employees

Training and Development Training and Education Employees

Customer Satisfaction Social Customers

Over the years, NG implemented many projects, initiatives and sponsorships across the Sultanate through financial support and continuous engagement with its employees to encourage their participation to support the development of local communities and to identify solutions to prevailing issues.

The Group executed 20 projects in 2019 compared to 19 in 2018. NG has constantly worked to enhance the quality and intrinsic value of its projects by focusing on specific groups of the local community and maximizing spending on these identified target groups. The Group has intensified its training programs, and conducted several workshops across the Sultanate, while implementing sustainability awareness initiatives. In 2019 the Group spent OMR 492,796 on such projects which is an increase of 2.6% from OMR 480,537 in 2018.

The main sustainability projects include:

ECONOMIC PILLAR PROJECTS:In 2019, NG spent OMR 177,805 on economic projects with an increase of 22.2% since 2018. In addition, NG incubated and supported 3 SMEs to implement major projects based on their business scope, and in some cases sub-contracted some services to other SMEs.

• In Country Value (ICV) Program - Naqlah To boost In-Country-Value (ICV) through capacity building, NG nurtured and supported SMEs and promoted local products and Omanisation through training and development of young Omanis. Based on the results of the pilot Electrician Training program carried out in 2018, NG launched ‘Naqlah’ in 2019, a program that equips participants with the necessary technical, cognitive and professional skills that can prepare them for the licensing process. The program will run for five years from launch and target three categories:

• Diploma and bachelor’s degree holders in electrical engineering - Naqlah (1) • Graduates of the general diploma or equivalent - Naqlah (2) • Intermediate school students - Naqlah (3)

Naqlah (1) Project was formed as a result of the success of the pilot project launch in 2018. The pilot was designed after an analysis of the requisite tests to obtain an electrical services license, the percentage of candidates passing these tests and the number of Omanis licensed to work with the Group and its contractors. The study was carried out in cooperation with the Numo Institute for Competency Development (NICD) and Distribution Code Review Panel (DCRP); a committee under the Group’s umbrella of distribution companies that issues licenses for individuals and contractors working under NG.

Based on the study’s findings, NG launched a pilot project in 2018 to train 75 Omani Diploma and


Bachelor’s graduates in Electrical Engineering or equivalent. The program, implemented in cooperation with the DCRP, is an integrated training project covering practical and theoretical aspects and exposes participants to the skills and knowledge necessary to meet requirements of field and technical work. This program also provides participants with an understanding of the electricity regulations and applicable laws.

Running over a course of seven months, the Naqlah 1 program covered all stages, including announcement, registration, initial tests, and practical and theoretical training. Twelve workshops were held over 18,000 training hours. The exam pass rate increased from 5% between 2016 and 2017 to 80% in 2018. Sixty licensed electrical technicians graduated, some of whom took up positions with the Group’s companies and contractors as well as in the oil and gas sector, while others decided to start their own businesses.

Accordingly, goals were set for the project to increase the percentage of licensed Omani electrical technicians from 9% to 20% by 2023, increase direct employment opportunities to 75%, and provide opportunities to establish SMEs related to the electricity sector to 15% of the total trainees clearing the electrical license tests. 625 university and college graduates specialized in electrical engineering or equivalent will be trained during the five-year long program.

In August 2019, 438 people from the Electrical Engineering major and equivalent backgrounds applied to enroll for the program and 125 trainees were accepted. The application consisted of an exam and interview administered by NICD. The six-month program was held from July to December 2019 and included 120 trainees in total with 95 trainees that passed their licensing exams. The success rate for this year was 79.2%; which is a marginal decrease due to some individuals dropping out from the program.

To hone the entrepreneurial skills of these 15%

of successful candidates, NG has joined hands with the Public Authority for Small and Medium Enterprises Development (RIYADA) and the Al Raffd Fund to provide financial planning training. At the end of the program, a number of SMEs were invited to present services that can enable the development and empowerment of Omani youth.

The Group will continue to train more Omani technicians, based on a studied five-year plan (training around 125 participants each year).

NG is planning on developing the program further by cooperating with the Ministry of Manpower. A joint working group has been formed to study the opportunity of combining the two programs so that it is delivered in all technical colleges in Oman.

Naqlah (2) Project for general diploma holders – To create a qualified pool of young Omani electrical technicians trained in residential electrical installations, NG launched this part of the program as a pilot project led by Dhofar Power Company. The program, which not only built their capabilities in areas of their specialty, but also helped participants establish SMEs.

The program was implemented in partnership with the Ministry of Manpower and Salalah Vocational College. It targeted 20 general diploma holders seeking jobs and was held in two phases over three months. The first phase, led by the Ministry of Manpower, covered the qualification of participants in


engineering sciences and electro-technical fields. The second phase, implemented by NG, trained the participants on important aspects and techniques that could help them qualify for obtaining the DCRP’s technical license needed for carrying out household electrical installations.

Participants attended an intensive technical training for about 4.320 hours (18% theoretical training + 82% practical training). After the training, they were able to pass the requisite tests for the license with the success rate being 65%.

In the third phase, Dhofar Power Company will work towards capacity building of those participants who were unable to obtain the license in 2019.

To further support the new license holders, DPC held an exhibition showcasing the licensees’ work mechanism and their role in the power sector in cooperation with Salalah Vocational College. A large number of students and those interested in the field attended the exhibition.

NG also plans to support new licensees by providing them with new business opportunities through the home electricity connection applications received in DPC.

Naqlah (3) Student Training Project started in 2018 as an initiative by the Oman Electricity Transmission Company (OETC) in cooperation with the Ministry of Education’s Vocational

Guidance Center. The aim of the program is to raise awareness among students about job opportunities in the sector and introducing them to electrical networking, and the demands of working in this field.

This program helps students discover their potential and the skill sets required to work in this field. This, in turn, allows students to choose subject majors and make academic decisions by focusing on the future of their careers. The project familiarizes students with the importance of health, safety and environment and the principles followed by NG. Twelve students from Muscat Governorate participated in this program’s first edition. To gain further insight on the impact of this program on young Omanis and to gain a deeper understanding on their contribution to the growing electricity sector, NG organized a second batch for Naqla (3) in 2019 by involving all five distribution companies. Eighty students participated across six NG companies namely Oman Electricity Transmission Company, Muscat Electricity Distribution Company, Mazoon Electricity Company, Majan Electricity Company, Dhofar Power Company and Tanweer. The two-week long project included presentations by students on their experience in this program.

• Sectoral Study on In-Country-Value (ICV):NG participated in a study carried out by the Ministry of Commerce and Industry (MoCI) to assess In-Country-Value (ICV) opportunities in Oman’s key sectors. The first phase of the project consisted of a study analyzing the


business and human resources of the Group to devise strategies for optimal application of ICV. The study also aimed to measure the capacity of local factories, the type and amount of purchases and the quality of new investment opportunities that can be applied to achieve Oman’s ICV goals.

The study’s findings will form the basis of policy and legislation changes towards meeting this objective. To this effect, a Steering Committee headed by His Excellency the Undersecretary of MoCI was formed and includes Undersecretaries and other decision makers. Following a detailed analysis of the data presented in the sectoral study and after holding several consultations with experts, the committee will commence the implementation of the plan in 2020.

ECONOMIC PILLAR SPONSORSHIPS:NG was the strategic sponsor for ‘Imtidad’ program organized by the Oman Chamber of Commerce and Industry. The program targeted 20 participants from the best performing Omani small and medium enterprises that are planning to participate in Expo Dubai 2020.

NG also sponsored the Fifth Arab Forum for Entrepreneurs, which was held under the theme ‘Investment and Renewable Energy’. The forum was organized by the Public Authority for Small and Medium Enterprises (Riyada) and was held at the Salalah Millennium Resort from 7-9 August 2019. The forum aimed to chalk

out plans to develop and localize the use of renewable energy in the Arab world and provide necessary data to support scientific research and development of renewable energy fields.

NG concluded its collaboration with The Research Council on their Smart Cities Project 2017-19 to introduce smart city innovations and test smart solutions to prepare the cities for the future. The project provided opportunities for foreign direct investments by attracting international companies to invest in these areas. The initiative included a review of international best practice to design a suitable knowledge sharing platform and to showcase the latest products and services provided through smart cities all over the world.

NG participated in the Balloon Carnival held as part of the activities of Khareef Salalah Festival 2019 by showcasing its health and safety videos to visitors attending the festival site.

Economic Pillar ExpensesCategory Name Expenses OMRProjects Naqlah (1) 127,625

Naqlah (2) 11,100

Naqla (3) 7,080

ICV Study 0

Sponsorships Imtidad Program 15,000

the Fifth Arab Forum for Entrepreneurs 7,000

the Smart Cities Project 7,000

the Balloon Carnival 3,000

Total Expenses 177,805



SOCIAL PILLAR PROJECTSIn 2019, NG spent OMR 85,716 on the social projects with a decrease of 40.8% from 144,875 OMR in 2018, due to the increased efficiency of spending. NG continued the health, safety and environment campaign for a period of two years (2018 - 2019) by using the same videos through additional media channels.

Baiti Amen ProgramBuilding on the successes of the past three editions of ‘Baiti Amen’; a community safety and awareness program, NG continued this initiative in 2019 in partnership with the Public Authority for Civil Defense and Ambulance, the Ministry of Commerce and Industry, the Ministry of Manpower and the Public Authority for Consumer Protection. This awareness and educational program aims at identifying the causes of accidents in homes like electrical fires, and raise awareness about preventive measures. The campaign targets contractors, consulting firms, housewives, parents, children, associations and volunteer teams.

In addition to supporting organizations that promote home and community health and safety programs, NG aims to encourage the participation of the private sector by supporting SMEs the sell HSE -related products and services. Furthermore, the project itself was administered through an SME called Ajyal Al Himma (Hemati) which previously supported the project’s implementation in 2018. Hemati organized a number of events, exhibitions and workshops covering awareness and educational campaigns related to electrical connections.

The campaign also included games using augmented reality technology.

During the campaign, a three-day exhibition was held in Buraimi Governorate and attracted over 1,200 visitors, and most of them were children.

Workshops entitled ‘Safety in Residential Facilities’ was held for club members and volunteers at the Al Buraimi University College and was attended by 100 visitors.

The nationwide campaign ran its activities in Wilayat of Ibri for three days and attracted 700 visitors (600 of them being children), visited the exhibition. This campaign also include a ‘Safety in Residential Facilities’ workshop conducted at the College of Applied Sciences with 300 people in attendance.

The campaign will continue in 2020 through the launch of a series of exhibitions, workshops and training programs in other regions and governorates in the Sultanate, including Ad Dakhiliyah, Al Batinah South and Muscat Governorates. NG expects to benefit 5,000 individuals from this campaign. NG also aims to train 500 participants in the program, for around 1000 training hours.

Wiyakum ProgramThe ‘Wiyakum program is one of the first Sustainability Policy initiatives launched by the Group in 2014. The project aims to promote a volunteering culture among Omani youth and the Group’s employees who will set an example in their local communities by


supporting various development initiatives that can create a sustainable impact. NG initially launched a volunteering training program to raise awareness on best practice methods for carrying out activities and projects.

In the 2019 program, Wiyakum invited both teams and individuals to participate and it registered six teams and eight individuals. The competition categories included HSE, education and charitable work to support SMEs, identify new employment opportunities, and raise awareness about the importance of electricity conservation, renewable energy and recycling. The winners will be announced in 2020 and their projects were supported and implemented by Group companies.

SOCIAL PILLAR SPONSORSHIPS:NG sponsored the second ‘Imprint of

Excellence’ exhibition for innovation and youth initiatives, organized in cooperation with the National Youth Committee and The Research Council at the Sultan Qaboos Youth Complex for Culture and Entertainment in Salalah. The objectives were to showcase talent presented by Omani youth and to promote them in their communities in addition to developing their skills in the field of scientific research.

The Group sponsored the ‘Shabab Al Masara’ by launching the first version of the ‘Ana Qadaha’ program, which was held under the title “I have a Passion for My Story” at the Technical College in the Wilayat of Ibri. The program targeted 60 students from grades 10 to 12. In addition, NG purchased braille devices for the Al-Noor Association for the Blind. These devices will help the blind and visually impaired people to read or listen to texts using the latest advanced technologies.


Social Pillar ExpensesCategory Name Expenses OMRProjects Baiti Amin 48,116

Wiyakum 28,000Sponsorships Basmat Tamiyuz 3,000

Shabab Al Massarah Project 1,000

Braille devices for the blinds for Al Noor Association 5,600Total Expenses 85,716

ENVIRONMENTAL PILLAR PROJECTS:In 2019, NG spent OMR 125,689 on environmental projects with an increase of 3% from OMR 122,000 spent in 2018.

• National Conservation Campaign NG continued its campaign for energy conservation under the theme ‘Tadoom’ to support the implementation of sustainable homes using ‘energy efficiency’ principals and best practice. The program utilized some of the best engineering programs related to this aspect.

This 2019 campaign focused on three main themes: • Raising awareness about the concepts of sustainable and energy-efficient homes and methods for applying best international practices.• Efficiency of electrical devices and the impact of user behavior on consumption.• Energy conservation.

NG targeted 600 participants from different target segments in the community. The campaign was presented through workshops targeting architectural engineering students in universities and colleges, job seekers, members of the local community, architectural consulting firms and school students.

The training program was divided into four basic phases, namely, training for job seekers and freelance technicians who have a Bachelor’s degree in the field of architectural engineering, holding training workshops for architectural engineering students, organizing

a public discussion session and presenting the ‘Tadoom’ game for school students. The 14 workshops included 4,920 training hours.

To empower SMEs, NG commissioned a sustainable architectural engineering firm, Dekka Engineering Services, for the second year to implement practical workshops, events and training activities.

NG participated in ‘Earth Hour’ activities for the sixth-consecutive year under the theme ‘Change your lifestyle’. It launched a hashtag titled “#We Started”, to achieve its environmental goal of reducing carbon emissions. NG set a record in 2019 by cutting down electricity consumption for the ‘Earth Hour’ event across Oman by 20% compared to the March 2018 event.

• Green Innovation Eco-thon Initiative In-line with its environment pillar objectives, Nama Group launched the first of its kind ‘Green Innovation Eco-thon’ in cooperation with the Omani Environment Society in October 2019. The initiative encouraged participating students to identify innovative and practical solutions to environmental issues using different technologies.

In response to the directives of the Government, Nama Group is committed to limiting the negative impacts of its operations on the environment through programs such as the Eco-thon. NG engages with the youth to raise environmental awareness with an objective of instilling a sustainability-based culture.

95 students from 24 universities and colleges



were selected to take part in the competition. The participants were requested to develop ideas and convert these ideas into applications and digital programs. Throughout the three-day competition, the students came up with many ideas to address environmental challenges which focused on three main areas namely waste management , use of renewable resources as alternatives and efficiency of power and water consumption.

Students were divided onto 19 teams that were required to propose creative ideas. A team of 28 guides and supervisors provided 5904 training hours that supported the students in developing their ideas. On the third day, the projects were submitted to the judging panel to select the best six ideas. The winners were provided with the opportunity to deliver a presentation on their projects and market them to interested partners and stakeholders.

At the end of the program, the winning team were honored in November 2019 at a special event, which was held under the auspices of His Excellency Najeeb bin Ali Al Rawas, Undersecretary of the Ministry of Environment and Climate Affairs in the presence of NG’s partners and supporters.

Tanweer Prize for Excellence 2019Rural Areas Electricity Company ‘Tanweer’ developed and implemented the ‘Tanweer Award for Excellence 2019’ for school students in Musandam governorate to support Omani youth, promote their projects and develop their capabilities in the field of sustainability.

The award aims to raise awareness of the importance of reducing harmful carbon emissions, spreading a culture of energy conservation and sustainability. The initiative also aims to enhance students’ knowledge in electrical energy. Through this competition, ‘Tanweer’ inculcated a culture of creativity, innovation and excellence in the education sector – covering teachers, and students. This is a result of the Group’s belief in the importance of motivating future generations to move freely to broader horizons of creativity, innovation and excellence.

This event included an exhibition to present student projects at Atana hotel in Khasab, Musandam Governorate, on October 30, 2019. It was inaugurated by the Wali of Khasab and attended by senior public and private sector officials, and other members of the community who are interested in sustainable development.


The exhibition was attended by 120 students and showcased 12 student projects. Six teams were announced as winners for their sustainability ideas. This exhibition also promoted the company’s programs and initiatives.

• The 10th Workshop on Energy and Water EfficiencyinGCCstates. In cooperation with the Ministry of Oil and Gas and the Public Authority for Water, NG hosted ‘Conservation for Sustainability’ the tenth workshop the focused on resources challenges faced by Gulf Cooperation Council states and discussed steps to derive solutions for these challenges. The two-day workshop was held from July 31 to August 1, 2019 at Salalah Millennium Resort. This workshop is periodically organized by the Committee for Electricity and Water Conservation so that all GCC countries can benefit from each other’s experiences in promoting the rational use of electricity and water. The event covered the latest developments and technologies and solutions for an optimized legislations and regulations in addition to working towards energy efficiency and practical applications that reduce consumption.

ENVIRONMENTAL PILLAR SPONSORSHIPS:As part of NG’s efforts to conserve water and utilize renewable energy solutions, NG supported the Oman Water Society (OWS) by

implementing a solar water desalination project at Al Ghydharan school for basic education in the Wilayat Adam in Al Dakhiliyah Governorate. This project will assist OWS in implementing a well water treatment project in the school.

Additionally, NG sponsored the ‘Sustainable Architecture’ program, which is broadcasted on Radio Oman. This initiative supports the goals of the national campaign to optimize electricity consumption and promote green homes. The program highlighted the challenges faced by Oman’s construction sector in terms of achieving sustainability while maintaining local identity and responding to modern global standards. The program hosted local and international academics and professionals in the field of building, engineering, architecture and sustainable development. It was broadcasted as a 13-part series with one hour-long episode per week, from September to December 2019.

NG sponsored the second Future Vision Forum for electric cars organized by the Global Event organization in cooperation with Riyada. The forum’s goals included raising awareness about electrical vehicles while highlight their benefits, showcasing aspects of the electric automobiles industry, smart cities and developing sustainable mobility. The forum covered the important strategies and challenges facing the future of these vehicles in the Sultanate.

Environmental Pillar ExpensesCategory Name Expenses OMRProjects National Energy Campaign 41,577

Eco-Thon 36,937

Tanweer Prize for Excellence 2019 9,100 The 10th Workshop on Energy and Water Efficiency in GCC states

6,225

Sponsorships the Oman Water Society Project 27,100 Sustainable Architecture 3,250

the second Future Vision Forum for electric 1,500Total Expenses 125,689

*Sponsorship of the Oman Water Society to implement a solar water desalination project was approved before the decision to transfer sanitation companies to the Ministry of Finance.


Total Expenses 2019:Category Expenses OMREconomic Pillar 177,805Social Pillar 85,716Environmental Pillar 125,689GRI Report 12,177Other Expenses (Salaries, Events, training, media coverage..etc) 91,409Total Expenses 492,796

NEW STRATEGIES AND PLANS FOR NG’S SUSTAINABILITY POLICY:NG will continue to develop its Sustainability Policy with focus on Demand Side Management (DSM) and enhancing in country value; in addition to continuing its performance monitoring according to GRI reporting standards. The new policy will help in achieving positive impacts and sustainable development in the Sultanate in addition to fostering a culture of transparency and supporting all governance pillars.

Promoting energy conservation is one of the most effective ways to address environmental impacts of the sector as it spread awareness about optimum and sustainable use of energy through campaigns and related activities.

Nama Group is striving to continue achieving more across all areas of sustainability in the coming years. This approach will enable NG to deliver quality services at a better cost. The year 2019 was one of the most fruitful years in sustainability and his report reflects the Group’s commitment to sustainability to create a positive impact for future generations.


Nama Group Sustainability Achievements in 2019

Economic Pillar:

Naqlah(Bachelor and Diploma)

Naqlah(General Diploma)

Naqlah(Pupils)

Environmental Pillar:

• Number of Beneficiaries 5,000• Number of Trainees 500• Number of Training Hours 1,000

• Number of Participated Teams 8• Number of Participated Individuals 8• Number of Winners 6

• Number of Trainees 120 • Number of Training Hours 30,000 • Number of Licensed Technicians 95

• Number of Trainees 20• Number of Training Hours 4,320 • Number of Licensed Technicians 13

• Number of Trainees 80• Number of Training Hours 4,000

• Number of Trainees 95• Number of Training Hours 5,904 • Number of Participated Universities and Colleges 24 • Number of Winners 6

• Number of participated Students 120 • Number of Training Hours 390• Number of Projects 12 • Number of Winners 6

TheNational

Electricity Conservation

Campaign

Eco-Thon

Home is Safe

Wiyakum

TanweerAward for Excellence

Social Pillar:• Number of Trainees 600 • Number of Training Hours 4,920

Total Number of Beneficiaries: 6,572Total Number of Training Hours: 50,534


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