About this Report Contents

We are pleased to present our fourth public sustainability report which highlights the impacts of our operations on the environment, society and Qatar’s economic development. We understand that the scale and the complex nature of the sustainability challenges often require a About this Report 2 joined up and integrated approach involving various stakeholder groups. By providing a clear and transparent picture of where we are today and what our future commitments Introduction from H.E. Minister of Energy and Industry 4 102-46 are, this report aims to engage our customers, partners, suppliers, employees, and other stakeholders in a discussion about the role we all have in the delivery of Qatar’s National Vision 2030 and the Qatar Introduction from H.E. KAHRAMAA President 5 National Development Strategy-II (2017-2022). 2016: Our key figures and achievements 6 102-50 Reporting Boundary: KAHRAMAA – Qatar General Electricity and Water Corporation – represents the sole KAHRAMAA at a glance 8 transmission and distribution system owner and operator for the electricity and water sector in process and Qatar. Therefore, the information provided within this report’s boundaries covers only our activities of Setting the broader context for our report 10 standard transmission and distribution, and excludes the generation of electricity and water. 102-53 Scope: The report focuses on KAHRAMAA’S own framework, procedures and processes in place to Governance 12 drive sustainability and elaborates further on the sustainability initiatives implemented both within KAHRAMAA and on a nationwide level. We are committed to expand our scope in the future beyond Creating value for our stakeholders 15 own operations to cover further information about our supply chain performance. 102-54 Reporting standard and period: This report has been prepared in accordance with the GRI Corporate Strategy 16 Standards: Core option as well as the GRI Electric Utilities Sector Supplement, and documents our sustainability performance in 2016. Where data permits, historic figures are presented as well, however Our approach to sustainability 20 for the purpose of consistency and clarity, 2016 remains the main focus. Future commitment: We have strived to present a detailed and comprehensive picture of our Special feature 27 activities in this sustainability report. We are committed to continuing on our sustainability journey and would build on our sustainability reporting system in the future to be able to capture a broader data Ensuring value for our customers 33 spectrum that reflects our stakeholders’ needs and expectations. Conserving natural resources 44 Identifying We face a variety of challenges and potential opportunities areas across a whole range of sustainability Investing in our people 54 priority issues related topics. to report Our materiality assessment process helped us prioritize environmental, social and economic topics Contributing to the local economy 63 with maximum impact on KAHRAMAA as well as on our stakeholders, which guided the sustainability reporting approach for 2016. Supporting our communities 68 We engage with internal and external stakeholders to identify topics of importance, plot all identified sustainability issues on our materiality matrix, prioritize them and decide what issues to report on. For Looking ahead 74 further detail on the process and the key issues identified, please refer to page 24 and 25. Acronyms 75 Engagement We hope this report will continue to enhance the communication with all of our stakeholders. Please GRI/IIRC Index 76 connect with us to share your thoughts, feedback, or questions:

Dalia Abdelhalim Al-Toukhy, Advisor - Conservation & Energy Efficiency www.km.com.qa Department at [email protected] @ kahramaa

KAHRAMAA

kahramaa-qa

Implementing Smart Solutions, 2 Rationalizing Resources KAHRAMAA | Sustainability report 2016 3 Minister’s Foreword President’s Foreword

The government is committed to creating a dynamic, competitive and broad-based economy Tracing the development plan in the State of Qatar and the Qatar National by increasing economic diversification through the re-investment of Qatar’s significant energy Development Strategy II (NDS2 2017-2022), one finds that the highest priority wealth. The outcome is evident in the rapid changes and urbanization during the last decade, goes to the provision of services for all residents. It targets the promotion of the brought about by wise national economic planning, stable state revenues and Qatar’s vision national economy and enhancement of productivity and organizational efficiency 102-14 of shaping Doha as a world-scale metropolis. This means continued buoyancy for the private 102-14 at all state authorities to cope with international economic development. We sector in Qatar, and a surge in economic activities in infrastructure creation and building of civic serve a rapidly growing economy and population in a region with an abundance amenities. of fossil fuels, yet scarce in water sources. In this context, it is imperative that Large opportunities for investment and energy trade are present, coupled with continuing we use our resources and manage our growth efficiently and wisely. To address lifestyle improvement, development of telecommunications, information technology, this need, in 2012 KAHRAMAA launched “Tarsheed”, the National Program for knowledge economy, renewable resources and business efficiency. Qatar’s rapid public Conservation & Energy Efficiency to create sustainable culture and lifestyle among infrastructure expansions and real estate development are driving the continual population its residents, the public and private sector in cooperating towards conservation growth, primarily due to the need for more expatriate manpower. Large scale investments in and efficiency to ensure optimal use of water as well as electrical and renewable transport, communications, tourism, sports facilities and other services are on-going, such as the energy. KAHRAMAA has implemented legislative measures enforcing compliance development of the Lusail City, Qatar Economic Zones (Manateq), Qatar Rail and M’sheireb real to the national conservation laws. It aims to influence the lifestyle of Qatar’s H.E. DR. MOHAMMED BIN SALEH AL-SADA estate projects and other major infrastructure developments. H.E. ENG. ESSA BIN HILAL AL-KUWARI residents in domestic consumption, as well as implement water and electricity saving technologies. MINISTER OF ENERGY AND INDUSTRY Continuing industrialization largely due to the oil and gas sector and rapid urbanization has PRESIDENT, KAHRAMAA generated increased demand for major improvements and expansion of basic infrastructure and Along with this effort KAHRAMAA has plans in place to support the government services most notably electricity and water. As such, Qatar General Electricity & Water Corporation to generate at least 200MW-500MW of electricity from renewable sources such as “KAHRAMAA” has taken all necessary procedures to guarantee the supply of these two major KAHRAMAA is proud to solar energy. Moreover, it has implemented alternative potable water production services and to strengthen the basic infrastructure of electricity and water sectors, to ensure the publish its fourth annual techniques such as Reverse Osmosis. sustainability and reliability of supplies. Beside KAHRAMAA efforts to develop the electricity and Qatar continues to To align with Qatar National Vision (QNV 2030) and Qatar National Development water services in the state and to meet the growing demand for these vital services. sustainability report as rise as one of the Strategy-II (NDS2 2017-2022) KAHRAMAA is vigorously pursuing its long For example, Al-Duhail Superstation 11/66/220 commissioned on March 2015 at a total cost part of our commitment term road map and strategy including 10 strategic objectives: Optimize asset world’s most dynamic of 255 million QR. It feeds Duhail area, Wadi Al-Banat and other vital facilities. There is also, to ensure transparency performance, Provide high quality water and electricity, Enhance processes and and fastest growing the Strategic Mega reservoirs at Rawdat Rashid meant to secure water supplies in Qatar and is systems, Improve corporate governance and risk management, Ensure a safe and considered the largest expansion of Qatar water storage ever. It aims to increase Qatar water and credibility to our healthy working environment, Attract, develop and retain a high-performing economies to achieve strategic storage till 2026 (first stage). The project consists of 24 reservoirs at a total capacity stakeholders. This report workforce and support Qatarization, Increase social advocacy and environmental phenomenal GDP of 2300 Million Gallons. The total cost of the project awarded contracts is QR 17 bn. 55% of seeks to provide Qatari compliance, Excel at customer service, Strengthen financial performance to provide contractors are Qatari companies. The project is due for final commissioning and operation in the high quality and sustainable electricity and water for better living in Qatar. increase. The National second quarter of 2018. government institutions, Basic infrastructures are not an end in themselves; rather, they are means for Vision 2030 guides the KAHRAMAA endeavors to provide high quality services for customers by commissioning vital investors, the academia, ensuring the delivery of goods and services. They are crucial to achieving prosperity country’s growth. projects to meet the increasing demand of ​Qatar’s preparations to host the 2022 FIFA World Cup our suppliers and the and growth in a way that enhances the quality of life, including the social well- which add more challenges to the readiness of KAHRAMAA. being, health and safety of citizens, and the quality of their environment. We Peak electricity demand in 2016 was 7,435 MW, 2.3% more as compared to 2015 with general public with undertake these commitments seriously as we believe in the values of corporate the Industrial sector peak demand of 1,560 MW in 2016, 0.1% more to 2015. Total energy relevant information social responsibility, customer centricity and teamwork in order to live our aspirations and to meet our mandate as a sole service provider. transmitted in 2016 was 39,667 GWh with growth of 2.1% over 2015. on our sustainability Total water production in 2016 was 560 million cubic meters, an increase by 5.07% over 2015. I reiterate that the real challenge we encounter is continuing our successful march. The maximum monthly water production in 2016 was 50.1 million cubic meters in the month of approach and our We are determined to exert all efforts to maintain the place of pride KAHRAMAA October, an increase of 1.7% over 2015. performance in 2016. It has achieved. We endeavor to promote and maintain the good relationship with our customers. In fact, these objectives demand focus on sound and prudent KAHRAMAA is implementing strategic planning and transformation program to enhance also provides the end-user business planning in order to achieve sustainability and KAHRAMAA is capable customer services, meet demand growth, improve business efficiency and strengthen its with an understanding of realizing it. We look confidently into the future and feel proud to be part of workforce, through implementing smart technologies such as smart grid to the Electricity Qatar’s success story. Network and other state of the art solutions. KAHRAMAA’s continued vision is to transform and appreciation of the itself into self-sustaining business, providing high quality and sustainable electricity and water for better living in Qatar. development of electricity,

Thanks are due to His Highness, Sheikh Tamim Bin Hamad Al Thani, the Emir of the State of water and district cooling H.E.Eng. Essa Bin Hilal Al-Kuwari Qatar for his extensive support for KAHRAMAA business development, thus contributing towards sectors in Qatar. President, KAHRAMAA the prosperity of the State of Qatar. Thanks are also due to all KAHRAMAA employees for their efforts towards achieving KAHRAMAA’s objectives and enabling KAHRAMAA in achieving much success in 2016 and beyond.

H.E. Dr. Mohamed bin Saleh Al-Sada Minister of Energy and Industry

Implementing Smart Solutions, 4 Rationalizing Resources KAHRAMAA | Sustainability report 2016 5 RAF A3 project First water capacity

MIGD Key figures & Capacity of the reservoirs % 22by September 2016 final reduction94.74 in repair increased by % water capacity 35 MIGD reduction95.3 in response time time for water-related achievements by January 2017 to customer complaints complaints 77 million gallons

Invested over

million QAR fatalitiesZero among our Time of Use Billing Qatari employees in150 supporting education of employees & contractors sponsored49 to study in Readiness: Qatari students and employees universities while working Successful issuance of Bulk Customers over the past 5 years Billing using remotely tenders awared (industial) collected readsTotal of 98by Materials Department 30 with value of 2.13 Billion QR Implemented the Energy Efficiency Labeling Decree for air conditioners Electricity26,977 reads million Working38.6 man hours celebrated Overall water quality ISO:9001/2008 reached high levels at Water15,322 reads Maintained an Averge Quality Management System for electricity projects - Phase 10 Water Stock level of certifications for Technical Affairs, Water Network, Human YTD Implemented the 98.1% days 92.2% Resources, and Public Relations, 2.8 and Communications Rationalisation Law No. Departments 20/2015, with fines for wasting Condition Monitoring ISO:9001/2015 certification water upto 20,000 QAR Accomplishments for IT Department 93% (Estimated Net Savings) Total revenue of paper waste recycled QAR billion within KAHRAMAA operations Distibution 34MQR 9.5 Transmission 54,666 Issued a regulation with the hours on Employees MQR Cumulative savings of Ministry of Environment to Training 35 Monitored ban the import of inefficient % of the distribution91 network Tungsten lamps covering 11900 assets with million tons overall health index 93% and 18% 8.5of carbon emissions Number of pipe bursts per Reduction in natural gas 20%reduction on water and through Tarsheed program 100 Kms decreased from consumption Due to DC electricity consumption per (When compared to the 10.2 in 2012 to capita thanks to 4th year of baseline in 2012) Services (1.00 Million Barrels in 2016 of Oil Equivalent) TARSHEED (Since 2012) Total number of customers 5

Electricity – 344,445 Utilized 2.8 MM3 of Water – Recycled Water In District 297,261 Cooling by 2016 Water Losses Non Revenue Water (NRW) New Department of Planning Member of the national Enhanced transmission Reduction of potable and Development of renewable energy committee and distribution networks water usage by Production and Water in Qatar, to oversee at a total cost of over Resources formed as per Emiri 10.4%VS plan 15% Real Water development of the national % Decree No. 46 for the conservation renewable energy strategy and 56in District Cooling Losses 4% VS plan 5% of groundwater resources Qatarization QAR billion 37% policies 1.9 Implementing Smart Solutions, 6 Rationalizing Resources KAHRAMAA | Sustainability report 2016 7 KAHRAMAA at a Glance Doing business with integrity Who we are Up to the year 1999, electricity QP (Qatar Petroleum) remains the sole source of natural gas as fuel for the Power & Vision To achieve our ambitions, we have identified five values to 102-2 102-1 generation and water production, Water Production facilities run by the IPWP’s. In 2016, there has not been a significant guide us in our everyday operations and in our interactions with Providing High Quality and Sustainable others: transmission and distribution services change in the size or structure of KAHRAMAA’s operations and our supply chain. Electricity and Water for Better living in Qatar were carried out by the former Ministry As it directly interfaces with consumers, forecasting of electricity and water demand in Customer centricity: We put our customers at the center of Electricity and Water (MEW).

Qatar remains with us. KAHRAMAA is intensively involved in initiating and negotiating 102-16 of everything we do. This value is valid for all of our employees. 102-3 To achieve some degree of with IPWP developers for the construction of new power stations and desalination Mission Whether in research & development, finance & accounting or deregulation and to encourage private human resources, all our decisions are made with the customer plants. Forecasting of oil and gas and fuels consumption is centralized at QP. By 2030 our people, assets, systems and processes investors, in the year 2000 power needs and relations in mind. will set a global benchmark for performance, generation and water production

102-4 technological innovation, environmental Managing services were separated and privatized Electricity Electricity Performance and Responsiveness: QP Gas IPWP KAHRAMAA CUSTOMER sustainability and social responsibility in electricity & into a business named Qatar Electricity & water & water our operations efficiently helps us deliver better value to water sector and Water Company (QEWC). Since our customers. We are committed to revisit and reassess that date, several additional facilities our processes and practices, to identify opportunities for have been built to accommodate improvement, which will help us advance our business 102-5 Employees from Qatar’s increasing power and water performance. needs. Transmission and distribution Our core business areas 2,862 44 different Teamwork: We all work as a team. We believe that only by of electricity and forwarding and Number of employees nationalities Formulation of Power & Water Purchase Agreements sharing our ideas and knowledge, we will be able to achieve distribution of water remained as a (PWPA) and provision of necessary technical and 102-6 sustainable growth and deliver on promises. government service carried out by Total number of corporate support for establishment of generation & the new government corporation desalination ventures Transparency: Openness and transparency are fundamental named KAHRAMAA (Qatar General customers QAR QAR 9.5 billion aspects of our everyday work. Many evolving stakeholder Electricity and Water Corporation), Electricity – 344,445 Total revenue Own, construct and operate electricity & water requirements and companies are expected to disclose not only 102-7 headquartered in Doha, Qatar. Water - 297,261 transmission and distribution networks in the State information on how they manage their business today but of Qatar also how they are planning for the future. This report reflects KAHRAMAA operates and maintains Total annual our strong commitment to be accountable and transparent by the sole electricity and water network 37% production of water Set-up plans and programs for development of communicating KAHRAMAA’s performance, vision and actions in the country, focusing only in electricity & water transmission and distribution

102-8 Qatarization 3 with our various stakeholder groups. delivering these basic services to all 560 million m networks consumers. The government continues Loyalty: The loyalty of our people is critical for the success to encourage its entrepreneur citizens Amount of electricity received from Lay out regulations, standards and codes of of KAHRAMAA. In all our activities, we aim to support our to invest in the power generation and the power generating units and sent practices for electricity & water supplies to buildings corporate objectives and to celebrate our achievements.

102-9 water desalination business, otherwise out to the grid for customers - and facilities known as IPWP’s (Independent Power 39,667 GWh Our 10 corporate objectives guide our business approach and and Water Producers), adopting global Provide consultancy services related to its activities management in the coming future by helping us to relate our trends of deregulation. and operations everyday practice to Qatar’s needs for sustainable long-term growth. 102-10

2013

102-46 2015 1900s TO 1940s 1980s TO 2002s 2009 2011 • Connection to GCC grid upgraded • CN department Certified for ISO 9001:2008 • 1.17 million meters of water distribution network mains GCC Reached 325 to 400 kV Indicators show large, • Water and Electricity under one umbrella within Ministry of • New procedures in managing R&D activities in interconnection Million Imperial • 10% Electricity consumption permanent communities Energy and Industry cooperation with internal and external partners established in Qatar in grid in 220 kV Gallon per Day reduction and water by 6% • KAHRAMAA established under Emri Law number 10 as (MIGD) after the • District Cooling Department paved • Tarsheed 2022 (T22) Project with SC Marketing & need of sustained water government corporation completed new stations the way for The Ministerial Schools Energy Audit and electricity supply for • Power generation and water production services separated survival and industry joined service Directive of prohibition of potable • Completed the Tarsheed 2022 (T22) Project with and privatized into Electricity and Qatar Company (QEWC); SC Marketing & Schools Energy Audit KAHRAMAA to focus on distribution and transmission water for cooling purposes

2010 2014 2016 1950s TO 1980s 2012 • Launch and implementation of decrees, laws and codes to regulate • Expansion of the country’s • Balanced scorecard system introduced the rational use of water and electricity in Qatar • First desalination plant 2008 power supply system Launch of Conservation & • Pilot of Advanced Metering System Energy Efficiency • Deployed smart solutions to monitor and control consumption • First computerized electricity systems Control Center Replacement of old • Construction of a new launched “Tarsheed” under the • Continued investing in mega infrastructure projects to secure demand • Qatar became independent, Ministry of Electricity and water pipes and speed 400kV substations • Regulations proposed for District Cooling Water (MEW) form • Completed SCADA system higher patronage of HH • Risk Register and Risk Heat Map generated and enhance reliability and quality of electricity and water networks pumps installed (pumped • Ras Abu Aboud power station became operational to monitor and control Sheikh Tamim Bin Hamad • Strategic water security projects launched • Publication of District Cooling Design and Water Management Code water 24 hr/day) • Satellite power stations introduced water network Al-Thani , Emir of Qatar • Launch of Long-Term Business Strategy • TARSHEED 4th Anniversary

Implementing Smart Solutions, 8 Rationalizing Resources KAHRAMAA | Sustainability report 2016 9 Setting the broader

context for our report In addition,Qatar would study the possibility of using Wind Power, which will have an impact on achieving Qatar’s goals of mitigating the harmful emissions of climate The world finds itself being disrupted by a combination of three forces of change: technology, globalization, and change. The increasing use of renewable energy within our energy mix would allow 102-15 demographics. They affect the way we work, the way we live and the way our society is changing. So these changes, 102-15 Qatar to meet increasing domestic demand, contribute to enhancing energy security climate change, empowered customers, rapid urbanization, new generation of information technology are some of the new and reduce the consumption of natural gas within the country, allowing additional megatrends that global decision makers needs to consider when forming future strategies. revenue for the country through export. The renewable energy policy is currently The Sustainable Development Goals (SDGs) address the pressing social, economic, and environmental problems. being developed under the umbrella of Ministry of Energy and Industry and with Governments, businesses and civil society, under the umbrella of United Nations, have all agreed 17 common Goals in support of KAHRAMAA and concerned authorities in the State. September 2015, that we need and want to achieve at a global community level by 2030. Qatar recognises that sustainable development can only be realized when there is social progress, economic growth and environmental change and has been committed to achieving sustainable development since 1971, starting with the Millennium Development Goals (MDGs), the precursor to the SDGs. The State of Qatar, through the Qatar National Vision 2030 and the Qatar National Development Strategy II (NDS2 2017-2022) is focused on eight priority areas: economic diversification, environment sustainability, education, healthcare, social protection, public safety and security, culture and sports, and international technical cooperation.

KAHRAMAA today faces some real economic, social and environmental challenges and considers them as potential business Water security is at the very heart of Qatar’s survival. Aside from our basic human opportunities. The State of Qatar continues to grow as one of the most dynamic economies in the world putting significant Water sector survival, our geopolitical security, economy, industries and communities all rely on pressure on its natural resources. This combined with a rapidly growing population, modernization, and urbanization, lead a guaranteed and safe water supply. Accordingly, bettering Qatar’s water security to fast rising energy and water demands. And the figures are supporting these trends. KAHRAMAA aims to integrate the 17 context outlook is one of the country’s three key Challenges in the QNV2030, along with SDGs into its sector projects, taking into account the challenges and successes of national development. By following a result- energy security and cyber security. oriented strategic planning approach, economic, social and environment aspects of development have been integrated into KAHRAMAA’s corporate objectives, that seeks to achieve Qatar’s Vision 2030. Qatar has a shortage of natural water resources and the country only gets seven inches of rain per year. The country relies on 99% desalination of water from the sea to meet the needs and demand. This is in addition to groundwater, which is threatened by depletion due to overuse and weak compensation. As such, there is dire need to look for non-traditional and sustainable sources of water. Water demand in Qatar has grown by an annual average of 10.6% over the ten years. With 518M cubic meters (2015) and 540M cubic meters (2016) of water consumption, the trend is expected to hit 900 m3 by 2025. KAHRAMAA, whose water networks cover 99.8% of Qatar’s water supply, ensures that everybody has access to clean water. Water conservation, efficient water use and water recycling are the most important Electricity sector The electricity sector in Qatar for example has undergone a remarkable development drivers that support Qatar’s quest for water security. over the past years according to the objectives and timetable of First Qatar National context Development Strategy (NDS 2011-2016), with generation reaching 42,307 GWh in KAHRAMAA has realized many achievements in the past six years according to the First 2016, which is almost double of that in 2008. Qatar National Development Strategy (NDS 2011-2016). A number of objectives were achieved in 2016 in the water sector including the inauguration of the Ras Abu Fontas KAHRAMAA has embarked on a transformation journey by linking its corporate stations (22 million gallons/day production capacity), the increase of the capacity of the strategy with Qatar National Vision 2030 and the NDS, adopting ‘excellence’ as its reservoirs by 77 million gallons, and the decrease of the total losses and leaks in the slogan in all its operations and promoting the efficiency of the energy sector. We are network to less than 10%. adopting taking procedures to reduce production costs and wastage, price, electricity and water in line with economic costs after verifying the operational efficiency of all KAHRAMAA launched Tarsheed in 2012, which has succeeded through its various independent producers,to ensure efficiency-based economic operation. initiatives and projects to reduce the per capita consumption of water by 20% by the end of 2016 to 208 m3/Person/Year. KAHRAMAA strategy for 2017-2022 seeks to Each year, KAHRAMAA studies the demand for electricity for the next five years and reduce per capita water consumption by another 15%. upgrades it annually. The annual rate of increase in electricity demand in Qatar is about 8%, which is among the highest growth rates in the world. KAHRAMAA’s biggest Water recycling and reuse have also undeniably climbed higher on the agenda commitment is to meet this challenge. of Qatar’s water-related stakeholders, including the Ministry of Municipality & Environment and the public works authority, Ashghal. Now, treated sewage and The 2016 Sustainability Report presents a summary of the most important projects industrial water are used for garden irrigation, landscaping, construction works and in the electricity sector implemented by KAHRAMAA to reduce the per capita district cooling services. Desalination plants have evolved rapidly over the last two consumption rate (Tarsheed- National Program for Conservation & Energy Efficiency) decades and approximately 150 countries now use such technologies to help meet and secure the demand for electric power and the main projects to be implemented in their fresh water requirements. the near future as part of the National Development Strategy (NDS-2 2017-2022). The success of Qatar’s desalination technology highlights the importance of investing Although Qatar is the world’s largest exporter of liquefied natural gas (LNG), the human and financial capital into water-related research and development (R&D). Such cleanest hydrocarbon fuel, which is serving Qatar’s goal of sustainability and supporting efforts will be integral to developing efficient technologies and scalable infrastructure its pioneering efforts to preserve the environment, NDS-2 2017-2022, achieve under to meet water demand up to 2030, as well as ensuring we cope well with any the guidance of His Highness Sheikh Tamim Bin Hamad Al-Thani, the Emir of Qatar, natural disasters. Our R&D team has built strong and cooperative relationships with aims to develop the mixture of energy used locally to include renewable energies, so similar teams in Qatar – a unified effort is the only way we can all succeed. We must that the contribution of solar energy generates between 200-500 MW of electricity. collectively improve Qatar’s water security by finding solutions that navigate the logistical and cultural barriers that stand in our way.

Implementing Smart Solutions, 10 Rationalizing Resources KAHRAMAA | Sustainability report 2016 11 Performance all business affairs while observing ethics, honesty and Governance management transparency is a critical component of our Values. Our Code In 2015, as part of the Emiri KAHRAMAA’s overall strategic direction is defined by of Business Conduct (COBC) sets the expectations and provides Qatar’s Minister of Energy and Industry oversees and approves Decree No. 46, the KAHRAMAA our vision, mission and values. As a performance-driven guidance to our employees to ensure that they maintain our KAHRAMAA’s strategic direction as the head of our governance administrative structure organization, our balanced scorecard approach help us Values wherever they conduct business. body. Our President is the executive head of our organization and is was amended to add a new to ensure alignment with our corporate objectives. The responsible for the management of the activities of KAHRAMAA. department namely Planning Code of Business Conduct guides us in our day-to-day balanced scorecard in KAHRAMAA allows the organization and Development of Production operations by focusing on areas such as conflict of interest, to record, monitor and report our corporate, directorate and Water Resources. This newly gifts and hospitality, managing sensitive information, non- and department-level performance KPIs, achievements and formed department would play discrimination, customer relationships, health & safety, and challenges and is structured around four dimensions, Our organizational structure a key role in the conservation diversity. Our Legal Affairs Department is responsible for of groundwater resources in Stakeholder tracking any violations related to corruption or conflict of accordance with the Qatar interests. National Vision 2030. Finance Internal and sustainability 102-16 102-18 People Human rights Performance of our strategic KPIs are monitored on In KAHRAMAA, we value the rights of our employees and a monthly and quarterly basis through the Corporate believe that our business partners share the responsibility Minister Performance Review (CPR) whereby we measure of protecting the rights of their employees as mandated of Energy & Industry performance on our plans and targets. Corporate by national labor laws. We therefore mandate minimum Scorecards with KPI dashboards enables us to monitor requirements related to labor and human rights compliance progress and drives responsibility and accountability within within all our contracts with suppliers. Our Health, Safety the organization. The Planning and Quality department and Environment Department conducts regular audits at sites President Manager plays a key role in performance monitoring and develops KPI and looks for compliance not only with KAHRAMAA’s own Water Projects dashboards for H.E. the President and senior management. requirements, but also with Qatar’s Labor Law and Qatar’s Environmental Law. Although we do not have a human rights GTC/LTC policy, we acknowledge the significance of the issue, especially Manager Manager Manager Manager within our value chain. Internal Audit Committee staff Electricity Projects Business conduct General Services Finance Power and Water At KAHRAMAA, we are committed to conducting our Production Project business ethically and legitimately. We carry out operations Manager in accordance to our Mission, Vision and Values. Conducting Manager Materials IT Director Director Director Director Corporate Services Water Networks Electricity Networks Technical Affairs

Manager Manager Human Resources Transmission Safety Operations • Internal Audit function and Fault Analysis Unit Committees and • A two-tier Tender Committees • Business Conduct Committee Manager Manager functions to manage Distribution Operation & Control • A corporate Quality Management System Electricity sustainability issues Networks Affairs (ENA) Safety Rules Committee Manager Manager Manager • Qatarization Committee Manager Planning and Development Conservation Manager Manager Planning & Quality Maintenance of Production and & Energy Efficiency Legal Affairs Planning • Research & Development (R&D) Committee & Field Services Water Resources We have various committees and functions within KAHRAMAA which • Smart Network Committee Manager, Manager Manager Manager Manager Manager actively manages and provides • Network Security Committee Public Relation District Cooling Planning Health, Safety & Customer Services Control System oversight on sustainability related Environment & Communication Services • Work Safety Assurance Committee risks and opportunities within our • Emergency Committee value chain. Some of these include, • Information Security Steering Committee • Grievances Committee Governance for sustainability reporting • Faults Follow-up Committee • Tarsheed Facilitation Committee The Sustainability Task Force within KAHRAMAA consisting of each department head approves and signs-off the data or • Inspection & Pricing Committee representatives from various departments such as HR, Internal information allocated to their respective department. The • Disciplinary Committee Audit, Customer Services, Conservation & Energy Efficiency, Conservation and Energy Efficiency Department, acting on • Smart Grid Committee Planning and Quality, Health & Safety, Water Networks, behalf of H.E. the President is responsible for the review of Electricity Networks, District Cooling and Technical Affairs is the reported content in this report with the final sign-off by responsible for the collection of performance data on KPIs in KAHRAMAA’s President. line with GRI guidelines. To ensure accuracy of reported data,

Implementing Smart Solutions, 12 Rationalizing Resources KAHRAMAA | Sustainability report 2016 13 Creating value for our stakeholders 102-11 KAHRAMAA is the sole transmission and distribution system owner and operator (TDSOO) for the electricity and water sectors in Qatar. Our company is responsible for forecasting electricity and water demand in Qatar and plays a key role in regulating water and water and electricity consumption in the country, through regulations, standards, and codes of practices. There are

102-9 opportunities for resource conservation across all stages of our value chain and KAHRAMAA is working with our suppliers, 102-13 operations and customers to achieve them.

102-15 Risk management KAHRAMAA acknowledges that Risk and monitor risks which could have Certification and 99.9% of Management is an essential element for a potential impact on our corporate Qatar Petroleum (QP) 3072 employees procurement good corporate governance practice. We objectives. In 2016, our risk register listed Supplies Natural Gas from 44 different audits budget spent on believe that successful risk management the top 26 risks facing KAHRAMAA – as Fuel to the IPWP nationalities local suppliers would allow us to ensure compliance including diverse risks such as availability KAHRAMAA strives to ensure quality to regulations and internal policies and of talent, loss of power supply, in every aspect of our business procedures, provide increased assurance inadequate IT structure, lack of systems operations. We comply with international on control effectiveness and enhance to innovate, unavailability of alternative management systems to ensure that the decision making process within water resources, environmental hazards, we meet the highest quality standards within our organization. We conduct the organization. An effective Risk and others. KAHRAMAA KAHRAMAA KAHRAMAA regular internal audits and carry out Management process also provides the Supply Chain Operations Customers process improvements to ensure opportunity for management to enhance The Strategic Planning Section of compliance with ISO 9001:2014 Quality an organization’s culture based on ethical the Planning & Quality department is Management System. In 2016, our values consistent with those expected of responsible for the risk management Internal Audit Committee completed 14 KAHRAMAA and its employees. function and for the development and audits, surpassing our target of 8. These coordination of risk management systems audits included Risk Management and within KAHRAMAA. The Risk Officer and KAHRAMAA’s risk management policy Performance Management reports, and the Risk Management Committee act focuses on the identification and in coordination with the IT department, on behalf of our President to manage assessment of risks, as well as the we also completed the Security Matrix. proactive implementation of mitigation all activities related to risk management within KAHRAMAA. measures. Our departmental and Production of Resource Transmission Distribution Delivery corporate risk registers helps us to record electricity and water Conservation desalination

INDEPENDENT POWER AND WATER KAHRAMAA CUSTOMER • Arab Union of Electricity Memberships PRODUCERS (IPWP) • Gulf Cooperation Council Interconnection Authority and associations (GCCIA) • Own, construct and operate electricity & water • Formulate power & water transmission and distribution networks in the • Provide new connections, • International Council on Large Electric Systems (CIGRE) purchase agreements state of Qatar generate bills and collect KAHRAMAA continues to play an active (PWPA) and provide the • Set- up plans and programs for the usage fees role as a member of a number of national • GCC CIGRE – (Secretary-General on CIGRE GCC) necessary technical and development of electricity & water and international organizations and corporate support for the transmission and distribution networks • Ensure safe and reliable • GCC Electricity & Water Conservation and Customer industry associations. We seek to utilize establishment of power • Lay out regulations, standards and codes of water and power supply these platforms to learn from best Service Committee generation and practices for electricity & water supplies to practices and to promote our approach to desalination ventures in buildings and facilities • Encourage resource • Arab Renewable Energy & Energy Efficiency Committee Qatar sustainable business within the region as • Support employment of qatar citizens conservation through regulations, customer well among our peers: • GCC Benchmarking Committee • Engage with suppliers to ensure compliance • Purchase power and with health and safety and environmental engagement and digital • Arab Union KAHRAMAA role water from IPWPs requirements solutions • Ensure occupational health and safety of • Permanent Water Resources Committee employees and contractors • Conservation Media Committee • Economic value to the • Provide reliable power and water supply to all • Ensure customer • Renewable Energy Committee Government of Qatar users in Qatar satisfation through competitive • Operational efficiency to reduce wastage of • General Security Committee, Cyber Security Committee power and water power and water through transmission losses • Customer awareness on purchase agreements or water leakage • Experts Municipality Follow-up Committee resource conservation • Support national • Support Qatarization agenda of the and efficiency to support • Other prominent local and regional committees related strategic objectives Government protection of scare Corporate objectives aligned to the Qatar to electricity and water • natural resources in National Vision 2030 and the National Qatar Development Strategy • Encourage sustainable practices through

Value for our stakeholders Value supplier engagement

Implementing Smart Solutions, 14 Rationalizing Resources KAHRAMAA | Sustainability report 2016 15 KAHRAMAA’s strategic direction is aligned to the short and long-term objectives Corporate of the Qatari government as highlighted in the Qatar national Vision 2030, the KAHRAMAA’s Strategic Objectives Qatar National Development Strategy and other strategic objectives of national importance. Through our strategy, KAHRAMAA aims to support the national strategy objectives and continue to stay true to our mission of providing safe, high quality For the period 2014-2018, we have identified 10 corporate objectives which are and efficient electricity and water supply to the people of Qatar. We believe that aligned to our Long-term strategy. our Long-term strategy would help us aspire towards our vision of transforming ourselves into a customer-centric, dynamic and self-sustaining organization.

Qatar National National Qatar National Vision 2030 Our Long-Term Strategy to 2030 would be Development Strategy priorities implemented through three key phases, driven according to six dimensions of Maintenance Liberalization Investment in Use business excellence, to accomplish 18 of an of energy clean and partnerships Qatarization uninterrupted market but efficient energy and third corporate ambitions by 2030. supply of with greater and water parties to Trends deliver electricity and regulatory generation impacting water as oversight technologies capital Health demand grows programs to KAHRAMAA and safety remain Phase 1: Strategic Phase 2: Consolidating Phase 3: Global leading Emphasis on Reduction in customer energy relevant and transformation (2014-2018) efficiency and regional practice (2024-2030) Adoption of smart technologies centricity subsidies innovative growth (2019-2023) Establishing the optimal Strategic investments in Development of value-added Focus on cost reduction operating model, capabilities Driving continuous innovation and leading services and products and operation efficiency and systems required operational and cost- technologies aligned to to establish the optimal efficiency improvements and Qatar’s inherent areas of foundation on which expanding service offerings competitive advantage, Our KAHRAMAA can achieve in order to become the enabling KAHRAMAA to aspirations sustained growth leading regional power and take its place as a leading utilities organization global utilities organization Mission Values Vission

Excel at customer services

Provide high quality water and electricity Stakeholder Increase social advocacy and environmental compliance

Promote regulatory changes in the electricity, water and district cooling markets Corporate Finance Strengthen financial performance objectives for Improve corporate governance and risk management 2014 - 2018 Internal Enhance processes and systems and sustainability Optimize asset performance

Ensure a safe and healthy working environment People Attract, develop and retain a high – performing workforce and support Qatarization

Implementing Smart Solutions, 16 Rationalizing Resources KAHRAMAA | Sustainability report 2016 17 Implementing Smart Solutions, 18 Rationalizing Resources KAHRAMAA | Sustainability report 2016 19 Our approach to Alignment with National Corporate Alignment with Qatar National Vision Alignment with Sustainable Development Strategy 2 objectives (QNV) Development Goals (SDGs) sustainability (2017-2022) Responsible exploitation of Sector 2: environment Optimise asset hydrocarbon resources sustainability, natural performance Preserving and protecting the resources and built environment including Water environment

Responsible exploitation of Provide high hydrocarbon resources Sector 2: environment quality supply sustainability, natural Building environmental awareness of water and resources and built among the population electricity environment Encouraging sustainable technologies 102-12 Knowledge based economy Enhance characterised by innovation The State of Qatar faces multiple national program, ‘Tarsheed’ we promote processes and A world class infrastructural backbone challenges related to the availability and the standardization of energy and water systems demand for natural resources. Qatar is saving technologies, legislate laws and The efficient delivery of services one of the highest per capita consumers regulations, spread awareness and Improve Knowledge based economy of electricity and water in the world. The promote renewable green energy and corporate characterised by a transparent and country’s water and electricity demand is resource conversation among all sectors governance and accountable government expected to increase further with rising in Qatar. We believe that KAHRAMAA risk-management population, economic growth as well as has a strategic opportunity to align and due to the various ongoing infrastructure support the pillars of the Qatar National Ensure a safe and projects related to the FIFA World Cup Vision 2030 (QNV 2030), the key tenets Participate in a wide variety of cultural Sector 7: Culture and healthy working and sports activities sports 2022. In recognition of these challenges, of National Development Strategy environment the Qatar National Vision 2030 as well (NDS) 2017-2022, and the Sustainable as the National Development Strategy Development Goals (SDGs) to contribute Attract, develop highlight the sustainable consumption to economic, social and environmental Increased and diversified participation and retain a of scare natural resources as well as development in Qatar. Our Corporate of Qataris in the workforce through high performing Sector 3: Education and preserving the environment for future Strategy as well as our corporate and investment in training programs workforce training and incentives for Qataris to enter generations as key national objectives. multiple departmental KPIs, are focused and support professional and management roles The country aims to ensure that it works on key elements of sustainability that Qatarisation toward conserving energy and water would ensure that future generations resources, as well as implementing have the resources and opportunities that Sector 2: environment innovative ways of producing water and we have today. sustainability, natural Increase social energy that are sustainable for the future A proactive & significant regional role in resources and built advocacy and generations. We acknowledge clearly our assessing the impact of climate change environment environmental responsibilities towards the State of and mitigating its negative impact compliance As the sole distributor of electricity Qatar. We understand that our corporate Sector 5: Social and water in Qatar, KAHRAMAA plays objectives which would help us – develop protection a crucial role in the conservation of the right internal management systems, resources and the creation of value for enhance our customer service practices, Provide high quality services that Excel at customer Sector 6: Public safety the environment and our society. The provide the necessary training to our respond to the needs and the desires of service and security increased affordability of clean and people, and by encourage future research individuals and businesses efficient energy and water generation and development activities - would help technologies, in combination with us to deliver on tomorrow’s needs and Promote the adoption of smart technologies be able to help the nation achieve its regulatory A comprehensive urban development Sector 2: environment changes in the plan for Qatar that adopts a sustainable sustainability, natural

to optimize the distribution network, strategic ambitions. energy, water policy with regards to urban expansion resources and built provides us with opportunities to and district and population distribution environment enhance our impact. Through our cooling markets

Sector 1: Economic Strengthen Open and flexible economic structures diversification and financial capable of competing in a changing development of private performance world sector

Implementing Smart Solutions, 20 Rationalizing Resources KAHRAMAA | Sustainability report 2016 21 Our response to Stakeholder Importance to stakeholders (see How we engage? Why we engage? Topics we discuss group KAHRAMAA sections in this report) • Set policy and • Investing in our • To help shape • Regulation • Direct meetings regulatory framework people regulation and development Policy • Participation in • Influence • Contributing understand the • Resource makers and government initiatives, macroeconomic and to the local issues that may conservation government regulation and policy political framework economy impact our business, • Product quality agencies working groups within which we • Ensuring value our customers • Innovation • Key national and operate for our customers and the local • Health & Safety international events • Influence our • Conserving communities • Customer needs reputation natural resources 102-40

• Achieving high level • Quality of service • To understand our • Ensuring value • Direct meetings of satisfaction from • Transparency For KAHRMAAA, we consider our stakeholders as our partners who would help us Customers customers’ needs and for our customers • Customer surveys our customers and • Pricing Engaging our achieve our strategic objectives. We value transparency in all our business activities get their feedback on • Conserving • Call centers building a long-lasting • Service access and seek to foster trust through open and transparent communication with all our our performance natural resources 102-42 trust • Reliability of service stakeholders stakeholders. Continuous engagement with our stakeholders lays the foundation for the functioning of our business, and is a precondition for the successful fulfillment • Contributing of our values in all aspects of our activities. We acknowledge the wide range of • To exchange • Influence our Business • Direct meetings • Local communities to the local knowledge and reputation stakeholders across our value chain who are influenced directly or indirectly by our partners • Conferences • Qatar’s socio economy

102-42 support local • Focus on partnerships/ services and operations. To ensure that we improve our stakeholder engagement, we 102-43 • Other events economic agenda • Supporting our communities • collaborations continuously seek to develop new engagement channels and introduce improvements communities in our communication methods. • To involve suppliers • Influence change in exceeding clients’ across the value chain • Investing in our Suppliers • Health & safety 102-43 • Direct meetings expectations and to • Influence our people

102-44 (Including • Operational • Procurement policy deliver on reputation • Governance and contractors) excellence • Tenders responsible • Transparent • management • Working conditions organizational communications with systems operations contractors

• Surveys and other • feedback mechanisms • Engage employees • Enhance productivity, • Health & safety • Internal • Investing in our in shaping quality and leadership • Working conditions Employees • communications, people KAHRAMAA’s • Enhance image and • Career development • events, publications • Supporting our future direction reputation to attract • Operational • Intranet communities prospective employees excellence • Training & development • opportunities

• Influence our • Formal and informal reputation/Maintain • group and targeted • To understand our license to operate • meetings • Education and • Supporting our Local communities’ needs • Build trust with local • Community programs awareness communities communities and expectations, communities • Publications/ • Community support • Conserving and create a long- • Identify opportunities • online • Environment natural resources lasting positive value for improvement • Events • Partnering • Social media channels opportunities

• Contributing • Research • Education • Influence our to the local • Publications • Research & • To explore potential reputation economy Academia • Local and international Development partnerships and • Partnering • Ensuring value • conferences & • Innovation innovative solutions opportunities for our customers • symposiums • Technological • Enhancing expertise • Conserving • Training & education advances natural resources • Conservation and • Contributing • To raise awareness environmental to the local among the general management economy Media public about • Influence our • Local newspapers • Partnerships & • Supporting our KAHRAMAA’s reputation collaborations communities conservation • Research & • Ensuring value activities Development for our customers

Implementing Smart Solutions, 22 Rationalizing Resources KAHRAMAA | Sustainability report 2016 23 As part of our sustainability reporting approach for 2016, we prioritized environmental, Identifying topics social and economic topics within maximum impact on KAHRAMAA as well as on our stakeholders. In determining and prioritizing these areas, we considered whether to be reported they reflect KAHRAMAA’s most significant impacts, and substantially influence our stakeholders’ assessments and/or decisions about our organization. Identifying the in 2016 most material issues to both our business and stakeholders allows us to report on them effectively and to address these issues in a way that is aligned to our stakeholders’ interests and needs. As part of our corporate strategic planning process, KAHRAMAA has already defined a long-term strategy with key priorities for the organization. We believe that the Over the past four years, we have continuously improved our reporting process with materiality assessment carried out as part of our annual sustainability reporting specific focus on improving the materiality process. In 2016, we have adopted the GRI process, provides us with the opportunity to continuously assess the significance of 102-45 102-46 Reporting Standards as the guideline informing our reporting approach. To identify sustainability issues for KAHRAMAA and validate them using feedback from internal potential sustainability issues for KAHRAMAA, we have carried out an in-depth review and external stakeholders. We strongly believe that the materiality assessment forms of the GRI topics, our corporate strategy, sector-specific GRI reporting requirements an important basis for strategic decision-making and a reminder of stakeholder for the power and utilities sector, national strategic objectives as per QNV 2030 and expectations on the role of KAHRAMAA in Qatar. NDS 2017-2022, topics reported by our peers, and the Sustainable Development Goals 102-46 (SDGs). Through focused interviews with internal and external stakeholders, we were 102-47 able to prioritize the most important sustainability issues for KAHRAMAA. The content for this report was developed with specific focus on the top 10 topics identified by our stakeholders which has helped us develop a report to address our most pressing sustainability risks and opportunities. Material sustainability topics identified in 2016 Process for identifying topics to be reported KAHRAMAA’S MATERIALITY MATRIX 2016

- To identify the level of priority given to Energy use and efficiency the material issues by internal and external stakeholders we asked them Training and education - Carried out focused one on one focused questions which helped us to engagements with identified internal & identify the top 10 topics significance to Water use management Developed an exhaustive list of external stakeholders, who assessed KAHRAMAA the 25 sustainability topics based on System efficiency Availability and reliability sustainability issues relevant to - Developed the materiality plot based

their perspective High Emissions KAHRAMAA based on review of, on scoring methodology with Occupational health & safety - Material topics identified in the - The assessment was conducted in KAHRAMAA’s impacts on the x-axis and Human rights assessment previous reporting period accordance with the preliminary influence on stakeholder decisions on - Corporate strategy criteria developed assess each topic the y-axis - National strategic objectives including based on KAHRAMAA’s impacts and its - Categorized topics to ensure QNV 2030, and NDS 2022-2017 influence on stakeholder decisions alignment with GRI standards and - Qatar Energy and Industry Sector Outcome: Ranking of Diversity & equal opportunity Sustainability Program KAHRAMAA’s corporate objectives and sustainability topics based on Local communities GRI Standards, GRI sector supplement the Balanced Scorecard internal & external stakeholder Anti-corruption for Power and Utility sector, SASB sector Outcome: Identified material Qatarisation feedback Disaster/ emergency planning and response guidelines, industry and sector specific topics for KAHRAMAA Customer satisfaction guidelines Customer privacy - Issues identified by international and Economic performance regional peers Indirect economic impacts

- SDGs relevant for Qatar and the sector Medium Support local suppliers Following the aforesaid activity, materiality questionnaire was developed ON STAKEHOLDERS IMPACT Effluents and waste to enable both internal and external - The topics identi ed as Compliance stakeholders to prioritize the topics 2 3 material were reviewed Demand-side management based on KAHRAMAA’s impacts as well and validated by the Research and development as influence the decisions of PRIORITIZATION head of the stakeholders STAKEHOLDER AND Sustainability Task Force ENGAGEMENT TO CATEGORIZATION on behalf of Outcome: Selected 25 potential RANK TOPICS OF MATERIAL Market KAHRAMAA’s Access sustainability topics TOPICS management Low presence DEVELOP Marketing and labelling EXHAUSTIVE 4 Outcome: Material sustainability topics for LIST OF VALIDATION POTENTIAL 2016 report validated Materiality AND Low Medium High 1 SUSTAINABILITY Process APPROVAL BY TOPICS MANAGEMENT for 2016 IMPORTANCE TO KAHRAMAA

Implementing Smart Solutions, 24 Rationalizing Resources KAHRAMAA | Sustainability report 2016 25 The table below describes the meaning and boundaries of each identified material issue, which helps to clarify the importance of

102-46 each topic to KAHRAMAA and our stakeholders. The topics have also been mapped to our corporate objectives to highlight the applicability of each topic to our long-term strategy. Special Feature: Regulations to Optimize 102-47 Importance Relevance/ Page Material topic Link to KAHRAMAA’s Corporate Importance within Relevance of this topic to KAHRAMAA outside boundary outside numbers in Our Resources identified Objectives KAHRAMAA KAHRAMAA KAHRAMAA this report

People excellence-Attract, Local hiring will assist KAHRAMAA in develop and retain a high-per- Qatarisation creating a positive impact on the local ●●●● ●●● Local communities 57,58,65 forming workforce and support economy as well as community Qatarization Occupational Ensuring well-being of its employees People excellence- Ensure a safe Contractors health & will help KAHRAMAA retain staff and and healthy working environ- ●●●● ●●●● 60,61,62 safety improve its productivity ment Providing skill-gap based trainings will Operational excellence- Enhance Policy-makers and Training and improve employee satisfaction and help process and system ●●●● ●●●● government agen- 59 education KAHRAMAA in retaining them cies; suppliers Respecting human rights within the Local communities, organization as well as in the supply Community & social excel- policy-makers and Human rights chain will help KAHRAMAA reduce risks lence-increase social advocacy ●●●● ●●●● government agen- 13 assessment and enhance its reputation and brand and environmental compliance cies, suppliers image KAHRAMAA can improve its services, increase customer lifetime value and Customer excellence- Excel at Customers, business Customer reduce any negative word of mouth customer service ●●●● ●●● partners, suppliers 36 satisfaction by focusing on outcomes of customer satisfaction Operational excellence- Enhance Policy makers Promotion of energy conservation and process and system and government 29,30, Energy use energy efficiency measures will reduce Community & social excel- ●●●● ●●●● agencies, local com- 31,47,48, and efficiency the energy footprint within the value lence-increase social advocacy munities, business 51,52,70,71 chain and environmental compliance partners, suppliers Operational excellence- Enhance Policy makers Undertaking water management process and system and government Water use activities in a water scarce region will 29,30,31, Community & social excel- ●●●● ●●●● agencies, local com- management ensure uninterrupted services as well as 49,51,70,71 lence-increase social advocacy munities, business improve its reputation and environmental compliance partners, suppliers Improper handling of hazardous Operational excellence- Enhance Policy makers waste can damage terrestrial as well as process and system and government Effluent and 53 marine life will have negative impact Community & social excel- ●●●● ●●●● agencies, local com- waste on KAHRAMAA as well as on the local lence-increase social advocacy munities, business environment. and environmental compliance partners, suppliers Policy makers and Putting in place plans and processes Customer excellence- Excel at government agen- 30,31,41,42, Availability & to ensure availability and reliability of customer service ●●●● ●●●● cies, customers, 43,48 reliability its services can help KAHRAMAA earn Operational excellence-Enhance business partners, customer loyalty processes and systems suppliers Policy makers and Improving system efficiency by improv- government agen- System effi- ing generation efficiency and reducing Operational excellence-Enhance 47,48,50 ●●● ●●● cies, customers, ciency transmission & distribution losses will processes and systems business partners, improve KAHRAMAA’s finances suppliers

Note: Our key material topics have various level of importance inside and outside the organization. We have there- fore mapped the potential degree of this importance ● – being low importance and ●●●● – being high importance.

Implementing Smart Solutions, 26 Rationalizing Resources KAHRAMAA | Sustainability report 2016 27 It is like a triangle; one corner is education and awareness, one corner is implementing rules and regulations and the third corner is the price of water.

Eng. Fahad Tolfet Director of Water Network

The importance of regulation to rationalize Qatar transitioning to resources in Qatar smart meters With decisive implementation plans to Government regulation can often be a driver for rationalization of resources. make the country a pioneer in smart Certainly, resource management regulations can create challenges for sectors, energy management, KAHRAMAA has businesses and their customers, and the entire society by mandating certain covered the complete geographical standards that must be achieved, such as lower emissions, fuel consumption or rollout of the smart meter project water reuse. across the country by 2016. Smart But these challenges can be leveraged as opportunities for these stakeholders meter deployment provides real-time to rethink not only their behaviors and also their standard operating procedures. information on the energy, water or Regulation can drive sustainable economic growth, which is vital to the long natural gas consumption of a building term success of a business, customers and ultimately the overall State of or home. Qatar. Regulation can also create a more level playing field within the energy The country’s steady movement and industry sector industry, empowering businesses to understand how they towards an overall smart energy compare to their peers and enabling consumers to compare apples to apples approach is supported by the when making purchasing decisions.This ability to benchmark one company installation of smart grid projects and against another can be a powerful motivating factor when developing business its related technologies such as smart strategy and making decisions. meter that benefits consumers and Companies in Qatar that are increasingly focusing on resource rationalization are energy providers in ways more than also leveraging more advanced technology as a means of driving business results. one. New technology allow them for greener processes or new processes that create Additionally, it enables KAHRAMAA opportunities for greener technology in alignment to the new NDS 2017-2022. to optimize energy consumption and promote energy efficiency. By Insightful, forward looking regulation help us build a adding the intelligence of IT to power distribution, KAHRAMAA aims to sustainable Qatar attain sustainable development and significantly improve the Our policy input and development review activities tackle technically complex power infrastructure in the country. challenges. Through our participation in the government decision making Encompassing a broad portfolio of process that guides growth, redevelopment, revitalization and intensification technologies, smart grids ensure throughout KAHRAMAA’s influence, we advocate to our governmental partners optimized usage of energy usage and stakeholders to integrate innovative strategies for energy and water and support increased penetration of conservation and other sustainability considerations that support the Qatar renewable energy. National Vision 2030 objectives. With the state of Qatar witnessing We assist ministries and regulatory bodies by providing advice on best rapid growth in the power sector, conservation practices and development direction within local communities and the government has also undertaken businesses. In 2016 we were involved in many activities including comprehensive massive initiatives to achieve its noble reviews of existing practices, creation of codes and development of laws to vision of attaining a significant increase facilitate improved rationalization of resources in the State of Qatar. This work is in renewables and energy efficiency. very progressive and is increasingly important in light of heightened challenges due to climate change and water scarcity.

Implementing Smart Solutions, 28 Rationalizing Resources KAHRAMAA | Sustainability report 2016 29 CODES LAWS Our smart solutions Law No. 29 of 2008: ELECTRICITY AND PROCUREMENT & TENDERING WATER WATER CONNECTING the provisions LAW REGULATION LAW NO. 22: To RATIONALIZATION law CS-CSI-P1/C5 DISTRICT COOLING DESIGN enable the effective provided in the draft law is that regulate and limit violations to No.20: tightened fines & WATER MANAGEMENT CODE 2016: KAHRAMAA shall conduct electricity and tendering process by government on wasting water up deals with the mandatory, minimum implementation of water connections to premises, buildings entities with more control to to 20,000 riyals CS-CSI-P1/C5 Low Voltage Electricity & Water Installations Regulations DISTRICT COOLING Design & Water Management Code 2016 requirements for the design and operation and facilities, and make any additions, Ministry of finance to monitor and of Water Cooled Central Air conditioning changes or transfers therein, and all acts supervise spending. Systems for comfort cooling or process regulations among of connection to or separation from the cooling applications. public network. Carrying out any of our customers LEDs save 80% those tasks are permitted only after of energy as compared obtaining a license from KAHRAMAA. to the usual ADVANCE METERING CODE 2016: incandescent bulbs additional Drawing named “Advanced Metering Infrastructure Layout” shall Regulatory CS-CSI-P1/C4 Low Voltage Electricity & Water Installations Regulations ADVANCED DECREES METERING INFRASTRUCTURE CODE 2016 become a part of the Building Permit document submission for Kahramaa PHASING OUT OF INCANDESCENT BULBS: approval. import and sale of 40-60 watts incandescent tungsten bulbs will be POLICY banned in Qatar from November 2016 CS-CSI-P1/C1 ELECTRICITY WIRING CODE and July 2016 for 75-100 watts. Distribution KAHRAMAA is a key 2016: to establish standards, principles and Body guidelines that promote the design, member of the national AC EER & EEL DECREE: to

CS-CSI-P1/C1 Low Voltage Electricity & Water Installations Regulations renewable energy help customers determine the ELECTRICITY construction, installation, maintenance, WIRING CODE 2016 operation, energy conservation and metering committee, which ideal air conditioners in terms of safe and efficient Low Voltage (LV) Electrical oversees the development of energy efficiency and Installations in all Premises within the State of Transmission of the national renewable reduction of carbon Qatar. energy strategy and emissions. Appliances that do policies not conform to the new standards will be banned to CS-CSI-P1/C2 PLUMBING CODE 2016: RENEWABLE ENERGY enter the Qatari market. to prevent misuses, waste, undue POLICY: currently Implemented in July 2016.

CS-CSI-P1/C2 Low Voltage Electricity & Water Installations Regulations consumption or erroneous measurement of

WATER developed under the ≥ EER = 8.5 KAHRAMAA INSTALLATION CODE 2016 water and most importantly, to prevent Delivery umbrella of Ministry of BTU/Hr. and 9.5 BTU/Hr. leakage of drinking fresh water. Energy and Industry and IPWP with the support of PLANNING & PRODUCTION DEVELOPMENT KAHRAMAA and AND WATER RESOURCES DEPARTMENT concerned authorities in DECREE No.46: to establish restrictions on CS-CSI-P1/C3 ENERGY & the State. future ground water withdrawal (either by WATER REGULATION CODE reducing the use of each existing well or by CS-CSI-P1/C3 Low Voltage Electricity & Water Installations Regulations Energy & Water Conservation Code 2016 2016: to regulates the energy CUSTOMER CENTRIC restricting the use of a number of active and water use features for wells) and also conducting experiments to organizations and business reinject the aquifer artificially with within the State of Qatar. desalinated water, the provision of data on individual wells and the installation of meters and control equipment. SMART SOLUTIONS SMART METERS: help keep a check on power distribution, monitor consumer usage and PORTABLE WATER SELF METER READING: communicate revenue unit of METER MOBILE TEST BENCH: SHOOT… & SEND: announced (Shoot... & via KAHRAMAA smart energy, water or natural gas intended to check the accuracy Send) service to inform about any remarks application, the consumption data in real-time of water meters on site for or suggestions via KAHRAMAA Application customer can record between any two-distribution tackling customer complaints on smart phones within its efforts to achieve electricity and meter points. related to the meter accuracy. direct communication with customers and readings through for rapid response. “self-meter reading’ service available at the GENERAL STATISTICS SMART APPLICATION: AUTOMATED ON LINE TRACKING SYSTEM of approval of Bulk application. The gives customer access to general statistics Customer application form and related response: BCR Online customer simply enters application performs various tasks aimed at transforming the process of e-SERVICES CONSTRUCTION & REAL STATE related to his/her account. With collaboration of the current reading and preparing the Initial Design Report into an automated mechanism SECTOR: started providing inspecting, IT Department, we included a group of other attach photo of it. This linking the concerned parties in KAHRAMAA (Electricity Networks, interrupting and connecting e-service for all services such as sending meter reading, service ensures regular Technical Affairs and Finance Department) with the procedures used in building, properties, and construction in the following-up status of service’s request and accurate meter designing the expansion of the electric transmission network in the country via e-website km.qa or via (construction license and connecting service), reading as the country. The application connects the subscriber's request through KAHRAMAA App on smart phones to attain displaying details of properties registered under application keeps the KAHRAMAA’s portal to the data and information that is updated and the smart shift in all its services. customer’s name, applying the electronic date of last reading. services etc. added to complete the engineering design necessary for the participant.

Implementing Smart Solutions, 30 Rationalizing Resources KAHRAMAA | Sustainability report 2016 31 Ensuring value for our customers

2016 Sustainability As our marketplace changes and grows with the trend to digitisation, KAHRAMAA must look toward the future and focus Performance on adapting rapidly, delivering more solutions and services to meet our customers’ evolving needs, give them incentives to take This section focuses on our performance on creating advantage of advanced efficiency options and finally achieve high value for our customers, environment, our employees, level of satisfaction on our water and electricity services. our local communities and to the socio-economic development of the State of Qatar.

Basic infrastructure (such as water and electricity infrastructure) are crucial to achieving prosperity and growth in a way that enhances the quality of life, including the social well-being, health and safety of customers and the quality of their environment. We undertake these commitments seriously as we believe in the values of corporate social responsibility, customer centricity and teamwork in order to live our philosophy and to meet our mandate as a sole service provider.

Eng. Abdullah Al-Theyab Director of Electricity Network, KAHRAMAA Performance highlights

• Added more than 19,828 new water customers, and more GRI Standards than 15,135 new electricity customers alignment • Answered call rate was 71% in 2016 We used the following disclosures • 95.3% reduction in response time to customer complaints from GRI standards and Electric • 94.74% reduction in repair time for water-related issues utilities sector disclosure in this section: • 70% satisfaction result according to customer survey with customer care 103-1, 103-2, 103-3, 417-1, 418-1, EU1, EU3, EU4, EU10 • 38,500 Faulty water meters replaced by smart meters

Implementing Smart Solutions, 32 Rationalizing Resources KAHRAMAA | Sustainability report 2016 33 Our approach for high quality customer service management

Customers are the back bone of the In 2016, KAHRAMAA continue working Managing customer privacy is also crucial Proactivel Technology engagement innovations Customer Service Department (CSD) toward smart technology to have our for us and we have a policy to eliminate with Transparency Digitization at KAHRAMAA. That is reflected in customers better informed than ever, any customer data losses and not to share their of services and provider our corporate objectives by placing the and developed access to a wide range customer records with anyone but the competitive pricing customer at the forefront of our planning of options to send feedback and interact customer if appropriate authorization letter Customer interaction and activities. Our CSD team is key in with our customer service department. is not available. KAHRAMAA is proud not to Customer and data that Global and analysis supporting to achieve our vision that by KAHRAMAA has a dedicated website that have received any data privacy complaints expect more, local trends 2030 our people, assets, systems and includes various e- services; electronic from our customers in 2016. better and faster services processes will set a global benchmark for certificates, service tracking, tariff details, Tracking performance, technological innovation, tenders, auctions, awards, a separate Our Planning & Quality Department also behavior environmental sustainability and social portal for the ongoing National Program conducts regular internal audits and Customers patterns customer satisfaction surveys. In 2016, Well-informed demands responsibility, in electricity and water for Conservation and Energy Efficiency, as customer and Customer at sector. well as Tarsheed’s children site. KAHRAMAA organized and conducted a equipped with a the center customer satisfaction Survey where the pool of social of our media decision-making Tailoring Since the launch of Phase I of its We have established a robust Customer results demonstrated 70% satisfaction from channels services transformation to a smart organization Relationships Management framework the Customer Care. Customer experience to individual customers project, KAHRAMAA has aimed to and a platform to serve as a master was improved by launch of new software at revamp the entire customer experience source of customer data. These initiatives customer call center. Answered call rate was and ensure expectations are met and would improve the availability and quality 71% in 2016. The percentage answered call our customers are highly satisfied with of customer information that is visible for rate has recorded high figures across 2016 Re-thinking our overall approach to customer management KAHRAMAA’s products and services. our customer facing stuff and will help however we believe further improvements All these trends present an opportunity to fundamentally re-think our overall approach to customer management, them further provide efficient customer could help us perform even better. the integration of customer management data and systems, connect better with the customer, and identify new As KAHRAMAA goes through a process service. Our new procedures and policies value-added, potential services. of transformation, we continue analyzing are designed to achieve high levels of According to the results, efficiency is now 2014 2018 2019 2022 2028 2030 and assessing the key challenges we customer satisfaction. We have in place top of mind for our customers and it is meet in securing world-class customer seeing as an opportunity to save money a well-built system to control the smooth Phase 1: Corporate Objectives Phase 3&2: Potential Corporate objectives service, and have placed actions in place flow of any customer application, and to and energy. In 2016 the IT department at to address them in a timely manner. assure the customer to get the correct KAHRAMAA continues working on a service Customers perceive Customers trust Excel at customer services Customers receive • Differentiate our customers Our customer base – both water and information on tracking the application through which customers are able to check consistently high experience and increase value Kahramaa as highly us and their electricity customers – continued to process. The system allows the electronic their bills, building permits and service standards of service added service offerings. responsive to preferences and their changing increase in 2016 and KAHRAMAA are archiving of documents to ensure connections through ‘SMS Solution’. from us • Anticipate, influence and behaviours are needs and shaped by it. investing in people and technology customer data integrity and to ease respond to the changing customer needs preferences capabilities development to match traceability. KAHRAMAA has now a strategy to make all these needs and enhance customer its services ‘smart’ to enhance the quality of engagement with our services. services and efficiency it offers. It sees this move as time-saving and enabling its client base to make online transactions round- A dedicated team to unite the organization behind the strategic objective the-clock, from all over the world. Through Automated Meter: Bulk customer CS Installation: Accounts Meter monitoring Customer Care & Recording (AMR): numerous activities, the Customer Service heavy industries and customers with section: billing section: deals with 225,027 Call Center Handles deals with installing customers with high small amount of and invoicing consumption Department at KAHRAMAA seeks to going front-line customer meters in an areas

2011 272,745 power requirements. power requirements responsibilities. readings; complains service and deals where a large to smart system by automating all services This section also across Qatar. . about faulty meters. with complains. number of meters includes VIP customers. provided to customers to allow them to are required 241,204 track their applications and pay bills on line. 288,903 2012

242,552 In 2016, KAHRAMAA

2013 293,604 KAHRAMAA Honors added more than Distinguished Employees in 262,018 19,828 new water Customer Service 2014 310,107 customers, and more His Excellency Eng. Essa Bin Hilal Al-Kuwari, president of 277,433 KAHRAMAA, honored the stuff Customer Services Department than 15,135 new for their outstanding performance at work on May 17, 2016. We 2015 329,310 electricity customers. focused on distinguished employees in their performance to achieve 297,261 the satisfaction of customers which the Corporation seeks for its customers’ services. The tangible efforts also leave a footprint and 2016 344,445 desired positive results in attaining the best governmental initiatives 0 100,000 200,000 300,000 400,000 for customer services.

NUMBER OF WATER CUSTOMERS NUMBER OF ELECTRICIY CUSTOMERS

Implementing Smart Solutions, 34 Rationalizing Resources KAHRAMAA | Sustainability report 2016 35 Advancing our smart customer service practices KAHRAMAA transition to smart meters

Customer Care & Call Center The State of Qatar’s steady movement and water as well as GPS modules for towards an overall smart energy approach localising individual metering points. KAHRAMAA’s Customer Care & Call Center is the main customer- is supported by the installation of smart Smart Meters are capable of recording facing unit in the department. Across Qatar, we have five grid projects and its related technologies consumption in detail in comparison with the electro mechanical meters. Mean Customer Care branches, employing around 500 employees in such as smart meter that benefits total. The unit consists of the following sections: Customer Care, consumers and energy providers in ways They are capable of recording more than The agent had good communication skills and was to understand 100 9.0 Call Centre, Quality Assurance, and Back Office. The Call Center more than one. 25 parameters which can be reported It was easy to use this channel 84 17 8.8 operates 24 hours, 7 days a week. This represents an advanced and stored in a centralized Meter Data 100 Waiting time for the call to be In an endeavour to offer better energy Management System (MDMS) enabling answered was reasonable 83 17 8.2 step in serving customers not only in Qatar, but also the whole 100 region as it has latest technological means which coincides with and water management solutions to KAHRAMAA to analyze the detailed The agent was altentive to my needs 83 17 8.8 the rapid recent developments in Qatar. consumers, KAHRAMAA has leveraged consumption data and power quality data It was easy to find the dight number to 67 33 8.8 call, related to my service or problem the collaborative understanding of for better forecasting and optimization Customer complaints are treated with high priority and are The agent was Knowledgeable 67 33 7.7 Information Technology and the power of energy use which helps to achieve 100 attempted to be answered on the first call. Our progress toward sector to launch its smart meter project. energy saving targets and reduce carbon The agent was Polite and courteous 66 34 9.0 smart customer service technologies has been highly successful, I was able to complete all steps for footprint. my request through this channel 50 33 17 8.0 100 increasing our responsiveness along with our capacity to handle In 2016, KAHRAMAA have continued customer questions and complaints. In 2016, our team closed Highly Satisfied Satisfied Neutral and Dissatisfied replacing all conventional meters in the These smart meters are capable of water meter complaints within 1 month and the number of Doha area of its service territory swapping recording reading according to Time received complaints by 95.3% have been reduced to less than them with smart meters. The rollout forms Of Use (TOU) and to share these details 3,000 per month due to the installation of Pre-qualified smart part of a government-approved smart through web portals to customers. water meters through Call- Off contracts. We also significantly Our partnerships meter programme launched in January This allows customers to plan their reduced our response time to customer complaints, from 41 hrs in towards a smart grid 2015 for all new projects and buildings usage resulting in changing customer 2015 to 1.9 hrs in 2016. In addition, we succeeded in decreasing in the country to get smart electricity and consumption pattern. Remote connect/ the repair time for water-related issues by 94.74% from 129.36 system in Qatar water meters. So far we have completed Disconnect, On demand read helps hrs in 2015 to 6.8 Hrs 2016. the installation of over 16,480 electricity KAHRAMAA to meet customer’s In line with Qatar’s NDS 2017-2022 and its commitment to smart meters and 16,612 water smart expectations in terms of eliminating Implementation of smart meters developing and modernizing public institutions through improved meters in 2016. unnecessary administrative delays. will optimize energy and water delivery systems and interfaces centered around people and consumption and promote efficiency, businesses, we are striving to enhance our current practice and We opted for a smart electricity and water thus providing the best possible address our customers’ needs in an innovative and results-driven meter system equipped with consumption service for our customers. As another way. data recording modules for electricity key dimension of successful “smart Despite the rapid growth The Customer Care & Call Center unit faces various challenges cities”, smart grids allow for a safe and of our customer base, which defer in nature. From the need for IT upgrades, through reliable service which is prepared for in 2016 we maintained to data management, issues related to workflow efficiencies, the integration of renewable energy consistently high customer service skills and bi-lingual capabilities adoption, we sources. have transformed the department to improve our operations and Through partnerships, KAHRAMAA is answered call rates to ensure we provide the best quality service to our customers KAHRAMAA working towards establishing a smart which matches global international standards. On our journey to with a total average of grid system in Qatar: 95.03% throughout the become smart organization by 2016, these initiatives are highly Advanced Metering supported by KAHRAMAA’s President and top management who • We have partnered with one of Infrastructure (AMI) year. provide direction and inspiration to fully live up to our motto of the world’s leading utilities in the Customer-Oriented Utility. smart grid field (IBERDROLA, the pilot project Spanish utility) as a pilot project to analyze KAHRAMAA’s network and study the opportunity in applying smart grid. Portable water meter mobile test bench • We work in close partnership with KAHRAMAA AMI pilot project scope involves around 10,000+ water and This project intended to check the accuracy of water meters on the center and with the Qatar 15,000+ electric customers who reside across two zones (Westbay, Al-sadd) site for tackling customer complaints (High Bill) related to the Environment and Energy Research in Doha, Qatar. AMI project is expected to cover all over the state by 2017. Institute (QEERI), to research and meter accuracy. This allows for time, cost and manpower saving, In 2016, we connected remotely a total of 14,968 electricity smart meters comparable to the Station Test Bench. develop smart grid solutions for the state. and 9,930 water smart meters in AMI Zones. AMI Pilot project Major The quick test can be performed on site for the water meter‘s elements include Smart Meters, Data concentrators, Head End System (HES), accuracy by the Portable Water Meter Tester within 1 hour. We are • KAHRAMAA and Belgian Meter data Management System (MDMS). currently studying the setup of the Mobile Portable Water Meter consultancy Elia Grid have signed Tester fitted in a customized vehicle. an agreement to share knowledge experience around smart grid development.

Implementing Smart Solutions, 36 Rationalizing Resources KAHRAMAA | Sustainability report 2016 37 Our Customers are no longer required to visit KAHRAMAA headquarters or its branches in the country to transact. Every month, we will send messages to everybody in Qatar to show them their level of consumption, as well as showing them whether their consumption is above the national average. This way, people can start to understand how much they are consuming.

Fast-track service for customers Eng. Yousef Al-Jaidah Manager Customer Services As part of its social responsibility and in an effort to reduce customers’ waiting times, we have launched a fast-track service for disabled, elderly and women at our Customer Service office in Al Hilal. A and B tracks have been assigned for them for Improved smart application for better living installations and customer care requests respectively. In 2016, KAHRAMAA launched the new version for its App on smart phones in both languages Arabic and English. The Application has new characteristics which benefit by the modern technologies of the smart phones. In addition to the new design of the Application, the customer can display a general statistics related to his/her Today businesses have the opportunity to use social media not only as a way to provide account. The customer also can display a brief summary for the properties registered The role of social media customers with great service, but also as means of connecting and inspiring one under his/her name as well as sending meter readings for electricity and water and displaying the details of the bills with the paying ability. in keeping in touch with another through conversations and mutual dialogue. When developing our strategy for social media program, we have conducted a research to analyse trends in the The new Application also includes a group of services such as: the request of “To our customers industry, evaluate experiences (in Qatar and in the region), find out which platforms whom it may concern” certificate, sending monthly meter reading, following-up KAHRAMAA customers’ use, and monitor what they are saying about our brand. status of service’s request (construction license and connecting service), displaying details of properties registered under customer’s name, applying the electronic Recognizing the importance of understanding better the needs of the customer and services, displaying details of customers services centers besides their locations on their priorities and issues, we have available both Twitter and Facebook accounts to get map, providing a system of sending suggestions and complaints. closer to the customer. Our Twitter account has a growing number of followers from 1,838 in 2013 to currently 31,500 and our Facebook page has 7,166 likes in 2016 as A picture of the meter can also be uploaded with the date of the meter reading, compared to 1,978 in 2013. Separately, Tarsheed has its own Facebook page which affording greater accuracy of the system. KAHRAMAA’s new app will enhance the we utilize to raise awareness about the national program, to inspire change and to customer’s experience and the authority’s efficiency, by adding more services for communicate our numerous initiatives. better efficiency. KAHRAMAA also worked to raise its performance level through adopting many initiatives which its latest one was the announcement of shifting its services to all customers, companies, consultants and contractors into 100% E-services. The Corporation moves towards introducing various services according to highest level of global quality in order to facilitate the circulation procedures for the customers, Social media plays a critical role in the way we manage our customers relations. saving their time via completing them at any time and from anywhere. Users can interact with KAHRAMAA 24 X 7 through a dedicated WhatsApp contact number. Through this platform, we receive reports, complaints, The E-services are allowed around clock and the applying via electronic website feedbacks and grievances among others of customers and social activists related is allows avoiding errors that could occur in paper applications because of lack of with safety and functionality of KAHRAMAA’s Electricity and Water networks papers or required procedures, where the system refuses to register any application across the country. or circulation if it is not meeting all required conditions which is actually saving a lot of time and efforts. Subscribers have been encouraged to register and update their information through its website www.km.qa or the mobile application for online transactions. In doing so, customers will better avail themselves of the many services offered. Improving responsiveness KAHRAMAA has also a text messaging service where subscribers – citizens and expatriates alike – are notified by the facility about their monthly consumption of electricity and water. The application will also submit information on average To give our customers more opportunities to communicate with our Customer consumption for the purpose of promoting energy efficiency awareness. Care representatives, we have introduced new working hours for our main Customer Service Centre located at ‘D’ Ring road. The working hours have been KAHRAMAA seeks to develop its services to keep in pace with the latest regulatory increased as a result of the growing number of KAHRAMAA’s customers. To help and technological developments of services. We have also developed an ambitious us deliver on our promise of Customer-Oriented Utility, we are committed to road map for the smart shifting of all its services. This road map aims at upgrading listen to our customers and get their requirements and expectations fulfilled. the level of services offered to our customers according to highest levels of efficiency. These services comes within the framework of continuous improvement in order to increase the customers’ satisfaction through saving time and efforts via achieving circulations electronically at any time and from anywhere without referring to KAHRAMAA or any branch of customer services.

Implementing Smart Solutions, 38 Rationalizing Resources KAHRAMAA | Sustainability report 2016 39 Securing reliable and high quality water for our customers In an effort to enhance its customer offering, KAHRAMAA is striving to achieve Water quality standards, policies Inspecting, interrupting a smart shift in its all services. KAHRAMAA now offers two electronic services, namely inspection, interruption and connecting for all buildings in the country and management system in place & connecting e-service via its website: www.km.com.qa or via KAHRAMAA App a smart phone app. The number of inspection requests to connect service reached 5.460 in 2016. At KAHRAMAA, we are strongly on water quality by training and sharing drinking water quality for public health, committed to provide safe, clean and information with various external we are working towards full compliance The additional service affords the customer the ability to request the inspection high quality water to the consumer parties, and organizing public awareness with health based chemical parameters electronically-based construction readiness. Upon completion of all relevant by ensuring strict compliance with programs for our customers. and have taken steps towards reviewing documents, within three days, both contractor and customer will receive an SMS established standards – such as the World and updating the Qatari Drinking Water of the inspection’s appointment, as well as immediately being informed about Health Organization (WHO) Drinking In terms of integrating smart technology quality requirements. checking results. Water Quality Guidelines and The into our water networks, last year we Qatari Standard No.149/2009 for Un- The inspectors comprise a number of qualified Qatari inspectors, trained in all developed a District Metering Area Ensuring safe and high quality water Bottled Drinking Water Quality - and by levels of quality and safety. KAHRAMAA mandates that all inspectors do not (DMA) Motorized Valve system, alongside reaches our customers, is a shared implementing innovative, technological violate connecting procedures or fail to apply safety and security measures. a SCADA Integration Project. The responsibility. We therefore set various developments in the fields of water remotely operated DMA motorized valves policies and requirements for both the Where the customer could request the service for new property, meter readers, treatment, distribution, and monitoring. helped to maintain efficiency during end water quality produced by private or paying bills, the connecting and interrupting services could be undertaken emergency isolations, and also to reduce water producer companies and for the electronically. To achieve this endeavor, we have gone water loss. The SCADA project used processes of water treatment and further beyond compliance with international pressure transients to monitor our entire quality management. standards, and have set our own Water water network, optimizing management Quality Management Framework based solutions across the system. As part of the Water Quality Our Conservation and Energy Efficiency Department (CN) endeavors to on quality assurance measures and risk Management Framework, KAHRAMAA’s achieve the proper enforcement of Electricity and Water Consumption control and management. The framework In our effort to deliver best quality, Health, Safety & Environment (HSE) Rationalization Law No. 20/2015, and the promulgation of the punishments consists of developed standards and we have used the already established Department reviews all proposed water of violations that amount to 20,000 QAR. The minimum and maximum water quality regulations, as well as strict standards as a basis and have developed projects and provides both quality and punishment shall be doubled if the action is repeated within three years of Customer Technical monitoring programs and tools such as even more strict requirements and health perspective regarding the design, the punishment sentence execution or by lapse of time. Services and the New accredited labs and the provision of the expectations. For example, WHO has technology, chemicals and materials used Supervisory Control and Data Acquisition set a level of 95% compliance with key One of the department objectives is to direct campaigns for customers in to ensure water safety. HSE also conducts Conservation Law (SCADA) system. water microbiological characteristics order to be aware of Electricity and Water Consumption Rationalization routine sanitary inspection, auditing as an indicator of good performance. Law as the violations increased. It aims at informing customers of the fines, and verification procedures on all water Beyond developing and reinforcing At KAHRAMAA, we have set ourselves punishments, and composition. On the other hand, it stressed KAHRAMAA’s facilities, desalination plants, reservoirs, water quality standards and efficiency, a target of 99% compliance. Also, commitment to provide the technical consultancy in order to raise customer tanker filling stations & tankers. the framework serves a broader purpose recognizing the importance for regulating awareness of conservation. helping to build the institutional capacity

More than 93 parameters in 18,006 samples are analyzed annually by the Water Quality Laboratory in line with WHO standards.

We ensure safe and clean drinking water to high standards and quality, water KAHRAMAA Water is subject to a yearly sampling plan samples are collected and tested from the Quality Lab storage reservoirs and networks up to the service connection points KAHRAMAA Water Quality Lab has been established as a fully equipped laboratory to conduct analysis of around 93 different water quality parameters by using the latest methods for water testing. The lab houses laboratory units that are intended for use in emergency and special cases. To ensure high level of results credibility and accuracy, the Lab has coordinated efforts with Planing & Quality Department (PQ) and HSE departments to establish a quality management system. In 2016, the Lab successfully renewed its ISO 17025:2005 quality certificate, which reflected KAHRAMAA’s strong commitment to comply and exceed international quality standards. By receiving this certification, KAHRAMAA’s Lab became one of the 211 worldwide non-commercial chemical labs allowed to use the logo of the American Association for Laboratory Accreditation (A2LA).

The Lab in collaboration with HSE and KAHRAMAA’s Operations Department conduct regular scientific studies to help provide a baseline data for future developments.

Implementing Smart Solutions, 40 Rationalizing Resources KAHRAMAA | Sustainability report 2016 41 Reliable and efficient KAHRAMAA’s commitment to provide Safe Drinking Water supply of electricity Due to the urban and economic KAHRAMAA has also connected 1,913 Strengthening our power network development witnessed by the State of new properties to water networks in KAHRAMAA has taken several measures to improve electricity transmission, distribution Qatar and to KAHRAMAA’s keenness 2016. Our Water Network Department YEAR TO DATE and maintenance of network in 2016. to provide the best services to its undertook numerous preventive and BIOLOGICAL WATER customers, KAHRAMAA works to ensure corrective maintenance works for 163 Our Electricity Control Centre carried out several maintenance works in year 2016, the continuity of water supply while of its water constructions, including QUALITY COMPIANCE during which 1,658 permits were issued for maintenance, construction of stations and confirming to the international quality water pumping plants and water tanks. repairing damage. The Electricity Control Centre attended to 232 cases of damage in its standards as well as reducing losses and In addition, a partial launch of Al Wakir distribution network and restored power to customers during the period, issued 1,557 leaks in the network to complement pumping station was completed in 2016 permits for checking missions, constructed 298 new electricity distribution stations, what has been implemented in previous with 4 control cabinets and a storage removing around 9.33 km overhead lines, and extended 296.75 km of underground years and to keep up with the urban capacity estimated at 8 million gallons on Eng. Ibrahim El-Emadi cables for supporting the medium voltage network. development in the country. 2016. Manager Planning & Quality Moreover, 75% of the Cyber Security Project has been accomplished for SCADA Last year, we installed Radiation We have received the ISO 9001 Control Centre, upgrading systems controlling the stations and securing the appropriate 99.6% Monitoring Systems in the sea front, international quality certificate for water electrical feedings for many activities in the country. by the desalination plants, in order to connections and in 2016 we reduced We have expansion provide an early detection of unsafe levels the number of water tankers to 0.1% KAHRAMAA has monitored maintenance works and replacement of the existing of radiation in the sea. This measures of the total number of subscribers as plans devised to meet network in electricity distribution stations in order to reduce damage rate. We operated directed on minimizing the uptake of an extension of the project for water the growing demand for distribution transformers, distribution plants besides building electricity distribution the radiation from the sea into the distribution lines. The number of electricity in Qatar, as the stations. We also completed civilian maintenance works for stations in order to maintain 4.6% Higher than the world desalination plants, offers an additional beneficiaries of this project was 2,487 country continues to witness the performance level of the electrical network stability within adopted operating levels. Health Organization (WHO) protection measures to guarantee safe participants across the State of Qatar. We tremendous development water to our customers. also completed in 2016 a sub-connection Target of 95% and urbanization. The In 2016, KAHRAMAA has also extended our distribution cables, with 1980 Km of 11kV project, where 7,284 connections were expansion plans are in line overhead lines in service as of 31/12/201. Also during the period 88% of protection Reservoirs and lift stations in the water implemented in the entire State of Qatar. devices were replaced with modern digital devices. network system represent an important with KAHRAMAA’s mission element in securing customers supply. and objectives to provide high quality electricity and water services in the state to all sectors including households, business centres, MEETING ELECTRICITY DEMAND The pressure on Qatar’s water resources has grown significantly shopping malls, hospitals over the last decade and we are at the beginning of our journey of and schools and is also in 14000 innovation and behavioural change to ensure that tomorrow’s supply line with the company’s 12000 is safe. Water conservation, efficient water use and water recycling are commitment towards Qatar 10000 the most important drivers that support our quest for water security. National Vision 2030 and 8000 6000 Towards this end, we launched Tarsheed in 2012 with plans to reduce National Development 4000 the country’s water consumption by 35% within five years. Strategy. 2000 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 Electricity Capacity in MW Eng. Abdul Rahman Al-Naema, Manager 0 Health, Safety & Environment Power Capacity Electricity Peak Demand

MEETING WATER DEMAND During Q2, new water “Save it to last” campaign 700 600 networks reaching 36km, KAHRAMAA’s CSD involves in Integrated Conservation Media Campaign in 500 with diameters ranging 400 GCC countries under the slogan “Save it to Last” through arranging events 300 from 100m to 900m were and activities to raise awareness for the importance of conserving electricity 200 established, to improve the and water and reducing its wastage in our daily practice and developing it 100 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 as culture of the community. The initiative finds the required mechanisms for 0 performance of the water conservation through the observance of the optimal use of resources. It shows water contracted supply water peak demand network and connect new the violations and punishments of water misuse through the broken internal customers. network.

Implementing Smart Solutions, 42 Rationalizing Resources KAHRAMAA | Sustainability report 2016 43 Conserving natural resources The State of Qatar faces significant challenges related to the consumption The conservation of resources and availability of natural resources. The country has one of the highest per both within our operations Our approach to managing as well as within our wider capita consumption of electricity and water in the world, and global trends value chain is driven by the the conservation of around urbanization and population growth play a significant role in the collaborative efforts of multiple natural resources departments in KAHRAMAA, Depletion of natural resources has depletion of natural resources and the increase in competition for energy focus on the quality of supply received emerged as one of the primary by our customers as well as the quality of and water in the country. As the transmission and distribution system environmental concerns around the Conservation & the transmission and distribution process. world. Trends like rapid urbanization and Energy Efficiency We seek to ensure asset excellence by owner and operator (TDSOO) for the electricity and water sectors in Qatar, population growth, have placed immense Department pursuing reduction in electricity and water pressure on the environment. Competing KAHRAMAA plays a key role in managing the near and future challenges losses throughout our network. We have demands on land and water today lead to also invested on the Tarsheed program related to the supply and demand of electricity and water within Qatar. resource overexploitation, posing serious and on similar demand side management Water Network Affairs questions with regards to energy security, activities aimed at reducing the per capita (WNA) and Electricity food supply, and water availability. consumption of electricity and water in Network Affairs (ENA) According to the Qatar National Qatar. Development Strategy (NDS), “Qatar’s natural resource endowment creates KAHRAMAA’s environmental approach, a unique mix of benefits and stresses. in line with the NDS, places emphasis District Cooling Services Significant wealth in hydrocarbons has on conserving resources along our value Department generated one of the world’s highest per chain. As part of our Long-Term Strategy capita incomes, but extreme scarcity in 2030, we are committed to investing water and arable land has created equally in clean technologies and ensure asset unusual vulnerabilities and deficits.” excellence, which will help us minimize KAHRAMAA manages the supply and Planning & Quality the risk of supply concerns and reduce demand for electricity and water in Department our environmental footprint. Qatar and thereby plays a key role in the conservation of natural resources through conservation and efficiency measures.

The provision of high quality and reliable Technical Affairs Directorate supply of electricity and water is the In line with the Qatar National Vision 2030, KAHRAMAA has fundamental focus for KAHRAMAA. We developed our Management System in a manner that ensures full alignment between economic, social and environmental growth. KAHRAMAA has also succeeded in embarking on infrastructure Directorate of Planning and projects in both Electricity and Water and still investing heavily in Development of Production these two fields to facilitate for the continual growth of the State of and Water Resources Qatar and to cope with the ever increasing demands for these two commodities. Eng. Ahmed Al-Nasr Director of Technical Affairs, KAHRAMAA Our commitment: Ensuring high quality and reliable supply of electricity and water

2014 2017 2018 2018 2022 2028 2030 GRI Standards Performance highlights Phase 1: Corporate Objectives Phase 2 & 3 Potential Corporate Objectives alignment Optimize asset • Actual electricity transmission losses amounted to 726.3GWh Provide high quality supply • Create value added services by leveraging leading asset technologies and practices of water and electricity performance We have used the following • Optimize asset managment delivery model disclosures from the GRI • Reduction in real water loss to 4% • Leverage asset managment capabilities as the source of competitive advantage standards and Electric utilities • 93% of paper waste recycled within KAHRAMAA • Deploy smart technologies and integrate renewable sources sector supplement: • 56% reduction in potable water usage in District Cooling 103-1, 103-2,103-3, 203-2, 302-2, 2028 milestone: Assets are designed, built 302-4, 303-1, 305-1, 305-2, 306-2, • Cumulative savings of 8.5 million tons of carbon emissions 2017 milestone: Assets are fit for purpose 2022 milestone: Assets are designed, build to achieve government expectations and managed efficiently and include some and managed in a leading practice manner 307-1, EU2, EU12, EU28, EU29 through Tarsheed (from 2012-2016) of relibitity and efficiency market leading technologies and include many best in class technologies

Implementing Smart Solutions, 44 Rationalizing Resources KAHRAMAA | Sustainability report 2016 45 Overview of the electricity sector To help achieve our ambitious environmental targets, KAHRAMAA has been focusing on developing strategies and supporting projects in the four key areas outlined below. While some of these are based on basic awareness raising With increasing population and rapid total number of sub-stations reached activities, others require more comprehensive research, analysis, planning and execution. KAHRAMAA aims to urbanization, the electricity sector in 14,368 as of 2016. provide high quality Qatar has undergone a significant spurt and sustainable in growth. This has led to a significant The power grid in Qatar faces various increase in the electricity demand within challenges – from expanding the Awareness & community development Efficiency in consumption Law enforcement & regulation electricity for better the country. electricity systems to meet the demand, • Conservation (TARSHEED) Campaign • Air conditioner and Energy • Law No. 26 2008 living in Qatar through to the delivery of high quality • Education Awareness Program Efficiency labelling • Law Enforcement To meet the increasing demand for and convenient services, and the use of electricity, the country has continued in renewable sources for power generation. • Religious Awareness Program • Power Factor Correction KAHRAMAA Regulations for • invest in both increasing the generating KAHRAMAA, plays a pivotal role in Phase out of inefficient Lamps Electricity & Water Conservation • Community Social Responsibility • capacity as well as in the transmission and meeting the growing demand through Program distribution networks. With the continuing innovative approaches including our • Conservation & Energy Efficiency Days/ expansion in the size of electricity main partnerships towards a smart grid system events Conservation in resources transmission and distribution network, the in Qatar as well as through efficiency • Conservation Building Competition measures within the network. Renewable energy • Retrofit for Energy & Water • Renewable energy research studies Conservation Program 2012 2013 2014 2015 2016 • Solar energy pilot project • Demand Side Management Amount of electricity received (DSM) – Industrial sector 32,352 32,224 36,125 38,852 39,667 from the power generating units • Demand Side Management Eng. Ali M. Al-Ali, and sent out to the grid for (DSM) – Water conservation Manager Production & Water Resource customers (GWh) Planning & Business Development Maximum demand (MWh) 6,255 6,000 6,740 7,270 7,435 Over the coming years, KAHRAMAA would seek to evaluate electricity generation from mixed sources, using the most refined and efficient fuels, multi-cycle highly Electricity reserve margin (%) 24.5 29.76 21.93 13.13 13.13 efficient generators, solar energy, and increasing the efficiency of production, transmission and distribution of electricity and water. KAHRAMAA has adopted a The country’s steady Number of customers (billed and number of future plans to use smart infrastructure in the water and electricity sectors movement towards an unbilled, based on number of 288,903 293,604 310,107 329,310 344,445 to ensure efficiency in the water and electricity sectors. Some of the components of overall smart energy meters) the smart networks include, automatic smart control systems for the distribution and approach is supported by supply of water and electricity, smart meters, automatic and efficient communication the installation of smart systems and advanced water networks. grid projects and its related technologies such as smart meters that benefits consumers and energy Smart grid in KAHRAMAA electricity networks Research and development providers in more ways than one. Additionally, it enables KAHRAMAA has signed an MOU with Iberdrola to investigate the opportunity of applying the smart grid in electricity networks through two phases: KAHRAMAA prioritizes research in KAHRAMAA to optimize line with QNV 2030 and NDS for Our R&D Committee aims to: Phase 1: Technical Study of Smart Grid applicability for KAHRAMAA’s Grid investing and leveraging state-of-the- energy consumption and art technology. Qatar is committed to • Support Qatar’s R&D strategy in relation to energy and water promote energy efficiency. • Technical Analysis of KAHRAMAA’s Grid advancing research and development • Smart Grid Feasibility Study and has targeted 2.8% of GDP to • Supervise and coordinate with internal and external organizations support research. We strongly believe potential research opportunities related to KAHRAMAA’s operations • Cost/Benefit Analysis (CBA) that focussing on R&D would help us Phase 2: Pilot Project • Develop and set R&D procedures within KAHRAMAA identify solutions to challenges faced by Layout - Smart Grid Pilot V2 Qatar and would help us enhance our • To test an Integrated Smart Grid in the Distribution Network. • Create and maintain R&D project database impact along the value chain. After the pilot project, the theoretical results would be evaluated in real life conditions • Attract high level collaborations with institutes and researchers before implementation. The implementation of the Smart Grid could potentially have KAHRAMAA’s R&D Committee is led by the following benefits: the Conservation & Energy Efficiency Department Manager and consists of Our R&D activities fall under three categories: local – within the individual • Decrease in air pollution what can drive the country to get closer to international representatives from diverse teams departments; internal – within KAHRAMAA; and external – within Qatar. environmental policies Activities cover various areas such as: transmission, distribution, energy across the organization. Our Planning • Reduce sustained outages and ensure reliable supply to customers & Quality Department also conducts conservation, renewable energy, recycling, health & safety, quality, smart local and regional market research, in grid, customer services, etc. • Economic value of the reduced outage because of selling more electricity collaboration with other departments. • Customer oriented enhancement as the customer will have more information to contribute to the Conservation Plan for Tarsheed and Qatar National Vision 2030

Implementing Smart Solutions, 46 Rationalizing Resources KAHRAMAA | Sustainability report 2016 47 Overview of the water sector Ensuring reliable and efficient To keep up with Qatar’s vast urban and economic developments, KAHRAMAA supply of electricity continues to place immense efforts in expanding its water capacity and distribution of water networks while conforming to international water quality standards (e.g. ISO Integrated water strategy 9001). We continue to assess our losses and leaks to reduce our non-revenue water, in In 2016, the total electricity losses from System Average Interruption Electricity Transmission Losses our efforts to optimize our water supply. our network was 6.31% with 1.87% Frequency Index (SAIFI): the lost during transmission and 4.5% in 2016 726.3 Maintaining close interaction and coordination with our stakeholders is essential average number of sustained distribution losses. The actual electricity in addressing various concerns regarding water production, availability, quality and interruptions per consumer 735.34 transmission losses amounted to 2015 outages. Our main stakeholders include Independent Power and Water Producers during the year was 0.29 Increasing water storage reserve to 8-7 days (IPWP), Policy Makers and Government Agencies, Customers, Suppliers, Contractors, 726.30GWh in 2016. 2014 743.8 Provide Reliable & Maintaining 24hour Employees, Local Communities and Academia. System Average Interruption uninterrupted supply to customers Ensuring reliable supply of power with High Quality water Duration Index (SAIDI): 2013 602.6 minimal system outages is one of the Studying/implementing the average duration of alternative energy source focus areas for KAHRAMAA. In 2016 2012 970.57 for water production specifically interruptions per consumers Kahramaa Provide reliable and high quality water we had 19,467 hours of planned Integrated nuclear and solar during the year was 30.87 outages and 4,361 hours of unplanned 0 200 400 600 800 1000 1200 Water Study and development We continue to expand the reach of our services to meet the demands of our Strategy of underground reservoirs outages in our network. customers with 9.7% average water production growth for the last 10 years and Reduction of real or 6.9% in the last 5 years. Our primary source of water remains desalinated water technical water losses from the sea to meet the needs and demand of our customers. Revisiting Qatar water infrastucture, especially Improve the underground pipes, Management 2012 2013 2014 2015 2016 on regular basis for timely of water assets refurbishment/replacment Total annual Diversifying energy sources by encouraging to help reduce water losses water production 437 465 495 535 560 projects and investing in renewable energy Promoting conservation 3 awareness (million m )

The Renewable Energy Technologies Section, a division of KAHRAMAA’s Conservation Total number of 241,204 242,552 262,018 277,433 297,261 and Energy Efficiency (CN) Department, is responsible for introducing renewable energy customers technologies to the power and water sector in the State of Qatar. KAHRAMAA is playing a key role in drafting Qatar’s Renewable Energy Strategy and identifying the required policies in cooperation with the Ministry of Energy and Industry.

Some of our key short- and long-term initiatives to promote renewable energy in Qatar includes the provision of 10 water include, To continue meeting the increasing MSF distillers units and Acciona RO distribution lines that enable our water demand, some of the key updates/ units. The facility is expected to be networks and delivery expansion. The developments for the water network in fully operational in July 2018 with final • Implementation of the 200-500 MW solar power plant project: The project is project’s beneficiaries are approximately 2016 include the following: production of 2520 MW and 136.5 Renewable energy expected to be implemented using an Independent Power Producer (IPP) and Million Imperial Gallons of water per 1,842 participants. We have also KAHRAMAA has already identified the land for the project. • RAF A3 water production facility Day (MIGD). added 10 sub-connection projects target of operational: In 2016, the first to introduce 7,284 additional water • Executing the first Renewable Energy Atlas in the State of Qatar in collaboration desalination facility producing potable • Improving our pumping stations network connections across the State 200 MW by 2020 with Qatar Foundation’s Qatar Environment and Energy Research Institute (QEERI) water using the Reverse Osmosis (RO) and water tanks: Our reservoirs and of Qatar. With our increased water to examine the best areas for application of RE, especially solar projects using desalination technology was rolled lift stations both represent the most network expansions, we have witnessed and 500 MW by parameters such as irradiance, surface temperature etc. out. The Ras Abu Fontas A3 facility important components for our water a 0.22% reduction in the number of composed of Acciona RO units is network’s security. water tankers of the total number of • KAHRAMAA has developed the guideline specifications for PV solar system (on grid expected to achieve a total production • In early 2015, we launched Al Wakir subscribers. 2022 system and off grid system) in Qatar. The guideline specifications for solar water capacity 35.14 MIGD in 2017. pumping station to increase our heaters are currently under development. • Set up of the Department • Roll out of the Umm Al Houl power water capacity feed in Jaidaah tank for Planning and Production station with an estimated water • To evaluate wind potential in the north of Qatar, KAHRAMAA is implementing wind generation and water desalination Development of Water Resources: storage capacity of 9 million gallons. measurement using Sodar (Sound Detection and Ranging) that measures wind speed facility project: The Facility D IWPP, is To conserve groundwater resources and and wind direction up to 120 meters. one of the largest facilities in the region • We launched the pumping station to protect them from overexploitation, which follow state of the art power for the medium and small industries the KAHRMAA administrative structure • KAHRAMAA is also actively involved in promoting private sector participation in the and water production technologies with a capacity of 10 million gallons was updated in 2016 as part of an renewable energy sector in Qatar. We have signed an agreement with the Emirati for power generation combined cycle, per day and storage capacity of Emiri Decree No. 46 of 2015. The Masdar Company and the Qatari Nebras Powers for establishing a joint business thermal sea water desalination (MSF) 8 million gallons to serve one of newly formed department would focus relation in the field of developing sustainable and renewable energy projects. In and reverse osmosis( RO) sea water Qatar’s industrial zones. on establishing restrictions on future addition, in collaboration with Ministry of Municipality and Environment we are desalination. The facility basically groundwater withdrawal, conducting applying several solar PV solutions to light-up streets, public parks and shores. In comprises of 6 Siemens SGT5-4000F • Advancing our Connections and experiments to reinject the aquifers with addition, with Ministry of Education and higher Education we are having several gas turbines, 6 Nooter Erikson boilers, 4 Maintenance Works: Within a rapid desalinated water, provision of data and pilots of applying solar systems of lighting & ACs in schools. SST5-4000 steam turbines in combined period of three years, we completed the installation of meters and control cycle configuration and 5 Hitachi Zosen one of our extension projects, which equipment.

Implementing Smart Solutions, 48 Rationalizing Resources KAHRAMAA | Sustainability report 2016 49 Measures to manage the growing demand of electricity and water in Qatar Improve the management of water assets KAHRAMAA has put in place a comprehensive water loss reduction program in the water transmission and distribution network. The National Program for Conservation and Energy Efficiency (Tarsheed) was launched in 2012 with an aim to increase resource efficiency and to reduce environmental impact Number of pipe bursts per 100kms Some of the major leak detection projects in the water network include: Promoting resource in the process. It seeks to reduce electricity consumption per capita by 25% and water 15 conservation and energy consumption by 35% per capita until 2022. 10.2 • Leak detection in large diameter water mains of 600mm to 1600m diameter 10 using Smart Ball – a specially patented freely traversing acoustic device. efficiency through Tarsheed Since its launch, Tarsheed has managed to reduce per capita electricity consumption 6.1 6.2 5.9 5 by 18% and water consumption by 20% by 2016 through initiatives related to • Permanent noise loggings and correlating activities on the webserver using 5 development of regulations as well as through awareness campaigns. For more details Cloud computing and GSM network. on the awareness campaigns, please refer the “Supporting the communities” section. 0 • Water balance and leak detection activities in DMA (district metered areas) 2012 2013 2014 2015 2016 inclusive of rezoning and ZPT (zero pressure tests) activities Tarsheed initiatives 2016 • Pressure Transient Monitoring for identifying stress points in the water network 24/7 and predicting pipe failures and bursts in an online mode instantaneously Reducing water loss (NRW) • Leak Monitoring via SCADA applications for active leakage management Law enforcement: 30 solutions for online real-time leak detection and localization of leaks in district Savings through Tarsheed 19.6 20.5 21.2 In 2016, Tarsheed successfully Other initiatives by Tarsheed to 20 16.48 metered areas (DMAs) implemented the Rationalisation Law improve energy efficiency: until December 2016: 10.4 10 6.84 6.11 6.32 No. 20 for the year 2015 effectively • Adjusting the Power Factor 4.92 4.04 and tightened fines on wasting water • More than QAR 3,800 0 to a minimum of 0.9 for Bulk 2012 2013 2014 2015 2016 Reduction of Real Losses from a high up to 20,000 riyals and released million in cost savings Customers in the industrial and 4,670 warnings and violation fines • About 2,12,000 cubic of 35% in 2007 to the international commercial sectors Non-revenue water reduction(%) for water. feet of gas savings Water real losses reduction(%) Standards of 4% in 2016 • Application of thermal insulation • Reduction of carbon systems after issuance of emissions by 8.5 million Ministerial Decree No. 108 of tons (when compared to the Ban on inefficient Tungsten 2015 baseline in 2012) lamps: • Forced new bulk customers to obtain energy management ISO Tarsheed issued a regulation with Certification 50001 Qatar now competes with leading nations like Japan and the Ministry of Environment to ban CN Department: Target Plan vs Actual Dropdown Per-Capita Consumption Trend Singapore in the ability to control water leakage, with the rate of the import of inefficient Tungsten • Launched the energy audit Water by 35% lamps (75W-100W) on 1st May program for government buildings water leakage now in Qatar’s network at 4 percent. KAHRAMAA 300 280 2016 and (40-60W) in November in particular and for different 258 260 250 would not have reached this milestone if it hadn’t been for our 243 2016. Through the increased sectors of the state 235 237 240 223 217 220 232 ability to apply the creative use of available technology and adoption of LED or CFL, we expect 235 (11%) 214 223 222 208 200 216 (14%) a potential saving of 7523 GWHr in (6%) (20%) Mr. Abdul Monem A. Darwish resources. 180 (11%) 201 electricity usage and a reduction in 160 (20%) 168 Manager Water Operations & Control (35) 4,054,689 tons of CO2e by 2020. 140

Cubic Meter/Person/year 120 100 2011 2012 2013 2014 2015 2016

PCC( Projected Without CN Projects) PCC( Traget:Estimated with Cn Project) Actual PCC Reducing real water losses to Actual PCC decreased in 2013, 2014, 2015 & 2016 by 4% , 7%, 8% & 10% approximately from the base year 2012 match international standards Air conditioning energy efficiency: Qatar Plumbing Code: CN Department: Target Plan vs Actual Dropdown Per-Capita Consumption Trend To reduce water loss and misuse, we used • Reducing water loss by implementing continual and effective campaigns The Energy Efficiency Labeling In 2016, KAHRAMAA announced Electricity by 20% variable speed pumps to control pumping Decree for air conditioners according the code through Tarsheed 20,000 17,793 • Improving network pressure profile 16,974 17,461 pressure to ensure appropriate and constant 18,000 to the approved Qatar standards regulations and it has been applied 16,219 16,422 16,294 15,563 15,180 pressure levels in the whole network. We 16,000 15,053 (8%) (13%) established by Tarsheed was adopted by the Building Permits Complex 16,219 15,888 14,477 (10%) (18%) • Eliminating customers low pressure 14,000 15,053 14.967 modified our control philosophy by adding 14,754 15,100 by the National Standardization and since February 2016. The regulations (14%) 12,000 (10%) (11%) 14.234 dynamic pressure control to the rising main, Measurement Authority in July 2016. on flushing tanks, the largest (20%) • Reducing water complaints at network highest points 10,000 so that head loss will be calculated every To ensure effective implementation, consumer of water in homes, have 8,000 minute against the pumped flow considering 6,000 • Reducing real losses from a high of 35% in 2007 to the international Tarsheed is working closely with key been amended. static pressure as different elevation between 4,000 Standards of 4% in 2016 stakeholders and organizing awareness 2011 2012 2013 2014 2015 End of 2016 the pumping station ensuring required campaigns in malls. Tarsheed is PCC ( with Cn Project) Actual PCC residual pressure enough for customer supply. PCC( Projected Without CN Projects) In the future, we would work on reducing the annual increase in demand using currently working on increasing the Actual PCC decreased in 2013, 2014, 2015 & 2016 by 4% , 7%, 8% & 10% approximately from the base year 2012 The main achievements of this initiative the same technique and reallocating DMAs for further optimum pumping Energy Efficiency Ratio (EER) of the include the following: pressure and network pressures, reducing the pressure difference between low air conditioners from 9.5 to 11 and is elevation and high elevation points of districts. This would allow us to maintain likely to be applied in January 2018. NRW to a sustainable standard of 4% or even lower.

Implementing Smart Solutions, 50 Rationalizing Resources KAHRAMAA | Sustainability report 2016 51 Conservation of natural resources through District Our environmental Solar energy for Cooling (DC) footprint KAHRAMAA District cooling (DC) not only plays a KAHRAMAA prioritizes the management KAHRAMAA is currently evaluating major role in the lives of the Qatari Economic benefits Social benefits Environmental benefits of our environmental footprint within the use of our own unused premises people but also has significant economic our operations in line with our Health, to generate renewable power Consumes 40-50% less energy com- Improved availability of Lower air pollution Safety & Environment (HSE) policy. Our and environmental impact. The District pared to conventional options potable water especially from PVs (Like roofs of Cooling Services department at Lower refrigerant HSE policy outlines that all activities parking, stations, reservoirs etc.). We Savings in potable water due to use Better utilisation of avail- emissions KAHRAMAA has identified the following should be conducted in a way that have initiated a consultancy study to of alternate resources such as Treated able space and landscape GHG emission re- allows for proper regard and account to estimate the necessary investment benefits of DC over conventional cooling Sewage Effluent (TSE) methods for cooling high population Improved health due to duction Health & Safety and to the conservation cost for construction as well as Savings in electricity generation and reduced exposure to envi- of the environment, in all areas of our O&M costs and LCOE, methods of density areas for Qatar. Noise reduction infrastructure capital investment ronmental emissions operations. Due to our proactive efforts, connecting the solar power plants to Lower heat gener- we did not face any significant fines or In 2016, District Cooling shared up to Enhanced energy management Reliability of supply of the electricity grid and assessment ation legal sanctions for noncompliance with 15% of the total cooling load in Qatar. services of all KAHRAMAA sites potential for Lower maintenance cost compared to environmental laws and regulations in This translated to 0.66 million TR. It Overall lower environ- connectivity. conventional options Improved quality of life Energy audit for is expected to potentially grow to 1.5 mental footprints 2016. KAHRAMAA main building million TR by 2023, contributing to 24% Optimal use of chemicals Enhanced services sustain- Using insights from the feasibility ability Waste management of the total cooling load in Qatar. Encourage technology transfer study, we have already initiated We carried out a comprehensive Energy Our efforts to move towards a paperless projects to install PV panels on some Audit for KAHRAMAA Main Building We achieved 13 MW saving in generation organization continued in 2016 as well. of our premises. in 2016 & implemented conservation capacity and 48 MW saving in distributed In spite of the above mentioned benefits, the DC sector in Qatar is currently facing We are making efforts to digitize our measures & retrofitting based on the capacity from increased district number of challenges such as, internal paper forms and recycle waste findings. The audit aimed to find cost cooling penetration. The reduced fuel • Scarcity of potable water for DC operation in the absence of sufficient TSE papers. Yearly targets have been put in effective opportunities for energy consumption allowed us to save 67,109 presents a major challenge. place to optimize paper recycling. savings with practical payback periods. tonnes of CO . We were also able to save 2 It also identified the Energy usage 2,830 tonnes of CO due to reduced • Lack of TSE supply network at many places in Qatar. 2 25 of the building in terms of specific refrigerant leakages. Avoided generation 99.40% 100,00% • Non availability of TSE operating DC plant Discharge disposal destination 98,25% 20 20 Consumption. The audit covered: 20 19 and distribution capacity addition helped network. 98,00% us save 59.8 mn QAR and 89.2 mn QAR 16 The analysis of building and utility • Consumer affinity towards less efficient air conditioning alternatives due to 15 96,00% respectively. data, including study of the installed 92,25 % 94,00% various issues such as pricing, availability etc. 10 92,70 % equipment and analysis of energy bills: 92,00% • High switching cost for retrofit systems. 5 15,72 18,99 18,65 18,54 90,00% • The survey of the real operating

0 88,00% conditions; 2013 2014 2015 2016 Successful utilization of KAHRAMAA’s DC department has identified indicators in the areas of human health Total was te ( paper shredded) generated during the year • The understanding of the building the benefits of using TSE for cooling and environmental safety; reliability; Recycled was as percent of total was te behavior and of the interactions recycled water in District Total was te ( paper shredded)recycled Cooling plants in Qatar purposes. In coordination with Ashghal, efficient water use; efficient energy use; with weather, occupancy and we are acquiring TSE and are on the way sustainability and cost-effectiveness. operating schedules; In Qatar, the increased demand for to eliminating the use of potable water in • The selection and the evaluation of cooling load is met by energy efficient DC systems. Since the implementation of A draft version of Qatar District Cooling Air emissions Law has also been developed and is by using the latest available Grid Emission energy conservation measures; water cooled centralized chiller the 2013 directive to use TSE in place of Within our transmission and distribution awaiting clearance. It is expected to Factor of 539 tCO /GWh, provided by plants. However, this poses a threat potable water for cooling purposes, 7 out networks, we use SF6 as an insulating 2 • The estimation of energy saving boost investment in DC technologies study conducted by the United Nations to the limited water resources in the of 22 of our operational plants are using gas in substations. We realize that SF6 potential; region. Taking this into consideration, non-potable water. This has resulted in a and prompt customers to make a switch Economic and Social Commission for is the most potent of the six GHGs • The identification of customer 3 from conventional air conditioning to DC Western Asia for Qatar. In 2016, we have KAHRAMAA’s DC department paved the total potable water saving of 2.8 million m according to IPCC, and we are working systems. The law will also have rules and expanded the data boundary for direct concerns and needs. way of the directive which prohibited in 2016. towards reducing and controlling SF6 regulation for contracts between service energy use and have reported direct the use of desalinated potable water for gas emissions by implementing various providers and consumers. energy from fuel use by our vehicles as cooling purposes and proposed the use In October 2016, KAHRAMAA issued initiatives. Examples include: installing well as fuel used in our generators and of Treated Sewage Effluent (TSE) or sea the District Cooling Design and Water alarm system in substations for observing KAHRAMAA’s DC department has been substations. water as replacements. This replacement Management Code which follows on from SF6 potential leakages, changing working in coordination with Urban offers both environmental and economic the decree of Qatar’s Permanent Water defective equipment and transmitters; as planning department in Ministry of benefits in the form of energy and cost Resources Committee (PWRC) to use well as safe handling of SF6 to ensure no Municipality and Environment to finalize savings. This transition to TSE/ Sea water recycled water in district cooling. The code releases in the air. 2012 2013 2014 2015 2016 was met with a lot of challenges but sets mandatory minimum requirements areas viable for DC. Mandating use of DC in Scope 1 emissions for the design and operations of Water high population density areas offers plenty Our direct GHG emissions (Scope 1) 3,397 2,998 3,985 4,252 3,481 effective multi-level DC stakeholder (DC (tonnes of CO2e) of scope for increasing DC penetration presented here covers only KAHRAMAA’s plant operators, Ministry of Municipality Cooled Central Air conditioning Systems Scope 2 emissions & Enviornment and Ashghal) for comfort cooling. It is applicable to all in Qatar and further savings in energy vehicles. Transmission and distribution 1,307,846 1,106,405 1,277,155 1,348,443 1,438,899 (tonnes of CO2e) coordination on the part of KAHRAMAA existing and new DC plants. It is intended and cost. Towards this end, KAHRAMAA (T&D) losses are major source of indirect DC department led to a reduction of to set key minimum requirements deemed has also developed a District Cooling GHG emissions in KAHRAMAA. Scope 2 Direct energy use (GJ) 59,374 48,991 64,386 74,903 132,009 56% in potable water usage in DC. critical for achieving key performance Assessment map in Qatar. (indirect electricity related) emissions are calculated as amount of T&D losses and

Implementing Smart Solutions, 52 Rationalizing Resources KAHRAMAA | Sustainability report 2016 53 Investing in our people

It is KAHRAMAA’s ongoing and long-term strategy to holistically Management practices develop, safeguard and create an empowered class of citizens, who are willing to work in an environment which nurtures them We, at KAHRAMAA, aim to make our people feel safe for serving their customers, contribute to our organization, as well at their workplace, secure the job they do, and enable as the nation as a whole. our employees to fulfil their full potential by helping them develop new skills and expertise. We strongly follow our national vision of human development which seeks to empower the people of Qatar so that they will be able to sustain and support our country’s KAHRAMAA wins growth. Digital HR Award at GCC Government HR Summit 2016 KAHRAMAA believe in the holistic development to meet targets which This prestigious award is designed development of our people and is we set after accurately monitoring and to recognize and honor outstanding committed to provide our employees a identifying areas for further improvements contributions and achievements robust, smart, rational, forward looking in safeguarding our people. in the field of Human Resources. and transparent framework towards KAHRAMAA was selected for having building their capability and competency. Our Human Resources (HR) Department the best HR digital services and is specialized in identifying corporation’s practices in the region by an expert Empowering our Human capital through needs of jobs and employees and panel of judges comprised of analysts training and education is one of our preparing the project of the first chapter and HR experts. strategic approach to attain KAHRAMAA’s budget. It has the primary responsibility business objectives. Our leadership for setting up workplace policies and KAHRAMAA has automated over 30 are strongly committed to invest in the procedures for the management of Human Resource related processes development of its people in order to our workforce and for talent nurturing. utilizing the Ultimus Adaptive BPM secure a knowledgeable, motivated and The Department conducts regular Suite, one of the most widely used inspired workforce to be able to achieve research and analysis of HR data to business process management (BPM) the corporation’s economic objectives in analyze KAHRAMAA, as well as, to help software suites in the world. KAHRAMAA is committed to providing better customer services line with the broader country’s ambitions. our leaders to constantly improve our As Qatar is a rapidly changing workplace environment and performance. through effective and dynamic human resources strategies, country with a fast growing We continue our commitment to promote economy, KAHRAMAA needed systems and business processes aligned to meet its corporate quality Qatarization and raise the level of The HR department also specifies automation to ensure efficient and competencies of employees to boost their training courses needs for employees in objectives set out by the Qatar National Vision 2030 streamlined operations, eliminate performance and career development. coordination with various management paper, and provide visibility into Our effective training and education unit and implements procedures of business processes. The software’s policy is consistent with Qatar vision performances evaluations. Eng. Nasser Al-Mohannadi advantages in the areas of rapid 2030. The impacts of effective training Director of Corporate Services solution deployment, ease of change, and education being pursued is aimed Beyond the trainings and annual and ready integration with ERP and at transforming the national work force appraisals, we encourage our employees Performance highlights other systems were essential for into productive assets. This will influence to have continuing conversation between the automation of HR processes the change in the social, economic and employees and managers which also helps • Won Digital HR Award at GCC Government HR Summit such as employee onboarding and environmental dimension leading to our build a transparent working environment • 37% Qatarization nation’s sustainable development. that stimulates and supports our people offboarding, vacation and leave GRI Standards and the business. requests, duty resumption, exit • 28 Qataris Sponsored in universities abroad permits, and employee loan requests. alignment Aligned to our corporate objectives and to • 18 hrs of training per staff (on average) at a cost of 9800 QAR our nation’s long-term vision’s (QNV 2030) With the help of Ultimus software, We have used the following per employee human development pillar, KAHRAMAA KAHRAMAA’s HR automation efforts disclosures from GRI standards safeguards their employees’ health and • ISO:9001/2008 and BS ISO 10015:1999 Quality Management allowed us to quickly support the in this section: safety also abiding to International Health (QM) certifications for Training & Development Department rapidly changing needs associated and Safety guidelines which are constantly with our growing workforce and 102-8,103-1, 103-2, 103-3, 202-2, • KAHRAMAA achieves a total of 59.7 million working hours growing positively. Our efforts in this customer base. 401-1, 403-2, 404-1, 404-2, 405-1 without Lost Time Injury by the end of 2016. area are strongly connected to growth in operations and further infrastructure • New HR Law implemented related to employee leave entitlements

Implementing Smart Solutions, 54 Rationalizing Resources KAHRAMAA | Sustainability report 2016 55 Our people Qatarization KAHRAMAA’s Qatarization policy is KAHRAMAA is one of the leading Technological innovations and the sector- Various financial and non-financial level at 13 %, while female employment in line with our Government’s policies corporations in this area. We have wide shift toward smart technology, new rewards and recognition mechanisms are at Middle Management level was equal and the QNV 2030 expectations. attachment programs for employees. regulations, are all requiring completely in place at KAHRAMAA to attract new to 15% in 2016. We also have added Qatarization plays a key role in our strong They undergo training as per the new skills to deliver on needs such as talent and keep its workforce satisfied. 28 more new talented ladies to our commitment to develop the country’s established plan. It is meant for the IT, distributed resources, and highly Our efforts have resulted in a steady workforce as a part of our new hire in future generation. Towards this end development of employee skills by connected customers. decrease of turnover rate for the past four 2016. KAHRAMAA welcomes Qatari Nationals attaching them to international years. to be part of our team and help us to companies for experience exchange As the sector evolves, the capabilities To provide equal opportunities for achieve our mission and vision of setting in engineering, technical, and required by our employees are also needs Although we do not have a formal everyone, we do not distinguish on the a global benchmark for performance, administrative fields. to be upgraded with whole new set of diversity policy, KAHRAMAA is increasingly grounds of limitations in physical ability to technological innovation, environmental In 2016, 75 engineers have received skills in order to meet the new generation pioneering employer of women in field perform the work. In 2016, we employed sustainability and social responsibility in training in leading companies in customer needs and industry demands. jobs traditionally falling under male 15 staff with disabilities, and we aim to Electricity and Water Sector. Singapore, while there are initiatives Building the workforce KAHRAMAA recognizes that in today’s domination and has seen recently the increase this trend in the future. There KAHRAMAA’s Qatarization policy pays to conclude agreements with Spanish, increasingly competitive job market, of tomorrow inflow of talented and successful female have been no incidents of discrimination special attention to the recruitment of French, and Australian electricity and employees have high expectations beyond candidates for technical roles. Across reported at KAHRAMAA. However, our skilled Qatari nationals both males water companies. In addition to training, KAHRAMAA the financial rewards. In this smart and our total workforce we had a rate of disciplinary procedures are in place and and females at different positions and believes that education of locals is new environment, job seekers increasingly We also supported 49 of our own 11% female employment in 2016, we corrective action will be taken against levels. We have maintained our overall the key way to achieve development look for employers who value, support employees to complete their education are proud to have our rate of female wrongful conduct by employees. Qatarization targets in between 35- 40% objectives and thus Qatarization’s. their employees and take responsibility for while working. Over the past 5 years, employment at the Senior Management over the years and we are developing KAHRAMAA scholarship program we invested around 150 million QAR ensuring their workforce is well trained, strategic initiatives to help increase this is one of the best programs in the in supporting Qatari students and diverse, healthy, safe and empowered. number well beyond 50% in the coming State. It is meant for the high quality employees in their education, of which years. In 2016, KAHRAMAA employed qualification and capacity building of We strive to comply with the highest 30 million QAR (approximately) were 1169 Qatari nationals, reaching 37% students expected to assume technical international standards to ensure that invested in 2016 alone. Qatarization rate among our workforce. and administrative jobs in KAHRAMAA. we have the right management practices Number of employes Number of total employees Within our total workforce, 96% of We also support our Qatari employees It should encourage Qatari youth and approaches in place and that our by type in 2016 our Senior Management and 75% of with a variety of development initiatives. to involve in scientific specifications people’s skills match global expectations. 2011 3,001 our Middle Management are Qatari. In Each Qatari employee has his/her own in a way increases the number of In 2016, KAHRAMAA’s Human Resources 2017, we aim to increase the level of Individual development program (IDP) - a professional Qataris in KAHRAMAA. Department has renewed the ISO 2012 3,094 Qatarization at our Senior Management competency based training plan in line certification (ISO:9001/2008) for its level to 100% , and 90% among Middle with international standard ISO 10015. Since 2007, KAHRAMAA has started excellent Quality Management System 815 2013 3,165 Management. To help advance the English language to attract and sponsor distinguished %58 1338 (QMS). level proficiency we provide English general and technical secondary An internal Qatarization Committee 2014 3,257 Language training courses for our staff graduates to receive high level Ensuring that we have the right talent in consisted by senior management 709 based on the international standard engineering and administrative 3,287 representatives and headed by our the right job positions and also matching 2015 of the Common European Frame of education at leading international President, oversees the Qatarization expectations with the reality is essential Reference. universities inside and outside Qatar. to secure the success of our business. 2016 2,862 process at KAHRAMAA and is tasked KAHRAMAA’s long-term strategy aims at Electricity Business with the development of mechanisms to Once contracted and start the university 0 1.000 2.000 3.000 4.000 education, KAHRAMAA scholars are boosting employees’ skills and developing Water Business support the Qatarization, Training and considered senior staff and join one a strong workforce for the future. Corporate Business Development Team. of KAHRAMAA departments as per As our operations grew, driven by our their specifications. Scholars study Electrical, Mechanical, and Computer dedicated workforce and the expansion % Qatarization in years (2012 - 2016) of our customer base, we have seen a Turnover rate trend Engineering, as well as Business Administration, Finance, and Law in steady number in the workforce size 7% 37% 37% 8,0% UK, USA, and Australia universities. over the years. Our total workforce 6,2% 6,2% 6,0% 4,7% KAHRAMAA aims at increasing the from 44 nations was 2,862 in 2016. In 4,1% 37.5% 36% terms of turnover, the percentage of Female Employement(%) 4,0% 3,6% 37% number of scholars especially in our employees leaving the company 2,0% 36.5% 35% technical specifications. in 2016 was 7%, an increase relative 0,0% 36% 34% 28 Sponsored Qatari Students in 13% 13% 15% 16% 11% 12% 11% 35.5% to the turnover ratio of 2015 due to 2011 2012 2013 2014 2015 2016 International Universities abroad the challenging economic environment 35% Number of emp;oyees who leave the organization 34.5% 2010 2011 2012 2013 2014 2015 2016 21 Sponsored University/technical caused by the rapid decrease in oil Voluntaily or due to dismissal, retirement, or death 34% 2012 2013 2014 2015 2016 school in Qatar prices and consequent impact on the in service 33.5% entire national economy and Energy and 33% Industry sector in particular.

Implementing Smart Solutions, 56 Rationalizing Resources KAHRAMAA | Sustainability report 2016 57 Process for Creating an Individual Development Plan (IDP) 1. Self assessment Training and development Consider your skills, values & interests

In line with the QNV 2030 human KAHRAMAA has developed many KAHRAMAA wins the development pillar and our long-term 4. 2. advanced training programs to enhance Implement Plan Career Exploration strategy, providing the right training and Recruit mentors to Learn about career Qatarization Crystal Awards for skills and abilities of all employees help with various options for & compare developing our talent remains among parts of your plan your skills values and Best Qatarization Progress through training sessions held and carried interests to each option the key strategic objectives of our out within and outside the country. The 3. organization. The need for particular individual training plan is known by each training is identified through a multi- employee since the beginning of the year, Set Goals HE Dr Mohammed bin Saleh Al Sada, make a concrete plan for how you will requirements of the companies are met. channel procedure including IDPs, improve your skills,build your network, Minister of Energy and Industry, presided according to a comprehensive set plan. and get the experience you need to This has already resulted in many companies feedback from performance appraisals, prepare for tour future career the 16th Annual Qatarization Review The trainings provided are closely related signing memorandum of understandings as well as any additional comments Meeting of the energy and industry sector. to our business focus and needs: water (MoUs) with educational institutions to and identified gaps from the various and electricity aspects –based programs KAHRAMAA Individual In support of the Qatar National Vision assist in research and to contribute in departments. and development of soft an management Development Program (IDP) 2030 and the National Development evaluating the curriculum of educational skills. The program is one of the most powerful Strategy 2017-2022, the meeting attendees institutions. Dedicated pre and post training training programs in the State of Qatar. witnessed presentations highlighting the counseling sessions are conducted with We also conduct some more specific The 16th Annual Qatarization Review It is a competency based training plan in energy and industry sector’s progress the employees respectively to prepare the programs such as Clerical Preparation Meeting also featured the sector’s Eight line with international standard ISO 10015 in managing its Qatari human capital participants for the course content and as Program (CPP), Technician Preparation Annual Qatarization Awards ceremony. which compares between required skills strategies. a measure of course’s impact assessment. Program (TPP), and Security Preparation KAHRAMAA was recipient of the to excel working in a position and the prestigious Qatarization Crystal Awards for Program (SPP), Six Sigma (Green As he stressed the importance of technical Qatarization, Training, and Development Belt), The 7 Habits of Highly Effective employee’s ability. It maps the training Best Qatarization Progress. education, HE Dr Al Sada emphasised Section in the Human Resources (HR) People, Thinking outside the Box, and requirements for each employee. It is the need to build strong bonds between Department in KAHRAMAA succeeded International Computer Driving License based on two main streams: the first educational institutions and the companies in renewing its ISO:9001/2008 and BS (ICDL- ICDL certifies our employees’ is complementing the theoretical and in the sector to ensure that the educational ISO 10015:1999 Quality Management computer soft skills). academic knowledge of the employee Universities partnerships (QM) certifications for Training. In with the practical side; the second is to support our employees 2011, the section established and We achieved 54,666 hours of in house developing the professional skills of the applied a QM system according to ISO and outside training for our total employee in accordance with international Global markets today are faced with 9001:2008 requirements for training and workforce in 2016 at a total workforce developments in the particular area of numerous challenges and there are development of KAHRAMAA employees cost of 30 million QAR (approximately). specialization. growing expectations from customers and for Qatarization, education and This target breaks down to an average of about the quality of products and The purpose of these plans is to ensure a recruitment of KAHRAMAA Qatari 18 hours of training per staff member, at services provided by corporations. consistent and well-managed approach employees. It also complies with BS ISO an average employee cost of 9800 QAR towards developing our employees by As we are building the workforce for 10015:1999 QM Guidelines for training (approximately). identifying existing competency gaps and the future, we want our people to be in the scope of training, development and providing the necessary initiatives to gain fully prepared to meet international education for KAHRAMAA employees. Post the training we also analyze the required skills. In addition to serving as one standards of knowledge, service effectiveness of the program through a of the basis for identification of the right and innovation. We therefore have This makes the HR Department in survey, usually three months following training opportunities, IDPs are also used several agreements with various KAHRAMAA among the very few entities a particular training session to allow in the Middle East who succeeded for transfer operations, career progression institutes, colleges, universities and trainees to reflect on the past months and in attaining these world acclaimed and promotion analysis and decision- learning institutions approved by the discuss how effective the training was for certificates. making, as well as for succession planning. Supreme Education Council (SEC) to them. support our employees’ further career An annual IDP is prepared for each development aspirations. Through employee and training needs are these partnerships, a Qatari employee Total hours of training provided discussed with employee’s Supervisor can apply for high-level education and to employees (full-time) to collect further feedback and decide studies to enhance professionalism 80,000 on in-house or public courses available. and to improve knowledge and skills. 70,000 Each Qatari Employee has his/her own 58,990 59,700 KAHRAMAA also supports its Qatari 60,000 54,666 IDP and progresses follow up to improve employees in advancing their English 51,060 KAHRAMAA’s capacity building. A robust 50,000 language proficiency levels. 41,670 performance management system is in 40,000 32,130 place where direct supervisors evaluate 30,000 all their reporters across a number of 20,000 elements and rate them on a scale of

10,000 100%. Internal management procedures such as the individual development plans 0 2011 2012 2013 2014 2015 2016 (IDPs) are developed by line managers and counselors, with the President overseeing the process.

Implementing Smart Solutions, 58 Rationalizing Resources KAHRAMAA | Sustainability report 2016 59 Managing safety of our Our safety performance We track both reportable injuries and matters through our HSE awareness staff and contractors the days away from work (lost time program and a strong commitment injuries) as these are standard measures to establish and implement strict Safeguarding our people and setting a before they are awarded the contracts. to demonstrate how we are managing management systems in place to improve healthy working environment for them is The HSE department inspects and audits our operations to prevent any harm at the our HSE performance. Although the one of our key corporate objectives and their performance during the contract workplace. number of injuries for our contractors we remain committed to high standards, period to ensure they comply with the is in control, it is still high according to We had zero fatalities among our practices to help establish a consistent requirements and enforces the contract our own expectations and goals. We employees and contractors in 2016, and approach throughout our operations. terms whenever noncompliance and are therefore focusing on increasing the KAHRAMAA New the total number of reportable injuries liability issues arise. number of site visits and risk assessments for our employees decreased from 2 in KAHRAMAA’s, Health, Safety and Milestone: 28 Million performed, and are considering the Better Water, Better Jobs 2015 to 1 while the reportable injuries Environment (HSE) policies are developed Legal register for all pertaining HSE legal, Working Hours without manpower required to make sure we for our contractor’s increased from 11 in This year’s theme for World Water in line with the international standards, regulatory and quality requirements deliver informed and on time site audits. Day, ‘Water and Jobs’ focuses on we follow them strictly, sets also in the State of Qatar is the basis for Lost Time Injury 2015 to 37 in 2016 since we have seen an increment on number of contractors Incidents investigation is conducted to that – employment – and how water expectations from our contractors to managing the health, safety and KAHRAMAA” has accomplished a new quality and enough quantity can impact implement and adopt the same. Our environment services in the State of milestone by reaching 28.6 million working for KAHRAMAA this year. establish the cause and to identify next steps and learning to help prevent similar livelihoods and possibly even transform policies encourage the development of a Qatar. Reference is made to international working hours without a lost time At the same time, Total Recordable cases in the future. Recognizing the high lives, in societies and economies all over safe, healthy and well-managed working standards whenever the National legal injury (LTI) during the first half of year Incident Rate (TRIR) among employees importance of having zero-harm working the world. environment, and requires all of us to and regulatory requirements do not cover 2016. This achievement comes within was 0.0325 per 200,000 hours, with environment, we have standardized adopt a sound HSE behavior. the scope of subject activities. KAHRAMAA’s efforts to apply highest 0.138 TRIR value resulting among KAHRAMAA commemorated the our approach to managing the health levels of safety and security measures contractors. World Water Day which falls on March Our HSE management approach is based The HSE department also provides and standards at all its sites in order to and safety risks at KAHRAMAA. We 22 of every year due to its spreading on risk management including but training to KAHRAMAA employees upon provide a safety working environment. In 2016, we have also observed an continuously update our HSE risk register message of awareness about preserving not limited to risk assessment, setting request from the relevant department increase the number of injuries which to ensure HSE risks are minimized. Last water, conserving its consumption and regulation & requirements, inspection and or HR. The HSE department has also the The working hours without lost time has resulted in an employee or contractor year, we established a local register of managing its resources which lead to training & awareness. responsibility to communicate with the injuries consists of KAHRAMAA and being away from work for at least one relevant HSE laws and requirements, achieving sustainability. various departments across the company its contractors. KAHRAMAA reaches day after it occurred, per 200,000 hours and ensured they were in line with our The celebration sheds light on the All contractors, consultants, suppliers and and reports directly to our President on a 3.2 million working hours where the worked. Our on our employee Lost Time strategies. We aim to implement a safety vital service provided by KAHRAMAA service providers are obliged to comply monthly basis. contractors’ working hours reaches Injury Frequency (LTIF) increased to 0.032 management system to help consolidate with KAHRAMAA’s HSE Policy and Manual 25.4 million hours which reflects among employees and 0.063 among all safety measures and procedures across and the role of labors in water and KAHRAMAA’s keenness on providing contractors. (The factor 200,000 is derived all of our sites. Working closely with allied sectors which create about half safety environment for its staff and from 50 working weeks @ 40 hours per the Quality & Continual Improvement of the world’s labor force. Their role contractors as well. 100 employees/contractor). Department, it is our goal to obtain ISO extends to render the essential service 9001 certification by the end of 16. for various sectors by enhancing of the This significant achievement is a clear At KAHRAMAA, we will continue our water quality, ensuring its sustainability reflection of KAHRAMAA’s commitment internal focus on health and safety and touching all population for better The HSE department exists in KAHRAMAA to ensuring that safety remains a core living. Qatar goes ahead to create a value in all its operations and activities. sustainable economy and improve because of the Emir Resolution Number 35 for 2010 2011 2012 2013 2014 2015 2016 The remarkable achievement became the standard of living with the four Employees fatalities 0 0 0 0 0 0 0 the year 2014, article number 16, describing its a reality as a result of KAHRAMAA’s pillars: human, social, economic and ongoing commitment to safety, Contractor fatalities 0 2 1 0 1 0 0 environmental as envisaged in Qatar role as a regulatory and enforcement body for security and through its stringent safety Employees occupational 0 0 0 0 0 0 0 National Vision 2030. strategies, systems, processes and illnesses the occupational health, safety, environment and vigilant monitoring mechanism. Finally, we can say that water Heat stress events (em- 0 0 0 0 0 0 0 preservation is a common responsibility water quality services covering the scope of all ployee and contractor) KAHRAMAA achieves a total of 59.7 and we should preserve it. At this million working hours without Lost Safe work hours occasion, we called upon everyone to KAHRAMAA people, premises and operations. (employee) 6,105,920 5,606,880 6,244,432 6,255,440 5,400,862 6,499,044 6,159,922 Time Injury by the end of 2016. render their cooperation for achieving Safe work hours 36,093,892 our goals and preserve our resources (contractor) 12,039,258 14,917,888 15,046,268 18,064,361 13,248,620 53,579,420 for our generations to come.

Total number of reportable injuries & Total number of reportable injuries & Lost Time Injury Frequency Lost Time Injury Frequency injury frequency rate for our injury frequency rate for contractors Rate - Our employees Rate - Our contractors employees (per 200,000 hours worked) (per 200,000 hours worked) (per 200,000 hours worked) (per 200,000 hours worked)

12 40 0.40 35 0.35 2016 0.063 10 2016 0.032 30 0.30 8 2015 0 2015 0.027 25 0.25 6 20 0.20 2014 0.1 2014 0.02 4 15 0.15 2013 0.06 2013 0.01 10 0.10 2 0.03 5 0.05 2012 0.01 2012 0 0 0.00 2011 0.04 2011 0.09 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 2010 0.16 2010 0,17 No. of injuries (employees) injury rate (employees) No. of injuries (employees) injury rate (employees)

Implementing Smart Solutions, 60 Rationalizing Resources KAHRAMAA | Sustainability report 2016 61 Contributing to the “Health in the Workplace” Program local economy

Healthy and motivated employees are the KAHRAMAA collaborates formally foundation for our success. KAHRAMAA and informally with several external Demand for water and electricity is expected to increase as Qatar continues invests in the physical and social well- stakeholders such as and not limited to KAHRAMAA observes to experience significant economic growth, rapid urbanization and several being of its employees to help reduce the Ministry of Public Health, Hamad World Day of Health and health-related risks such as infectious Medical Corporation, the Primary upcoming infrastructure projects in the run up to the FIFA World Cup 2022. diseases, fatigue and stress. Healthcare Corporation and private Safety at Workplace medical centres in order to provide KAHRAMAA realises that long-term financial sustainability will enable it to We identify and prioritize health hazards, KAHRAMAA observed the World Day comprehensive integrated occupational and although no occupational illnesses of Health & Safety at workplace on fuel this economic growth and to play a key role to achieve the goals of QNV health services to employees. have been recorded in 2016, noise and April 28 with the slogan “Workplace 2030 which aims to diversify the economy away from oil and gas, invest in stress were among the top identified main In 2016, KAHRAMAA has signed a Stress: A Collective Challenge”. concerns. Our health risk register takes memorandum of understanding (MoU) A large number of KAHRAMAA’s a knowledge based economy with focus on innovation, and improve the into account our extensive and remote with the Ministry of Public Health (MoPH) employees including senior proportion of Qataris in the workforce. facilities where adverse conditions such as to implement “Health in the Workplace” functionaries participated in the event. Program. The MoU aims to strengthen The observance of the event included In 2016, our the cooperation between MoPH and various activities and awareness lectures occupational diseases KAHRAMAA with a view to carrying out in order to disseminate the importance the events and activities of “Health in the of implementing the standards of rate (ODR) for the total Workplace” Program in order to promote health and safety to ensure better workforce was Zero the employees’ health and to raise their health, safety, and clean environment awareness about adopting a healthy for all employees, contractors and and 0.007 among our lifestyle. visitors. contractors. The “Health in the Workplace” Program The activities also included workshops comes as part of MoPH’s efforts to for the employees such as checking promote the employees’ health and to blood glucose, blood pressure and achieve the NHS (2011-2016) goals so basic dental care, medical advice and as to contribute to the promotion of consultation with the nutritionist etc. people’s health as well as building a new It also had a number of awareness generation enjoys better health. lectures on the topic such as ‘Eye Also, the program is a part of the National Health and maintaining a Good Eye Nutrition and Physical Activity Action Sight’, ‘Managing Workplace Stress’ Plan 2011-2016 which includes lots of and ‘Stress Management’ among important projects at the national level others. We are committed to the constant implementation of new systems dust storms, extreme heat, sudden winds, to be in line with NHS goal 3 “Preventive Healthcare”, such as reducing the for targeting better control of costs, revenue collection, operational and confined spaces affect the work of • Periodic medical examinations are efficiency measures to improve the use of financial resources, our employees and contractors. prevalence rate of chronic diseases and its related deaths. done for employees exposed to decrease losses and contribute to national cost reduction plans. These We continuously update our health specific hazards such as dust, noise initiatives will allow us to strengthen our financial performance and risk register to ensure health risks are In March 2016, KAHARAMAA in and chemicals. to reduce our reliance on the government. cooperation with the Qatar’s MoPH minimized. We conduct regular trainings • Respirator fit testing and training and skills development sessions on the organized a free camp for our forty plus on how to use and maintain Mr. Jaber Al-Nabit topics of time management, multi-tasking employees offering free eye pressure and eye errors of refraction screening tests the necessary applicable PPE are Finance Manager, KAHRAMAA and meeting deadlines, in an effort to conducted. provide guidance on how to manage at our headquarters. The objective was Performance highlights work related pressures. to eliminate blindness resulting from • Regular workplace environment Glaucoma. training sessions are delivered • Revenue QAR 9.5 billion. to employees through the HSE Our 2016 assistance department. • Operating cost QAR 11.8 billion. GRI Standards programs about serious • Educational sessions on eye • QAR 937 mn employee wages and benefits alignment diseases protection, diabetes mellitus, mental • 99.5% of procurement budget spent on local suppliers health, weight management and We have used the following General health screening campaigns nutrition are delivered to employees disclosures from GRI standards • Capital Projects QAR 7.8 billion for early detection of diabetes through external stakeholders. mellitus, hypertension, glaucoma, in this section: • Total gross assets QAR 101 billion ENT diseases including hearing loss 103-1, 103-2, 103-3, 201-1, • Finance Department achieved Certification for ISO 9001:2015 and dental diseases are conducted 201-4, 203-1, 203-2, 204-1 periodically and offered to all employees.

Implementing Smart Solutions, 62 Rationalizing Resources KAHRAMAA | Sustainability report 2016 63 Our approach to creating economic value Our financial performance In 2016, despite low oil prices effecting As the main utility provider in the country, Operating cost: payments to suppliers, infrastructure investment, the State KAHRAMAA’s corporate objectives Costs and profitability of utilities globally reduce our reliance on the government non - strategic investment and facilitation payment (QAR mill) of Qatar, with safe business sectors, focuses on strengthening our financial are subject to stringent scrutiny and to meet the short and medium term established monetary segments and condition and ensuring commercial KAHRAMAA is no exception to this demands and improve our revenue 11,800 strong growth potentials, still remains success to generate both direct and practice. Hence, KAHRAMAA has an generation going forward. We are 10000 also implementing new processes and the top most attractive markets for indirect economic value for the country increased focus on improving efficiency 9000 8,609 8,640 systems which target better control 8,183 infrastructure investors. by: across the board by undertaking 8000 measures such as deployment of smart of costs, improve revenue collection • Ensuring resource conservation on 7000 Qatar is investing heavily into becoming technologies to assist consumers in efficiency and help us in pursuit of 6,583 the demand side of the market; a commercial and sporting hub in the tracking their use of resources as well other revenue streams. This is in line 6000 Middle East over the next years, and is • Improving operation efficiencies; as online applications which allows with Operational Excellence- a core 5000 focusing on attracting more sustainable companies to reduce time involved in pillar of our long-term strategy aimed 4000 • Enabling business growth by tourism by improving transport managing their accounts. at improving the commercial viability of 3000 delivering large investments in our business. infrastructure and developing attractions. 2000 A new port has been developed, in building electricity and water KAHRAMAA is a state-owned 1000 part, to support the import of materials infrastructure; organisation and our entire capital In 2016, our revenue which includes 0 0 needed to deliver ambitious spending • Investing in skill development expenditure budget depends on net sales and revenue from financial 2012 2013 2014 2015 2016 The total budget plans that satisfy both the Qatar National activities to make a smooth transition government funded subsidies and investments, were QAR 9.5bn, up from Vision 2030 and the more immediate to a knowledge based economy; revenue is generated entirely from our QAR 7.4bn in 2015. During the same committed for the 2022 FIFA World Cup Qatar. growing customer base. In 2016, we period our operating costs increased Employee wages and benefits (QAR mill) • Supporting additional economic received QAR 2.7bn as OPEX subsidies from QAR 8.2bn in 2015 to QAR development of key 1200 Ranked number one one the list of the value generation through local from government. We would like to 11.8bn in 2016. spending; and 1000 981 top richest nations because of its high 931 937 strategic megaprojects 865 GDP (PPP) per capita and only second 824 • Investing in CSR-related initiatives 800 stands at QAR 374bn, on the Global Infrastructure Investment raising awareness specifically about with a further QAR Index in 2016, Qatar saw USD 200bn the rational use of natural resources KAHRAMAA contributes to Qatar’s national 600 investments in infrastructure with and educating the nation about the 400 46bn set to be invested Government investments touching USD potential risks of resource depletion. development agenda by hiring locals, providing 160bn. 200 in 2017. KAHRAMAA’s institutional model has training and education, investing in building With these developments in mind, been discussed in detail in our first electricity and water infrastructure to enable 0 KAHRAMAA realises that in order to sustainability report. As a fully state- 2012 2013 2014 2015 2016 keep pace with the economic growth owned corporation, its capital expenditure further business growth, local sourcing, active of Qatar it needs to provide water and is 100% Government funded and revenue electricity in an affordable and reliable is generated only through customer community engagement and raising awareness Revenues: Net Sales +Revenues from financial manner. We also appreciate the fact that revenues. This data has been updated at about resource conservation. investment and Sale of Materials (QAR mill) achieving efficiency through energy and ‘Our Financial performance’ section. 9,500 water use reductions can reduce cost as 8000 well as protect environment. 7,436 7000 6,578 6,592

6000 5,469 Promoting local hiring and supply base 5000 Our commitment: Addressing regulatory changes in the energy, 4000 water and district cooling markets KAHRAMAA makes it a point to procure and complete projects in a timely 3000 locally produced goods which is in line manner to meet the requirements 2000 2014 2018 2019 2021 2028 2030 with the regulations requiring us to of the nation. Below is a summary 1000 contribute to the development of local of some of the important projects 0 Phase 1: Corporate Objectives Phase 2 & 3: Potential Corporate Objectives economy. We build the capabilities of in the electricity and water sector 2012 2013 2014 2015 2016 Realize Create value Become a the local suppliers and contractors so implemented until December 2016. Promote regulatory Proactively respond new commercial Strengthen Financial by leveraging commercially changes in the energy, to regulatory and opportunities that they can meet our quality and safety Procurement from local suppliers Performance partnerships driven water and district legal changes (e.g. regional With regards to local employment, cooling marke integration, new with third organization standards. We make sure that all the generation parties material we use comply with the latest we have made Qatarization one of assets etc.) KAHRAMAA specifications alongside QCS our key priorities as discussed in the Indicator 2012 2013 2014 2015 2016 and International code of Practices. People section of this report. Over 2017 Milestone: Commercial 2022 Milestone: Commercial 2028 Milestone: the years we have maintained the % of procure- implications of investments and practices are rigorously Commercial strategies low-risk commercial followed when engaging with clearly guide all business Electricity and water services are heavily rate of Qatarisation between 35%- ment budget opportunities are given full government, customer and decision-making 97.43% 99.85% 98% 99.5% 99.5% affected by the overall economic and 40%. In 2016, our Qatarisation rate spent on local consideration suppliers social development plans. It is therefore stood at 37%. suppliers necessary for us to undertake, execute

Implementing Smart Solutions, 64 Rationalizing Resources KAHRAMAA | Sustainability report 2016 65 National development initiatives Enhancing reliability of electrical Electricity and water services, like other infrastructure services, are heavily affected by the overall economic and social development distribution system plans and the urban plan. It is therefore necessary to upgrade the provision of electricity and water to meet the requirements of the time and to activate their role to meet the growing demand of various sectors. Everyone at KAHRAMAA is involved in one way or another in working towards providing water and electricity and supporting the socio-economic prosperity of Qatar. KAHRAMAA’s Technical Affairs Directorate focuses on project planning and execution with its three departments – Electricity Projects, Water Projects, Materials and one section – Power & Water Production Projects. Our Water Network Affairs (WNA) and Electricity Network Affairs (ENA) departments are responsible for improving the functions and activities related to planning, transmission & distribution of water and electricity, as well as field services. Expansion of electricity transmission networks Initiatives to improve supply of potable water KAHRAMAA kept the high-quality The Electricity Sector, under the supervision of KAHRAMAA, has realised many performance indicators of the electricity Water is the essential element of life and it is inconceivable to achieve comprehensive development without the provision of safe and achievements in the last six years according to the objectives and timetable of QNS network. In 2016, KAHRAMAA sustainable sources of water. Qatar has shortage of natural water resources and relies on 98% desalination of water from the sea to 2011-16. KAHRAMAA has embarked on a transformation journey by linking its developed its electricity network by meet the needs and demand. strategy with QNV 2030 and QNS 2011-16, adopting ‘excellence’ as its slogan in constructing and energising several all its operations and adhering to the mechanisms of monitoring performance and substations, cables and Over Head Lines Providing reliable and high continuous development, which is reflected on the electricity sector. (OHL) at different areas to ensure safety, quality water supply service sustainability and reliability of transmission and distribution networks at • KAHRAMAA will undertake laying of a total cost of over QAR 1.9 billion. 190Km x 1600mm line from proposed We launched a number of electricity desalination plant in the North West Preventing outages in Qatar Qatar to Doha substations, including a substation KAHRAMAA developed a system supplying power to the new port at a • KAHRAMAA will undertake upgradation The objective of the Asset Health whereby it would have the capability to total cost of QAR 188 million. Besides, of Shahaniya TFS and other identified Model is to effectively support sense the conditions beforehand that KAHRAMAA energised two substations Water Security Mega Umm Al Houl power plant stations by reconstructing 20MIG advanced strategies in the field of asset could make a sudden large-scale power 132/11 kv and associated cables to Reservoirs Project reservoir, pumping station, ancillaries and maintenance, asset replacement, and Umm Al Houl power plant is a part supply disruption possible. So corrective supply power to the prestigious Mall of pipelines to release demand load of other risk-aware grid operation. The objective of the project is to provide of Qatar’s power and water projects. measures could be taken immediately Qatar and Doha Festival City at a total stations and accommodate through this the seven days of potable water storage in KAHRAMAA own 60% of the special and a brewing crisis could be averted. These strategies move from time-based, cost of QAR 171 million. new station the new mega reservoirs and the existing purpose company floated to construct to condition-based and to reliability- the plant. It is being built in two phases. This megaproject is the first of its kind in KAHRAMAA also energised a number and future secondary reservoirs preserving • Improve the management of water based maintenance, considering the The first phase (1000MW) will enter into the GCC region and consist of condition of substations to feed power to the water quality as per KAHRAMAA assets: condition and criticality of each piece of monitoring for asset management of different vital development projects and World Health Organization (WHO) service in 2017 and its output will be equipment. • KAHRAMAA will employ consultancy 11kV Electricity Distribution Network to and authorities, including Al Gharrafa standards. increased in phase 2 by another 1500MW to have a total capacity of 2,500MW to services for Water GIS system upgrade enhance its performance and reliability. Various Indices were developed (such as substation 132/66/11 kv at a total cost of The first phase of the project will provide meet the energy demand by 2020. It will and ArcFM implementation which will Asset Health Index, Asset Maintenance QAR 145 million, Lusail super substation The project will ensure that KAHRAMAA the 7 days of storage for the expected also supply 136 million gallons of drinking enhance our modelling, maintenance, Index, Probability of Failure, Estimated 220/66/11 kv costing QAR 134 million has an early warning about malfunctions water demand at horizon 2026, with 5 water a day to 2.5 million homes in the management of water network assets, Residual Life, Asset Criticality Index, and Al Dhakhirah substation costing in its system, process restrictions and mega reservoir sites. The second phase area. map production and tools to assist water Asset Risk Index) which provide useful QAR 67 million, in addition to other degradation of equipment, as also help will provide the 7 days of water storage and network authority (WNA) users information to assess the situation of substations, cables and OHL at different the Corporation assess depreciation. for expected demand in 2036 by adding KAHRAMAA also has plans to set up the distribution assets and support the areas. a new power plant (total capacity of • KAHRAMAA will employ consultancy additional reservoirs within the 5 mega The project is being executed by our decision-making process for the right 2,500MW) which will enter into service services for mapping underground KAHRAMAA has also led in the Gulf reservoirs sites. Electricity Distribution Department with action to be performed on the asset. in 2020 with a production capacity of utilities which will assist us in region in the development of conditions the aim of carrying out a comprehensive Under the first phase of the project, Mega 1,000MW which will be increased by incorporating missing service connections Till 2016, KAHRAMAA had completed and regulations for the adoption of condition monitoring program of more reservoirs and pumping stations will be another 1,500MW in a year to meet the in GIS database which will assist in condition monitoring of 91% of our electrical materials for the electrical than 11,000 Electricity Distribution constructed at five strategic locations demand beyond 2022. maintenance and reduce our service distribution network covering 11,900 distribution network and identification Substations in-live condition within a along the Qatar National Utility Corridor. connections related damage claims assets. The Overall Asset Health Index methods and test methods, technical time-frame of 3 years. stood at 93%, reflecting the good inspection and quality systems in order to The goal is to have assessment of the conditions of the assets. achieve a technical performance to satisfy Ras Abu Fontas (A3) station health of the entire fleet of assets and the customers, employees, maintenance prioritise the interventions based on the support and adoption of modern It was inaugurated in September 2016 with a production capacity of 22 million gallons severity of the condition and criticality information security system SCADA which will be increased to 36 million gallons per day in 2017. of the asset. Each asset is monitored control centers in the NCC/DGCC/ENCC/ In addition, the capacity of the reservoirs increased by 77 million gallons in 2016. The for a set of condition parameters and DCC and information security strategic stock reached 1,336 million gallons and the total losses and leaks in the network a quantified scoring system is used to decreased from 30% in 2011 to less than 10% in 2016 which is a great achievements. represent the Asset Health as per actual site conditions.

Implementing Smart Solutions, 66 Rationalizing Resources KAHRAMAA | Sustainability report 2016 67 Supporting our communities Our approach to community engagement Engagement with our community can be a catalyst for achieving Our Corporate Social Responsibility (CSR) build people’s trust and to establish the our ambitious long term goals and transforming our nation approach is in line with the QNV 2030’s basics of responsible operations, we dimensions of community and social are planning to launch our new CSR towards a more sustainable society. Change starts from us. We excellence and the QNDS 2011-2016, department and subsequently draft a have an essential role to play in raising local knowledge and supporting the endeavor for sound formal CSR policy to serve as a guidance social development and sustainable for our activities in the future. awareness within the local community that maintains a positive management of the environment. Currently, TARSHEED plays a major role in relationship and instils a culture of the rational use of natural Our work with our community at various conducting a wide range of activities and levels contributes towards building a campaigns through which we promote resources. stable and environmentally aware society, and encourage social responsibility. efficiently manage the scarce natural We engage with our communities in resources thereby improving the nation’s a number of ways such as awareness image regionally as well as globally. campaign, educational events, career At KAHRAMAA, the Conservation forums, financial contributions and & Energy Efficiency Department in recreational activities. Our community collaboration with the Public Relations engagement initiatives help us meet & Communications Department and our ambitious long term goals and the Health, Safety and Environment management of essential natural Department are the backbone of our resources. With social media on the rise, KAHRAMAA’s community-based relationships. Next it has never been easier to reach out to Public Relations & year, as part of our commitment to the wider public. Communication Department gets ISO KAHRAMAA Futuristic Awareness Park for our Certification community Public Relations & Communication Department at Qatar General Electricity and Water Corporation (KAHRAMAA) succeeded in attaining Global Quality Certificate ISO:9001/2008 from Global Accredited TUV Company for recording the quality and other administrative Qatar’s social development policy requires integration of several management systems, complying with aspects: family cohesion and women’s empowerment, social all procedures and instructions of work protection, public safety and security, and sports and culture. We with the standards and quality system believe engaging with the Qatari community plays an important at the department. role in how we plan our operations for the future and the results we achieve for example in Tarsheed. The earned accolade has been felicitated as per the global standard

Eng. Abdul Aziz Al-Hammadi for applying the requirements of the Pre-opened in mid-2016, the park has reused, and do not involve much energy Manager Conservation & Energy Efficiency quality management system in all its been designed to serve as a hub for consumption, and offers noise insulation functionalities and operations. The understanding of the socio-economic and controls indoor pollutant sources. certification is added to KAHRAMAA’s implications and environmental costs of It is worth mentioning that the delegation series of accomplishments as part of water and electricity. It is aimed at both “Sharjah Electricity & Water Authority” its strategy to achieve the four pillars Performance highlights children and residents. visited “KAHRAMAA Awareness Park” of development enshrined in Qatar The $49.4mn project was awarded which is the first in its type in the region National Vision 2030 (i.e. economic, GRI Standards • 2016 total social investment budget - QAR 3 million alignment the ‘Qatar Sustainability Assessment and it will be pre-open this year in order social, environmental, and human • 4th Anniversary of TARSHEED which contributed to System’ award, for meeting all technical to test the facilities by receive the largest development) by complying with requirements by taking measures to number of schools, universities, and We followed following the highest quality standards. The • Reduction in per capita consumption of water in Qatar by 20% minimize obstruction of daylight, providing researchers who are mainly targeted for disclosures from GRI certification is the reflection of the • Reduction in per capita electricity consumption in Qatar 18% landscape that encourages green and this project to inform future generations standards: sustained high quality and performance (from 2012 baseline) fights desertification, and use of efficient of the importance of conserving electricity 203-2, 413-1 lighting, cooling, plumbing and irrigation and water consumption, preserving natural efficiency of KAHRAMAA employees. • KAHRAMAA’s Public Relations & Communication Department gets system, and the use of solar energy to heat resources to achieve comprehensive ISO 9000 Certification and for treating grey water. The park is sustainability as per Qatar National Vision built with materials that can be recycled or 2030.

Implementing Smart Solutions, 68 Rationalizing Resources KAHRAMAA | Sustainability report 2016 69 The National Program for Conservation and Energy Efficiency “TARSHEED“ 4th Anniversary Entries for It aims at supporting the years for development of Renewable “Tomorrow starts Today” Tarsheed Best Energy innovative technologies Renewable supporting Qatar The celebration, held this year under the and business models that to consume wisely slogan “Tomorrow starts Today” and in Energy promote energy efficiency and 2012 partnership with Aamal and Doha Cables, Reduced water & electricity Initiative help in cutting carbon emissions 4 for Qatar’s sustainable future. It is was supported and graced with the presence of HE Sheikh Abdulla Bin Nasser Al-Thani, the consumption in Qatar by also aimed at promoting Prime Minister and Minister of the Interior of environmental awareness and the State of Qatar. 20% and 18% respectively inculcating culture of efficient usage of the natural resources in An inclusive from 2012 to 2016 order to have better life and to and collaborative achieve the slogan of Tarsheed, Starting TARSHEED’s journey approach to “Keep Qatar Pulsing” in line with consumption With an aim to rationalise electricity and water use in Qatar, Qatar National Vision 2030. Reduce electricity moderation TARSHEED was launched with the task of reaching out to 2016 Ministerial Decree of Energy the public and raise awareness regarding the energy and consumption per Consistency Efficency Labeling of ACs water conservation measures to be taken at the demand side capita by 25% and Environmental and compatibility of the energy and water market. It conducts campaigns in awareness Our Signed 56 agreements and seven different languages. water consumption by until Values MoUs on awareness, 35% 2022 technical and research cooperation with different The will An overriding Launched the energy audit program Our Mission is set to empower all Qatari residents Our Vision sense of sector and institutions and ability We succeeded in accrediting the through: accountability for government buildings Through our Vision, we encourage tchangeo specifications and technical • Information, awareness and suggestions to reduce daily and empower all people in Qatar make real standards for energy efficiency for energy and water consumption levels thereby reducing Conserving building to make their homes, workplace air conditioners in Qatar in the national per capita consumption and lifestyles reflect a sustainable, competition cooperation with the Ministry of • Reduce the overall growth of Qatar’s resource efficient and environmentally Municipality and environment and consumption despite the economic growth friendly nation. other concerned authorities. As per • Meet the targeted level of reduction within the 5 year the new regulation to implement timeline The CN Department of KAHRAMAA conducted Star Rating System for ACs, the thorough Energy Audit in various types of import, sale and distribution of buildings by an expert team. 2013 energy-saving air-conditioners, The energy efficiency rate in air The recommendations based on the furnished We launched the 4th edition of the conditioners (window and split) audit reports have been classified into three types: 2014 Tarsheed Conserving Building shall not be less than 8.5 and 9.5 High Cost/ Medium Cost & low to no No cost Competition with the slogan, “Become respectively. measures – The payback period of these measures one with nature”. are less than 2 years, Medium cost measures – The Electricity and payback period of these measure are between 5-2 Reduction of Water & Conserving building water The objective of the competition was years, Invest grade measure – The payback period competition to create awareness about the benefits of these measures are more than 5 years. Electricity per capita of adopting Building Conservation consumption “Less is Blessed” Campaign (2012 to 2014) from have been Practices in the local construction 232 m3 to 216 m3 and market and encourage people to reduced by 10% embrace resource conservation 16,294 KWh/P/Year to strategies. 15,100 KWh/P/Year and 6% Getting accolades respectively respectively • Preparing AC energy efficiency regulation Conservation & Energy Our 1st anniversary • Drafting a regulation to phase out Efficiency(CN) New • We won the Award for Best We launched a comprehensive 2nd phase of T22 launched inefficient Tungsten high glow lamps regulation MarCom International award for Sustainability plan for water campaign to reach put to the • Partnered with Mitsubishi research Tarsheed’s energy saving bulb During the 2014/ 15 phase, the 22 schools involved The competition comes within the saving for MENA by Unilever enacted to general public to improve their to prepare an energy efficiency campaign reduced their annual consumption of electricity by activities of Tarsheed Programme, • Launched Conservation awareness regarding energy and roadmap for Qatar 2nd edition of Better light, Better living phase out 3GWh, thereby reducing carbon emission by 1,600 which aims at increasing awareness Building Competition water consumption. Awareness Conservation Building Competition Innovation Award for ongoing Incandescent tons/year and saved QAR 750,000 annually. This National Program about building conservation • We signed an MoU with Qatar stickers in different languages were • Sustainability Innovation for was as a result of the energy-saving technologies (Tarsheed) - Ministry of Energy & Industry measures and the possibility of its Foundation to facilitate light bulbs posted in mosques to promote Cooperating with Unilever to and energy-efficient bulbs, dimmer switches and Unilever Sustainability Award for application in the existing buildings. TARSHEED’s mission electricity and water conservation. distribute 4000 water conservation aerated faucets. Water Conservation It is meant to encourage effective • With support from supreme As per new regulations 75W and There were campaigns at malls as gifts & awareness tips to 40 schools Plans 2014 MENA region Similarly, during the second phase 2016/ 17) of T22, participation in energy conservation. council of Education it initialised 100W incandescent lamps were well. The ‘Less Is Blessed’ campaign to promote water saving among the 22 targeted schools reduced their annual a program for cooperating with phased out from 1st May 2016 at Lulu Hypermarket has displayed students This competition is open to all types electricity consumption by 1,100 million units and schools and universities Qatari market. 60W & 40W awareness messages to educate 3 •50 strategic and scientific of buildings. water consumption by 4,350 m , saving QAR • 30 MoUs & scientific non-saving lamps were phased shoppers to reduce water and collaborations especially through 400,000 annually. It also reduced carbon emissions partnerships signed in 1 year. out from November 2016. electricity consumption. Tarsheed by nearly 700 tons/year. The best performing 2015 schools are awarded at the end of each phase.

13% drop in A collaborative agreement was signed and is currently Tarsheed under implementation with the Supreme Committee of Rapidly gaining speed per capita Awareness campaign for conservation law no 2015 /20 All buildings to get smart meters 2022 (T22) Delivery & Legacy to retrofit, train, educate and establish • Issue of ministerial decree no. 2015/ 108 making consumption 22 models of sustainable & conservation schools in Qatar. thermal insulation mandatory We launched an awareness campaign aimed at creating awareness So far installed over 15,000 smart meters, T22 is targeted at primary school level students (ages • KAHRAMAA wins the Best CSR Award in the among general public about the provisions of the New Conservation as part of its smart grid initiative and it of electricity 12-6), staff and teachers, parents and families. They are energy sector for Tarsheed program Law No.20 /2015. now plans to cover the whole of Qatar. reached through conservation and energy efficiency • Awareness among the population about Tarsheed The awareness campaign that was launched with the theme ‘Bad These digital and smart meters can directly and 14% in curriculum and sports activities that teach and reinforce and the need for resource conservation grew habits cost’ with the help of a number of media tools focused on send readings to the energy supplier and Water since conservation behavior at school, which will carry over from %23 in 2013 to %88 in 2015, while among conveying conservation messages and its provisions and clauses to ensure more accurate energy bills. They into home. An energy audit of all 22 schools is currently the Qataris the awareness grew in the same penalize those responsible for violation of the law as well as offering also help the customer better understand 2012 underway. period from %35 to %92 solutions to prevent violations. their energy usage.

Implementing Smart Solutions, 70 Rationalizing Resources KAHRAMAA | Sustainability report 2016 71 KAHRAMAA Community engagement calendar KAHRAMAA observed participates at 1st “Earth Hour” Government KAHRAMAA marks Arab Procurement and and World Water Day and KAHRAMAA observed “Earth Hour” Contracting the GCC Water Week in March 2016 in response to the Conference & rising challenges being faced by the The aim of these occasions Exhibition environment. To mark the event, a was to enhance the necessity number of government buildings, of rationalizing in the use of hotels and several private facilities in drinking water and Qatar National Sports Day Qatar turned off or dimmed their maintaining it in light of the lights for an entire hour. increasing pressures faced by KAHRAMAA celebrated Qatar’s Omani delegation visited KAHRAMAA freshwater resources in the Water Security Forum 2016 National Sports Day at Katara The three-day Arab world, which make it Cultural Village. The event was We received a MoU with Ministry of Education conference aimed at essential to adopt solutions The event was attended by graced by sports enthusiasts, delegation from for energy efficiency giving owners of local that ensure the achievement KAHRAMAA’s President HE visitors and dignitaries who small and Eng. Essa Bin Hilal Al- Kuwari “Nama International KAHRAMAA through Tarhseed signed medium-sized of sustainable development. enjoyed a number of fun-filled accompanying senior Institute” - Sultanate a MoU with the Qatar’s Ministry of enterprises (SMEs) the activities and sport competitions. functionaries of KAHRAMAA of Oman recently at Education and Higher Education to opportunity to deal KAHRAMAA observes World Day amongst the presence of a KAHRAMAA’s work together on imparting lessons of with major purchasers. of Health & Safety at Workplace It also opens the door number of experts, CENG workshop on smart grid Awareness Park and conservation and energy efficiency as for co-operation KAHRAMAA observed World Day of academicians, dignitaries and got acquainted with part of schools’ curriculum at Qatar’s KAHRAMAA supported a CENG KAHRAMAA’s between private and Health & Safety at workplace on 28th representatives of schools. public sectors in Qatar. workshop with the theme “Qatar experience in the field April 2016 with the slogan participating organizations KAHRAMAA was “Workplace Stress: A Collective among others. The forum Our close work with a wide range of communities in Power System Transition to a of electricity and Smart Grid”. The workshop water conservation. among the more-than Challenge”. which was hosted by the Qatar allows us to contribute to establishing a secure World Glaucoma Week 20 exhibitors which provided a discussion platform for This visit was Qatar University had the and stable society, aware of the importance of participated in the local and international coordinated under the KAHRAMAA observed World objective of aligning the key environmental issues. It improves the management of event. KAHRAMAA’s researchers, and industry experts Program of “A Flower Glaucoma Week in cooperation stakeholders of Industry, our country’s valuable resources and enhances the participation in the on establishing a research Each Spring” where with the Qatar's Ministry of conference was Academia, and Government country’s national image on a regional and global level. initiative for a successful transition the delegation had an Public Health. It also organised a represented by its around the country’s three R of Qatar power system to a smart opportunity to meet free camp for its forty years plus Material Department. & D challenges- Energy grid. the Qatari experts of free eye pressure and eye errors The department Security, Cyber Security and motivated the Water Security. The 2016 the conservation and of refraction screening tests at participating and other shared their its headquarters. entities to take part in Forum was focused on Water experiences vice versa. projects and tenders. Security. KAHRAMAA joins 3rd Islamic Conference of Ministers Responsible of Water in Turkey Reception of App Champs : An Epic KAHRAMAA participated in “Ajyal Youth The conference aimed to Sharjah Electricity battle. Bring it on!” Film Festival reach a consensus for a & Water Authority new concept on water KAHRAMAA conducted KAHRAMAA participated in the activities of council to enable a ‘App Champ’ “Ajyal Youth Film Festival 2016” under the concrete cooperation KAHRAMAA launches its new competition in 2016 with theme “Tarsheed: use your power effectively”. platform under the Represented by Conservation and Energy Mobile Application an aim at promoting KAHRAMAA’s booth included many cultural and umbrella of Organization environmental awareness awareness activities which target people of all Efficiency (CN) Department, we received a KAHRAMAA seeks to develop its of Islamic Cooperation and inculcating culture of ages to identify the proper ways of preserving delegation of “Sharjah Electricity & Water services to keep pace with the (OIC) Water Vision. efficient usage of the resources like electricity and water and methods Authority” within a Gulf Tour to exchange latest regulatory and technological natural resources in order of reducing water and electricity consumption. experience related to conservation of developments. We launched its Qatar participates in GCC to have better life. It is energy and water and efficient utilization new and improved bilingual open to all students of of the precious resources. (Arabic & English) new version of Electricity and Water Cooperation Committee Qatar- based Universities/ its Apps for smart phones. The colleges. application can display general meeting Awareness activities in summer statistics related to user account Topics on the agenda included The competition which is KAHRAMAA Awareness along with a brief summary of the progress in electricity as part of TARSHEED properties registered under interconnection project, the efforts to promote the Activities in summer- conducted many customer's name. comprehensive strategy for water culture of conservation of awareness lectures explaining the concept of in the GCC countries, the water vital resources of National Campaign for Conservation and its link project among the GCC electricity and water and positive impact in raising awareness of the countries, and follow up on the encouraging university importance of electricity efficient latest developments in relation to students innovations and consumption as well as importance of sport cooperation between GCC high tech electronic field and green zones. countries in electricity and water development. fields.

KAHRAMAA launched a smart app Participation at COP22 Marrakech Darb Al-Saai’s National Day We launched a new version for its smart phone app in KAHRAMAA participated, as part Festivities both Arabic and English language. The app gives Kahramaa opens new Snapchat of Qatar delegation, in Climate customer access to general statistics related to his/her account KAHRAMAA marked its Change Cop 22 Conference held account. It includes a group of other services such as KAHRAMAA launched a new snapchat presence at this year’s Qatar in Marrakesh of Kingdom Morocco sending meter reading, following-up status of service’s account to attain social communication National Day festivities through from November 7 to 2016 ,18. request (construction license and connecting service), to cope with its strategic plan in its Doha tent and Health tent. displaying details of properties registered under customer’s achieving effective direct contact with We featured a mobile water name, applying the electronic services etc. citizens and residents in state of Qatar. laboratory with its slogan This was in line with our ambitious roadmap for shifting It will work on promoting ‘Maina Zen’ to exhibit its all services to a smart platform. Through this app we aim communication with customers via Qatar signs agreement with Belgian firm on smart grid quality water which is being to achieve the highest level of efficiency for our services. displaying the latest news and activities supplied across the country for KAHRAMAA signed an agreement with Belgian consultancy directly and on large scale. drinking purposes. Apart from Elia Grid aimed at encouraging the sharing of information, the laboratory, maintenance experience and ideas to foster transmission development, KAHRAMAA also presented many new works were also showcased to network planning, KPIs enhancement, better asset e-services on its Website to provide let the visitors know about the management, exchange of technical information and joint best services in order to raise customer types of small leakages and co-operation. satisfaction. The services provided by ways to fix it with little efforts. the corporation reached 45 services.

Implementing Smart Solutions, 72 Rationalizing Resources KAHRAMAA | Sustainability report 2016 73 Looking ahead Acronyms

We recognize that we are As KAHRAMAA progresses on our sustainability journey, we believe that we A2LA: American Association for Laboratory HSE: Health, Safety & Environment PV: Photo Voltaic Accreditation impacted by various trends would continue to play a significant role in driving sustainable development in ICDL: International Computer Driving License PWPA: Power & Water Purchase Agreements which can potentially the State of Qatar. Our long-term strategy helps us to focus our efforts on key AC: Air Conditioner IDP: Individual Development Program PWRC: Permanent Water Resources Committee disrupt our business model objectives related to the Qatar National Vision 2030 and the Qatar National AMI: Advanced Metering Infrastructure IPWP: Independent Power and Water Producer QCS: Quality Control System and how we generate Development Strategy 2017-2022. Although we do not have a corporate ARQA: Audit, Risk & Quality Assurance IPP: Independent Power Producer QEERI: Qatar Environment and Energy Research sustainability strategy, we are currently developing a dedicated sustainability value for our stakeholders. BTU: British Thermal Unit ISO: International Organization for Standardization Institute Although these are strategy for our organization, which is expected to be rolled out in 2017. CAPEX: Capital Expenditure QEWC: Qatar Electricity & Water Company significant challenges Through our corporate objectives and the proposed sustainability strategy, we IT: Information Technology CBA: Cost Benefit Analysis QM: Quality Management for KAHRAMAA, we would continue to focus on our corporate mission of providing high quality IWPP: Independent Water and Power Project consider these trends as and sustainable electricity and water for better living in Qatar. In addition, we CFL: Compact Fluorescent Lamp KPI: Key Performance Indicator QMS: Quality Management System opportunities and seek to believe that in the future we would be able to play a key role in helping the CIGRE: International Council on Large Electric Systems LCOE: Levelized Cost of Energy QNV: Qatar National Vision 2030 enhance our impact on our State of Qatar meet the targets set as part of the Sustainable Development CN: Conservation and Energy Efficiency Department LED: Light-Emitting Diode QP: Qatar Petroleum Goals (SDGs). stakeholders in the future. CO2: Carbon Dioxide LNG: Liquefied Natural Gas QR/ QAR: Qatari Riyal COBC: Code of Business Conduct LTI: Lost Time Injury RAF: Ras Abu Fontas CPP: Clerical Preparation Program LTIF: Lost Time Injury Frequency RE: Renewable Energy CPR: Corporate Performance Review LV: Low Voltage RO: Reverse Osmosis Ensuring CSD: Customer Service Department MCF: Thousand Cubic Feet of Natural Gas R&D: Research & Development Liberalization of Investment in clean Use of partnerships Employment of uninterrupted CSR: Corporate Social Responsibility SAIDI: System Average Interruption Duration Index energy markets but and efficient energy and third parties to MDG: Millennium Development Goals local talent supply of with greater and water deliver programs to DC: District Cooling SAIFI: System Average Interruption Frequency Index electricity and MDMS: Meter Data Management System regulatory generation remain relevant and water as demand DMA: District Metering Area MEW: Ministry of Electricity and Water SCADA: Supervisory Control and Data Acquisition Trends Health and Safety oversight technologies innovative grows CSD: Customer Service Department MIGD: Million Imperial Gallons per Day SDGs: Sustainable Development Goals impacting DMA: District Metered Area MoPH: Ministry of Public Health SEC: Supreme Education Council KAHRAMAA Emphasis on customer Reduction in Scarcity of natural Adoption of smart technologies DSM: Demand Side Management MOU: Memorandum of Understanding SML: System Minutes Lost centricity energy subsidies resources EER: Energy Efficiency Ratio MQR: Million Qatari Riyal SODAR: Sonic Detection and Ranging Development of value-added services and products Focus on cost reduction and operation efficiency ENA: Electricity Network Affairs MSF: Multi-Stage Flash Distillation SPP: Security Preparation Program ENT: Ear, Nose and Throat MW: Mega Watt T22: Tarsheed 2022 ERP: Enterprise Resource Planning MWh: MegaWatt hours T&D: Transmission and Distribution Supporting Ensuring value Conserving Investing in Contributing GCC: Gulf Cooperation Council NDS: Qatar National Development Strategy 2011- TDSOO: Transmission and Distribution System Owner Shortage for of ourtalent natural our people to the local our GCCIA: Gulf Cooperation Council Interconnection 2016 and Operator and Qatarization customers resources economy communities Authority NDS2: Qatar National Development Strategy 2017- TOU: Time of Use GDP: Gross Domestic Project 2022 TPP: Technician Preparation Program GHG: Greenhouse Gases NHS: Qatar National Health Strategy 2011-2016 TR: Ton of Refrigeration In this increasingly GIS: Geographic Information System NRW: Non-Revenue Water TRIR: Total Recordable Incident Rate competitive and KAHRAMAA has a central We recognize there are a At KAHRAMAA, we are We are committed to ever-changing marketplace, role to play in conserving lot of challenges – both committed to contributing improving our community GJ: Giga Joules ODR: Occupational Diseases Rate TSE: Treated Sewage Effluents delivering high quality natural resources and local and global - ahead of directly and indirectly to the engagement programs customer service is vital for sharing knowledge on best us in relation to attracting, economic development of because we understand GPS: Global Positioning System OHL: Over Head Lines WHO: World Health Organisation Looking developing, and retaining that such crucial dialogues any organization to survive. practices for conservation Qatar in a responsible and GRI: Global Reporting Initiative O&M: Operations and Maintenance WNA: Water Network Affairs ahead In order to keep our services and sustainable talent especially from the environmentally sustainable can help create a competitive we should make development in the State of local community. In the way. We understand the responsible society. GSM: Global System for Mobile Communication OPEX: Operating Expense ZPT: Zero Pressure Test towards sure to keep observing Qatar. We will relentlessly long-term we are crucial role we play in Through our community emerging customer service continue with our efforts to committed to the ensuring reliable and secure engagement initiatives GWh: GigaWatt hours PCC: Per-Capita Consumption the future government’s Qatarization including the Tarsheed trends in the global utilities promote water and energy supply of water and HE: His Excellency PPE: Personal Protective Equipment role of sector, such as technological conservation measures policy, and aim to see a electricity. We realize that program, we aspire to be innovations and the along all our value chain in majority Qatari workforce by promoting efficient use recognized as leading HES: Head End System PPP: Purchasing Power Parity KAHRAMAA digitization of services. The accordance with our by 2026. We will also strive of natural resources (water agents of change, using sector is constantly strategy, and will advocate to use training and and energy) we are not the resources at our HR: Human Resource developing, and we will efficient use of natural development to ensure a only reducing the disposal to implement make sure we adapt our resources within the capable workforce which is environmental impact, but measures to enhance the services in line with country through our well equipped to meet also increasing the sustainable development of innovations and emerging Tarsheed program. customer and business economic effectiveness of our country. We want to be trends, ensuring that Through partnerships, demands. We seek to be the utility sector. a source of Qatari pride customers are at the heart innovative technologies, recognized as a regional We would continue to and gain global recognition of all decisions being made. and strong commitment leader in occupational actively engage in for our leadership role in Many of these changes will from everyone, we at health and safety. Our partnerships and bringing about social and improve our current KAHRAMAA believe we can health and safety policy will collaborations to develop environmental change in customer service model, but ensure a sustainable and continue to be strictly the next level infrastructure Qatar.We look forward to over time we are working to balanced resource usage implemented to safeguard and to ensure energy and continuing to work re-design this model to over time. work conditions for our water security within the together with our ensure our customer service employees and contractors. State of Qatar. community and shape the ambitions are focused on future of Qatar. the future. and pave the way for

Implementing Smart Solutions, 74 Rationalizing Resources KAHRAMAA | Sustainability report 2016 75 GRI Content Index/ IIRC Index

Page number(s) in the report/ MATERIAL TOPICS GRI Standard Disclosure Direct answer/ Reason for IIRC linkage omission (if applicable) ECONOMIC TOPICS GRI 101: Foun- Aligned to the guiding principles of the Economic performance GRI 101 does not include any disclosures dation 2016 Integrated Reporting Framework GRI 103: Management 103-1: Explanation of material topics and its boundary 64 3D-Materiality (reporting boundaries) GENERAL DISCLOSURES Approach 2016 Organizational profile 103-2: The management approach and its component 64 102-1: Name of the organization 8 103-3: Evaluation of the management approach 64 102-2: Activities, brands, products, and services 9 102-3: Location of headquarters 8 GRI 201: Economic 201-1: Direct economic value generated and distrib- 65 4F-Performance Performance 2016 uted 102-4: Location of operations 8 4A- Organizational overview and exter- 2C-The capital (Financial capital) 102-5: Ownership and legal form 8 nal environment 201-4: Financial assistance received from government 65 102-6: Markets served 8 102-7: Scale of the organization 8 4C-Business model Market presence 102-8: Information on employees and other workers 8, 56 103-1: Explanation of material topics and its boundary 55 3D-Materiality (reporting boundaries) 102-9: Supply chain 8,15 103-2: The management approach and its component 55 102-10: Significant changes to the organization and its GRI 103: Management 8 103-3: Evaluation of the management approach 55 supply chain Approach 2016 102-11: Precautionary Principle or approach 14 GRI 202: Market Pres- 202-2: Proportion of senior management hired from 57 2C-The capital (Human capital) 102-12: External initiatives 20 ence 2016 the local community 102-13: Membership of associations 14 Indirect economic impact Strategy 103-1: Explanation of material topics and its boundary 64 3D-Materiality (reporting boundaries) 102-14: Statement from senior decision maker 4,5 103-2: The management approach and its component 64 3C-Stakeholder relationship GRI 103: Management 102-15: Key impacts, risks and opportunities 10, 11, 14 4A- Organizational overview and external Approach 2016 103-3: Evaluation of the management approach 64 environment 4D-Risks and opportunities GRI 203: Indirect Eco- 203-1: Infrastructure investments and services support- 66, 67 4F-Performance, 2C-The capitals (Manu- Ethics and integrity nomic Impacts 2016 ed factured capital, Human capital) 102-16: Values, principles, standards, and norms of behaviour 9,13 4B-Governance 203-2: Significant indirect economic impacts 51,57,66,67,70,71 GRI 102: Governance General 102-18: Governance structure 12 4B-Governance Disclosures Procurement practices Stakeholder engagement 2016 102-40: List of stakeholder groups 23 3C-Stakeholder relationship 103-1: Explanation of material topics and its boundary 64 3D-Materiality (reporting boundaries) Not disclosed due to specific legal prohibitions: 103-2: The management approach and its component 64 102-41: Collective bargaining agreements Trade unions are legally prohibited in Qatar GRI 103: Management 103-3: Evaluation of the management approach 64 102-42: Identifying and selecting stakeholders 22, 23 Approach 2016 102-43: Approach to stakeholder engagement 22, 23 3C-Stakeholder relationship GRI 204: Procurement 204-1: Proportion of spending on local suppliers 65 2C-The capitals (relationship capital) 102-44: Key topics and concerns raised 23 Practices 2016 Reporting practice 102-45: Entities included in the consolidated financial statements 24 102-46: Defining report content and topic Boundaries 2, 8, 24, 25, 26 102-47: List of material topics 25, 26 3D-Materiality We have not restated any previously reported 102-48: Restatements of information information in this report

102-49: Changes in reporting No significant changes from previous reporting period. ENVIRONMENTAL TOPICS 102-50: Reporting period 2 102-51: Date of most recent report 2015 Energy 102-52: Reporting cycle Annual 103-1: Explanation of material topics and its boundary 45, 46 3D-Materiality (reporting boundaries) 102-53: Contact point for questions regarding the report 2 103-2: The management approach and its component 45, 46 GRI 103: Management 102-54: Claims of reporting in accordance with the GRI standards 2 Approach 2016 103-3: Evaluation of the management approach 45, 46 102-55: GRI Content Index 76 GRI 302: Energy 2016 302-2: Energy consumption outside of the organization 47 The information in this report has been internally reviewed to ensure its accuracy. As 302-4: Reduction of energy consumption 51, 52 102-56: External assurance our sustainability practice matures further, we aim to seek external verification of our perfor- 4F-Performance, 2C-The capitals (Natural mance in the future. capital)

Implementing Smart Solutions, 76 Rationalizing Resources KAHRAMAA | Sustainability report 2016 77 Water Diversity and equal opportunity 103-1: Explanation of material topics and its boundary 45, 46 3D-Materiality (reporting boundaries) GRI 103: Management 103-1: Explanation of material topics and its boundary 55 3D-Materiality (reporting boundaries) 103-2: The management approach and its component 45, 46 Approach 2016 103-2: The management approach and its component 55 GRI 103: Management Approach 2016 103-3: Evaluation of the management approach 45, 46 103-3: Evaluation of the management approach 55 GRI 405: Diversity and 56 GRI 303: Water 2016 303-1: Water withdrawal by source 49 4F-The capitals (Natural capital) 405-1: Diversity of governance bodies and employees Equal opportunity 2016 Emissions Human rights assessment 103-1: Explanation of material topics and its boundary 45, 46 3D-Materiality (reporting boundaries) GRI 103: Management 103-1: Explanation of material topics and its boundary 13 3D-Materiality (reporting boundaries) 103-2: The management approach and its component 45, 46 Approach 2016 GRI 103: Management 103-2: The management approach and its component 13 Approach 2016 103-3: Evaluation of the management approach 45, 46 103-3: Evaluation of the management approach 13 GRI 305: Emissions 305-1: Direct (scope 1) GHG emissions 53 4F-Performance, 2C-The capitals (Natural GRI 412: Human Rights 412-3: Significant investment agreements and contracts 13 2016 305-2: Energy Indirect (Scope 2) GHG emissions 53 capital) Assessment 2016 that include human rights clauses or that underwent human rights screening Effluents and waste Local communities 103-1: Explanation of material topics and its boundary 45, 46 3D-Materiality (reporting boundaries) GRI 103: Management 103-1: Explanation of material topics and its boundary 69 3D-Materiality (reporting boundaries) 103-2: The management approach and its component 45, 46 Approach 2016 GRI 103: Management 103-2: The management approach and its component 69 103-3: Evaluation of the management approach 45, 46 Approach 2016 103-3: Evaluation of the management approach 69 GRI 306: Effluents and 306-2: Waste by type and disposal method 53 4F-Performance, 2C-The capitals (Natural GRI 413: Local Communi- 413-1: Operations with local community engagement, im- waste 2016 capital) ties 2016 pact assessments, and development programs 72, 73 Environmental compliance Supplier social assessment 103-1: Explanation of material topics and its boundary 16, 17 3D-Materiality (reporting boundaries) GRI 103: Management 103-1: Explanation of material topics and its boundary 55 3D-Materiality (reporting boundaries) 103-2: The management approach and its component 16, 17 Approach 2016 103-2: The management approach and its component 55 GRI 103: Management Approach 2016 103-3: Evaluation of the management approach 16, 17 103-3: Evaluation of the management approach 55 GRI 414: Supplier Social 13, 60 2C-The capitals (Human and relationship GRI 307: Environmen- 307-1: Non-compliance with environmental laws and 53 414-1: New suppliers that were screened using social criteria tal compliance 2016 regulations Assessment 2016 capital) Marketing and labeling GRI 103: Management 103-1: Explanation of material topics and its boundary 34, 35 3D-Materiality (reporting boundaries) Approach 2016 103-2: The management approach and its component 34, 35 SOCIAL TOPICS 103-3: Evaluation of the management approach 34, 35 Employment GRI 417: Marketing and 417-1: Requirements for product and service information and 41, 42, 103-1: Explanation of material topics and its boundary 55 3D-Materiality (reporting boundaries) Labeling 2016 labeling 43 103-2: The management approach and its component 55 Customer privacy GRI 103: Management Approach 2016 103-3: Evaluation of the management approach 55 103-1: Explanation of material topics and its boundary 34, 35 3D-Materiality (reporting boundaries) GRI 401: Employment 2016 56, 57 2C-The capitals (Human and relationship 103-2: The management approach and its component 34, 35 401-1: New employee hires and employee turnover GRI 103: Market Assess- capital) ment 2016 103-3: Evaluation of the management approach 34, 35 Occupational health and safety GRI 418: Customer Privacy 418-1: Substantiated complaints concerning breaches of 34 2C-The capitals (Human and relationship GRI 103: Management 103-1: Explanation of material topics and its boundary 55 3D-Materiality (reporting boundaries) 2016 customer privacy and losses of customer data capital) Approach 2016 103-2: The management approach and its component 55 103-3: Evaluation of the management approach 55 GRI 403: Occupational 403-2: Types of injury and rates of injury, occupational diseas- 60, 61 health and safety 2016 es, lost days, and absenteeism, and number of work-related fatalities Training and education 103-1: Explanation of material topics and its boundary 55 3D-Materiality (reporting boundaries) 103-2: The management approach and its component 55 GRI 103: Management Approach 2016 103-3: Evaluation of the management approach 55 404-1: Average hours of training per year per employee 59 2C-The capitals (Human and relationship 59 capital) GRI 404: Training and Edu- 404-2: Programs for upgrading employee skills and transition cation 2016 assistance programs

Implementing Smart Solutions, 78 Rationalizing Resources KAHRAMAA | Sustainability report 2016 79 Electric utilities sector-specific disclosures Sector specific general standard disclosure EU 1: Installed capacity, broken down by primary energy source and by regulatory 42, 43 regime EU 2: Net energy output broken down by primary energy source and by regulatory 47 regime EU 3: Number of residential, industrial, institutional and commercial customer 34 account EU 4: Length of above and underground transmission and distribution lines by 43 regulatory regime Not applicable. EU 5: Allocation of CO2e emissions allowances or equivalent, broken down by carbon trading framework Not reported as KAH- RAMAA is currently not covered by any emission trading schemes. Availability and reliability GRI 103: Management 103-1: Explanation of material topics and its boundary 34, 35 3D-Materiality (reporting boundaries) Approach 2016 103-2: The management approach and its component 34, 35 103-3: Evaluation of the management approach 34, 35 EU 10: Planned capacity against projected electricity demand over the long term, 42, 43 2C-The capitals (Manufactured capital) broken down by energy sources and regulatory regime Demand side management GRI 103: Management 103-1: Explanation of material topics and its boundary 51 3D-Materiality (reporting boundaries) Approach 2016 103-2: The management approach and its component 51 103-3: Evaluation of the management approach 51 Research and development GRI 103: Management 103-1: Explanation of material topics and its boundary 46 3D-Materiality (reporting boundaries) Approach 2016 103-2: The management approach and its component 46 103-3: Evaluation of the management approach 46 System efficiency EU 12: Transmission and distribution losses as a percentage of total energy 48 4F-Performance, 2C-The capitals (Manu- factured capital) Disaster emergency planning and response GRI 103: Management 103-1: Explanation of material topics and its boundary 66, 67 3D-Materiality (reporting boundaries) Approach 2016 103-2: The management approach and its component 66, 67 103-3: Evaluation of the management approach 66, 67 Access GRI 103: Management 103-1: Explanation of material topics and its boundary 45, 46 3D-Materiality (reporting boundaries) Approach 2016 103-2: The management approach and its component 45, 46 103-3: Evaluation of the management approach 45, 46 EU 28: Power outage frequency 48 4F-Performance, 2C-The capitals (Manu- EU 29: Average power outage duration 48 factured capital)

Implementing Smart Solutions, 80 Rationalizing Resources KAHRAMAA | Sustainability report 2016 81 Prepared and published by Conservation and Energy Efficiency Department © KAHRAMAA 2017