mpower combined7 - Global Reporting Initiative

His Highness

Sheikh Hamad Bin Khalifa Al-Thani Emir of the State of Qatar

His Highness

Sheikh Tamim Bin Hamad Al-Thani Heir Apparent

Table of Contents 3 4 5 6 7 11 16 25 30 35 39 41

2012 Performance Highlights Update on Our Sustainability Commitments Sustainability Performance Summary Message from the Chief Executive Officer About M Power M Power Sustainability Approach and Framework Delivering Clean, Efficient and Reliable Power Reducing Our Environmental Impact Operating Safely at All Times Investing in People Financial Optimisation Good Governance

Appendices 44 Appendix 45Appendix 46 Appendix 47 Appendix

A–

Our 2013 Sustainability Commitments Summary Report Parameters C – GRI Statement D – GRI Index B–

53 Appendix 55 Appendix 55 Appendix Appendix

E F G H

– IPIECA Index – Glossary – Acronyms – Feedback Form

About This Report This is Mesaieed Power Company Ltd‘s (M Power) 2012 Sustainability Report, which demonstrates our economic, environmental and social performance in 2012, and highlights our future sustainability commitments. Our sustainability efforts are squarely in line with the Qatar National Vision 2030 (QNV 2030) and the Sustainable Development Industry Reporting (SDIR) programme, which was launched by the Health, Safety and Environment (HSE) Regulations and Enforcement Directorate (DG) at the State of Qatar. This report has been prepared using the Global Reporting Initiative (GRI) G3.1 guidelines for sustainability reporting, and has achieved a GRI application level of A, as shown in Appendix C. We encourage all of our stakeholders to read this report and provide their thoughts and ideas to us via email at [email protected]. Your feedback is important to us as we strive to support the sustainable development of Qatar.

2012 Performance Highlights

Update on Our Sustainability Commitments

2012 was a year of success for M Power. We have improved our performance in several areas including:

5,648

GWh

4.5 %

Net Exported Energy

16.7 %

Improved Auxilary power as percentage of total electricity generated

We have successfully implemented several plans and conservation measures that helped us achieve enhanced availability, reliability and efficiency numbers as shown on page 20.

Completed

Reducing Our Environmental Impact

Start separating our waste and look into the available options to start recycling our waste.

We started treating our sewage water in November 2012 to be used for irrigation purposes in our Green Belt project. Regarding the expected medical waste in 2013: we have committed to sign an agreement with a specialised and authorised contractor to dispose of this waste properly once our on-site clinic begins operations.

Partially completed

Increase our green belt area to compensate GHG emissions, reuse treated waste water and adhere to Qatar’s zero discharge campaign.

The construction, landscaping and installation of the irrigation system began in 2012. We expect to complete this project in the second half of 2013.

Partially completed

Achieve 42% increase in total health and safety trainings hours to 1,240 hours in 2012.

Our health and safety training hours increased by 74% to 1,525 hours.

Completed

Start M Power on-site clinic.

We have 100% equipped the clinic, signed an agreement with a full-time nurse and signed an agreement with a specialised medical waste contractor. We are in the process of obtaining the Supreme Council of Health licence to operate the clinic.

Conduct at least 4 fire drill trainings.

We conducted 3 fire drill training in 2012. We have also conducted 27 fire fighting trainings in different parts of the plant and for different teams, some of which included fire drill training.

Procure a fire fighting truck and train our employees on the appropriate use of the truck in the unlikely event of an emergency.

We have completed the procurement process and ordered the fire fighting truck. Delivery and training will be completed in 2013.

Increase our Qatarization rate to 11.2%.

We achieved 11.11% Qatarization rate in 2012

Track our training hours and report on them in our 2012 Sustainability Report.

We have reported on our 2012 training hours, please see page 37.

Conduct sustainability training sessions for all employees.

We have committed to conduct this training for all our employees in 2013.

Pending

Conduct specialised sustainability training which is customised for each business department to reflect department specific sustainability issues.

We have committed to conduct general sustainability training for all our employees and managers, and to develop an internal sustainability communication plan in 2013.

Pending

Participate in the 5th Qatar Career Fair.

We supported the Qatarization programme through our participation in the 5th Qatar Career Fair.

Completed

We have developed M Power’s risk register and mitigation measures, for more details please refer to page 39.

Completed

Develop M Power 2012 Sustainability Report.

We developed a GRI checked Sustainability Report which achieved level A.

Completed

Initiate ISO 9001 and 14001 to certify our management systems.

Initiating the ISO certification process requires the development of internal systems and processes. In 2012 we completed the data management control system, the enterprise document management system and improved our physical document room.

Partially completed

Operating Safely at All Times

Plant Reliability

IMPROVED

Plant Load factor Investing in People

0

LTI AND FATALITIES

IMPROVED

11.1 %

IMPROVED

0 03

S U S TA I N A B I L I T Y R E P O R T 2 0 1 2 MESAIEED POWER COMPANY Ltd.

For our employees and contractor

4.9 %

Net Profit

Qatarization from 10% in 2011 Loss of containment for the third consecutive year

Status

Implement short to medium term plans to reduce auxiliary consumption by implementing conservation measures and system upgrades.

Plant Availability

IMPROVED

Progress by end of 2012

Delivering Clean, Efficient and Reliable Power

IMPROVED

2.8 %

27.6 %

Our 2012 commitments

Financial Optimisation Good Governance

Develop financial risk register and mitigation measures.

Partially Completed

Partially Completed

Partially Completed Partially completed Completed


04

Sustainability Performance Summary Sustainablity Priority Area

Key Performance Indicators (KPIs)

2010 (2nd Half)

2,093,601

2,508,540

136

277

340

SOx emissions (tonnes)

38

52

69

Net plant efficiency (%)

45.71

48.06

50.52

Net plant heat rate, kJ/kWh, LHV

7,876

7,491

7,127

2,153,440

4,422,367

5,648,180

% of auxiliary power from total electricity generated

3.76

3.38

2.82

Imported energy (MW)

783

688

14

Availability (%)

90.63

92.31

96.50

Reliability (%)

93.58

97.18

99.98

51.42

25.10

32.04

80

67

43

20

33

57

Plant load factor (%) Corrective maintenance received, % of total maintenance received Preventive maintenance received, % of total maintenance received

1

4

0

530

1,038

1,251

18,823,287

37,272,395

44,672,608

37,433

59,245

127,317

Chemicals consumption (tonnes)

9

478

1,223

Lubricants consumption (tonnes)

10

10

9

Total plant shutdown Natural gas consumption (MSCM) Total energy consumption (GJ) Water consumption (m3)*

114

437

238

8,744

51,173

98,989

282

4,187

3,967

1,028.6

954.4

484.1

0

0

0

754

876

1,525

Number of lost time injuries, employees

0

0

0

Number of lost time injuries, contractors

1

1

0

Number of work–related fatalities, employees

0

0

0

Number of work–related fatalities, contractors

0

0

0

Number of Emergency response drills

0

2

3

Total number of employees

80

89

90

Qatarization (%)

11.3

10

11.11

Female employees (%)

3.8

4.4

4.4

Average training hours per employee

NT

NT

10.33

Grease consumption (kg) Process water discharge (m3)* Sewage water discharge (m3) Total waste diposed Number of Spills (m3) Number of training hours on health and safety procedures and practices

Operating safely at all times

Invseting in People

Financial Optimization Good Governance

2012

1,057,694

Net electricity export (MWh)

Reducing our environmental impact

2011

NOx emissions (tonnes)

Total GHG emissions (tonnes)

Delivering clean, efficient, and reliable power

Message from the Chief Executive Officer

Employee turnover (%)

3.8

10

4.4

Revenues (Million QR)

677

1,128

1,002

Net profit (Million QR)

125

247

259

Operating cost (Million QR)

743

552

881

Payment to providers of capital (Million QR)

0

220.4

182

Employees wages and benefits (Million QR)

15.3***

25.4***

26.9

88.9

90.4

Payment to local contractors and suppliers, as percentage of total contractor and supplier payments % of business units analysed for corruption GRI application level achieved by the sustainability report

* Water statistics do not include the seawater used for the cooling towers.

New Indicator

N/A

05


2012 was a transition period for M Power and its team. Our Engineering, Procurement and Construction (EPC) contractor closed out and handed over the full power plant project and system to M Power’s team. Our team has shown unrivalled performance operating the power plant in a very efficient and safe manner. This is reflected in our improved results including: Improving all our operational indicators, including availability, reliability, efficiency and net exported energy to Kahramaa, Achieving zero Lost-Time Injuries (LTI) and zero fatalities for our employees and contractors, Achieving zero loss of containment and managing our emissions within acceptable limits, Improving our Qatarization rate, and Achieving and exceeding our planned financial targets. M Power attained another remarkable success by achieving first place for “Excellence in Sustainability Reporting Award” for its first Sustainability Report (2011), and for participating in the energy and industry sector’s Sustainable Development Industry Reporting (SDIR) programme in 2012. Looking forward, we are aware of the challenges ahead of us. We are committed to running our plant in the most efficient manner possible to make the best use of Qatar’s natural gas and to contribute to Qatar’s development, while aiming for zero safety incidents. To achieve this, we aim to develop our 2013 sustainability strategy in line with Qatar National Vision 2030 and other national and sectoral plans, and to improve the sustainability culture among our team. As we are committed to publishing our annual sustainability reports, we actively encourage our stakeholders to be involved in our sustainability journey and to provide us with feedback on our sustainability performance and reporting efforts.

76.9 100%

A

A

Abdul Majeed Al-Reyahi

NT = not tracked

** We have updated the scope of this indicator to include only dividend without the payment for natural gas, which is mentioned separately on page 40 ***Updated numbers from the 2011 report as they were mentioned in US dollars in the 2011 report

It is my pleasure to present the follow-up 2012 M Power Sustainability Report to all our stakeholders. This report demonstrates our contribution to Qatar’s development by highlighting our 2012 sustainability performance and presenting our future sustainability commitments.

Chief Executive Officer N/A= not applicable


06

About M Power Mesaieed Power Company Ltd (M Power) is a joint stock company established in January 2007with the objective of increasing Qatar’s electrical generation capacity. The M Power plant is located in the Mesaieed Industrial City (MIC), and is the third Independent Power Producer (IPP) project of its kind in the country, with a contract capacity of 2,002 megawatts (MW) in 2012.

In March 2007, M Power signed a 25-year Fuel Supply Agreement (FSA) with Qatar Petroleum and a 25-year Power Purchase Agreement (PPA) with Qatar General Electricity and Water Corporation (Kahramaa) to ensure coordination and efficiency in the supply and demand of gas and electricity. These agreements arranged for M Power to sell its entire electricity production to Kahramaa, and working closely with Kahramaa and QP to ensure that electricity demand, frequency and voltage are met. BLOCK 1

40% 10%

30%

20%

M POWER SHAREHOLDERS QEWC

Qatar Electricity & Water Company

Qatar Petroleum

Marubeni Corporation

Steam Turbine

10

M Power Profile

M Power Plant Configuration

11 Condenser

First Power Commercial Date: September 2009, 1,007 MW Facility Commercial Operation Date: July 2010 Contract Capacity: 2,002 MW in 2012 EPC Contractor: Iberdrola Ingenieria Y Construccion, S.A.U. Offtaker: Kahramaa Fuel Supplier: Qatar Petroleum Equipment Manufacturers: Gas turbines generators and steam turbines generators by GE, Heat Recovery Steam Generators (HRSG) by NEM, condenser by Doosan, cooling towers by SPIG, Gas Insulated Switchgear by ALSTOM Substations: 400 kV Water Treatment Plant: Desalination through Reverse Osmosis (RO)

Gas Turbine

HSRG

12

Cooling Tower

BLOCK 2 20 21

The basic plant configuration is 3 blocks of 2 x 2 x 1 combined cycle systems, with each block consisting of 2 gas turbines, 2 heat recovery steam generators (boilers) and 1 steam turbine. The plant is also equipped with 2 ‘black starter’ gas turbines for use in blackout restorations. The steam turbine is a condensing unit equipped with surface condensers which utilise cooling towers that function as closed cooling systems.

22

Chubu Electric Power Co. Inc

BLOCK 3

BLACK STARTERS 30 31

Mission

To reliably supply electrical power to the energy grid with maximum efficiency and minimal downtime, with the smallest possible environmental footprint

Vision

M Power will consistently operate as one of the safest and most available and efficient power plants anywhere in the world

Values

• Quality of work that we can take pride in • Safety first, at all times • Always clean, always green

Gas Turbine

32

Qatar’s power generation capacity consists of five electricity generating plants, in addition to other captive power plants such as: Qatar Aluminium Limited (Qatalum), Qatar Vinyl Company (QVC), Qatar Fertiliser Company (QAFCO) and other captive power plants. M Power produces more than 20% of Qatar’s total generation capacity

9FA Heavy Duty Gas Turbine Most experienced F-class 50 Hz product

07



08

M Power’s Role in Qatar’s Power Generation and Grid Systems

AWARDS: M Power was awarded first place among medium size organisations for excellence in sustainability reporting; and for participating in the 2011 energy and industry sector’s Sustainable Development Industry Reporting (SDIR) programme1, which was launched by the Health, Safety and Environment (HSE) Regulations and Enforcement Directorate (DG) at the State of Qatar.

Possessing one of the fastest growing economies in the world, Qatar relies upon an expanding and efficient power generation sector to convert cleaner burning natural gas; its most abundant asset, into the electricity needed to sustain long-term economic growth. Qatar’s power generation capacity consists of five electricity generating plants, in addition to other captive power plants such as: Qatar Aluminium Limited (Qatalum), Qatar Vinyl Company (QVC), Qatar Fertiliser Company (QAFCO) and other captive power plants. M Power produces more than 20% of Qatar’s total generation capacity. Kahramaa acts as the transmission corporation, distributing electricity from all plants to the end users which include industrial, commercial and residential consumers. Qatar’s system is connected to those of other Gulf Cooperation Council (GCC) countries through the Gulf Regional Interconnection Grid. M Power exerts a significant influence on this project through its 400 kV substation, located within M Power boundaries and managed as part of M Power operations.

FUEL SUPPLY

ELECTRICITY GENERATION

ELECTRICITY TRANSMISSION & DISTRIBUTION

Qatar’s Energy and Industry Sector Sustainability Report captures the sector’s high-level sustainability performance and describes activities and initiatives being implemented by individual companies. Most importantly, it presents the sector’s progress towards achieving an accurate and consolidated measure of its economic, environmental and social impact.

The Ministry of Energy and Industry

END USER The QP HSE Regulations and Enforcement Directorate (DG) Gulf Interconnection project

Power for Industry

Power for Commercial

Captive Power Plants Qatalum, QVC, QAFCO, QAPCO and others

09


Power for Residents


10

M Power Sustainability Approach and Framework Understanding Qatar’s Sustainable Development Context

Qatar has set ambitious goals for its long-term growth, focusing on the human, societal and environmental aspects of sustainable economic development. These goal shave been articulated clearly in the Qatar National Vision (QNV) 2030, a framework orchestrating governmental and private-enterprise responses to the challenges of sustainable development. With the commitment to increasing the wellbeing of Qatari citizens, the Qatar National Development Strategy 2011-2016lays out a carefully designed programme of enhancements in education and healthcare. It also outlines social protection and employment opportunities necessary for the creation of a prosperous, stable and secure society. In line with the QNV 2030 and the Qatar National Development Strategy; the Health, Safety and Environment (HSE) Regulations and Enforcement Directorate (DG) has developed the energy and industry sector’s Sustainable Development Industry Reporting (SDIR) Programme. This programme encourages Qatar industries to combat climate change and work towards improved economic and social development.

M Power is committed to contributing to Qatar’s sustainable development through its active contribution to national and sectoral priorities and plans.

M Power is committed to contributing to Qatar’s sustainable development through its active contribution to national and sectoral priorities and plans.

M Power’s Sustainability Approach and Framework

To identify M Power’s business interests and the overlap with its stakeholders’ sustainability priorities, we conducted a materiality assessment in 2011 through an analysis of our external context, the national strategy and vision, and an assessment of our internal and external stakeholders' expectations. We aim to update our materiality assessment every year. In 2012, there was no major change to the results of our materiality assessment. We aim to conduct a more in-depth update to the materiality assessment in 2013 as part of developing our 5-year sustainability strategy.

M Power Materiality Matrix

High

6

15 12 1 11 8

5

13

9

10

14

Moderate

Increasing concern to stakeholders

7

Moderate

3 2 4

1

Climate change mitigation

2

Efficient power

3

Reliable power

4

Resource optimisation

5

Waste management

6

Employees and contractors health and safety

7

Plant safety

8

Workforce diversity and equal opportunity

9

Training and development

10

Employee retention

11

Human rights

12

Strong and stable financial performance

13

Good Goverance

14

Support national strategies

15

Stakeholders engagement

High

Impact on M Power

11



12

This materiality analysis helped us to identify M Power’s priority sustainability areas, demonstrated in M Power’s sustainability framework below:

Our Sustainability Supporting Foundation Although it possesses one of the newest power plants in Qatar, M Power’s success is built upon a strong and proven foundation consisting of:

Our Sustainability Target

M Power considers its employees to be the most essential component of the organisation’s economic, social, and environmental success.

Investing in People

Financial Optimisation Delivering clean, eff icient and reliable power

Good Governance Our Sustainability Priorities



M Power has a strong and stable financial model that ensures the alignment of its performance with Qatar’s national development goals. Through sound governance systems and structures, M Power seeks to establish strong lines of accountability and fulfilment of the organisation’s vision and mission.

M Power’s Sustainability Framework Alignment with QNV 2030 and the SDR Programme: The 6 main components of M Power’s sustainability framework are designed to align seamlessly with the QNV 2030 and the SDIR programme, as demonstrated in the illustration below.

Our Sustainability Supporting Foundation

Investing in People

Financial Optimisation

Good governance

Our Ultimate Sustainability Target: Delivering Clean, Efficient and Reliable Power M Power always aims to make the best use of Qatar’s most valuable resources: natural gas and fixed assets. Considered to be a national treasure, this cleaner burning fossil fuel can help to reduce the carbon footprint left by Qatar, and by the world. M Power’s role is to convert this treasured resource into the electricity that is Qatar’s lifeblood in the most efficient way possible. To ensure the stability of long-term growth, M Power is dedicated to generating this electricity in the most reliable manner possible.

Delivering clean, eff icient and reliable power

-Responsible exploitation of oil and gas -A balance between development needs and protecting the environment


-A balance between development needs and protecting the environment

-Climate change -Energy use -Discharge of water -Industrial waste


-A healthy population; physically and mentally

-Workforce health and participation -Occupational injury and illness incidents -Process safety -Product stewardship

Investing in People

-An educated population -A capable and motivated work force

-Local hiring, Human rights, Local procurement and supplier development -Human rights and preventing corruption -Workforce training and development


-Sound economic management

-Local community impacts

Good governance

-Sound economic management

-Stakeholders engagement

First and foremost, M Power plays a critical role in Qatar’s sustainable development through the delivery of clean, efficient and reliable power.

Our Sustainability Priorities M Power has identified, and continuously emphasises, two areas of focus which ensure that the plant is operating both safely and ‘greenly’. Taking its cues from the QNV 2030 and the SDI initiative, M Power’s sustainability priorities are:

-Climate change -Community Impact

Reducing our environmental impact, and Operating safely at all times.

13

M Power Sustainability Focus Areas

QNV 2030

SDI


MESAIEED POWER COMPANY Ltd.

14

Delivering Clean, Efficient and Reliable Power

Delivering Clean, Efficient and Reliable Power Supporting Qatar’s development...through delivering clean, efficient and reliable power

Electricity is the most common form of energy supplied to users in the residential, commercial, and industrial sectors. In addition to providing Kahramaa with up to 2,002 MW of electricity on demand, M Power also contributes to the overall energy development of other GCC countries, through the connections between Qatar’s electricity system and other countries’ systems. In late 2011, M Power Engineering, Procurement and Construction (EPC) contractor closed out and handed over the power plant project and system to M Power’s team. Despite the challenging transition period in 2012, M Power’s team has shown unrivalled performance by operating the power plant in a more clean, efficient, reliable and safe manner compared to previous years.

Providing Clean Power... to Mitigate Climate Change M Power recognises the challenges that the world faces as a result of climate change. We are also aware that Qatar’s environmental footprint is deemed one of the worst in the world per capita. Management of the industrial emissions which cause climate change is becoming an increasingly greater burden to international development; prompting national and international industrial responses such as the QNV 2030 and the SDI initiative. M Power’s delivery of cleaner power is thus of critical importance to Qatar’s campaign against climate change.

"M Power’s electricity is generated via burning of the cleanest fossil fuel available; natural gas" 11

S U S TA I N A B I L I T Y R E P O R T 2 0 1 2 MESAIEED POWER COMPANY

M Power’s electricity is generated via burning of the cleanest fossil fuel available; natural gas. Thus, M Power’s use of natural gas, supplied by QP, allows us to deliver clean power to Qatar while minimising Qatar’s emissions of pollutants. Greenhouse Gas Emissions In 2012, M Power’s natural gas consumption increased by 20.5% and our plant load factor increased by 27.6% compared to our 2011 numbers. In 2012 our operations released 2,508,540 tonnes of greenhouse gas (GHG) into the atmosphere, an increase of 19.8% compared to our total GHG emissions in 2011, which reflects good optimisation of natural gas in our operations.


16

Providing Efficient Power At M Power, we place great emphasis on achieving the highest operational efficiency possible, as this ensures:

GHG emissions - CO2 equivalent (tonnes) From power generation to Kahramaa

2010 (2nd half)

2011

2012

1,056,851

2,092,612

2,508,201

95

251

191

From diesel fuel used for power generation From vehicle fuel consumption

73

145

136

From imported electricity*

675

593

12

1,057,694

2,093,601

2,508,540

Total GHG emissions*

Effective use of Qatar’s natural gas.

Reduced environmental impact.

* The 2010 and 2011 GHG emissions numbers have been slightly updated based on our enhanced calculations. This updated scope in the calculation will ensure more accurate GHG emissions reporting in forthcoming years.

M Power’s plant is equipped with a Continuous Emission Monitoring System (CEMS), fully available to operators. It is capable of monitoring and storing historical data for reporting purposes. CEMS monitors and records Nitrogen Oxide (NOx), Sulphur Oxide (SOx), Carbon Monoxide (CO), opacity and ammonia slip.

GHG resulting from the burning of natural gas to produce electricity makes up the largest part of our emissions, and contributed almost 99.9% of M Power’s total GHG emissions in 2012. With our plant load factor going up year after year, we fully expect our GHG emissions to continue to rise as the plant ramps up to full capacity in response to Qatar’s increasing demand for electricity. However, as the plant approaches full capacity, the impact of our efforts to improve efficiency and optimisation will become increasingly more apparent.

Enhanced profitability.

M Power’s plant is a state-of-the-art power station, using the best technology available to achieve a high degree of efficiency in generating electricity. Achieving the best efficiency rate also requires close coordination and collaboration with our offtaker: Kahramaa.

In M Power’s current fuel pass-through system, Kahramaa pays fuel costs to M Power according to guaranteed equipment performance, while M Power pays Qatar Petroleum for actual fuel consumption cost. Equipment performance is determined by employing a mathematical representation using thermodynamic modelling, called a Fuel Demand Model. This system is designed to assure Kahramaa that M Power maximises its fuel gas consumption for every kilowatt hour delivered, and that it limits its payables to the guaranteed level. Our focus, therefore, is on maintaining a high level of plant performance, as any deficiency becomes M Power’s operational and financial risk.

NOx and SOx Emissions Using Selective Catalytic Reduction (SCR) technology, our NOx emissions in 2012 were limited to 9 parts per million (ppm).

Other emissions (tonnes) 2010 (2nd half)

2011

2012

NOx emissions

136

277

340

SOx emissions

38

52

69

All of M Power’s emissions are reported directly to the Ministry of Environment on a quarterly basis. Every effort is made to keep M Power’s emissions within the acceptable limits by continuous monitoring; closely following the maintenance schedule of all emissions control equipment and immediately attending to any deviances. In 2012, M Power successfully kept its emission levels within the limits set by the Ministry of Environment.

Selective Catalytic Reduction (SCR) Technology for Managing our NOx Emissions The combustion process of the Gas Turbine cycle of electricity generation results in the creation of nitrogen oxides (NOx). In order to meet Qatar’s environmental regulations of NOx emissions, a DeNOx system featuring Selective Catalytic Reduction (SCR) is employed at the M Power plant. SCR reduces NOx emissions by reacting ammonia (NH3) with NOx in the presence of a catalyst at a specified temperature range. The reaction forms atmospheric nitrogen (N2) and water vapour (in simplified form).

17



18

Energy Utilisation in a Combined Cycle Power Plant In a typical combined cycle power plant utilising the latest design technology, gross plant efficiency can reach levels as high as 58.3%, with 37.4% of electricity produced from the gas turbine and 20.9% from the steam turbine, as shown in the diagram below.

The combined cycle mode is a win/win situation for M Power and Kahramaa from cost benefit analysis perspective, because it helps: GAS TURBINE POWER (37.4%)

Achieve the best utilisation of Qatar’s natural gas. Reduce factored fire hours, which enable M Power to reduce marginal cost and help Kahramaa to optimise the running hours for the plant.

FUEL to Gas Turbine

As a result of these efforts, we managed to run our plant on combined cycle almost 100% of the time during 2012. Combined Cycle: The Best Technology Available for Efficient Operations In the combined cycle system, natural gas is fed into the gas turbine generating unit, which converts mechanical energy into electrical energy. The heat produced by the gas turbine is used to convert water into steam via Heat Recovery Steam Generators (HRSGs), which then power a steam turbine generator to produce additional electricity. This combination of gas and steam turbine generators improves the overall efficiency of the plant

SIMPLIFIED COMBINED CYCLE DIAGRAM Steam Turbine Bypass Stack Fuel Gas

Main Stack

Generator Steam

Exhaust Gas

Condensate Heat Recovery Steam Generator

Condenser

Generator evaporation

Gas Turbine Bypass Stack

Main Stack

Boiler Feedwater

Drift

Exhaust Gas

Heat Recovery Steam Generator

Blowdown Seawater Discharge

Seawater Makeup

Gas Turbine

Net Plant Efficiency Net plant efficiency is a statistic that represents the percentage of input energy resulting in the production of electricity. In 2012, we achieved 50.52% net plant efficiency compared to 48.06% in 2011.Net plant efficiency in the region of 54% is considered an industry benchmark for combined cycle power plants. However, net plant efficiency is affected by grid demand and ambient conditions, as off-peak periods require delivery of electricity at lower loads. Therefore, M Power’s plant will meet or surpass the industry benchmark for efficiency once it has reached full capacity.


GT & GEN LOSSES » (1.1%)

ST & GEN LOSSES (.6%)

STEAM TURBINE POWER

EXHAUST HEAT to HRSG

(61.5%)

Net Plant Heat Rate Another important indicator for measuring plant efficiency is the net plant heat rate. This rate measures the amount of fuel burnt to produce 1 kWh of electricity, and a low net plant heat rate indicates greater operational efficiency. In 2012, M Power’s net plant heat rate was 7,127 kJ/kWh; a 4.9% improvement on our 2011performance. We aim to further reduce our net plant heat rate by operating within the best possible configuration and employing all techniques available to optimise usage of energy. Auxiliary Power Auxiliary power refers to the electricity consumed to support primary electricity generation operations. M Power generates its own auxiliary power; therefore reducing our auxiliary power consumption ensures production and sales of greater amounts of electricity from the same input of natural gas. In 2012 the auxiliary power consumed made up 2.82% of the total electricity generated. This represented a 16.6% reduction from the amount consumed during 2011. This improvement was achieved mainly due to the following reasons:

(20.9%)

STEAM

(53.9%)

STACK LOSSES » (7.1%)

CoolingTower

Generator Generator

19

(100%)

HRSG LOSSES (0.5%)

CONDENSER » (32.6%)

Efficiency 45.71 %

48.06 %

50.52 %

7,876

7,491

7,127

2010

2011

2012

100% 90%

80%

Net plant heat rate, kJ/kWh, LHV

Engaging our Stakeholders: A Collaborative Approach with Kahramaa to Achieve Better Efficiency In 2012, we worked closely and collaboratively with Kahramaa, which M Power perceives as an essential partner; to find the best route for running M Power’s plant on the combined cycle mode. Refer to the graph below for more details on how the combined cycle helps to increase efficiency.

70%

60% 50%

40% 30%

20% 10%

0 2nd Half

The completion of all construction and testing phases by the end of 2011, and the M Power plant project close out and hand over from the EPC contractor, M Power team’s experience and expertise have increased dramatically over the past few years; benefiting from working and learning on-site and in close collaboration with our contractors. In 2012, our team advanced their understanding about controlling M Power’s plant working and stand-by units. Greater efficiency is achieved by improving the chemistry of the cooling water; enabling us to reduce the circulation of cooling water for the working and stand-by towers.


20

Auxillary Power 2010 (2nd half)

2011

2012

84,135,164

154,877,177

163,631,293

% of auxillary power from total electricity generated

3.76

3.38

2.82

imported energy (MWh)

783

688

14

Auxillary power consumption (kWh)

Plant Availability The ‘plant availability’ statistic measures the percentage of time a plant and equipment are available for operation over a given year. M Power’s plant began its operations in the second half of 2010, and has undergone continuous modification and optimisation while in operation.

Availability 90.63%

To further reduce our auxiliary power consumption, we are in the process of implementing a project for the modification of steam turbines, seal and sparge steam. This will minimise the requirement of a starting auxiliary boiler; thus reducing fuel and auxiliary power.

We have improved our plant reliability and availability in 2012 due to the following reasons:

Availability (%)

Providing Reliable Power The people and businesses of Qatar rely on Kahramaa and the independent power producers to provide a secure, stable and reliable flow of electricity. Stability and reliability of electricity production are thus crucial for national development and economic growth. Continuous availability and consistent reliability are integral parts of M Power’s vision and mission, and are achieved through coordinated planning, timely maintenance and clear communication with all key stakeholders.

Reliability 92.31%

96.50 %

100%

100%

90%

90%

80%

80%

70%

70%

60%

60%

50%

50%

40%

40%

30%

30%

20% 10%

0

2010 2nd Half

The close out of most outstanding warrantee issues from M Power’s EPC contractor side by the end of 2011, which resulted in minimum shut downs in 2012. For example, the condenser tube cleaning system came into operation in 2012, while the condenser tube cleaning which requires equipment shutdown was done manually beforehand.

Plant Reliability Reliability is a plant’s statistical ability to perform without failure over a given period of time, and is a reflection of technical know-how in equipment installation, operation and proper maintenance. Since forced outages affect plant reliability, we strive to minimise unforeseen downtime by proactively attending to areas of concern.

Reliability (%)

Auxiliary power also includes the electricity which M Power imports from the grid during total plant scheduled outages, such as during major upgrades to the gas system. In 2012, M Power imported only 14 MWh from the grid, compared to 688 MWh imported from the grid in 2011.

2011

99.98 %

2010

2011

2012

10%

0 2nd Half

With negligible unplanned shutdowns, our plant reliability improved to 99.98% in 2012, compared to 97.18% in 2011.

Plant load factor

The completion of most equipment modifications as per equipment manufacturer recommendations, and

Plant Load Factor Plant load factor is a figure that represents actual plant generation as a percentage of contractual capacity over a given period of time. In 2012, M Power’s plant load factor was 32.04%, as determined by Kahramaa’s electricity demand.

51.42%

25.10%

32.04%

2010

2011

2012

100%

Plant load factor (%0

The completion of maintenance management system programming which helped reduce unplanned outages.

97.18%

20%

2012

By the end of 2012, M Power plants’ availability improved by 4.5% and reached 96.50%, from 92.31% availability in 2011.

93.58%

75%

50%

25%

0% 2nd Half

21



22

Maintenance Qatar has set ambitious goals for its long-term growth, focusing on the human, societal and environmental aspects In order to optimise availability and reliability, M Power works hard to keep its plant healthy through well-planned and collaborative maintenance programmes. In 2012, unplanned outages were reduced and the M Power team achieved improved maintenance records. This was as a result of previously mentioned improvements and the following factors:

Close out of outstanding warranty issues from M Power’s EPC contractor side, Completion of most equipment modifications as per equipment manufacturers’ recommendations, Completion of maintenance management system programming, and Effective use of the maintenance management system.

We managed to reduce corrective maintenance from 67% of total maintenance in 2011 to 43% in 2012. Preventive maintenance made up the remaining 57%. We have also recorded zero unplanned shut downs and zero total plant shut downs, which resulted in enhanced plant availability. M Power team has also shown excellent performance; and improved experience and skills in completing required maintenance records well ahead of the deadlines identified in the original plans, which also helped to enhance plant availability.

Maintenance 2010 (2nd half)

2011

2012

Corrective maintenance performed, as a % of total maintenance (%)

80

67

43

Preventive maintenance performed, as a % of total maintenance (%)

20

33

57

1

1

0

Scheduled total plant shutdowns

The ultimate outcome of M Power’s efforts to provide clean, efficient and reliable power was the export of 5,648,180 MWh of electricity in 2012, an increase of 27.72% compared to 4,422,367 MWh in 2011.

No Electricity exported (MWh)

Power Generation 6,000,000

2,153,440

4,422,367

5,648,180

2010

2011

2012

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2nd Half

23



12

Additionally, to minimise our energy consumption, we have implemented several measures including:

Reducing Our Environmental Impact

1) Plant lighting system controlled by a photo cell and timer. The timer’s settings are reviewed and changed regularly to avoid the lighting system switching ON during daylight. 2) Continuously monitoring the air conditioning system in all plant areas to ensure efficiency, and

Beyond providing the cleanest power possible for Qatar’s development, M Power is committed to operating its plant in a way that ensures minimal local environmental impact. This is accomplished through:


Waste Management


The first step in reducing our environmental impact is optimisation of our use of natural environmental resources, including energy, water and materials. Energy consumption M Power consumes different types of fuel for different purposes, with the most significant fuel consumption taking the form of natural gas used to produce electricity. In 2012, M Power consumed 1,251 million standard cubic meters (MSCM) of natural gas in its electricity generation operations. Diesel fuel is also consumed to run the fire pump, emergency generators and ‘black start’ turbines in case of a total plant shutdown. Due to optimised routine testing regimes, our diesel consumption for such purposes was 48 m3 in 2012, a 46.7% decrease compared to 90 m3in 2011. This diesel was used for testing emergency equipment and for carrying out routine checks to ensure reliability and availability.

Environment Management System M Power is committed to responsible stewardship of the natural environment; and the minimisation of the environmental impact of company operations is essential for business efficiency, financial performance and success as a concerned and responsible member of the community. M Power’s environmental management system, which is based on ISO 14001 and ISO 19011, outlines the ways in which it intends to fulfil its policy commitment with regard to the protection and safeguarding of the environment. This pertains to operations and maintenance activities carried out by M Power and its contractors and subcontractors within the company. M Power is committed to adopting specific procedures with respect to particular areas of environmental management, and specific standard operating procedures compliant with local and international environmental rules and regulations. Management will take sufficient initiative for continual improvement in systems for the adoption of best environmental management.

25


Water consumption Water conservation is a national priority, and M Power is committed to ensuring that its operations have a minimal impact on Qatar’s water supply, primarily through efforts to reduce water consumption.

M Power uses different types of water for different purposes: For electricity generation, a closed cooling seawater system is employed, Utilising cooling towers to reduce the once-through water load and minimise the temperature of the water discharged to the Arabian Gulf. The cooling towers are required to cool the water used in the combined cycle operation.

Seawater is desalinated (using reverse osmosis technology) and used for: - Producing demineralised water for the generation process. - The plant fire-fighting system. - Evaporative coolers used for the gas turbines. - Other general services, such as cleaning and washing.

Potable water is purchased and used for internal plant usage. We anticipate a modification to the water treatment plant which will enable us to produce our own potable water.

Direct energy consumption 2nd half 2010

2011

2012

530

1,038

1,038

Natural gas used for power generation (GJ)

18,821,000

37,267,000

37,267,000

Diesel fuel used for power generation (m3)

34

90

90

Diesel fuel used for power generation (GJ)

1,297

3,414

1,592

Natural gas used for power generation (MSCM)

Vehicle fuel consumption, gasoline (m3)

30

60

56

Vehicle fuel consumption, gasoline (GJ)

990

1,981

1,960

18,823,287

37,272,395

44,672,608

Total direct energy consumption (GJ)

In 2012, M Power also consumed 56 m3 of gasoline to maintain its small vehicle fleet. Although fairly insignificant in comparison to our natural gas consumption, M Power is committed to recording and reporting on all types of direct and indirect energy consumption, allowing us to monitor our full environmental footprint and work steadily towards reducing it. Indirect energy consumption takes the form of electricity used to carry out maintenance work, such as during scheduled or forced total plant outages or plant restoration.

3) Installation of energy-efficient lights in all buildings, and an awareness campaign emphasising efficient use of energy which was provided to all employees. Signage and useful bulletins on efficient energy use have been posted in conspicuous places within M Power’s buildings, as a constant reminder of the importance of energy conservation in the workplace. ................................................................................................................................................................................................................................

In addition to making improvements to efficiency, M Power has taken several measures to reduce its auxiliary power consumption, as explained in the ‘Delivering Clean, Efficient and Reliable Power’ section of this report.

Indirect Energy Consumption

Imported energy (kWh) Total indirect energy consumption (GJ)

2nd half 2010

2011

2012

783

688

14

2.819

2.477

50.4

In 2012, M Power consumed 127,317 m3 of water, which represents an increase of 115% from 59,245 m3 in 2011. This large increase in our water consumption during 2012 was mainly due to running the plant in the combined cycle mode that requires demineralised water make-up. In 2012, the energy used by the water treatment plant increased at the same rate of115% to reach 3,380,269 kWh, which made2% of M Power’s total auxiliary power in the same year.

Water consumption

Water consumption (m3)* Energy used for water desalination and treatment (kWh)

2nd half 2010

2011

2012

37,433

59,245

127,317

993,857

1,572,958

3,380,269

* Water consumption numbers do not include the seawater used for the cooling towers.

Materials consumption M Power consumes different types of materials, including chemicals, lubricants and grease. Materials consumption varies according to our operational needs, and is managed in order to ensure consistent flow of supply according to demand and storage requirements.

Materials consumption

Chemicals (tonnes)

2nd half 2010

2011

2012

9

478

1,223

Lubricants (litres)

10

10

9

Grease (kg)

114

437

238


26

In 2012, our chemical consumption increased by 156% compared to our 2011 consumption. The reasons behind this increase in chemical consumption are: 1) After the project hand over from M Power’s EPC contractor to M Power’s team in late 2011, we started purchasing and tracking the chemicals used for our water treatment plant. These chemicals were not included in our 2011 numbers, 2) M Power’s sewage treatment plant began its commissioning activities in 2012, which required chemicals to treat sewage water, and 3) Running the power plant on combined cycle almost continually in 2012 required a higher amount of ammonia within the SCR to control NOx emissions. ................................................................................................................................................................................................................................

Waste Management Whenever possible, M Power’s waste management practices follow the ‘Three Rs’ of waste reduction: reduce, reuse and recycle. Our commitment to efficiency and resource optimisation is reflected in our many efforts to reduce the waste generated by our operations. Waste produced can be classified as either wastewater or solid waste, some of which is hazardous.

An authorised and specialised contractor is responsible for the disposal of all types of M Power waste. The waste is disposed of at governmental approved/authorised waste dumping yards depending on the type of waste. The contractor is obliged to follow the standard set out by the authorities of these disposal yards. We are committed to working collaboratively with our contractors to ensure compliance with all applicable laws. We have checked our contractor’s compliance with the Public Work Authority (ASHGAL) in disposing M Power’s waste by visiting the dumping area and checking our trucks, and have observed no issues of non-compliance.

Seawater discharge limits 2nd half 2010

2011

2012

Salinity increase on discharge of seawater (%)

6.81

8.55

10

Cooling water temperature difference (deg C)

1.57

1.89

1.67

Seawater discharge Chlorine (ppm)

0.05

0.03

0.03

Solid and liquid waste M Power operations generate solid waste such as metal, scrap wood, timber, paper, general bulk waste, and liquid waste in the form of lubricating oil. In 2012, our total waste disposed was 484.1 tonnes, compared to 954.4 tonnes in 2011. All solid and liquid waste is monitored and tracked, and is disposed of according to the Ministry of Environment requirements. All off-site waste shipments utilise a manifest system for tracking, and we report all local solid and hazardous waste shipments to the Ministry using authorised contractors.

2nd Half of 2010

2011

9.4m

2.6m

3

2012

3

10.1m

3

Used lubricating oil



550 tonnes

tonnes

tonnes

420 tonnes

868 tonnes

382 tonnes

Waste water 2nd half 2010

2011

2012

Process water discharge (m3)*

8,744

51,173

98,989

Sewage water discharge (m3)

282

4,187

3,967

* Process water discharge numbers do not include the cooling water discharge

Metal

General bulk waste

38

tonnes

Scrap wood and timber

Waste water In 2012, M Power disposed of 98,989 m3 of process wastewater and 3,967 m3 of sewage wastewater. Both M Power’s on-site wastewater treatment plants started operations by the year 2012 and produce water that can be used for irrigation purposes. However, the treated water is currently dumped out by our waste disposal contract because the Green Belt project is still being developed. The construction, landscaping and installation of the irrigation system for our Green Belt project began in 2012. Completion of that project is planned for the second half of 2013 when M Power will be able to reuse all its wastewater. M Power’s cooling water is discharged back to sea. In order to prevent the build-up of high salt concentrations in the cooling towers, M Power utilises a make-up and blowdown system, whereupon fresh seawater is

27


introduced into the cooling water circuit and a portion of the water from the cooling water basin is discharged back to the sea. Nevertheless, M Power regularly monitors its blowdown salinity and regulates the system to prevent potentially exceeding the Ministry’s 10% limit. In 2012, our salinity was within the allowable limit. As per the requirement of ‘consent to operate’ issued to M Power by the Ministry of Environment, the allowable maximum temperature difference between the sea water inlet and discharge is 3degrees Celsius . On average M Power operated below this limit in 2012. Additionally, in order to safeguard marine life, it is important that the chlorine content in seawater discharge be limited to 0.05 ppm. M Power adheres to this limit, and will continue to do so.

12

tonnes Paper

1,028,6 tonnes

Total waste disposed

0

Metal

General bulk waste

69

tonnes


15

tonnes paper

954.4 tonnes


24 Metal

General bulk waste

44

tonnes


24

tonnes paper

484.1 tonnes


We are fully aware of the danger that oil and chemical spills pose to the environment. M Power has produced a special kit to contain and minimise the effects of potential oil spillage, in addition to training our employees on an oil spill contingency plan. No instances of spillage have occurred since the inception of our operations in July 2010.


28

Operating Safely at All Times Concern for the safety and health of our employees, our contractors, our plant and the MIC community lies at the heart of the M Power company culture. We are committed to achieving and maintaining a state of ‘zero injuries’ for all employees and contractors.

Occupational Health and Safety Management System

Occupational health and safety is a cross- disciplinary area concerned with protecting the safety, health, and welfare of people engaged in work or employment. M Power continuously aims to achieve zero lost-time injury and fatalities for its workforce, through a policy and programme that integrates electricity production and health and safety. This is achieved through stages of consultation, training and professional guidance to ensure that appropriate levels of health and safety training are provided for personnel at all levels.

On-the-Spot Reporting One important component of our occupational health and safety management systems is on-thespot reporting of safety breaches. Our safety system requires all employees and contractors to directly report any potential safety dangers or breaches, and enables them to request an immediate work stoppage of any type of work. If such a stoppage requires partial or full shutdown of main operations, the case must be reported directly to the shift supervisor and safety officer. Telephones and radio systems are located in all areas of the plant to facilitate communication between the workforce, the engineer in charge of each duty shift, the Environment, Health and Safety (EHS) officer, and the Human Resources (HR) office.

We conduct regular risk assessments to maximise safety and identify any changing risks. This enables risks to be encompassed in the health and safety working procedure and ensures that any health and safety deficiencies can be addressed immediately. Another element of our safety management system is the regular review of all safety procedures to ensure their continued relevance and to identify any necessary updates. As of the end of 2012, we had reviewed and approved 100% of our safety procedures.

Contractor Environment, Health and Safety (EHS) Policy M Power’s ‘Contractor EHS Policy’ aims to establish a method to qualify contractors from an EHS standpoint, to perform work at M Power Plant, and to identify the minimum EHS requirements for contractors that are selected to perform the work at M Power plant.

Advanced Health and Safety Training Practices and Performance The provision of safety training and incident reporting on an ongoing basis forms the foundation of a safe work environment at M Power.

Health and safety training

Another element of our safety management system is the regular review of all safety procedures to ensure their continued relevance and to identify any necessary updates. As of the end of 2012, we have reviewed and approved 90% of our safety procedures.

Number of training hours on health and safety procedures and practices

2nd half 2010

2011

2012

754

876

1,525

Number of health and safety trainings conducted Number of occupational health and safety trainings conducted by a specialised third party Number of EHS toolbox talks, employees

0

6

2

130

260

312

Number of EHS toolbox talks, contractors

03


13

New indicator

New indicator

263

Number of EHS ‘walk downs’

26

52

47

Trainings completed on schedule (%)

100

100

100


30

Health performance

Workforce Safety Performance Prior to commencing work, all employees and contractors are provided with 4 different safety trainings: 2 basic trainings and 2 plant-specific procedure trainings. Safety induction training is also provided for all visitors to the plant. In 2012, we conducted 13 occupational health and safety trainings, of which 2 were conducted through a specialised third party and 11 were conducted internally to different M Power teams. Internally conducted trainings are very important for improving our health and safety performance as they are delivered in 3 different languages and benefit from sharing expertise and lessons in different locations of operations at the plant. In the same year, we also conducted 312management and supervisory EHS ‘toolbox talks’ discussing day-to-day EHS issues, 263 EHS ‘toolbox talks’ to our contractors, and 47‘walkdowns’, or weekly plant tours, intended to identify potential EHS deficiencies. A total of 1,525 hours of health and safety training were provided for our employees and contractors in 2012, which exceeded our 2012 target of conducting 1,240 hours. This is a 74% increase of the 876 hours provided in 2011.

Health and safety performance – employees

Man-hours worked

2nd half 2010

2011

2012

63,232

142,240

161,112

Number of Lost-Time Injuries

0

0

0

Lost-Time Injury Frequency (LTIF)*

0

0

0

Number of minor injuries reported

0

1

1

Number of ‘near misses’ reported

0

4

0

Number of work-related fatalities

0

0

0

2nd half 2010

2011

2012

Employee occupational Illness rate

0

0

0

Contractor occupational Illness rate

0

0

0

Heat stress events (resulting in medical treatment)

0

0

0

Plant and Process Safety Performance M Power places significant attention on ensuring that our plant is a safe working environment for all of our employees and contractors, and for the surrounding community. This focus has resulted in dedicated efforts to eliminate or mitigate all dangers related to plant system operations and processes. Occupational risks All work in an electrical plant includes an element of inherent danger, as electro-mechanical systems are designed to generate and transmit high voltages of electricity. In recognition of this, our systems are designed so that they may be operated under normal conditions without danger, following routine procedures correctly and using suitable equipment. Regular safety checks of all systems, processes and equipment are conducted to ensure they exhibit no abnormal safety concerns that may threaten the plant, our employees or our contractors. We have also achieved 100% incident investigation in 2012 which is essential for the reduction of occupational risk through the elimination of root causes. We also achieved zero loss of containment for the third consecutive year.

Process safety indicators

* per million man-hours

M Power’s comprehensive safety management systems and training plans have resulted in an impressive 161,112 man-hours worked by our employees with zero lost-time injuries, one minor injury and zero fatalities. Health and safety performance – contractors 2nd half 2010

2011

2012

1,565,200

1,298,881

337,253

1

1

0

Lost-Time Injury Frequency (LTIF)*

0,61

0,69

0

Number of minor injuries reported

4

1

1

Man-hours worked Number of Lost-Time Injuries

Number of ‘near misses’ reported

2

5

0

Number of work-related fatalities

0

0

0

100

100

100

% of contractors trained on health and safety procedures

2010 (2nd half)

2011

2012

100

100

100

Contractor occupational Illness rate

0

0

0

Loss of Containment (LOC) incidents

0

0

0

Incident Investigation Completion

* per million man-hours

Following M Power’s contractor EHS policy, we have achieved an improved performance concerning our contractors’ health and safety. In 2012, our contractors worked 337,253 man-hours with zero fatalities and zero lost-time injuries compared to one lost-time and one minor injury in 2011. There were zero ‘near misses’ in 2012compared to 5 ‘near misses’ in 2011.

Workforce Health Performance Health and safety are of equal importance to M Power. Occupational health is managed as part of our occupational health and safety management system. At M Power we conduct at least one health check for all our employees. As an additional measure to ensure a healthy workforce and to be able to deal with urgent health cases, M Power plans to have its own first aid clinic. As part of our preparations to receive an on-site clinic licence from the Supreme Council of Health, M Power has equipped its future facility with all equipment necessary to deal with small and medium health cases. We have also signed an agreement with a hospital to provide a full-time nurse and expect to start operating our clinic in the second quarter of2013. In 2012, we reported zero occupational illness rate. However we are committed to providing further training for our employees at all levels, and actively increasing their awareness of M Power’s occupational illness reporting procedure.

31



32

Fire safety No fire incidents have been recorded to date, which is a record we expect to maintain. To ensure we are prepared for emergencies, we conducted three fire drill trainings for our employees and contractors in 2012. Our plan was to conduct 4 fire drills; however we conducted 27 other fire fighting trainings, most of which included fire drill training for specific teams in the plant.

Fire Safety

2nd Half of 2010

0

As per our 2012 commitment, we have approved the procurement of a fire fighting truck which will be on-site in the second half of 2013. Emergency response and preparedness M Power has a range of emergency response work instructions in place to ensure a high level of preparedness for any unexpected emergencies, disturbances or circumstances. The main objective of these work instructions is to minimise damage to personnel, the environment and equipment.

Our employees are the key to our success. We are therefore deeply committed to providing a fair and healthy work environment, to investing in ouremployees by developing their skills and qualifications, and to ensuring employee satisfaction in order to attract and retain top talent.

2011

0 Fire Incident

2012

0

Our emergency response and preparedness procedures are aligned to the MIC Mutual Aid Agreement in which all MIC companies are committed to share their available safety and fire fighting resources with other companies facing safety risks. The MIC Crisis Management Team also communicates and coordinates with the local municipality and community population, neighbouring industries, civil defence, Qatar emergency services (fire and police departments), and all relevant ministries in case of emergency.

2nd Half of 2010

0 2011

M Power incorporates integrated fire fighting systems in every part of its plant. The fire fighting systems consist of the following: • Fire Pump System with a Desalted Water Tank of 3,700 m3 capacity in addition to a demineralised water tank of 2,000 m³ capacity serving as emergency reserve. • Automatic spray systems installed in various locations.

2 Emergency response drills 2012

3

• Automatic foam system for distillate oil tank. • Automatic CO2 fire extinguishing system. • FM200* fixed installations. • Hose stations, some featuring branch monitors and fire extinguishers. • Fire control and alarm system. • Fire telephones. • Breathing apparatus.

...........................................................................................................................................................................................................................................................................

* FM-200® is a colourless, liquefied compressed gas. It is stored as a liquid and dispensed into the hazard as a colourless, eclectically non-conductive vapour that is clear and does not obscure vision. It leaves no residue and has acceptable toxicity for use in occupied spaces at design concentration. FM-200® does not displace oxygen and therefore is safer for use in occupied spaces without fear of oxygen deprivation.

33



34

Investing in People At M Power, our employees are the key to our success. We are therefore deeply committed to providing a fair and healthy work environment; to investing in our employees by developing their skills and qualifications; and to ensuring employee satisfaction in order to attract and retain top talent. Our Human Resources (HR)department has developed the necessary policies to manage all aspects of HR, including recruitment, salaries, allowances, incentives, remuneration and expenses, working hours, performance appraisal, succession planning, official holidays and leave, job duties, and end-of-service procedures.

Equal opportunities are provided to all individuals of both genders who wish to join our workforce. At the end of 2012, we employed 4 women, representing 4.4% of our total workforce. To further encourage gender equality, a work environment that is friendly to both genders has been established at our offices. Following our relocation to MIC, commuting distance became a greater challenge for some employees, especially women; we are addressing this issue by providing transportation facilities for our employees. Number of employees by age 2nd half 2010

A Diverse and Equal Workforce At the end of the year 2012, our workforce consisted of 90 highly skilled full-time employees, representing a mix of cultures and expertise from 9 different nationalities.

2011

2012

Employees, 18-30 years of age

19

19

12


38

42

45


23

26

30


1

2

3

* This number was checked and updated from the number published in our 2011 Sustainability Report

Our recruitment policy ensures hiring equality, and enables all candidates to be checked against the required qualifications and experience when a position becomes vacant. All short-listed applicants must pass a range of theoretical and practical tests designed to assess experience and qualifications.

New employee hires

After ensuring that all required qualifications and experience criteria are met, we give first hiring priority to Qatari nationals, followed by the nationals of other GCC countries.

2nd half 2010

2011

2012

Number of new employee hires

10

21

5

Number of Qatari new employee hires

2

3

1

Number of non-Qatari new employee hires

8

18

4

2011

2012

New employee hires by age group 2nd half 2010

Number of employees by level

Total number of employees

90 Senior Management

10

20

30

40

50

60

70

80

80 Full-time employees

2nd Half of 2010

2011

2012

3

3

3

5

5

5

72

81

82

2nd Half of 2010

2012

90

100

89

Middle Management

2011

Staff

80 Total

New employee hires by gender 2nd Half of 2010

Number of male employees

Number of female employees

35

Total

90

2011

20

5

0

1

0

2nd Half of 2010

Number of male employees

Number of female employees

2011

3

7

1

31-40

4

9

2

41-50

3

4

2

51-60

0

1

0

Qatarization As part of our commitment to national development, we aim to actively support the Qatarization initiative. At the end of 2012, our Qatarization rate was 11.11%, which is 9.9% improvement compared to 10.11% Qatarization rate in 2011. M Power participates in all Qatarization committees and AWPP/IPP HR committees to meet its target for Qatarization and to provide locals with chances for training, development and familiarisation. However, hiring nationals at the GCC countries is an increasing challenge, especially in such a high growth rate period. M Power plans to continue to increase its Qatarization, and to enhance its internal promotion scheme and implement a proper succession planning strategy.

Total

Number of employees by gender

10


2011

89

In line with QNV 2030, M Power is committed to investing in the development of the experience, knowledge and capabilities of the Qatari population

18-30

Qatarization

Number of Qatari employees 2012

77

85

86

3

4

4

Qatarization of total employees (%) Qatarization of senior management (%)

2nd half 2010

2011

2012

9

9

10

11,30

10,11

11,11

50

37,5

66,7


36

Training and Development

Our employees are one of M Power’s core assets, and we view their personal and professional development as an investment in the company’s long-term success. M Power provides employee training based on individual needs and requirements and the results of each employee’s appraisal. Our training strategy is developed during fiscal budget preparations and yearly planning, and covers all targeted training areas, with special emphasis on employee encouragement and development. Prior to the close out and hand over of the project by our EPC contractor in late 2011, all our employees were on daily on-the-job training during the installation, configuration, and operations and maintenance phase with M Power’s EPC contractor and the original equipment manufacturer GE. We decided, therefore, that using our 2012 training numbers as the baseline for tracking our training records would be more reasonable. The total training hours in 2012 was 930 hours and the average training hours per employee was 10.3 in the same year. By developing a more focused training plan year after year, we expect the average training hours per employee to increase.

As M Power has a relatively small team, we encourage all of our employees to become familiar with additional administration and project management roles, even those that may be extraneous to their daily work. This cross-training is achieved by assigning employees to different tasks, including financial budgeting, report writing, monthly business reviews, and project management and reporting. We also try to build a constructive learning atmosphere that supports employee interactions, both within and between departments. This provides excellent opportunities for the sharing of knowledge about the company’s technical and commercial issues.

Training 2012

Total number of training for total workforce (hours) Average hours of training per year for employee Average hours of training per year for male employee Average hours of training per year for female employee

930 10.3 10.5 3.5

Training per employment category

Average hours of training for senior management Average hours of training for management Average hours of training for staff

6 24.4 9.6

Employee advancement is based on performance, which is decided as a result of the performance appraisal that is conducted four times every year for all our employees. M Power’s appraisal system parameters are: task completion, work quality, communications, task knowledge, cost management, resource management and leadership. We appraise our employees based on these parameters and in relation to the 4 criteria below: 1) 2) 3) 4)

Achieving company’s targets. Achieving employee’s targets. Objective assessment – for the targets. Employee personal target – not considered in the final score of the appraisal, but it is used for individual career development. For example, the primary highlighted area in 2012 employees’ appraisal for personal target was reports and technical writing. We are committed to including report and technical writing courses within our 2013 training plan.

Employee Satisfaction and Retention Employee Engagement As a close and compact team, we maintain an open-door policy as our main approach to employee engagement. Employees at all levels are able to easily communicate their issues to their supervisors and managers, and also to the CEO. Additionally, employees are encouraged to communicate with their managers and particularly to discuss quarterly individual performance appraisal. Responsibility and collaboration are required from all of our employees, and teamwork is necessary at all times to ensure the smooth running of the organisation. To achieve effective communication and employee engagement we have conducted more English courses to the employees who need it and we will focus further on English courses in our 2013 training plan. Wages and Benefits In order to attract and retain top talent, M Power provides all of its employees with a competitive package of benefits including: 1. 2. 3. 4. 5. 6. 7. 8. 9.

Annual bonus Housing allowances Transportation allowances Airfare for international employees and their families Health insurance for employees and their families Education allowances for children Migrant fees Social security End of services award

In 2012, we developed a new ‘Special Rewards for Work Excellence’ scheme for excellent employee performance including: Kahramaa Switching Authorisation, Special Skills, and Prevention of Loss and/or Business Interruption. The director and the employee(s) concerned should meet the management to present the achievement. Employee(s) will be rewarded a 10,000 QAR upon presentation to the management.

Turnover Our efforts in managing our HR and providing them with a flexible and friendly work environment, and competitive and encouraging benefits have paid off with 56% improved turnover rate among our employees in 2012

Employee turnover

Number of employees who

2010 (2nd half)

2011

2012

3

9

4

3.8

10

4.4

left the company Employee turnover (%)

Number of employees who left the organisation by gender 2010 (2nd half)

2011

2012

# of Female

0

0

0

# of Male

3

9

4

Number of employees who left the organisation by age group 2010 (2nd half)

2011

2012

18-30

1

3

0

31-40

1

1

2

41-50

1

5

2

51-60

0

0

0

Human Rights at M Power M Power does not tolerate any kind of forced labour, child labour, or discrimination within the company. In terms of contractors the company will act within applicable laws to protect contractors’ employees while working at M Power. A grievance system for M Power employees has been put in place, through which we encourage all of our employees to report human rights issues of any kind in the strictest of confidence. We will communicate the grievance system to our contractors and encourage them to report any such cases as well. We are proud to have experienced zero reportable cases of human rights violations since the company’s inception.

Supporting our Employees’ Personal Targets In 2012, we supported one of our Qatari employees to obtain his Bachelor degree in Science in Computing; a 4 semester course over 2 years. M Power is sponsoring the full course with 28,635 QR per semester.

37



38

Financial Optimisation Achieve Strong and Stable Financial Performance M Power utilises a thorough and dynamic financial model designed to monitor and benchmark the company’s financial position and performance. This model is detailed in M Power’s 25-year terms and considers the purchase agreement with Kahramaa and the fuel supply agreement with Qatar Petroleum. These agreements ensure that M Power’s operations are run in the most efficient manner possible, with the support and coordination of Kahramma and QP; this in turns ensures the best use of Qatar’s natural gas and M power assets. M Power’s financial performance is monitored and managed by our finance and administration division, which includes the finance and commercial, financial control, HR, and IT departments. We issue monthly, quarterly, and yearly financial reports, all of which are in compliance with the International Financial Reporting Standards (IFRS). The annual reports are audited both internally and externally. M Power’s improved plant load factor, efficiency, availability and reliability performance have been reflected in improved financial performance. In 2012, we exceeded our financial targets by 15%. In 2012, our net profit increased by 4.9% to reach 259 million QR, compared to 247 million QR in 2011. Our operating cost increased in 2012 due to higher power generation resulting in higher fuel consumption, and due to higher operations and maintenance costs.

M Power Risk Register M Power’s strong financial performance ensures our long-term stability while positively impacting our shareholders, lenders and nation. Based on this understanding, managing our risks is essential for protecting our assets and financial performance. In 2012, we developed ‘M Power’s Risk Register’, as a result of continuous and regular mee tings of the Operational Risk Management Committee (ORMC). The benefits of this register have been demonstrated in prioritising the impact of risks on company targets. The register has helped us to secure financial and practical resources to attend to areas of risk in a timely manner, while eliminating and lessening any impact on efficiency. Risk is the element of uncertainty in any given scenario. M Power has focused on identifying unfavourable risks so that timely management procedures can be devised to handle such situations.

Enhance our Indirect Economic Impact “An additional consequence of the direct impact of financial transactions and the flow of money between an organisation and its stakeholders is called indirect economic impact... Indirect impacts are an important aspect of an organisation’s role as a participant or agent in socioeconomic change. Indirect impacts are particularly important to assess and report in relation to local communities and regional economies.” ...Global Reporting guidelines

Initiatives

(GRI)

reporting

M Power’s largest contribution to Qatar’s community is provision of electricity. M Power produces more than 20% of Qatar’s electricity, which is used in all aspects of national development. Therefore, we perceive excelling in our core business of providing clean, efficient and reliable power as active participation in the socioeconomic development of Qatar. We are always seeking to thoroughly understand and develop our indirect economic impact in a wider context. One type of indirect economic impact derives from the support given to our employees, both intangible (via professional development) and tangible (in the form of financial compensation and benefits). Wages and benefits paid to our employees in 2012 totalled 26.9 million QR. Electrical power generation is a highly technical industry and local suppliers and contractors who possess the requisite expertise are not always readily available, however M Power is committed to giving priority to local suppliers and contractors where possible. Some international companies have established Qatari companies which helped us to enhance our local procurement. In 2012, 76.9% of M Power’s total payments to suppliers and contractors was spent on local suppliers and contractors, which represents 15% reduction compared to our spending on local suppliers and contractors in 2011. This reduction was mainly due to lack of availability of specific skills and expertise in the local market, which we have fulfilled by working with reputable international service providers instead. The total payment to contractors and suppliers in 2012 was 91.2 million QR, which does not include the natural gas payment which we received from QP. In 2012 we paid 183.5 million QR for the natural gas which is used for generating electricity.

Financial performance (million QR) 2010 (2nd half)

2011

2012

Employee wages and benefits

15.3*

25.4*

26.9

Payments to contractors and suppliers

99.7

150.8

91.2

Payments to local contractors and suppliers, as a percentage

88.9

90.4

76.9

108.9

157.2

183.5

of total payments to contractors and suppliers (%) Natural gas payment to QP

* Updated numbers from the 2011 report as they were mentioned in US dollars in the 2011 report

Financial performance (million QR) M Power’s indirect economic impact - Supporting national industries 2010 (2nd half)

2011

2012

Revenue

677

1,128

1,002

Operating costs

552

881

743

Net profits

125

247

259

0

220.4

182.0

Payments to providers of capital (million QR)*

Benefiting from the shared facilities agreement, Qatalum is planning to install a second feeder from M Power 400 KV GIS. This feeder, in addition to the existing one, will be a backup power supply to Qatalum thus increasing their plant’s availability and reliability.

** We have updated the scope of this indicator to include only dividend without the payment for natural gas, which is mentioned separately on page 40

39



40

Good Governance M Power’s governance system and structure are designed to guarantee that objectives are properly set, sound decisions are made, risks are monitored and assessed with vigilance, and performance is optimised. A diverse and experienced Board of Directors and roster of shareholders provide clear direction and oversight, with strong management systems and stakeholder engagement processes in place for systematic and accountable implementation. Board of Directors M Power’s highest governing body is its shareholders who are represented on the M Power Board of Directors. The Board of Directors oversees the organisation’s corporate strategy, plans and targets, management and budgeting. The Board also monitors M Power’s performance in all relevant economic, environmental and social areas, including operations and maintenance, financial position and performance, and HSE performance, through the audit committee and maintaining the risk register. The Board consists of 10 member-representatives of M Power’s shareholders. Members of the Board are selected via discussion between the audit committee, M Power’s CEO, and current Board members. Criteria for nomination to the Board include relevant experience, qualifications, interest and an absence of conflicts of interest, among other factors. The Board of Directors meets with M Power’s management team at least four times per year to discuss the company’s performance and to provide recommendations. The Board also meets with shareholders at least once per year in a General Assembly meeting, which is held to review the company’s performance–including the Board’s performance–and to obtain shareholders’ approval of the Board’s recommendations. The Board also contains a separate audit committee, chaired by a Board member and consisting of three other Board members. The role of this committee is to help observe the company’s performance and optimise analysis and management of risks, including corruption and conflicts of interests.

Management Systems

Corresponding to M Power’s utilisation of state-of-the-art technologies is its implementation of good management systems in all areas. M Power has developed a comprehensive environment management system and health and safety management system to oversee its direct and indirect environmental, health and safety performance. We have also developed HR policies and procedures which help to attract, develop and retain the best talent. An essential part of our management system is the regular review of policies and procedures to ensure relevance at all time through the integration of changes arising.

41


M Power also has an integrated risk management system, composed of: An operations risk management committee, which identifies all risks related to business. An enterprise risk management committee, which performs internal auditing and supervises the operations risk management committee. An external auditing committee, which reports to shareholders. The internal audit committee as per the Joint Venture agreement and article of association monitors the financial performance and position to report to shareholders. We also completed M Power’s risk register in 2012, as explained on page 39.

BOARD MEMBERS 2

Mr. Issa Al-Ghanim Chairman

2

Mr. Abdul Majeed Al-Reyahi Vice-Chairman

2

Mr. Jassim Sadiq Director

2

Mr. Hassan Al Muftah Director

2

Mr. Faisal Obaid Al Siddiqi Director

2

Mr. Jamal Ali Al-Khalaf Director

2

Mr. Neil Francis Cave Director

2

Mr. Yoshiaki Yokota Director

2

Mr. Sean Galvin Director

2

Mr. Masamitsu Suda Director

Organisational Chart

CEO

Finance & Admin Director

Plant Director

Operations

Maintenance

Technical

Finance & Commercial

Accounting

RISK MANAGEMENT COMMITTEES To safeguard the company’s assets and protect shareholders' interest we have established a mechanism of identifying, assessing, evaluating and mitigating risks, which enables us to make appropriate decisions. To achieve this, M Power has created two risk management committees at different levels. During 2012, The Operational Risk Management Committees (ORMC) presented the first risk register to Enterprise Risk Management Committee (ERMC). After due deliberation, ERMC presented this to the Board of Directors.

EXECUTIVE MANAGEMENT TEAM 2

Mr. Abdulmajeed Al Reyahi Chief Executive Officer

2

Mr. Sean Galvin Plant Director

2

Mr. Mohammad Al Harami Finance and Admin Director

Human Resources

Information Technology

Kahramaa

Management through Engagement

At M Power, we believe that stakeholder engagement is an essential part of our management system; facilitating and supporting our operations and long-term aspirations and helping us to avoid operational risks. Below, we have identified our key stakeholders; those who most greatly affect or are affected by our operations. We have also identified their priority issues, in order to address them more effectively.

Environment

QP

Lenders

MIC

Shareholders

Regulators

Contractors

Employees


42

Stakeholder

Stakeholder Priority Issues

M Power Response

Kahramaa

> Grid security > Plant availability and reliability > Proactive coordination and reporting

> Achieve high availability and reliability performance > Communicate with Kahramaa on daily, weekly, and monthly bases to manage forecasted demand and maintenance schedule

QP

> On-time payments > Adherence to coordination procedures > Participation in SDI initiative

> Ensure on-time payments > Increase active participation in quarterly meetings > Implement sustainability management and reporting > Submit monthly gas nomination, annual outage programme and other compliances with respect to the Fuel Supply Agreement

MIC

Regulators (e.g. Ministry of Economy & Finance, Ministry of Labour, Ministry of Business and trade) Employees

Contractors and suppliers

Appendix A –Our 2013 Sustainability Commitments Summary Our Sustainability Commitments Delivering clean, efficient and reliable power

> Collaboration with MIC Crisis Management Team and informing of MIC Emergency Planning > Adherence to MIC guidelines > Supporting of MIC environmental efforts

> Collaborate with MIC to reduce M Power’s and the MIC’s environmental footprints > Collaborate with MIC to enhance M Power’s and MIC’s health and safety performance, e.g. participation in unannounced evacuation drills for MIC

> Compliance with all relevant regulations > Reporting on a regular basis > Direct reporting of all noncompliance incidents

> Submit regular reports > Contribute to national strategies and development > Establish communication channels to discuss M Power issues while ensuring quick responses


> Provide a diverse work environment while ensuring equal opportunities > Provide all procedures, equipment and training required to ensure healthy and safe work environment > Provide opportunities for career development > Provide unique benefits packages to employees and their families

Investing in People

> Safe working environment > Attractive benefits package > Training and development opportunities > Career development > Performance-based benefits

> Fair selection procedure > On-time payments > Maintenance of healthy and safe work environment

> Provide orientation on health and safety policies and procedures > Ensure on-time payments

> Strong financial returns and stable growth > Compliance with all regulations and standards > Achievement of high safety and environmental performance > Enhancement of company’s reputation > Contributions to national strategies and development

> Deliver monthly operations and maintenance reports > Continue to focus on efficiency, availability and reliability > Implement sustainability management and reporting

Lenders

> Re-payments > Interest payments > On-time payments > Delivery of performance reports on lenders’ KPIs

>Submit monthly report > Achieve on-time repayments and interest payments > Maintain excellent communications > Implement sustainability management and reporting

Environment

> Resource optimisation > Reduction of GHG emissions > Waste management

Shareholders

Appendices


» Finalise the study and begin the implementation of “Engineering and

Implementation of Steam Turbine Seal and Sparge Steam Modification Project” to enhance efficiency and reduce auxiliary power consumption. » Finalise the Green Belt project and start reusing all our waste and sewage

water for irrigation. » Sign a contract with a specialised company for disposal of medical waste. » Obtain the Supreme Council of Health certificate to run our on-site clinic. » Train our employees on the appropriate use of the fire fighting vehicle. » Participate in the Mutual Aid Agreement that is agreed among all MIC

companies. » Conduct sustainability training sessions for all employees. » Conduct specialised sustainability training customised for each business

department, to discuss department specific sustainability issues. » Develop proper succession planning strategy for key positions. » Full operations for our ERP system. » Improve the number and quality of HR reports.


» Extend tax exemption, or transfer such risk to Kahramaa as per PPA. » Reduce uncertainty of budget variables.

Good Governance

» Initiate ISO 9001 and 14001 to certify our management systems. » Reduce the top 10 risks as per the risk register.

> Achieve single-digit NOx emissions > Build water treatment plants > Continue our efforts to achieve the best configurations for our operations > Submit quarterly reports and annually renew the Consent to Operate (CTO) to the Ministry of Environment that cover M Power’s environmental aspects

Risk Mitigation through Stakeholders’ Engagement According to M Power’s risk register, in 2012 excessive dust from the adjacent gabbros storage area was identified as an operational risk to M Power as it could accelerate corrosion for the power plant. Effective engagement with the MIC to identify the operational risks and other related risks has resulted in removing that adjacent gabbros area.

43



44

Appendix B – Report Parameters

Appendix C – GRI Statement

Profile: This is M Power’s 2012annual Sustainability Report, reflecting the organisation’s follow-up sustainability performance for the year 2012, and covering a range of environmental, social, financial and wider economic aspects. Scope and Boundary of the Report: M Power has analysed the sustainability issues within Qatar and within the electricity generation sector, and developed a materiality matrix for prioritising the identified material issues. There was no major change to our materiality assessment in 2012; however, we aim to conduct more in-depth updates to the materiality assessment in 2013 as part of the development of our 5-year sustainability strategy. We have aligned our sustainability approach to Qatar National Vision 2030 (QNV 2030) and the Sustainable Development Industry (SDI) initiative, which was launched by the Health, Safety and Environment (HSE) Regulations and Enforcement Directorate (DG) at the State of Qatar, as well as to its stakeholders’ needs and expectations. M Power then identified its priority sustainability areas and developed the sustainability framework which makes up the structure of this report. This report was developed based on the Global Reporting Initiative (GRI) framework and indicators and the GRI electric utilities sector supplement, aiming to achieve Level A of the GRI application levels. We have also added an index for the International Petroleum Industry Environmental Conservation Association (IPIECA). Stakeholder Inclusiveness: M Power understands the needs and expectations of its stakeholders and has developed the stakeholder map shown on page 37 of this report. We believe this report covers and communicates with all our key stakeholders and we think that all the identified stakeholders will be interested to read our Sustainability Report. We also encourage them to provide feedback on our sustainability report using the feedback form and email we have added in appendix H. Comparability and Balance: This report provides data that covers our performance in the second half of 2010 (start date of our commercial operations) and full years for 2011 and 2012. This report communicates M Power’s successes as well as the main challenges in the economic, environmental and social aspects. This report uses the GRI G3.1 guidelines which provide a clear reporting framework and the GRI indicators which provide comparisons. Accuracy and Reliability: M Power has been careful to make sure that all information provided in this report is of the highest level of accuracy and reliability. We have used our management systems and test and measurement results to gather the information in this report. As stated in the report, some data for previous years were updated because we are updating our tracking system and put more efforts into unifying the scope of calculation to ensure more accurate data year after year. The measurement techniques we used for calculating our numbers include international standards such as the Intergovernmental Panel on Climate Change (IPCC), US Department of Energy, US EPA and other sources. Clarity of Information: M Power has put the sustainability information within this report in a clear and easy to communicate format, as well as using the GRI framework to make the report easy to read and understand. Assurance: This report has not been externally assured; however, the report was reviewed internally by all M Power’s departments and assessed by the GRI to identify the GRI application level check.

45



46

Page (s)

4. Governance, Commitments and Engagement 4.1

Appendix D – GRI Index 1.Strategy and Analysis

Governance structure of the organisation, including committees under the highest governance

41

body responsible for specific tasks, such as setting strategy or organisational oversight.

41

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

80% of Board members are independent.

4.3

For organisations that have a unitary board structure, state the number of members of the highest

41

Page (s)

governance body that are independent and/or non-executive members.

1.1

Statement from the most senior decision-maker of the organisation.

6

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

41

1.2

Description of key impacts, risks and opportunities.

11, 13, 16

4.5

Linkage between compensation for members of the highest governance body, senior managers and executives (including departure arrangements), and the organisation's performance (including social and environmental performance).

No link between company’s performance and the Boards compensation

2. Organisational Profile 2.1

Name of the organisation.

7

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

41

2.2

Primary brands, products and/or services.

7

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for

41

2.3

Operational structure of the organisation, including main divisions,

42

guiding the organisation's strategy on economic, environmental and social topics. 4.8

operating companies, subsidiaries and joint ventures. 2.4

Location of organisation's headquarters.

Doha, Qatar

2.5

Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

7

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

4.9

4.10

Procedures of the highest governance body for overseeing the organisation's identification and management of economic, environmental and social performance, including relevant risks and opportunities; and adherence or compliance with internationally agreed standards, codes of conduct and principles.

41, 42, The Board review the company's availability, reliability, and HSE performance. The Board represents the shareholders and set the commercial targets which are discussed during the general assembly to evaluate the overall performance.

2.6

Nature of ownership and legal form.

7

2.7

Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries).

7, 9

2.8

Scale of the reporting organisation.

5

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organisation.

39 – 41

2.9

Significant changes during the reporting period regarding size, structure or ownership.

No significant changes

4.12

Externally developed economic, environmental and social charters, principles, or other initiatives

- Sustainable Development Industry Reporting

2.10

Awards received in the reporting period.

10

3. Report Parameters

Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental and social performance.

to which the organisation subscribes or endorses.

- Amonia demand model with Kahramaa

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organisations in which the organisation: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

M Power commercial registration has limited its activities in order to organise the role of the company.

3.1

Reporting period (e.g. fiscal/calendar year) for information provided.

2, 45

3.2

Date of most recent previous report (if any).

2011

4.14

List of stakeholder groups engaged by the organisation.

43

3.3

Reporting cycle (annual, biennial etc.)

45

4.15

Basis for identification and selection of stakeholders with whom to engage.

43

3.4

Contact point for questions regarding the report or its contents.

2, 54

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

43

3.5

Process for defining report content.

45

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organisation

43

3.6

Boundary of the report (e.g. countries, divisions, subsidiaries,

45

has responded to those key topics and concerns, including through its reporting.

Economic

leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. 3.7

State any specific limitations on the scope or boundary of the report

45

Management Approach

39, 40

EC1

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments.

39, 40

EC2

Financial implications and other risks and opportunities for the organization's activities due to climate change.

16-21

45

EC3

Coverage of the organization's defined benefit plan obligations.

38, M Power pays 10% and the Qatari employees pays 5% if the employee's salary. Non-Qatari employees have end of service benefits as per law

(see completeness principle for explanation of scope). 3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations.

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

No joint ventures, subsidiaries, leased facilities or outsourced operations

Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and thereasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

5, 17

EC4

Significant financial assistance received from government.

M Power is tax exempt. In 2013, M Power aims to extend of tax exemption, or transfer such risk to Kahramaa as per PPA.

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

5, 17

EC5

Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.

No Minimum wage in Qatar

3.12

Table identifying the location of the Standard Disclosures in the report.

47

EC6

Policy, practices and proportion of spending on locally-based suppliers at significant locations of operation.

39, 40

3.13

Policy and current practice with regard to seeking external assurance for the report.

45

EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

16-21

EC8

Development and impact of infrastructure investments and services provided primarily for public benefit

We have created 220kV and 120kV substations for the state of Qatar and impartial addition to the distribution and we will help the mega-middle projects at the MIC

through commercial, in-kind or pro bono engagement. EC9

47

7


Understanding and describing significant indirect economic impacts, including the extent of impacts.

39, 40


48

Environmental

Page (s)

Social: Labour Practices and Decent Work Management Approach

30, 35 -38

LA1

Total workforce by employment type, employment contract and region.

35, 36

Zero

LA2

Total number and rate of employee turnover by age group, gender and region.

35, 36

Direct energy consumption by primary energy source.

25

LA3

Benefits provided to full time employees that are not provided to temporary or part time employees, by major operations

37, 38

EN4

Indirect energy consumption by primary source.

25, 26

LA4

Percentage of employees covered by collective bargaining agreements.

No unions available in Qatar Per law.

EN5

Energy saved due to conservation and efficiency improvements.

18-22

LA5

Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

No unions available in Qatar

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in

18-22

LA6

Percentage of total workforce represented in formal joint management-worker health and safety committees

To be reported in our 2013 report

Management Approach

25-27

EN1

Materials used by weight or volume.

26, 27

EN2

Percentage of materials used that are recycled input materials.

EN3

energy requirements as a result of these initiatives.

that help monitor and advise on occupational health and safety programmes.

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

18-22

LA7

Rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities by region.

30, 32

EN8

Total water withdrawal by source.

26

LA8

Education, training, counselling, prevention, and risk-control programmes in place to assist workforce

30-33

EN9

Water sources significantly affected by withdrawal of water.

M Power desalinates its water

EN10

Percentage and total volume of water recycled and reused.

27

LA9

Health and safety topics covered in formal agreements with trade unions.

No unions available in Qatar

Location and size of land owned, leased, managed in, or adjacent to, protected areas and

Our operations could only affect the sea life but we spare no efforts in eliminating our impact on the sea life, please refer to pages 27, 28

LA10

Average hours of training per year per employee by employee category.

37

LA11

Programmes for skills management and lifelong learning that support the continued

EN11

areas of high biodiversity value outside protected areas. EN12

Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

EN13

EN14

EN15

Habitats protected or restored.

Strategies, current actions and future plans for managing impacts on biodiversity.

Number of IUCN Red List species and national conservation list species with


members, their families, or community members regarding serious diseases.

LA12

Percentage of employees receiving regular performance and career development reviews.

37


LA13

Composition of governance bodies and breakdown of employees per employee category according

35, 36, On Board level, 6 members age between 41-50, and 4 members age between 51-60


LA14

habitats in areas affected by operations, by level of extinction risk.


EN16

Total direct and indirect greenhouse gas emissions by weight.

17

EN17

Other relevant indirect greenhouse gas emissions by weight.

17

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

17-22

EN19

Emissions of ozone-depleting substances by weight.

Zero

EN20

NOx, SOx, and other significant air emissions by type and weight.

17

EN21

Total water discharge by quality and destination.

27, 28

EN22

Total weight of waste by type and disposal method.

27, 28

EN23

Total number and volume of significant spills.

Zero

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the

Zero

EN25

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected

to gender, age group, minority group membership, and other indicators of diversity.

LA15

26

17-22

EN27

Percentage of products sold and their packaging materials that are reclaimed by category.

Not applicable

EN28

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance

Zero

with environmental laws and regulations.


Return to work and retention rates after parental leave, by gender.

Management Approach

38, 39

HR1

Total number of incidents of discrimination and actions taken.

100%

HR2

Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

HR3

This is not significant as we produce electricity and feed it into the grid direct. We just have small number of light cars

Zero We do have procedures for miss behaviour and harassment and employees are trained on these and the documents are available at all times for the employees. Number of training hours to reported in 2013 report.

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

HR4

Total number of incidents of discrimination and actions taken.

We are not aware of any case, but we also have a proper measures including investigation through a committee chaired by the CEO.

HR5

Operations identified in which the right to exercise freedom of association and collective bargaining

No operations or significant suppliers were identified to have human rights significant risks

may be at significant risk, and actions taken to support these rights. HR6


Operations identified as having significant risk for incidents of child labour, and measures taken

HR7


Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of forced or compulsory labour.

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

organisation's operations, and transporting members of the workforce.

None of our employees went into parenting leaves during the reporting period

to contribute to the elimination of child labour.

EN26

Significant environmental impacts of transporting products and other goods and materials used for the

1:1

Ratio of basic salary of men to women by employee category.

Social: Human Rights

by the reporting organization's discharges of water and runff.

EN29

37

employability of employees and assist them in managing career endings.

Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

49

Page (s)

HR8

Percentage of security personnel trained in the organization's policies or procedures concerning

Zero

aspects of human rights that are relevant to operations. HR9

Total number of incidents of violations involving rights of indigenous people and actions taken.

Zero

HR10

Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.

Zero

HR11

Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.

We are not aware of any case, but we also have a proper measures including investigation through a committee chaired by the CEO.


50

Social: Society

SO1 (EUSS)

Page (s)

Management Approach

9, 16, 18, 39, 41

Nature, scope and effectiveness of any programmes and practices that assess and manage

We have created 220kV and 120kV substations for the state of Qatar and impartial addition to the distribution and we will help the mega-middle projects at the MIC.

the impacts of operations on communities, including entering, operating and exiting.

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes.

PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Zero

PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning

Zero

the provision and use of products and services.

We also support the Qatarization initiative. 36, 39, 40

SO (G3.1)

SO2

M Power is located in an industrial city away from residential areas, however, an environmental impact assessment took place before establishing the plant, and we work closely with the industrial city management and the neighbouring industries on environmental and social related issues, such as Qatarization.

Percentage and total number of business units analysed for risks related to corruption.

100%, The Board of M Power hires an reputable external auditor which also approved by shareholder to carry out external audit services as per internal financial reporting standards. This is required as per Article of Association of the company. The audit carried out resulted in no fraud or corruption. Also, the issued management letter from external auditor did not report any issues related to corruption cases. These are current tools we use for verifying transactions and any deviation from procedures and practices.

SO3

Percentage of employees trained in organisation's anti-corruption policies and procedures.

No structured training, but we already communicated through policies and risk committee make more emphasis on this issues

Zero

Electric Utilities Sector Supplement EU1

Installed capacity, broken down by primary energy source and by regulatory regime.

7

EU2

Net energy output broken down by primary energy source and by regulatory regime.

5, 7, 9

EU3

Number of residential, industrial, institutional and commercial customer accounts.

7

EU4

Length of above and underground transmission and distribution lines by regulatory regime.

Not applicable, M Power only generates electricity which is directly feeded into the grid of the only offtaker - Kahramaa

EU5

Allocation of CO2e emissions allowances or equivalent, broken down by carbon trading framework.

Not applicable, no carbon trading implemented at M Power

EU6

Management approach to ensure short and long-term electricity availability and reliability.

EU7

Demand-side management programmes including residential, commercial, institutional and industrial programmes.

Not applicable, M Power only generates electricity and provide to Kahramaa, and not part of any DSM programs

EU8

Research and development activity and expenditure aimed at providing reliable

18-23, we do R&D internally for improving our efficiency and reliability

18- 23

electricity and promoting sustainable development. EU9

Provisions for decommissioning of nuclear power sites.

Not applicable, no nuclear power plant at M Power

EU10

Planned capacity against projected electricity demand over the long term,

9, M Power is part of the electricity generation system and is discussing such issues with Kahramaa

SO4

Actions taken in response to incidents of corruption.

Zero, and we have enough measures to prevent and act for any case

SO5

Public policy positions and participation in public policy development and lobbying.

9, 18, 19

SO6

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Zero

EU11

Average generation efficiency of thermal plants by energy source and by regulatory regime.

SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

Zero

EU12

Transmission and distribution losses as a percentage of total energy

SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Zero

EU13

Biodiversity of offset habitats compared to the biodiversity of the affected areas.

SO9

Operations with significant or actual negative impact on communities.

17, 26-28

SO10

Prevention and mitigation measures implemented in operations with significant potential

17, 26-28

EU14

Programmes and processes to ensure the availability of a skilled workforce.

EU15

Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region.

M Power does not distribute electricity and just supply it directly to the grid.

EU16

Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors.

16, 27, 28, 31

EU17

Days worked by contractor and subcontractor employees involved in construction, operation and maintenance activities.

EU18

Percentage of contractor and subcontractor employees that have undergone relevant health and safety training.

30-33

EU19

Stakeholder participation in the decision making process related to energy planning and infrastructure development.

8, 9, 43

EU20

Approach to managing the impacts of displacement.

EU21

Contingency planning measures, disaster/emergency management plan and training programmes,

or actual negative impacts on local communities

broken down by energy source and regulatory regime.

18- 20 Not applicable M Power only Our operations could only affect the sea life but we spare no efforts in eliminating our impact on the sea life, please refer to pages 27, 28

36-38

Social: Product Responsibility Management Approach PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and

zero

safety impacts of products and services during their life cycle, by type of outcomes. PR3

Type of product and service information required by procedures and percentage

PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product

PR5

PR6

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Programmes for adherence to laws, standards; and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

51


Not applicable - We feed power directly to the grid. However, we maintain continuous communication with the only offtaker - Kahramaa Not applicable - Compliance is integrated into all our management systems and we consult in some areas. However, we do communicate with our only customer, Kahramaa as per laws and standards

31-33

and recovery/restoration plans.

Not applicable - We feed power directly to the grid, no such procedures

and service information and labelling, by type of outcomes.

30-33 Proprietary information due to legal reasons

Not applicable, no displacement happened or planned in the future as we are located in industrial city

Not applicable - We feed power directly to the grid, no such procedures

of significant products and services subject to such information requirements.

2 employees are eligible for retirement in the next 5 years, and 3 employees in the next 10 years

EU22

Number of people physically or economically displaced and compensation, broken down by type of project.

EU23

Programmes, including those in partnership with government, to improve or maintain access to

Zero M Power only generates electricity which is feeded directly to Kahramaa

electricity and customer support services. EU24

Practices to address language, cultural, low literacy and disability related barriers to accessing

M Power only generates electricity which is feeded directly to Kahramaa

and safely using electricity and customer support services.


52

EU25

Number of injuries and fatalities to the public involving company assets, including legal judgments,

Not applicable

settlements and pending legal cases of diseases. EU26

Percentage of population unserved in licensed distribution or service areas.

EU27

Number of residential disconnections for non-payment, broken down by duration of

M Power only generates electricity which is feeded directly to Kahramaa M Power only generates electricity which is feeded directly to Kahramaa

disconnection and by regulatory regime.

SE11

Preventing corruption

Not applicable

SE12

Preventing corruption involving business partners

Not applicable

SE13

Transparency of payments to host governments

Not applicable

SE14

Public advocacy and lobbying

9, 43

SE15

Workforce diversity and inclusion

35-38

EU28

Power outage frequency.

21-23

SE16

Workforce engagement

37-38

EU29

Average power outage duration.

21-23

SE17

Workforce training and development

37

EU30

Average plant availability factor by energy source and by regulatory regime.

21-23

SE18

Non-retaliation and grievance system

38

Appendix E – IPIECA Index Environmental Indicators

Page (s)

E1

Greenhouse gas (GHG) emissions

17

E2

Energy use

25

E3

Alternative energy sources

Not available

E4

Flared gas

Not applicable

E5

Biodiversity and ecosystem services


E6

Fresh water

26

E7

Other air emissions

17

E8

Spills to the environment

28

E9

Discharges to water

27, 28

E10

Waste

27, 28

Health and Safety Indicators

Page (s)

HS1

Workforce participation

30-33

HS2

Workforce health

30-33

HS3

Occupational injury and illness incidents

30-33

HS4

Product stewardship

30-33

HS5

Process safety

30-33

Health and Safety Indicators

53

Page (s)

SE1

Local community impacts and engagement

9, 36, 39, 40

SE2

Indigenous peoples

Not applicable

SE3

Involuntary resettlement

Not applicable

SE4

Social investment

36, 39, 40

SE5

Local content practices

Not applicable

SE6

Local hiring practices

36

SE7

Local procurement and supplier development

39, 40

SE8

Human rights due diligence

38

SE9

Human rights and suppliers

Not available

SE10

Security and human rights

38



54

Appendix F – Glossary Qatar National Vision 2030: A long term vision that defines the outcomes for Qatar and provides a framework from which national strategies (and implementation plans) can be developed in order to meet Qatar's goal to "be an advanced society capable of sustaining its development and providing a high standard of living for all of its people."

BA

Breathing Apparatus

CEMS

Continuous Emission Monitoring System

CMP

Conference and Meeting of the Parties to the

Climate Change: A significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years.

Kyoto Protocol CEO

Chief Executive Officer

CO

Carbon monoxide

CO2

Carbon dioxide

COP

Conference of the Parties

CTO

Consent to Operate

DG

Regulations and Enforcement Directorate

EHS

Environment, Health and Safety

FSA

Fuel Supply Agreement

GCC

Gulf Cooperation Council

GE

General Electric

GJ

Gigajoules

GHG

Greenhouse Gas

GRI

Global Reporting Initiative

HR

Human Resources

HRSG

Heat Recovery Steam Generators

HSE

Health, Safety and Environment

HVAC

Heating, Ventilating and Air Conditioning

IFRS

International Financial Reporting Standards

IPP

Independent Power Producer

Kahramaa

Qatar General Electricity and Water Corporation

kg

Kilogram

Kj

Kilojoules

kWh

Kilowatt per hour

LHV

Lower Heating Value

LTIF

Lost-Time Injury Frequency

LOC

Loss of Containment

M3

Cubic metre

Sustainability Report: An organisational report that gives information about economic, environmental, social and governance performance.

M Power

Mesaieed Power Company Ltd

MW

Megawatt

MWh

Megawatt hour

MIC

Mesaieed Industrial City

Global Reporting Initiative (GRI): A network-based organisation that produces a comprehensive sustainability reporting framework that is widely used around the world with the aim of the mainstreaming of disclosure on environmental, social and governance performance. GRI is committed to the Framework’s continuous improvement and application worldwide.

MSCM

Million standard cubic meters

NOx

Generic term for mono-nitrogen oxides

OEM

Original Equipment Manufacturer

PPA

Power Purchase Agreement

Ppm

Parts per million

QAFCO

Qatar Fertiliser Company

QEWC

Qatar Electricity and Water Company

QR

Qatari Riyal

Gulf Cooperation Council (GCC): Is a political and economic union of the Arab states bordering the Persian Gulf and located on or near the Arabian Peninsula, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates.

QNV 2030

Qatar National Vision 2030

QP

Qatar Petroleum

RO

Reverse Osmosis

SOx

Refers to many types of sulphur and oxygen

Qatarization: An initiative by the government of Qatar to increase the number of Qatari nationals in all joint venture industries and government departments. Corporate Governance: The system by which companies are directed and controlled. It involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed. Sustainability: A state where the current generation can meet their needs without comprising the ability of future generations to meet their own. Sustainability Management: The integrated management of economic, social and environmental issues in a manner that maximises value for all stakeholders.

Greenhouse Gas Emissions: Gas emissions which contribute to the trapping of heat inside the atmosphere resulting in the Global Warming phenomenon.

55

Appendix G - Acronyms


containing compounds SDI

Sustainable Development Industry

SCR

Selective Catalytic Reduction

TIL

Technical Information Letter

UN

United Nations