Annual report Eng

2021ANNUAL REPORT www.omangrid.com



HIS MAJESTY SULTAN THE LATE SULTAN HAITHAM BIN TARIK QABOOS BIN SAID MAY ALLAH PROTECT HIM MAY ALLAH REST HIS SOUL IN PEACE

The Company Profile

The Company Profile Oman Electricity Transmission Company, was formed in May 2005 vide a license, given by the Authority for Public Services Regulation (APSR) whereby, the company is authorized to carry out the following activities: To transmit electricity and to finance, develop, Own and/or operate and maintain its Transmission System. To develop and operate a system of central Dispatch of relevant Production facilities which are connected to its Transmission System or to a System which is connected to its transmission System. To the extent permitted by the Sector Law and this License, to design, own, operate and maintain International Interconnections. To acquire certain asset of the Rural Areas Electricity Company SAOC in accordance with Article (88) of the Sector Law and this License. To carry out any other function assigned to it by the Sector Law Oman Electricity Transmission Company SAOG (OETC) has a vital role in the Oman Electricity Sector, as it owns and operates the main transmission network as well as transmission network in Dhofar, through which electricity is transmitted from the generating stations to the distribution load centers in all governorates of the Sultanate. The main electricity transmission network operates at high voltage of 132kV and above. OETC also has the responsibili- ty of balancing generation and demand at all times of the day as part of its responsibilities for the economic dispatch of power in the Sultanate. 1

Mission Vision & Values

Mission “To transmit and dispatch electricity safely, reliably, securely and economically.” Vision “Renowned world class Transmission Grid by 2025.” Values Respect Integrity Professionalism Teamwork 2

2021 Achievements

2021 Achievements 1. Power units transmitted were 37,286,671 MWh (MIS+DHofar) compared to 34,897,974 MWh in 2020 i.e., an increase of 6.8%. 2. Peak Load in MIS was 6,637 MW compared to 6,401 MW in 2020 i.e., an increase of 3.7%. 3. Summer transmission system availability was 99.5599% compared to 99.6968% in 2020,showing a slight decrease of 0.137%. 4. Commissioning of new 220/132 KV Khabourah Grid Station. 5. Commissioning of new 132/33 KV Al Khoudh Grid Station. 6. Commissioning of new 132/33 KV Yanqul Grid Station. 7. Commissioning of new 220 KV Ibri Solar Grid Station. 8. Commissioning of new 132/33 KV Mribat Grid Station. 9. 400kV line connection between Sohur SIA grid station and Suhar SPS. 10.400kV line connection between Izki grid station and Misfah grid station. 3

Board of Directors Mr. Ahmed Amur Al Mahrizi Mr. LI, HONG Eng. Mohammed Nasser Al Aghbari Chairman Deputy Chairman Member Mr. Ibrahim Said Al Suleimany Mr. Ahmed Tufail Al Rahman Mr. QU, YANG Member Member Member Ms. ZHANG, JIAN Member 4

Chairman’s Message I am pleased to present to you OETC’S annual report 2021.The Company continued achieving the set objectives within its plans and in line with its vision to become a “Renowned World Class Transmission Grid by 2025” and achieve its overall objective of safe, reliable, and cost-effective electricity transmission. As for the network operation, OETC maintained high level performance and achieved results that are at par with the best international peers. This was made possible by boosting the operational efficiency as well as the grid reliability and availability on a 24/7 basis.On the other hand, the Company completed several key projects to improve and raise the network efficiency and the work is underway at the remaining projects as per the preset plans. On the financial front, OETC financial performance has been satisfactory and has been able to maintain its financial sustainability. OETC will continue its earnest endeavors to enhance its performance technically and administratively according to its plans and strategies and in line with the next stage requirements. The Report provides an overview of our corporate governance. It covers our Operational performance from different perspectives such as HSE performance and HR achievement. In terms of network performance, the report highlights the most important performance indicator results. Whereas the financial performance of the company is provided at the end of the report.OETC will continue its development and enhancing its performance according to its plans and strategies taken into consideration Oman Vision 2040. I am pleased to thank all the shareholders and stakeholders for their valued contribution to OETC’s success. I would also like to extend my sincere thanks to the executive management and OETC’s staff for their significant contribution, commitment, and dedication towards the steady growth of OETC locally and globally under the leadership of His Majesty Sultan Haitham bin Tariq Almighty - may Allah protect Him. Ahmed Amur Al Mahrizi Chairman of the Board 5

CEO’s Message OETC continues its successful journey and able to achieve very good results operationally and financially during 2021. This report provides an overview of the main achievements made during 2021. The aim is to share the success made with the stakeholders to engage them with the OETC activities. OETC will continues enhancing its performance to achieve its vision “Renowned World Class Transmission Grid by 2025” by continue implementing its strategy based on meeting shareholder expectations through enhancing efficiency and cost reduction. QHSE OETC place a great emphasis on complying with the HSE standards and consid- er it as one of its most important priorities. The new 400KV OHL construction Project, Remote location & COVID-19 were the major HSE challenges faced during 2021. However, OETC able to achieve the target HSE performance due to the effort made by the staff and the support of the management. Overall, OETC achieved 8.6 million hours and around 14.9 million safe man-hours recorded since last LTI which consider as one of the major achievements of OETC and among our NAMA Sector Companies. HSE reporting culture being improved largely which has been evident through the number of reported near misses and Unsafe Act and Condition. These efforts will continue in the future with the aim of improving the safety culture in all the sites of the company and its contractors. Operational Performance The safe and cost-effective development, operation and maintenance of the electricity ransmission grid is among OETC’s top business priorities to supply electricity that meets the loads required by the network users. This was made possible by boosting the operational efficiency as well as the grid reliability and availability on a 24/7 basis. The grid reliability registered 99.9975% compared to 99.9993% in 2020.This slight decrease was mainly due to some incidents that caused electricity outages. 6

Projects OETC continued the implementation of the planned projects for 2021 despite the effects of COVID-19. The Company managed to complete some projects as planned. The total value of the projects that have been completed in 2021 stood at about RO 57 million. It helps to enhance the transmission grid and in accordance with the strategic and operational plan. It intended for ensuring the grid’s capacity and readiness for catering the increasing power demand across the Sultanate. Human Resources Management The Company has 359 employees distributed over all the companys offices and branches,whether in technical or non-technical positions, with an Omanisation rate of 97%.The company is keen to implement many initiatives that are concerned with raising efficiency, effectiveness, stability, achieving loyalty and belonging to the companys employees. Also, creating a positive and appropriate work environment so that the work environment is ideal, stimulating, stable and competitive. The aim is to achieve the main goals as well as to design future policies that make the OETC “The best and exclusive place” and “great place to work”. Financial Performance OETC is committed to financing its projects according to its approved plan to expand the transmission grid and meeting the increasing demand for electricity. To this end, OETC during 2020 prepared for the issuance of international bonds and completed the issue of $600 Million Bond in 2021. OETC’s 2021 revenues from the grid usage and connection charges amounted to OMR 130.51 million compared to OMR 127.32 million in 2020, registering a 2.5% increase reflected on the Total Profits which amounted to OMR 71.13 million in 2021, compared to OMR 70.07million in 2020, registering a 1.52% increase. The operating profits stood at OMR 57.54 million in 2021 compared to OMR 57.18 million in 2020; thus, increasing by 0.63%. The carrying value of OETC’s property, plant and machinery amounted to OMR 1.389 billion as on 31 December 2021 compared to OMR 1.284 billion Omani rials on 31 December 2020; recording an increase of 8.12%. The Net Operating Profit After Tax (NOPAT) decrease by 3.81% as it stood at OMR 37.15 million compared to OMR 38.63 million in 2020. 7

Outlook OETC will continue its earnest endeavors to enhance its performance technically and administratively according to its plans and strategies and in line with the next stage requirements.OETC confirms its explicit commitment to the safe and stable operation of the transmission grid in such a way which ensures continuous electricity transmission to all governorates covered by the grid. The company is currently revising its vision and mission to ensure meeting the needs of the next stage. Acknowledgement Last but not least, I am pleased to thank all the shareholders and stakeholders for their valued contribution to OETC’s success. I would also like to extend my sincere thanks to staff for their significant contribution, commitment, and dedication towards the steady growth of OETC locally and globally under the lead- ership of His Majesty Sultan Haitham bin Tariq Almighty - may Allah protect Him. Saleh Nasser Al Rumhi Chief Executive Officer 8

Corporate governance Report Overview Pursuant to the Ministerial Decision No. 1377/2017 dated 19 December 2017, mandating the partial privatization of some of the utility companies, Oman Electricity Transmission Company (OETC) was one of the companies in the sector earmarked as an eligible company for partial privatization by the Government of Oman. The process and all related formalities had taken place during the year 2019 in the search for a suitable strategic partner to invest in the company for purchase 49% of the company shares with Government retaining 51% shares. The deal was finalized and awarded to M/s. State Grid International Development (SGID), a subsidiary of the chinese SGCC the largest public utility in the world and a signing agreement ceremony was held on 15th December 2019. Oman Electricity Transmission Company Board The Government of the Sultanate of Oman (Nama Holding) owns 51% of the capital of the OETC, and SGID owns 49% of the company. Based on the document of the shareholders ‘ agreementsigned between Nama Holding (NH) and SGID Group, the formation of the Board of Directors of the OETC consists of 4 members representing the NH and 3 members representing SGID Group. In accordance with the requirements of the Oman Commercial Companies Law (CCL), the members of the Board of Directors of the closed joint-stock companies are elected to their positions for a period of three years, and these Board members may be re-elected or replaced periodically. The Board is responsible for the overall direction, supervision, and control of the business of the company, on behalf of the shareholders. The Board has delegated responsibility for overall executive management to the company’s senior management team under the leadership of the Chief Executive Officer (CEO). The principal role of the Board is to oversee implementation of the company’s strategic initiatives and its functioning within the agreed framework in accordance with relevant statutory and regulatory structures. The CEO and other senior management are responsible for the conduct of the company’s business affairs and day-to-day management. The CEO reports to the Board on a regular basis. 9

Board of Directors’ Meetings Board of Directors meetings is generally held at quarterly intervals during the year and cover approvals for commercial and financial policies as well as estimated budgets, business plans, discussion and endorsements relating to quarterly reports from Board meetings, the status of matters arising from previous meetings, Board Sub-committee reports, Health, Safety Environment (HSE), Transmission, Cyber Security, Tender Committee of the management, Projects, Asset Management; Planning (AMP), approval of Financial statements, Human Resources (HR) and others. Also included are proposing, reviewing, and updating necessary high- level plans from time to time in order to achieve the company’s objectives and carry out the equired activities as well to protect the shareholders’ interests. A total of five Board of Directors’ meetings were held in the year 2021 to cover various discussions on exceptional cases like Tanweer Asset Transfer and company restructuring. Board of Directors Meetings Fees: S. Names Type of From To Number of Sitting NO Membership Board Fees of Board of meetings Directors attended meetings in 2021 OMR 1 Ahmed Al Mahrizi Chairman 01 January 31 Dec 5 1,625 2021 2021 2 LI, Hong Deputy 01 January 31 Dec 5 1,250 Chairman 2021 2021 3 Mohammed Al Aghbari Member 01 January 31 Dec 5 1,250 2021 2021 4 Ibrahim Al Suleimany Member 01 January 31 Dec 4 1,000 2021 2021 5 Ahmed Tufail Member 01 January 31 Dec 5 1,250 2021 2021 6 QU, Yang Member 01 January 31 Dec 5 1,250 2021 2021 7 Zhang, Jian Member 01 January 31 Dec 4 1,000 2021 2021 TOTAL BOARD MEETINGS SITTING FEES PAID IN 2021= OMR 08,625 /- 10

Board Committees Besides the Main Board meetings, there are four Board subcommittees - the Audit Committee (BAC), Remuneration Committee (BRC), Finance Committee (BFC), and Tender Committee (BTC). Board Audit Committee (BAC) The Board appoints the members of the AC based on the SHA, the committee consists of three members of the Board from both shareholders. The AC is Chaired by Mr. Ahmed Tufail and Members of Eng. Mohammed Al Aghbari and Mr Qu Yang. The AC is responsible for monitoring the financial affairs of the company and its internal corporate governance, risk management, and compliance. Formal risk management reports are presented to the AC biannually by the CEO. The AC reports to the Board of Directors and met three times during the financial end by December 31st, 2021. Names Type of Number of meetings Sitting Fees of AC Mr. Ahmed Al Rahman meetings. OMR Membership attended 600 Chairman 3 Eng. Mohammed Al Aghbari Member 3 450 3 450 Mr. Qu Yang Member TOTAL BAC MEETINGS SITTING FEES PAID IN 2O21 = OMR 1,500/- Board Remuneration Committee (BRC) The objective of the RC is to provide consultation and advice to the Board in matters related to structuring, HR manual, salaries, bonuses, benefits, and pensions relating to Employees of OETC. The BRC shall consist of two (2) NH Directors and one (1) SGID Director. The RC reports to the Board of Directors and met twice during the year 2021. Names Type of Number of meetings Sitting Fees of AC meetings. OMR Membership attended 400 Mr. Ibrahim Al Suleimany Chairman 2 Ms. Zhang, Jian Member 1 150 Mr. Ahmed Al Mahrizi Member 2 300 TOTAL BRC MEETINGS SITTING FEES PAID IN 11 2021 = OMR 850/-

Board Finance Committee (BFC) In line with the Shareholders’ Agreement and the Company’s Articles of Associ- ation, the membership of FC shall consist of two (2) Nama Holding Directors and Two (2) Investor Directors nominated and appointed by the Board. The FC is responsible for Closely monitoring the financialposition of the company, reviewing the status against the plans and targets, Follow-up of the achievement of the financial KPIs, Formulation of investment and funding strategies, and providing overall guidance in managing the cash and the related costs efficiently and effectively. In addition to the above, the FC assists the BOD in the decision-making of long and short-term funding options for the company in agreement with the company’s shareholders’ finance representatives. The Committee met twice during the year 2021. Names Type of Number of meetings Sitting Fees of AC meetings. OMR Mr. Ahmed Al Rahman Membership attended 400 Mr. Li Hong 300 Chairman 2 300 Mr. Ahmed Al Mahrizi Member 2 Member 2 Mr. Qu Yang Member 2 300 TOTAL BFC MEETINGS SITTING FEES PAID IN 2021 = OMR 1,300/- Board Tender Committee (BTC) The BTC serves as a link between the management of the company and the Board to assist in fulfilling its responsibilities in overseeing the procurement process and involving significant contracts awarded by the Company which exceed the threshold of Three Million Omani Rials. The BTC raises recommendations to the Board for approval or ratification or both. The BTC is comprised of two (2) NH Directors and one (1) SGID Director. The BEC held One meeting in 2021. Names Type of Number of meetings Sitting Fees of AC meetings. OMR Membership attended 200 150 Eng. Mohammed Al Aghbari Chairman 1 150 1 Mr. Ibrahim Al Suleimany Deputy 1 Chairman Mr. Qu Yang Member TOTAL BEC MEETING SITTING FEES PAID IN 2021 = OMR 500/- 12

Annual General Meeting (AGM) In accordance with Article No. 172 of CCL, OETC shareholders have conducted the AGM for the financial year 2020 on 24th March 2021. The meeting was met its quorum and shareholder’s representatives attended. The minute of the meeting was rectified by the MOCIP within the permitted 7 days. Board of Directors Remuneration 2021 The remuneration of the Directors is based on the Ministry of Finance circular no 15/2020 which directed the government companies to reduce the BOD remuneration up to 50%, the same was adopted by the OETC Board, and given below the breakup of the remuneration/bonus provisions to the Board for the year ended on December 31, 2021. Oman Electricity Transmission Co. SAOC Board of Directors Bonus Provision for the financial year ended on December 31, 2021 S. Names Member Based on Financial Number of Yearly 2021 NO Position Year 2021 Days Bonus Bonus Amount based on considered Financial for Bonus Year 5,000 1 Ahmed Al Mahrizi Chairman 01 Jan 31 Dec 365 5,000 2,500 2021 2021 365 2,500 2,500 2 LI, Hong Deputy 01 Jan 365 2,500 2,500 Chairman 2021 31 Dec 365 2,500 2,500 2021 365 2,500 2,500 3 Ibrahim Al Suleimany Member 01 Jan 365 2,500 2,500 2021 31 Dec 365 2,500 20,000 4 Ahmed Tufail Member 01 Jan 2021 20,000 2021 31 Dec 5 Mohammed Al Aghbari Member 2021 01 Jan 6 QU, Yang Member 2021 31 Dec 01 Jan 2021 7 Zhang, Jian Member 2021 31 Dec 01 Jan 2021 2021 31 Dec 2021 Total 13

BOARD SITTING FEES 2021 (TOTAL) 2021 Board Sitting Fee Payments Summary S. Position From To BOD AC RC FC NO Names Balance Maximum Total Fees Paid TC 1 Ahmed Al Mahrizi Chairman 01 Jan 31 Dec 775 3,000 2,225 1,625 300 300 2021 2021 2 Mr.LI, Hong Deputy 01 Jan 31 Dec 1450 3,000 1,550 1,250 300 Chairman 2021 2021 3 Mohammed Al Aghbari Member 01 Jan 31 Dec 1100 3,000 1,900 1,250 450 200 2021 2021 4 Ibrahim Al Suleimany Member 01 Jan 31 Dec 1450 3,000 1,550 1,000 400 150 2021 2021 5 Ahmed Tufail Member 01 Jan 31 Dec 750 3,000 2,250 1,250 600 400 2021 2021 6 Zhang, Jian Member 01 Jan 31 Dec 1850 3,000 1,150 1,000 150 2021 2021 7 QU, Yang Member 01 Jan 31 Dec 850 3,000 2,150 1,250 450 300 150 2021 2021 Total 8,225 21,000 12,775 8,625 1,500 850 1,300 500 14

Donations and Sustainability Embodying the objectives of the companys social responsibility, and in support of its vision of the importance of strengthening its partnership with the community and its institutions, the Oman Electricity Transmission Company announced the continuation of providing support to a number of key sectors with the aim of contributing to improvement of the services provided to the beneficiaries. The step comes within the framework of the companys vision of the importance of supporting various targeted initiatives and programs that contribute to creating an added value for the community. The company adopted an initiative to install a shed at Jawharat Muscat school (government school in the Governorate of Muscat) with a total amount of OMR10,000, the aim of enabling educational institutions to fulfill their mission to build a generation capable of achieving the aspirations of the Sultanate of Oman towards comprehensive and sustainable development. As well the company has provided support of OMR 10,000 to provide several medical devices for the health center in the Wilayat of Duqm, and this step is in line with the national efforts made to support the health sector in the Sultanate and supporting to upgrading the health services provided to the people of Duqm and its neighboring areas. By supporting such initiatives, the company seeks to contribute to upgrading the services provided in these vital institutions in the community and is also in line with national plans and programs to support the education and health sectors because of their importance in empowering society with knowledge and providing a healthy life for its members. The company seeks, through its social responsibility programs, to strengthen its partnership with local communities and the various vital institutions in them, and to interact with various initiatives, stressing its continuation in implementing social responsibility programs because of their significant positive repercussions on their surroundings. 15

OETC Organzi ----------------------------- Mr.Qais Nasser Eng.Sale Khalaf Al Mafarji Majid A Senior Manager Chief Exec Internal Audit Dr.Rashid Said Mr.Mubarak Saif Mr.Fahad Nasser Mr.Zuhair Issa Mohammed Zayid Al Jahwari Bashir Al Kiyumi - Achooh Al Zadjali - Al Badwawi - Records & Archives HR Senior Acting QHSE and Admin Services Corporate Affairs Manager Senior Manager Senior Manager Senior Manager

iation Structure eh Nasser Al Rumhi cutiveOfficer Mr.Ali Saif Hilal Mr.Liu Wei Mr.Qu Yang Eng.Masoud Salam Al Reesi - Chief Technology Chief Regulatory Mohamed Al Reyami Chief Financial Officer Officer Chief Operation Officer Officer 16

Operational Performance NETWORK PERFORMANCE System Availability One of the key measurements of our operational performance is system availability, i.e., availability of the collection of transmission lines and transformers for the delivery of electrical energy from generators to customers. System avail- ability calculated as the actual circuit hours available as a percentage of the total possible circuit hours in the system. Circuit outages that result from both planned and unplanned unavailability are considered. System availability is monitored by: A. Reporting the monthly variations B. Summertime availability C. Average system annual availability – categorized as planned and unplanned system availability. A. Monthly System Availability 2021 Month Availability 17 2021-Jan 97.6207% 2021-Feb 97.0933% 2021-Mar 96.5032% 2021-Apr 97.9198% 2021-May 99.5598% 2021-Jun 99.5686% 2021-Jul 99.5512% 2021-Aug 99.4107% 2021-Sep 99.2384% 2021-Oct 97.9339% 2021-Nov 96.3713% 2021-Dec 97.6056% Total Year 98.2658%

System Availability 2021 100.0000% 99.568 99.410 6% 7% 99.0000% 97.620 99.559 99.238 98.0000% 7% 8% 4% 97.605 6% 99.551 2% 97.0000% 97.919 97.933 96.0000% 8% 9% 95.0000% 94.0000% 97.093 3% 96.503 96.371 2% 3% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 2021 User System Equipment Maintenance Forced Total Year Connection Connection modification Outages Unavailability of Planned outages Jan 0.0000% 0.0215% 0.7637% 1.0370% 0.5541% 1.8252% 2.3592% Feb 0.0000% 0.0445% 0.7586% 1.5562% 0.5475% Mar 0.0000% 0.3539% 1.3029% 1.2527% 0.5872% 2.9095% Apr 0.0000% 0.4609% 0.5726% 0.5300% 0.5167% 1.5635% May 0.0000% 0.0691% 0.0250% 0.1923% 0.1537% 0.2864% Jun 0.0000% 0.0017% 0.0000% 0.2499% 0.1799% 0.2516% 0.1932% Jul 0.0000% 0.0012% 0.0000% 0.1920% 0.2556% 0.1926% Aug 0.0000% 0.0000% 0.0000% 0.1926% 0.3967% Sep 0.0000% 0.0000% 0.0000% 0.4228% 0.3388% 0.4228% Oct 0.0000% 0.1144% 0.0105% 0.5385% 1.4028% 0.6634% 2.1236% Nov 0.0000% 0.075229% 0.6754% 1.3730% 1.5051% 1.4934% Dec 0.0000% 0.1277% 0.2514% 1.1117% 0.9010% 18

Monthly Unavailability 2021 4.5000% 4.0000% 3.5000% 3.0000% 2.5000% 2.0000% 1.5000% 1.0000% 0.5000% 0.0000% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec User Connection Maintenance System Connection Forced Outages Equipment modification Total Unavailability of Planned outages B. Summer time availability Comparison of Availability figures Year Summer Availability Annual Availability 2005 97.550% 97.700% 2006 98.490% 98.230% 2007 95.960% 95.990% 2008 98.750% 98.490% 2009 99.230% 97.760% 2010 99.420% 98.460% 2011 99.560% 99.330% 2012 99.820% 99.650% 2013 99.090% 99.230% 2014 99.350% 98.470% 2015 99.450% 98.770% 2016 99.350% 98.280% 2017 99.530% 97.670% 2018 99.780% 98.630% 2019 99.889% 99.062% 2020 99.697% 98.792% 2021 99.560% 98.260% 19

Syatem Availability (Annual + Summer) 101.00% 100.00% 99.00% 98.00% 97.00% 96.00% 95.00% 94.00% 93.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annual Summer C. Annual System Availability OETC Annual System Availability 98.2658% System Security Transmission System Security is indicated by various parameters such as the number of incidents,the amount of energy not delivered and the duration of inter- ruptions. Three parameters are used as indicators of Transmission System Security. A. Incidents B. Energy Not Delivered C. Average Interruption Time A. Incidents As per Condition 26.8.c of the Transmission and Dispatch Licence, an “Incident” is defined as: “a loss of supply to one or more Customers because of faults on the Transmission System”. This would also constitute a “Significant Incident” in terms of the Grid Code and is the basis for OETC reporting. During 2021 there was a total of 24 Significant Incidents (SI), including MIS and Dhofar Transmission System. Out of these, 9 (SI) were due to problems within OETC system and 15 (SI) due to other parties such as distribution companies and directly connected customers. 20

Historical Incidents Summary SI from OETC SI from other parties Energy Not AIT Delivered Year Minutes Supply loss No supply / Year Supply loss No supply OETC Other to customers loss to customers loss Incidents Incidents 2005 47 * 4 * 2244 * 112 2006 25 11 1 2 1995 * 98 2007 29 0 0 0 2028 * 93 2008 23 6 11 4 2085 * 81 2009 44 7 12 28 2961 * 102 2010 17 6 9 2 619 2629.6 19.88 2011 24 4 12 5 3777.8 274.52 109.27 2012 28 5 6 3 951.8 520.9 23.64 2013 18 3 11 0 1418 610 34 2014 11 5 9 2 550.7 1734.4 10.7 2015 20 2 13 5 1857.6 930.29 31.9 2016 7 5 4 6 365.8 103.6 6 2017 18 3 2018 14 5 3 3 275.2 419 4.3 2019 7 5 3 1 557.4 8.91 8.3 6 5 319.3 179.8 4.74 2020 8 3 7 1 251.55 124.03 3.80 2021 8 1 15 0 937.01 4750.61 13.21 21

Historical Incidents Summary (Energy Not Delivered MWH) 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 OETC Incidents Other Incidents B. Energy Not Delivered Total unsupplied energy due to incidents caused by OETC in both MIS and Dhofar systems is 937.01 MWh Energy not Delivered MWh due to OETC Incidents 450.00 413.7 400.00 350.00 146.1 147.8 300.00 116.20 113.2 250.00 200.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 150.00 100.00 50.00 0.00 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 22

C. Average Interruption Time The Average Interruption Time (AIT) is the total energy not supplied normalised to the annual demand, specified in minutes per year. Average Interruption Time for the year 13.21 Minutes 120 Yearly Average Interruption Time 112 102 109.27 100 98 93 80 81 60 40 34 31.9 19.88 23.64 20 6 4.3 8.3 4.74 3.8 13.21 10.7 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 12.00 Monthly Average Interruption Time 10.00 4.87 0.00 0.00 0.00 8.00 1.32 6.00 4.00 1.64 2.00 0.00 1.53 1.41 0.00 0.00 0.00 0.00 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 23

System Reliability System reliability is the degree to which the performance of the elements in a system result in electricity being delivered to customers within accepted s tandards and in the amount desired.This is calculated by the energy not delivered as a percentage of total energy delivered in the year. Reliability of Supply for the OETC System 99.9975 % Reliability 99.9900% 99.9900% 99.9800% 99.9960% 99.9800% 99.9950% 99.9940% 99.9980% 99.9940% 99.9990% 99.9990% 99.9984% 99.9991% 99.9993% 99.9975% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Month MIS Dhofar OETC Jan-2021 100.0000% 100.0000% 100.0000% Feb-2021 100.0000% 100.0000% 100.0000% Mar-2021 100.0000% 100.0000% 100.0000% Apr-2021 100.0000% 100.0000% 100.0000% May-2021 100.000% Jun-2021 99.9965% 100.000% 99.9969% Jul-2021 99.9962% 99.9914% 99.9965% Aug-2021 99.9967% 100.000% 99.9963% Sep-2021 99.9968% 100.000% 99.9970% Oct-2021 99.9877% 100.000% 99.9887% Nov-2021 100.0000% 100.000% 100.0000% Dec-2021 100.0000% 100.000% 100.0000% 100.0000% 99.9993 % 100.0000% Year 99.9973 % 99.9975% 24

Monthly System Reliability (MIS+Dhofar) 100.0000% 99.9925% 99.9850% 99.9775% 99.9700% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 MIS Dhofar OETC Monthly System Reliability 2021 100.0000% 99.9925% 99.9850% 99.9775% 99.9700% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 25

Significant Incidents In the year 2021, there were a total of 24 “Significant Incidents” (SI) declared as per Grid Code. The total Energy Not Delivered due to transmission system originated incidents was 937.01 MWh.The total Energy Not Delivered due to other incidents was 4292.41 MWh. Significant Incident Summary Number Incident Type S. Incident SCADA and Transformer Other Human Error Transient Component Component Total N area Communication Component parties (Commissioning Fault.Heavy Failure OHL Failure Incidents Equipment Problem failure failure Error) Rain and Switchgear Lightening 1 MIS 0 27 0 3 0 1 13 2 Dhofar 1 02 1 2 5 0 11 3 Total 1 29 1 5 5 1 24 Significant Incident Summary Percentage Significant Incidents by causes 5% 1% 5% 1% 2% 1% 9% Other parties Equipment failure Component Failure OHL SCADA and Communication Problem Human Error (Commissioning Error) Transformer Component failure Component Failure Switchgear Transient Fault.Heavy Rain and Lightening 26

NETWORK LOAD Maximum Demand (Peak Gross Load) usually occurs in the OETC transmission system usually on a weekday in the months of May to July, during a period of high temperatures. The high proportion of air conditioning equipment in domestic and commercial premises is the reason that peak demand occurs during the afternoon period when temperatures are high, where the lifestyle patterns cause high utilization of air conditioning at that time. The Maximum Demand for MIS Network during 2021 was 6637 MW compared to 6401 MW during 2020, which represents a load growth with (3.56 %). The Max- imum Demand for Dhofar Network during 2021 was 568 MW compared to 559 MW during 2020, which represents a load growth with (1.58 %). PEAK LOAD IN PEAK LOAD IN MIS SYSTEM DFOFAR 6637 MW SYSTEM 4th July 2021 568 MW 23th Jan 2021 MINIMUM MINIMUM LOAD IN MIS LOAD IN DHOFAR SYSTEM SYSTEM 1621 MW 232 MW On 9th Jan 2021 the 17th May 2021 Historical Peak and Minimum loads (MIS) Year Peak Load Date of Minimum Load Date of (MW) Peak load (MW) Minimum load 2005 2495 25th Jun 2005 446 1st Jan 2005 2006 2614 16 th Jul 2006 468 7th Jan 2006 2007 2773 15 th Jul 2007 489 2 nd Jan 2007 27 2008 3139 31st May 2008 586 18 th Jan 2008 2009 3546 31st May 2009 623 17th Jan 2009 2010 3613 1st Jun 2010 766 16th Jan 2010

2006 2614 16 th Jul 2006 468 7th Jan 2006 2007 2773 2 nd Jan 2007 2008 3139 15 th Jul 2007 489 18 th Jan 2008 2009 3546 17th Jan 2009 2010 3613 31st May 2008 586 16th Jan 2010 2011 4000 31st May 2009 623 8th Jan 2011 2012 4448 29th Jan 2012 2013 4634 1st Jun 2010 766 19th Jan 2013 2014 5269 14th Jan 2014 2015 5744 18th Jun 2011 909 20th Jan 2015 2016 6105 10th Mar 2016 2017 6304 25th Jul 2012 1274 18th Dec 2017 2018 6339 3rd Feb 2018 2019 6540 16th Jun 2013 1286 27th Dec 2019 2020 6401 12th Jan 2020 2021 6637 11th Jun 2014 1376 9th Jan 2021 5th Jul 2015 1518 12th Jun 2016 1693 31st May 2017 1549 9th June 2018 1532 30th June 2019 1736 17th June 2020 1497 4th July 2021 1621 Maximum and Minimum System Load (MIS) 7000 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Peak Load (MW) Minimum Load (MW) 28

Historical Peak and Minimum Load (Dhofar) Year Peak Load Date of Minimum Load Date of (MW) Peak load (MW) Minimum load 2005 199 13th Jun 2005 56 25th Jan 2005 2006 232 30th May 2006 68 6th Jan 2006 2007 253 20th May 2007 70 5th Jan 2007 2008 260 8th Jun 2008 78 8th Feb 2008 2009 297 26th May 2009 86 16th Jan 2009 2010 336 16th May 2010 112 9th Jan 2010 2011 348 31st May 2011 115 7th Jan 2011 2012 389 6th Jun 2012 128 27th Jan 2012 2013 421 28th May 2013 136 18th Jan 2013 2014 439 16th Jun 2014 153 17th Jan 2014 2015 495 27th May 2015 154 23th Jan 2015 2016 523 26th May 2016 181 6th Feb 2016 2017 552 1st Jun 2017 159 4th Feb 2017 2018 539 115 26th May 2018 15th May 2018 2019 594 14th June 2019 217 12th Jan 2019 2020 559 16th June 2020 197 17th Jan 2020 2021 568 23rd Jan 2021 232 17th May 2021 Maximum and Minimum System Load (DFR) 7000 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Peak Load (MW) Minimum Load (MW) 29

Figure 1: The Regulated Uits Transmitted (RTU) 4,500,000 3,692,711 3,822,718 4,000,000 3,161,222 3,500.000 4,138,160 4,032,719 3,000,000 2,830,015 3,669,501 2,284,716 2,500,000 1,824,211 3,233,025 2,595,462 2,000,000 2,002,212 1,500,000 1,000,000 500,000 0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 SYSTEM DEVELOPMENT OETC completed several projects and added to the grid during 2021 as planned despite the effects of COVID-19. The Company managed to complete some projects as planned. The total value of the proj- ects that have been completed in 2021 stood at about RO 57 million. It helps to enhance the transmission grid in accordance with the strategic and operational plan. It intended for ensuring the grid’s capacity and readiness for catering the increasing power demand across the Sultanate. The following projects have been completed and added to the network. Projects completed in 2021 1. Khaborah Interconnection Station(KIS):The objective of this project is to support the voltage profile and the security of the supply within Al Batinah South and North regions and cater for the load growth in the area. This project consists of 2x500MVA transformers,8x132kV GIS and 10x220kV GIS. The 220kV system connected to 220kV OHL MIS-SIS via LILO connec- tion and the 132kV system connected to 132kV OHL Dil Abdusalam- Kha- bourah via LILO connection. This project was energized in December 2021. 2. Al Khoudh Grid Station 132/33 KV and its associated transmission lines: The objective of this project is to meet the load growth in the area. It consists of 4x125 MVA transformers with 10x132kV GIS and 4x33kV GIS interlink. It is supplied via 132kV double circuit by LILO Mawalleh South to Rusail Industrial 132kV OHL. Also, this grid station will accommodate the load transfer from Mawalleh South. 30

3. Yanqul Grid Station 132/33 KV and its associated transmission lines: This project consists of constructing a new 132/33kV, 2x125 MVA transformers grid station to meet the load growth in the area. It is connected by LILO of Dank- Al Hayl 132kV OHL. This grid station provides a surplus capacity for load transfer from Al Hayl grid station and reduce the 33kV OHL losses. 4. Ibri Solar Grid Station 220 KV and its associated transmission lines: Ibri Solar-PV IPP is considered as the first Solar project connected to OETC grid. The objective of this project is to evacuate power coming from Ibri Solar-PV IPP. This project includes construction of 6 no. 220kV GIS at Ibri Solar IPP and 2 x 3 km 220kV OHL between Ibri Solar IPP and Ibri IPP. In addition, the scope includes addition of 1 x 500 MVA transformer at Ibri (220/132kV) and 2no. 220kV GIS at Ibri IPP GS to meet load growth in the area. 5. Mirbat Grid Station 132/33 KV and its associated transmission lines: The objective of this project is to reinforce the supply capacity in Ashoor Area and meet the load growth in area. This project includes construction of new 132/33kV, 2x63MVA transformers grid station with 8x132kV GIS (6 in Mirbat & 2 in Ashoor) and 32 km OHL between Mirbat and Ashoor. This project was energized in December 2021. 6. Mabilla Industrial Grid Station 132/33 KV and its associated transmission lines:The objective of this project is to reinforce the supply capacity in Muscat Area and meet the load growth in area. This project includes construction of new 132/33kV, 4x125MVA transformers grid station with 10x132kV GIS. This project was energized in December 2021. 7. Completed the expansion of Sohar Industrial Area Grid Station (SIA): The expansion of Sohar Industrial Area Grid Station (SIA) completed by commissioning the cable that connects the station with Sohar Power Grid Station (SPS). 8. Completed the construction of 400 KV overhead line from 400 KV Izki Grid Station to 400 KV Al Misfah Grid Station:This project aim is to evacuate the power from Sur power plant to Al Dahkhliah and Al Sharqiyah areas. The length of the line is 100km of 400kV OHL between Misfah and New Izki 400kV grid station.In addition, this 400kV line supports the voltage in Al Sharqiyah and Al Dakhliah area. Also, this line will be an infrastructure for future development. 31

9. The construction of OETC’s regional office in Ibri:The building of a new regional office at Ibri was completed. The purpose of the office is to accommodate the staff in the area. The office is equipped with modern offices and facilities to make the staff more comfortable. 10. The construction of OETC’s regional office in Al Musana:The building of a new regional office at Al Musana was completed.The purpose of the office is to accommodate the staff in the area.The office is equipped with modern offices and facilities to make the staff more comfortable. Projects expected to be completed in 2022 Sr. Project Planned No 1 Wadi Bani Auf GS 132/33 KV and the associated OHL Q1 2022 2 Nahada 400/132 KV and associated OHL Q2 2022 3 The expansion of 132/33 KV Thumrait Grid Station Q2 2022 4 Seih Al Khairat 132/33 KV GS and associated OHL Q3 2022 5 Duqm 400/132 KV KV GS Q4 2022 6 Mahut 400/132 KV KV GS Q4 2022 7 Barik 400/132 KV KV GS Q4 2022 8 Suwaihat 400/132 KV KV GS Q4 2022 9 Upgrade of Nizwa Grid Station to 220/132 KV Q4 2022 10 Expansion of Airport Heights 220/132 KV station Q4 2022 11 Head office Extension Q4 2022 12 Regional offices in Al Buraimi, Nizwa and Sur Q4 2022 32

HEALTH, SAFETY & ENVIRONMENT PERFORMANCE The new 400KV OHL construction Project, Remote location & COVID-19 were the major HSE challenges faced during 2021. However, OETC able to achieve the target HSE performance due to the effort made by the staff and the support of the management. Overall, OETC achieved 8.6 million hours and around 14.9 million safe man-hours recorded since last LTI which consider as one of the major achievements of OETC and among our NAMA Sector Companies. HSE reporting culture being improved largely which has been evident through the number of reported near misses and Unsafe Act and Condition. Major HSE Challenges Faced in 2021 1. Overhead line construction Projects – Remote locations, selection of vehicle & equipment 2. Implementing and maintain a high level of COVID-19 precautions. 3. Controlling the widespread network. 4. New APSR Environmental Statement KPI and tracking. 5. Implementing new Integrated management system of ISO 9001. HSE Achievements during 2021 1. Achieved 14.9 million safe man-hours with Zero LTIFR. 2. 100% Covid Vaccine for OETC Staff, Contractor & Consultant. 3. All Supreme committee COVID-19- precautions well implemented and monitored. 4. 701nos of training completed in LMS (Learning Management System). 5. Inhouse Training Awareness i.e. First Aider, Fire Warden. 6. Implementing approved agencies for following Training & Inspection agencies. OETC Specific Training Topics (External): System Safety Rules (SSR) Working at Height (OHL) Risk Assessment (RA) Environmental Impact Assessment (EIA) Defensive Driving-DDT (Hilly Terrain and Plain Terrain) a. LV- Light Vehicle b. ME- Mobile Equipment 33

Lifting and Inspection services: Lifting gears Lifting machines- Manual Lifting machines -Power Overhead Crane and Mobile Crane Forklift MEWP (Mobile Elevated Working Platform) HIAB Earthmoving equipment Result of HSE Key Performance Indicators – 2021 0 FATALIT 0 0 LOST TIME INCIDENT 0 (Including the above fatality) 1 RISTRICTED WORK CASE 657 (RWC) 2501 MEDICAL TREATMENT CASE FIRST AID NEAR MISS UNSAFE ACT & CONDITION LTIFR = Number of LTIs * 1000000/number of worked hours 8.6 million 14.9 million Total Man hours worked Total Safe Man Hours 645 0 Total Safe Man days since last LTI LTIFR 34

Monthly statistics Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Accumulative Total Man 533,123 634,512 524,056 503,388 854,144 716,059 542,539 719,851 798,699 861,718 979,346 1,011,241 8,678,676 hours 6,809,845 7,444,357 7,968,413 8,471,801 9,325,945 10,042,004 10,584,543 11,304,394 12,103,093 12,964,811 13,944,157 14,955,398 14,955,398 Total Safe Man Hours from LTI 311 339 370 400 431 461 492 523 553 584 614 645 645 Total Safe Man days from LTI Fatality 00000000000 0 0 LTI 00000000000 0 0 RWC 00000000000 0 0 MTC 00000000000 0 0 RTA 0 00000 00 0 10 0 1 First Aid 0 00000 00 1 00 0 1 Environmental 4 9 10 4 4 3 11 1 55 3 52 Incident 56 64 65 52 50 69 45 15 94 48 77 22 657 Near Miss Unsafe A/C 114 149 214 129 162 232 146 259 220 253 281 342 2501 LTIFR 0 00000000000 0 100 Near Miss Reported for the year 2021 90 80 94 70 60 56 64 65 69 77 50 40 52 50 45 48 22 30 20 15 Nov Dec 10 0 Feb Mar Apr May Jun July Aug Sep Oct Jan 35

Five Years Performance Overview 2017 2018 2019 2020 2021 Fatalities 0 2 0 00 LTI (Including Fatality) 1 2 1 20 6 1 2 11 RTA 18.2 15.9 9.6 8.2 8.6 Million man-hours Worked 0.05 0.13 0.10 0.24 0 LTIFR 7.5 6.3 8.9 6.2 14.9 Million Safe man-hours Worked 154 170 348 280 645 since last LTI 0 0 0 0 0 Days since last LTI 722 657 Major Environmental Incidents 753 1295 1051 1882 1320 1003 1636 2501 Near Miss Unsafe Act & Unsafe Condition OETC Five Year LTIFR 0.3 0.24 0.25 0.2 0.13 0.15 0.1 0.1 0.05 2018 2019 2020 2021 0.05 0 2017 36

Management Walk down Covid Vaccine Campaign QHSE Monthly E-Newsletter QHSE Started to circulate the monthly QHSE E-Newsletter from August 2021 to create QHSE awareness and tips among our OETC staff, Contractors, and consultants. • Health Tips • Safety Tips • Environmental Tips • Road Safety Tips • Quality Tips QHSE Monthly E-Newsletter • IMS Tips • etc QHSE Department 37 August E-Newsletter 2021

Basic First Aider Training Blood Donation Civil Defense Emergency Mock Drill & Awareness 38

Consultant Mass Meeting HSE Rewards HSE Campaign 2021 The theme for 2021 campaign was “Expect the Unexpected”. 39

HUMAN RESOURCES The importance of human resources management stems from being one of the most important pillars of the operational process in the Company, which makes the development and modernization in various fields related to human resources among the priorities of the company so to achieve its main objectives. The Company has 359 employees distributed over all the companys offices and branches, whether in technical or non-technical positions, with an Omanisation rate of 97%. The company’s management has been keen to implement many initiatives that are concerned with raising efficiency, effectiveness, stability, achieving loyalty and belonging to the companys employees. Also, creating a positive and appropriate work environment so that the work environment is ideal, stimulating, stable and competitive. The aim is to achieve the main goals as well as to design future policies that make the OETC “The best and exclusive place” and “great place to work”. In 2021, the company has filled 33 vacant positions as shown in the figure below: Staff appointement 2021 30 26 25 20 15 10 7 5 0 External Internal The company is also keen to work on implementing the replacement plan for non-Omanis, by providing many initiatives to raise the efficiency of employees. Including providing scholarships in various disciplines and levels, and providing specialized training programs, training in modern technologies and many other initiatives and programs. Figure below shows the Omanization statistics of the company in 2021. While some positions have been Omanized already in 2021, other positions will be Omanized during 2022. 40

Omanization 14 13 12 10 9 8 6 4 2 0 Potential Omani Employees Expateriate OETC has also updated its organizational chart to meet the needs of the next phase of the Company growth journey and comply with the best practices of electricity transmission companies. OETC has created a new Department (Corporate Affairs Department) that reports directly to the company’s CEO. The Department is mandated with development of the company’s plans and strategies and following up the progress made against the objectives and set schedules. In 2021, OETC has implemented a development plan based on the outcomes of the employee engagement and satisfaction survey carried out during 2020 under the title “OETC, a great place to work.” The plan is executed in several phases. Where the 2021 phase has been fully completed. The first stage plan themes covered employee development and improvement of the procedures: Employee Engaging Leadership and development officials in the enhancing its education and role in commu- and development nication with improvement of the procedures staff The other stages will be completed in 2022 by working with current themes and adding new themes. Moreover, The Company through Human Resources Department and representatives from different department, in cooperation with Nama Holding, have revised, and updated the competency framework for all fields and functions in the company to ensure that it can contribute to performance improvement. The Competency Framework has been used in the employee’s interviews, selection, appointment, and evaluation. 41

It should be noted that OETC has evaluated the leadership competency level for 22 staff occupying leading positions – manager and above – to develop improvement plans for them. The training and development plan for those employees will be implemented in 2022. As for continuous training, despite the spread of COVID-19 and reduction of costs, the learning process continued as it plays an important role in improving the company’s performance. OETC has implemented more than 3200 training courses with the average of nine training courses for each staff covering various technical, administrative, health, safety, environment, and other fields. The training courses were delivered physically, virtually and through the Learning Management System as shown in figure below: 3500 Training courses 3199 3000 2500 3172 Training Hours 2000 1500 17 10 1000 500 Physical Programs Learning Management Virtually 0 System Also, in cooperation with Nama Holding and Numo Skill Development Insti- tute, OTEC has provided 10-month training course for five fresh graduates as part of the National Training Program “Eadad’ to prepare them for the labor market. OETC, represented by the Human Resources Department continues its plans to implement the best practices to make the company the best place to work for either its existing employees or those who may join the company in the future. 42

FINANCIAL PERFORMANCE OETC is committed to financing its projects according to its approved plan to expand the transmission grid and meeting the increasing demand for electricity. To this end, OETC during 2020 prepared for the issuance of international bonds and completed the issue of $600 Milion Bond in 2021. OETC’s 2021revenues from the grid usage and connection charges amounted to OMR 130.51 million compared to OMR 127.32 million in 2020, registering a 2.5% increase reflected on the Total Profits which amounted to OMR 71.13 million in 2021, compared to OMR 70.07 million in 2020, registering a 1.52% increase. The operating profits stood at OMR 57.54 million in 2021 compared to OMR 57.18 million in 2020, increasing by 0.63%. The carrying value of OETC’s property, plant and machinery amounted to OMR 1.389 billion as on 31 December 2021 compared to OMR 1.284 billion Omani rials on 31 December 2020; recording an increase of 8.12%. The Net Operating Profit After Tax (NPAT) decrease by 3.81% as it stood at OMR 37.15 million compared to OMR 38.63 million in 2020. Note: the above 2020 and 2021 data differ from the data of the published financial statements due to the application of the Interna- tional Accounting Standards (IAS) in respect of revenues and the consequences of such application. As for the net profits and other items, do correspond to the published financial statements. Figure : Financial Performance Comparison 2021 vs 2020 140 130.51 44.15 42.15 34.28 26.67 37.15 38.63 Finance Costs Net Profit (PAT) 127.32 14.77 14.54 120 Operating Costs General & Admin (Direct) Expenses 100 80 60 40 20 0 Revenue(Excl others) 2021 2020 43