- swcc.gov.sa
Transcription
- swcc.gov.sa
Saline Water Conversion Corporation (SWCC) Annual Report 1432 – 1433H Report Number (38) Compliments of General Directorate of Public and Industrial Relations Tel. +96614631111 P.O. Box 5968 Riyadh 11432 Email: [email protected] www.swcc.gov.sa in the name of Allah, the most Gracious, the most Merciful And We created from water every living thing Sorat Al-Anbiyā(30) Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud His Royal Highness Prince Salman bin Abdulaziz Al Saud Crown Prince, Deputy Premier, and Minister of Defense Annual Report 1432 – 1433H 1 Contents 3 Members of the Board of Directors 4 Statement of the Chairman of the Board of Directors 6 Statement of the Governor 8 Desalination Projects in the Kingdom 9 SWCC Organizational Chart 10 Desalination History in Brief 12 Vision and Mission 13 Board of Directors 14 56 Legal Affairs General Controller SWCC Financial Status Commercial Accounts 68 Internal Communication &Knowledge Management Housing Water Production Power Production 88 Electronic Transformation Program Future Projects Chapter 2 Materials Institute of Researches & Desalination Technology Unit of Advisors Industrial Security & Environment 2 Annual Report 1432 – 1433H Chapter 5 Computer & Information Projects under Implementation 44 Chapter 4 Training & HR Development Chapter 1 Water Transmission Chapter 3 100 Chapter 6 Prequalification Quality Privatization Common projects of the private sector Members of the Board of Directors H.E. Mr. Yousef bin Saleh Al-Saif Deputy Minister for Municipal Affairs Ministry of Municipal and Rural Affairs SWCC Member of the Board of Directors H.E. Dr. Muhammad bin Ibrahim Al Saud Deputy Minister for Water affairs Ministry of Water and Electricity SWCC Member of the Board of Directors H.E. Mr. Bandar bin Abdulaziz Alwaily Deputy Minister for Planning Ministry of Economy and Planning SWCC Member of the Board of Directors H.E. Dr. Abdul Rahman bin Mohamed Al Ibrahim SWCC Vice Chairman of the Board of Directors & Governor of SWCC H.E. Eng. Abdullah bin Abdul Rahman Al Hussayen Minister of Water and Electricity SWCC Chairman of the Board of Directors H.E. Mr. Ahmed bin Fareid Al Aolakie Representative of Private Sector SWCC Member of the Board of Directors H.E. Dr. Khalid bin Abdulaziz Al Ghoneim President of Al-Elm Information Security Company Executive Chairman of STC from 28th/7 /1433H SWCC Member of the Board of Directors H.E. Mr. Abdulaziz O. Al Omair Assistant Deputy Minister for Finance and Accounts Affairs Ministry of Finance SWCC Member of the Board of Directors H.E. Eng Eng. Nasser bin Ibrahim Al Fouzan Assistant Deputy Minister for Company Affairs Ministry of Petroleum and Mineral Resources SWCC Member of the Board of Directors Annual Report 1432 – 1433H 3 Chairman’s Message H.E. Eng. Abdullah bin Abdul Rahman Al Hussayen Minister of Water and Electricity SWCC Chairman of the Board of Directors 4 Annual Report 1432 – 1433H Under the kind patronage and close attention of the Custodian of the Two Holy Mosques and His Highness the Crown Prince, may Allah protect them, the Saline Water Conversion Corporation (SWCC) continues its efforts to provide potable water to various regions within the Kingdom. SWCC dedicates its technical capabilities and human resources to address diligently its development plans and expansions in the desalination and power generation sectors. It continues to move forward with its goals of establishing new advanced energy efficient projects in line with its strategic objective of making SWCC one of the pioneering corporations in the field of desalination. Diverse development plans and programs pursued by SWCC provide desalinated water to different regions within the Kingdom that fulfill high water demand resulting from population growth, industrialization and urban expansion. It is noted that projects, recently established by SWCC, are capable of producing in 1432H a total quantity of 886 million m3 of desalinated water. These projects employ environmentallyfriendly advanced technologies coupled with the use of renewable energies. SWCC’s total daily potable water production amounts to 2.8 million cubic meters. High demand for costly desalinated water and the limitation of natural resources necessitate implementation of conservation measures and policies. This motivates wise consumption of this precious commodity reducing excessive misuse. SWCC contributes effectively to the development of the desalination industry worldwide through its distinguished innovations and achievements which are realized from the support and motivation of our farsighted leaders. SWCC strives hard to discover more breakthroughs in desalination industry that will help in further advancements of the Kingdom’s prosperity. I would like to take this opportunity to acknowledge the tangible role of SWCC’s employees in achieving these accomplishments and I ask the Almighty to give us all sincerity and devotion in our sayings and deeds. May the blessins of Allah be upon us. Annual Report 1432 – 1433H 5 Governor ’s Message H.E. Dr. Abdul Rahman bin Mohamed Al Ibrahim Governor of SWCC & SWCC Vice Chairman of the Board of Directors 6 Annual Report 1432 – 1433H Since the inception of Saline Water Conversion Corporation (SWCC), it has augmented natural water resources in the Kingdom producing more than 2.8 million cubic meters of desalinated water daily. To achieve this purpose, SWCC employs the most advanced seawater desalination technologies that yield relatively reduced water production cost concurrently with the use of environment-friendly approaches. The Kingdom of Saudi Arabia is the largest desalinated water producer in the world. It produces around 18% of the total world production through (27) desalination plants operating in Eastern and Western Coasts of the Kingdom, in addition to the new plants established in cooperation with the private sector as in Shoaibah and Shuqaiq as well as Marafiq company in Jubail industrial city. Desalinated water exported by SWCC during this year is 6.3% higher than that of the previous year. The exported desalinated water during 1432H reached 885.9 million cubic meters, of which 487.6 million cubic meters were exported from Eastern Coast plants accounting for 55% of the total SWCC exportation while 398.3 million cubic meters exported from Western Coast plants representing 45% of the total. The produced water is exported to beneficiary regions through water transmission pipeline networks with a total length of more than 4000 kilometers. SWCC large desalination plants are operating within the context of dual purpose plants for the simultaneous production of water and electricity with enhanced energy utilization. The electricity exported from SWCC’s dual purpose power/water plants amounts to 15.6 MWh. SWCC is also currently engaged in completing the construction of large power & desalination projects as well as water and natural gas transmission systems which include: Ras-Al-Khair dual purpose power/hybrid water plant which is uniquely designed to produce daily around one million cubic meters of potable water and 2400 MW of electricity. RO desalination plant in Jeddah third phase with a capacity of (240) million cubic meters daily, Shuqaiq water transmission system, Ras AI-Khair - Riyadh water transmission system, Ras AI-Khair - Hafr AI-Batin water transmission system, Yanbu-Madinah (third phase) water transmission system, Taif-AI-Baha water transmission system, AI-Leeth water transmission system, Natural gas transmission system to desalination plants in AI-Khobar from Saudi Aramco company In addition to projects of service facilities and residential complexes and other projects currently under implementation. The Saline Water Conversion Corporation is a worldwide pioneer in developing sustainable desalination technologies and reducing the specific water production cost. SWCC’s Research Institute is engaged in a variety of Research & Development projects to enhance the cost effectiveness of desalination technologies. The Research Institute also established a number of research partnerships with various local and international research institutions and specialized manufacturing companies with the ultimate objective of joint commercialization of the developed research products.In particular SWCC has signed a number of agreements with international companies and local universities to develop and optimize the use of solar energy in thermal desalination. SWCC considers capacity building as one of its top priorities to develop and upgrade the capabilities of its workforce. During the year 1432/1433 comprehensive career advancements programs have been initiated and implemented through the introduction of a variety of training programs. SWCC has also participated in the deliberations of a number of local and international specialized forums and conferences. In addition, SWCC’s Training Center is providing a wide range of qualifying and developmental programs where the implemented programs reached (584) in total that benefited (10342) trainees. Furthermore, a number of SWCC employees got the opportunity to study on scholarships abroad to attain higher academic degrees. The Saline Water Conversion Corporation continues implementation of its various water and power generation projects under guidance and genuine support of our government led by Custodian of the Two Holy Mosques and the Crown Prince, may Allah protect them, and follow up by H.E. the Minster of Water and Electricity, Chairman of SWCC Board of Directors along with their Excellency and gentlemen members of SWCC Board of Directors in addition to efforts of all SWCC employees. SWCC’s employees are collectively contributing in SWCC’s continuous advancement to be a frontrunner in the desalination and power industry. This is realized through the efficient and reliable operation and maintenance of SWCC’s desalination and power generation plants that resulted in the reduction of specific water and power generation cost that is ultimately reflected in socioeconomic development in the Kingdom of Saudi Arabia. Thanks to all-SWCC employees for their efforts and accomplishments, and May Allah preserve our country and maintain its stability, progress and prosperity. Annual Report 1432 – 1433H 7 Desalination Projects in the Kingdom 19,682 m3 Khafji 1,025,000 m3 Under construction 2,400 megawatt Plants 3,784 m3 Haql 1,011,814 m3 1,000 megawatt 3,784 m3 Duba 16,740 m3 Jubail Hafr Al-Batin Tabuk hayeriauN-lA Alwajh fi l Zu - Al Buraidah tt ha -G Al h aa ajm Ras Al-Khair Jubail Marafiq IWPP 800,000 m3 2,745 megawatt Dammam -M Al Khobar 11,524 m3 Umluj a aqra Sh Al Madina Al-Hassi Riyadh u 364,238 m3 700 megawatt Under construc- 550,000 m3 tion Plants 1,700 megawatt Rabigh Taif Jeddah 1,030,000 m3 582,689 m3 Makkah a3 15,480 m3 Yanbu b Yan Shuaiba Al Baha Sh ua ib 321,625 m3 Ahud Rafidah IWPP Abha 900 megawatt Jisan 8 Annual Report 1432 – 1433H S IWPP 212,000 m3 850 megawatt City SWCC Plants 2 an aiq q hu Far as Albirk 1,952 m3 62 megawatt 83,432 m3 Khamis Mushiyt Ahud Al-Massarehah 497 megawatt Shuqaiq 432,580 m3 811 megawatt Khobar SWCC Pipelines IWPP Under construction Plants 7,740 m3 Under construction Pipelines Organizational Structure Organizational Chart of SWCC Governor of SWCC Unit of Advisors Deputy Governor for Operation and Maintenance Technical Affairs and Production Deputy Governor’s Office Housing and Offices Operation and Maintenance in East Coast Materials Operation and Maintenance in East Coast Governor’s Office Public and Industrial Relations Legal Department Industrial Security and Environment General Observer Institute of researches and desalination technologies Privatization and Commercial Affairs Internal Audit Qualification Electronic Transformation Program Commercial Accounts Deputy Governor for Technical and Projects Affairs Deputy Governor for Planning and Development General Director of Administrative and Financial Affairs Studies and Designs Deputy Governor’s Office Computer and IT Deputy Governor’s Office Purchasing Project Implementation Branch of SWCC on East Coast Internal Communication & Knowledge Management Strategic Planning and Budget Warehouses Branch of SWCC on West Coast Quality Human Resources Documents and Archives Office of GD of Administrative and Financial Affairs Financial Affairs GD of Administrative Affairs Administrative Affairs Annual Report 1432 – 1433H 9 Desalination History in Brief 1392H 1325H First sea water desalination unit established in Jeddah known as Al-Kindasa 1348H King Abdulaziz ordered establishment of two condensation units for distillation of sea water in Jeddah. Ministry deputyship for saline water desalination affairs established in Ministry of Agriculture and Water. 1393H First plant in Khobar operated (first phase), and a pipeline to transmit water to cities of East Province (first phase) 1394H 1385H An office established in the Ministry of Agriculture to carry out economic feasibility study and preliminary steps for constructing desalination plants. 1389H First phase of Alwajh and Duba plants operated. 1390H Jeddah plant (first phase) operated. 10 Annual Report 1432 – 1433H Royal Decree no. M/49 dated 7 September 1974 issued for establishment of (Saline Water Conversion Corporation) as an independent public institution. Khafji plant operated (first phase). 1395H First phase of Umluj plant operated. 1398H Jeddah plant (second phase), Jeddah RO, and Khafji plants operated. SWCC undertook responsibility of operation and maintenance of its projects by itself. 1399H Plants of Alwajh and Duba operated (second phase), Farasan (first phase), Jeddah (third phase), Haql (first phase). 1401H Yanbu plant (first phase), Jeddah plant (fourth phase), pipeline of Yanbu – Madinah (first phase) operated. 1402H Jubail plant (first phase), Rabigh plant (first phase) and water transmission pipeline to Royal Commission, Airbase and Jubail city operated. Training center in Jubail opened and started its first training program. 1403H Albirk plant (first phase), Jubail and Khobar plants (second phase) operated. Pipeline (A,B) to Riyadh, supply pipelines of Riyadh, as well as water transmission system pipeline to Eastern Province (second phase) operated. 1406H First expansion of Alwajh plant, second phase of Khafji and Umluj plants operated as well as water transmission system to Khafji city. 1407H Aziziah plant (first phase) operated. This year also witnessed opening the center of researches and development in Jubail. 1409H Duba plant (third phase) operated, as well as Alwajh (second expansion), Jeddah RO (first phase), Shoaibah (first phase), Shuqaiq (first phase), pipeline ( first phase) to Makkah and Taif, and pipeline to Asir. 1425H 1414H Jeddah RO plant (second phase) operated as well as Rabigh plant (first expansion). 1429H 1420H Two Yanbu Flash Evaporation + RO plants (second phase) operated, and pipeline to transmit water from Yanbu – Madinah (second phase). 1413H Alwajh plant (third expansion) operated. Supreme Economic Council Decree no. (2/29) dated 29/6/1429H issued for agreement on executive program for privatization of SWCC. First phase and water transmission pipeline established for Qunfidah plant. 1430H 1422H Khobar plant (third phase) operated, as well as Jubail RO plant and Shoaibah plant (second phase). 1410H Haql plant (second phase) operated, Farasan plant (first expansion) operated as well. Pipeline of transmitting water to from Khobar plant to Ahsaa and Abqaiq operated. SWCC Governor issued decree no. (33528) dated 5/7/1425H constituting the team of strategic planning to consider required actions for privatization and restructuring of SWCC. 1423H Water transmission system to Makkah, Jeddah, and Taif cities operated. Supreme Economic Council issued decree no. (5/23) dated 23/3/1423H defining principles and criteria of private sector participation in constructing saline water desalination projects. Third phase of Shoaibah, Alwajh, Umluj, and second phase of Rabigh and Farasan plants operated as well as first phase of (Al-Leeth) plant. Water transmission systems in Rabigh, AlLeeth and Farasan desalination plants operated. 1431H Shuqaiq desalination plant operated (second phase). 1432H Water transmission system to cities of the Eastern Province (third phase) operated. Annual Report 1432 – 1433H 11 Vision and Message Vision Leadership and excellence in sea water desalination industry and electricity production. Mission To fulfill the needs of our customers from desalinated sea water and electricity effectively and reliably at the least possible cost and the highest economic return. We invest effectively in our human resources and motivate them. We also seek to develop the desalination industry, participate in socioeconomic development and achieve compliance with safety and environment standards. 12 Annual Report 1432 – 1433H SWCC’s Board of Directors SWCC Board of Directors held its (105th) meeting on Wednesday 1/2/1432H discussed work progress in SWCC. The Board of Directors issued the following decisions and recommendations: Approval of SWCC financial and commercial position statement and the report of auditor for fiscal year 1427/1428H (2007) and approval of their details. Approval of SWCC financial and commercial position statement and the report of auditor for fiscal year 1428/1429H (2008) and approval of their details. Approval of the closing (governmental) account for the Corporation and the report of auditor for fiscal year 1430/1431H (2009). Agreement on that the training center in Jubail will provide training services to public and private sectors against cash and / or in kind costs for the interest of the center according to the attached regulations and the accompanied cost list. Agreement on that the Corporation will disburse the incentive bonus stipulated in article (18/2/B) of the rewards and penalties regulation according to the categories and controls adopted by the Board. The Board of Directors has reviewed the Corporation’s notice about its budget for fiscal year ended 1431/1432H and the budget for current fiscal year 1432/1433H. Annual Report 1432 – 1433H 13 Chapter 1 Chapter 1 Water Production Power Production Water Transmission Projects under Implementation Future Projects 14 Annual Report 1432 – 1433H Water Saline Water Conversion Corporation (SWCC) continues its efforts in order to supply desalinated sea water from its working plants amounting to (27) plants in the Kingdom scattered on the east and west coasts. These plants include (6) on the Arab Gulf and (21) along the Red Sea coast. The exported desalinated water quantity during 1432-1433H reached 885.9 million cubic meters, of which 487.6 million cubic meters were exported from east coast plants i.e. 55% of the total SWCC exportation while 398.3 million cubic meters were exported from west coast plants i.e. 45% of the total. Exportation of desalinated water by SWCC has increased during this year 1432/1433H by 6.3% compared to the last year. Annual Report 1432 – 1433H 15 Actual and design exportation of desalinated water to beneficiaries in 1432/1433H 45% 55% Actual and design exportation of desalinated water in 1432/1433H (million cubic meter) million cubic meter 1200 965.5 96 1000 000 88 8 85. 59 800 431.2 4 600 534.4 398.3 3 487.6 4 400 200 0 swcc West Coast Design Export 16 Annual Report 1432 – 1433H East Coast Actual Export West Coast: Water quantity exported by shoaiba plants was (126.9) million cubic meters to serve Makkah, Jeddah and Taif. The quantity exported by Jeddah plants was (133) million cubic meters for the city of Jeddah. Whereas Yanbu plant exported (115) million cubic meters to serve Madinah, Yanbu and governorates along the pipelines. The Water quantity exported by shuqaiq plant was (1.1) million cubic meters serving the Asir region. Satellite plants on west coast exported (22.3) million cubic meters to the governances where these plants are located. East Coast: Jubail plants had exported (355) million cubic meters to serve Riyadh, and Jubail whereas quantities exported form Khobar plants was (125.3) million cubic meters serving the eastern region and AlAhsa. Khafji plant exported (7.4) million cubic meters for Khafji City. Annual Report 1432 – 1433H 17 Design Export of SWCC Plants Plants Water Exported Daily Name Phase Cubic Meters U.S. Gallon HAQL II 3,784 999,627 DUBA III 3,784 999,627 ALWAJH III 7,740 2,044,691 II 3,784 999,627 III 7,740 2,044,691 RABIGH II 15,480 4,089,383 ALAZIZIA I 3,870 1,022,346 ALBIRK I 1,952 515,664 FARASAN II 7,740 2,044,961 AL-QUNFUTHA I 7,740 2,044,961 AL-LITH I 7,740 2,044,961 III 75,987 20,073,638 IV 190,555 50,339,295 R.O.1 48,848 12,904,274 R.O.2 48,848 12,904,274 I 94,625 24,997,276 II 120,096 31,726,001 R.O. 106,904 28,241,043 I 191,780 50,662,906 II 390,909 103,267,212 I 83,432 22,040,398 1,423,338 376,006,046 II 19,682 5,199,433 II 191,780 50,662,906 III 240,800 63,612,618 I 118,447 31,290,381 II 815,185 215,349,052 R.O. 78,182 20,653,495 East Coast Total 1,464,076 386,767,885 SWCC Total 2,887,414 762,773,931 UMLUJJ JEDDAH YANBU SHUAIBA SHUQAIQ West Coast Total KHAFJI KHOBAR JUBAIL 18 Annual Report 1432 – 1433H 0 5.4 5.0 3.5 3.5 2.6 2.5 2.4 2.1 1.9 1.9 1.8 1.4 1.1 Alrunh Rabigh Military City (Khamis Mushiyt) Umluj Alwajh Ukad Bin Nuaman Badr Duba Haql Al - Qunfutha Farasan Shuqaiq 16.5 Abha 5.8 19.1 Khamis Mushiyt (TPS-8) 72.9 106.5 350 Ahd-Rafidah 19.9 Yanbu Taif Al Madina 170.9 200 Makah Jeddah 356.8 400 Actual desalinated water export to beneficiaries from west coast plants in 1432/1433H (million cubic meters) 300 250 150 100 50 Annual Report 1432 – 1433H 19 0 20 Annual Report 1432 – 1433H 7.9 7.3 7.0 6.6 6.5 6.0 4.2 4.1 3.7 3.1 2.2 1.7 Bureda Safwa Ghanman Navy Base Abqaiq Shaqra Zulfy Daharan Sadaf Company 1.0 0.5 0.3 Ramah Ghat Royal Palace Majmaah Rass Tanorah Khafji Sayhat 17.7 8.6 29.3 Qatif Jubail 31.3 50 Hofuf 77.5 100 Khobar 105.8 150 Dammam 325.5 350 Riyadh Actual desalinated water export to beneficiaries from east coast plants in 1432/1433H (million cubic meters) 300 250 200 Development of water export from SWCC palnts over the last five years (million cubic meters) (in total) 1,200 1,066.8 1,055.7 1,000 970.4 833.1 800 600 534.4 532.4 523.4 525.2 532.3 445.2 400 885.9 458.2 487.6 374.9 398.3 200 swcc West Coast 2011 2010 2009 2008 2007 0 East Coast Annual Report 1432 – 1433H 21 Development of Water Exported from SWCC plants during last five years (m3): Year 2007 2008 2009 2010 2011 Jeddah 145,619,496 147,714,779 132,272,815 129,391,213 132,971,437 Shoaibah 222,633,322 218,538,994 140,033,166 90,057,171 126,915,243 Yanbu 115,677,262 119,680,335 119,230,024 119,923,059 114,962,423 Shuqaiq 39,529,040 37,349,348 36,986,422 13,907,845 1,133,747 Small Plants 8,966,376 8,980,715 16,659,864 21,613,210 22,303,512 West Coast 532,427,503 532,264,171 445,182,291 374,892,498 398,286,362 Jubail 374,468,693 376,991,307 378,849,174 309,557,336 354,967,264 Khobar 152,683,378 139,262,735 139,613,600 141,229,711 125,264,863 Khafji 7,248,410 7,163,530 6,733,847 7,450,106 7,362,130 East Coast 534,400,481 523,417,572 525,196,621 458,237,153 487,594,257 SWCC 1,066,827,984 1,055,681,743 970,378,912 833,129,651 885,880,619 Plant 22 Annual Report 1432 – 1433H 355.0 400 374.5 377.0 378.8 Development of water export from SWCC palnts over the last five years (million cubic meters) (in detail) 2007-2011 309.6 350 300 222.6 218.5 250 115.7 119.7 119.2 119.9 115.0 126.9 126. 90.1 90. 100 Khobar Khafji 9.0 9.0 13.9 1.1 7.2 7.2 6.7 7.4 7.3 Jubail 16.7 21.6 22.3 39.5 37.3 37.0 50 0 140.0 140. 132.3 129.4 133.0 125.3 150 145.6 147.7 152.7 139.3 139. 139.6 139. 141.2 141. 200 Jeddah Shoaibah Shuqaiq Yanbu Satellite Plants Annual Report 1432 – 1433H 23 Power Generation All major plants at Saline Water Conversion Corporation (SWCC) are dual purpose. They also generate power along with desalinated water. These plants are operated by Multi Stage Flash (MSF) system. Part of the power generated is consumed in plants while the remaining is exported to Saudi Electricity Company (SEC). Power Export design of SWCC plant (Megawatts) 24 Annual Report 1432 – 1433H Plant Power Jeddah 700 Yanbu 285 Shoaibah 497 Shuqaiq 62 Total West Coast 1,544 Khobar 811 Jubail 1,000 Total East Coast 1,811 Total SWCC 3,355 Actual Electrical Energy Exported by plant during last five years (MWh): Year 2007 2008 2009 2010 2011 Jeddah 2,386,777 2,117,454 1,498,669 1,605,053 2,043,656 Shoaibah 3,603,650 3,412,522 2,052,626 1,213,170 963,690 Yanbu 1,341,805 872,293 724,909 1,246,498 1,927,644 455,573 401,211 366,055 149,386 19,251 Total West Coast 7,787,805 6,803,480 4,642,259 4,214,107 4,954,241 Khobar 5,399,693 6,124,708 6,090,356 5,035,656 4,624,180 Jubail 7,836,196 7,254,552 7,582,962 7,175,389 6,046,289 Total East Coast 13,235,889 13,379,260 13,673,318 12,211,045 10,670,469 Total SWCC 21,023,694 20,182,740 18,315,577 16,425,152 15,624,710 Plant Shuqaiq As compared to previous year, electrical energy export from SWCC decreased this year by 4.9% due to forced outage to some units of power, in addition to maintenance projects and rehabilitation programs. Annual Report 1432 – 1433H 25 Actual Electrical Energy Exported by SWCC plants Total electrical energy exported in year 1432/1433H is 15.6 Million Megawatt Hours. East Coast: 10.7 Million Megawatt Hours (68.3%). West Coast: 4.9 Million Megawatt Hours (31.7%) 25 Development of Electrical Energy Exported during last five years (Million MWh): 21.0 20.2 20 18.3 16.4 15 13.2 13.7 13.4 15.6 12.2 10.7 10 7.8 6.8 4.6 5 5.0 4.2 0 2007 2008 swcc 26 Annual Report 1432 – 1433H 2009 East Coast 2010 West Coast 2011 Percentage of electrical energy export by coast in 1432-1433H 31.7% 68.3% West Coast East Coast Annual Report 1432 – 1433H 27 Peak Load Exported from SWCC plants: Peak Load Export increased in 1432/1433H from Yanbu plant by 16.9% and by 13.6% at Shuqaia plant, as compared to previous year, while decreased by 17.6 % at Jubail Plant. Peak Load Export by plants (MW) Plant Peak Load (megawatt) Jubail 886 Khobar 735.9 Jeddah 357 Shoaibah 268 Yanbu 339 Shuqaiq 69.4 900 886 800 735.9 700 600 500 339 357 400 268 300 69.4 200 100 0 Jubail 28 Annual Report 1432 – 1433H Khobar Jeddah Shoaibah Yanbu Shuqaiq Percentage of electrical energy export by plant in 1432-1433H Yanbu 12.4% Shuqaiq 0.0% Jubail 38.7% Shoaibah 6.2% Jeddah 13.1% 29.6% 29.6 Khobar Annual Report 1432 – 1433H 29 Development of electrical energy export from SWCC palnts over the last five years (million MW hours) (in detail) 2007-2011 Jubail 30 Annual Report 1432 – 1433H Khobar Jeddah Shoaibah Yanbu Shuqaiq Water Transmission The huge increase in population and the great demand for potable water prompted Saline Water Conversion Corporation (SWCC) to execute construction of (18) water transmission systems with over 4359 kilometers of pipeline ranging from 200 – 2000 mm in diameters. Along these pipelines 29 pumping stations were constructed to ensure continuity of water flow. In addition, SWCC installed 181 reservoirs with a total capacity of 9,473,850 m3 and constructed 17 blending stations (for mixing desalinated water with underground water) and 5 terminal stations. Annual Report 1432 – 1433H 31 Pipelines Total Length (km) Number of Pumping & Blending Stations Beneficiaries Number of Reservoirs Total Capacity of Reservoirs (m3) 932 6P Riyadh 13 3,982,500 Riyadh City Feeder Pipelines 132.5 0 Riyadh 3 257,500 Jubail - Royal Com. Pipelines 81.8 1P + 2B Royal Commission – Navy Base – Jubail 8 358,950 Shuaibah (Makkah – Taif) Pipelines 233.8 4P Makkah and Taif 11 720,000 Yanbu Madinah Water Pipelines (Phase I) 226 2P Yanbu and Madinah 2 40,000 Yanbu Madinah Water Pipelines (Phase II) 371.6 2P Yanbu, Madinah, Mulaileeh & Other 22 1,256,000 Sadir – Washm – Al Ghat-Zulfy - Qassim 884.8 2P + 5 Terminal Sadir – Washm –Al Ghat – Zulfi -Qassim 17 520,000 Shuqaiq (Asir) Water Pipelines 216.5 4P Abha – Khamis Mushait – Ahud Rufidah –Military city 8 256,000 Khobar-Eastern Province Water Pipelines 258 1P + 8B Khobar – Dammam – Dhahran – Safwa – Qatif – Rahimah 64 604,250 Khafji Pipeline 10 1P Khafji 2 113,650 Jubail – Riyadh Water Pipelines (Phase III) 375 4P Riyadh 8 400,000 Eastern Region Water Transmission System 129.8 7B Khobar, Dammam, Dharan, Safwa, Rastanura, Qatif, Sayhat 2 45,000 Shuaibah – Jeddah Water Transmission System 164 1P Jeddah, Makkah, Taif 6 840,000 Khobar – Al Hofuf Water Transmission System 141 1P Bgaig, Al Hofuf 2 40,000 Al- Qunfotha Water Transmission System 64 - Al- Qunfotha, Huly, Al-Qouz 4 4,000 Rabigh Water Transmission System 130 - Rabigh – Mastorah – Thoal 6 18,000 Al-Lith Water Transmission System 6 - Al-Lith 2 9,000 Farasan Water Transmission System 2 - Farasan 1 9,000 4358.8 29P + 17B + 5 Terminal 181 9,473,850 Project Name Jubail – Riyadh pipeline Total 32 Annual Report 1432 – 1433H Projects under Execution The General Directorate of Projects Execution after signing contracts of the Corporation, their tasks start by coordinating works of supervision, and follow up of implementation works at site including initial works such as sites hand over, kick off meetings of the projects up to the final hand over. The following are achievements of the Directorate during the year 1432H/1433H. Desalination Plants: The Corporation is implementing the Reverse Osmosis desalination plant project in Jeddah city, phase -3. Total capacity of this project reaches (240,000) m3 daily. Execution of Ras Al-Khair desalination plant project with a total capacity of (1,025,000) m3 daily and production of electricity energy at (2400) megawatt. Desalination plant projects implemented by the Corporation Name of plant Beneficiary Cities and Centers Technology used Jeddah RO – phase - 3 Jeddah Ras Al-Khair plant Maaden Co./Riyadh/Sudir/ Washm/Hafr Al-Batin/Nuaireyah/ Olayah village Design capacity Water Electricity RO 240,000 m3/day - MSF – RO 1,025,000 m3/day 2400 megawatt Annual Report 1432 – 1433H 33 Water transmission Systems 1- Shuqaiq water transmission pipelines project, phase2 System name Line length (km) Pipe diameter (inch) No. of pumping plants Shuqaiq – Abha 115 44 4 155 48, 36, 32, 24, 20, 18, 14, 12, 10, 6 Abha, Dhahran south 34 1 Proposed distribution for Shuqaiq plant production (2) on beneficiary cities (m3/day) 127,521 Abha, Saouda, Shaghaf, Hajlah 63,000 Rafdin,Sarat Obaidah, Harajah, Jawah, Faidh, Dhahran south, Khamis Mushait, Ahad Rafida Abha, Sabt AlAlayah 210 30, 28, 26, 24, 22, 16, 12, 6 1 40,000 Balhamr, Balsamar, Tanouma, Namas, Madraj, bani Amr, Salamah, Sabt Al-Alayah, Beshout Rejal Almaa 60 16,14,12,8 2 12,000 Mariah, Al-Habil, Haswah, Shabin Okad – Samta 185 64, 56, 48, 44, 36, 32, 28, 20, 12, 6 1 75,000 Al-Darb, Masleyah, Bish, Sabiah, Damd, Jazan, Abu Arish, Ahad Al-Masarha, Samtah Shuqaiq – Al-Barik 94 16,14,12,10,6 1 20,000 Shuqaiq, Al-Haridah, AlQahmah, Zahban, Al-Barik Annual Report 1432 – 1433H 2- Ras Al-Khair/Riyadh water transmission system project Pipeline name Line length (km) Pipe diameter (inch) No. of pumping plants Twin line from first pumping plant in Ras Al-Khair to Tapoff Station (TOS) in upper point 374.7 X 2 72 450,000 X 2 Single line from connection plant (TOS) in high point terminal to terminal plant (TGNW) 66.4 64 400,000 Single line from connection plant (TOS) in upper point to terminal plant (TGNW) 87.1 68,64,48 400,000 Double line from connection plant (TOS) in upper point to strategic reservoirs 5.6 X 2 64 Total pipelines length 914.1 3 Operation capacity (m3/day) Beneficiary cities and governorates Riyadh governorate, Majmaah, Shaqraa, Al-Ghat, Thadiq, Al-Zulfi 450,000 X 2 Annual Report 1432 – 1433H 35 3- Ras Al-Khair – Hafr Al-Batin water transmission system project 36 Pipeline name Line length (km) TOT = 352 km Pipe diameter (inch) From pumping plant PSRH in Ras Al-Khair to Nuareyah reservoir and filling plant 78.2 44 Nuareyah (10,000) From Nuareyah reservoir and filling plant to Ibn Hethlin 11.2 44 Ibn Hethlin (300) From Ibn Hethlin reservoir and filling plant to reservoir and filling plant in Olayah village 66.1 44 Olayah village (2,800) From reservoir and filling plant in Olayah village to AlSairah reservoir and filling plant 31.4 44 From Al-Sairah reservoir and filling plant to Al-Sadawi reservoir and filling plant 85.3 44 From Al-Sadawi reservoir and filling plant to Al-Qaisoumah reservoir and filling plant 65.7 44 Al-Qaisoumah (6,450) From Al-Qaisoumah reservoir and filling plant to terminal point and reservoir of Hafr Al-Batin 7.2 44 Hafr Al-Batin (89,000) From terminal point and reservoir of Hafr Al-Batin to the existing reservoir of Hafr Al-Batin in Water Directorate 7 44 Annual Report 1432 – 1433H No. of pumping plants and water reservoirs 1 pumping station and reservoirs with total capacity 121,600 m3 Beneficiary cities and governorates (m3/day) Al-Sairah (1,170) Al-Sadawi (280) 4- Yanbu – Madinah water transmission system project, phase - 3 Pipeline name Line length (km) Pipe diameter (inch) Yanbu plant to reservoirs of SWCC high point terminl 184.7 76 604000 Reservoirs of SWCC high point terminl to reservoirs of MoW&E east Madinah 16.8 48 190000 Branch of the main line at KM (174) to reservoirs of MoW&E south Madinah 2.7 60 Branch of the main line to reservoirs of SWCC in Hamra 16.8 24 No. of pumping plants 2 water reservoirs Total capacity of reservoirs 1144000 m3 Capacity (m3/day) 604000 47000 Yanbu water transmission system Desalination plants in Yanbu to Yanbu Albahr 56.9 36 1 106000 1 58000 1 45000 Madinah - Mahd water transmission system From the main line at KM (165) to Mahd 233 12-24-32 Madinah - Hanakeya water transmission system From Hanakeya pumping station located besides ministry reservoirs to Suwaidera 48 From Suwaidera to Hanakeya 45.8 24 28 Annual Report 1432 – 1433H 37 5- Taif Al-Baha water transmission system project Pipeline name Line length (km) From Shuhada reservoirs in Taif to Sudairah 24.20 From Sudairah to Shaqsan 25.35 From Shaqsan to Ghazail 30.05 From Ghazail to Abu Raka branch 11.95 from Abu Raka branch to AlMandaq From Al-Mandaq to Al-Baha Pipe diameter (inch) No. of pumping plants Distribution of Marafiq plant production on beneficiary cities (m3/day) 1 pumping plant 3,500 Sudairah 1,500 Military base 2,000 Shaqsan 3,000 Ghazail 30.000 Traiah – Ranim – Al-Kharmah 85.05 8,000 Al-Mandaq 33.8 32,000 Al-Baha 40 7 reservoirs with total capacity (201,500) m3 6- Manufacture, supply, and implementation of water transmission from desalination plant in Leith to the beneficiary villages. 38 Beneficiary villages Line length (km) Pipe diameter (mm) No. and capacity of reservoirs Distribution of water (m3/day) Ghalah 27.26 200 2X1000 m3 1260 Wasaqah 28.59 280 2X1500 m3 2340 Ghamiqah 41.86 280 2X1500 m3 2520 Total 97.71 Annual Report 1432 – 1433H 6120 Service Facility Projects 1- Khobar natural gas transmission system project to desalination plants Pipeline name Line length (km) Pipe diameter (inch) Design capacity (m3/h) Beneficiary cities and governorates From Saudi Aramco company to desalination plants in Khobar 43 km 24 16,152 million CF Desalination plant in Khobar 2-Service facility projects and housing compounds under construction Project name Total area (m2) implementing (22) buildings in Shuqaiq housing compound and (4) buildings in Farasan housing compound and (3) buildings in Umluj housing compound and (4) buildings in Al-wajh 50,000 Other projects under implementation: Design, supply, and implementation of electricity transmission air and ground power lines from transmission of electricity power to pumping plants of Shuqiaq water transmission system – second phase. Design, supply, and implementation of electrical substations and expansion of the existing substations from transmission of electricity power to pumping plants of Shuqiaq water transmission system – phase - 2. Repair of deteriorated concrete in Shoiabah desalination plant, phase - 1. Repair of deteriorated concrete in Khobar desalination plant, phase - 2. Repair of deteriorated concrete in Jubail desalination plant, phases 1,2,3, third contract (A) and third contract (B). Repair of concrete and block leakage of water from two chambers (R2 –C2 & R2 – C3) in the emergency water reservoirs in Riyadh city. Annual Report 1432 – 1433H 39 Future Projects A- Plants 40 Name of the project Beneficiary regions Technology used 1 Yanbu plant Third phase Madinah/Fara Wadi/Mahd/Badr Hanaqeya/Suaidrah/Hamraa/Rais/Yanbu 2 Rabigh plant Third phase 3 4 Annual Report 1432 – 1433H Design capacity Water (m3/day) Electricity (megawatt) MSF or MED 550,000 2,500 Kholais governorate MED 9,000 - Haql plant Third phase Haql MED 9,000 - Duba plant Fourth phase Duba MED 9,000 - B- Pipelines Name of the project 1 2 Water Transmission system Al-Leeth to beneficiary villages Water Transmission system Rabegh - Kholais Length Diameter Plant (km) (inch) Nos. Nos. Capacity Al-Wasaqah – Al-Ghalah Ghamiqah 85.5 8-5 1 2 4,500 Governorate of Kholais 19 16 1 2 5,000 Beneficiary regions Reservoirs Annual Report 1432 – 1433H 41 C- Service Facilities and Housing Compounds 42 Annual Report 1432 – 1433H Name of the project Total area (m2) Capacity (km) 1 Construction of housing compounds in small plants (Haql – Duba – Alwaj) - Second phase 12128 326 - 48 Families - individuals 2 Establishment of the third quarter mosque in Jubail housing compound 1190 1200 Individuals 3 Construction of fire and safety building in Khobar 2996 250 Employees 4 Research and desalination technology institute building + Jubail warehouses 5790 130 Employees 5 Trainee housing in Jubail - 280 Trainees 6 Construction of housing compounds in Jeddah – Khobar – Quba - 7 Construction of Koran memorization school in Jubail housing compound 2400 250 Students 8 Construction of offices for lines maintenance department and workshops in Majmaah plant 1400 25 Individuals 9 Establishment of the grand mosque in Yanbu - - 10 Fire training center in Jubail - - - D- Repair of Concrete Facilities Name of the project 1 Repair of concrete facilities in Jubail plants (1,2) 2 Repair of deteriorated concrete facilities in Shoaibah plant (1) – additional works in Khobar plant (2) 3 Consulting engineering service contract for (10) chambers in emergency water reservoir of Riyadh Annual Report 1432 – 1433H 43 Chapter 2 Chapter 2 Materials Institute of Researches & Desalination Technology Unit of Advisors Industrial Security & Environment 44 Annual Report 1432 – 1433H Materials Needs of the plants and departments of SWCC in the two coasts and headquarter are supplied including spare parts, chemicals, cars, tools, and equipment. Classification of materials is carried out, inventory is observed, purchase procedures are completed, implementation is followed up, and intervention is done to eliminate any obstacles that hinder obtaining the required materials and services on time according to conditions and specifications to maintain constant operation, economic production and safety of the plants. Local Contracts and Purchase Department riyals excluding chemicals,fuels,and gases. Supply of all equipment, services, and materials (except spare parts) needed in the plants at more than 400 thousand Saudi riyals. Value of consumed materials from inventory reached 480 Million Saudi riyals excluding chemicals fuols&gases. Contracts were signed to implement projects of maintenance, construction, materials, machinery, equipment, and services in an organized and fast manner with least cost to ensure constant operation and maintenance of plants:1-Signing of (47) maintenance contracts in a total amount of (66,580,828) Saudi riyals. 2-Signing of (125) contracts for works of renovation and reconstruction of the plants in a total amount of (788,696,990) Saudi riyals. 3-Conclusion of (27) contracts in miscellaneous fields (administrative expenses, industrial security, fuels, chemicals, services, personal transportation) in a total amount of (647,003,390) Saudi riyals. Total value of SWCC inventory reached 1,944,000,000 Saudi riyals. Inventory Department It takes care of plant inventory management and Stock Replineshmcut ORS. Value of entered materials into inventory reached 482 Million Saudi Foreign Purchase Department Supply of spare parts to plants to ensure constant operation from outside the Kingdom in more than 400 thousand Saudi riyals. Foreign Purchase Department undertook: 1-Issuance of (3110) local and foreign PO’s. 2-Issuance of (2798) foreign supply orders. 3-Value of foreign purchase in 2011 reached (231,939,715) Saudi riyals. Foreign Purchase Department was able to award purchase order at a rate of 71 days from date of order placement. Suppliers Management and Plant Services Department Qualifying, registration, and assessment of companies (suppliers, manufacturers, contractors) related to operation and maintenance department and providing database for them. Annual Report 1432 – 1433H 45 Follow up Department Follow up of foreign PO’s from placement upto receipt and settlment of files and keeping all records of orders of spare parts. The follow up department closed (3452) PO’s at a value of (380,093,780) Saudi riyals including orders of the last years. Manufacture Department Undertaking all it takes to supply spare parts from local manufacturers. Direct purchase requests (PR): During 2011, (80) PR’s awarded including (302) pieces from manufacturers at a total value of (8,312,055) Saudi riyals where total savings from these transactions reached (55,096,787) Saudi riyals. Planning and Support Department Opening letters of credit, processing drafts for foreign suppliers, making insurance on foreign spare parts, management and control of bank accounts and permanent advance, and making final settlements for the foreign PO’s. An amount of (473,906,884) Saudi riyals was disbursed on purchase of foreign and local spare parts while an amount of (170,008,28) Saudi riyals was collected from insurance company as a value of damaged or lost materials. 46 Annual Report 1432 – 1433H Saline Water Desalination Research Institute The Saline Water Desalination Research Institute seeks to assume prominent role in developing the desalination processes, raising their efficiency and reducing production cost. These targets are achieved through support of applied research and signing research agreements with the domestic and global competent institutions. The Institute also strives to maintain provision of its services to the plants working in SWCC in identifying the problems that face them and find appropriate solution for them as well as providing contribution to supply the necessary information and advices to decision makers. The Institute seeks to offer technical and consultation support to external institutions and other private commercial companies. Annual Report 1432 – 1433H 47 Cooperation Agreements with the External Institutions 1-Signing of a memorandum of understanding between Saline Water Conversion Corporation (SWCC) and King Abdullah University for Science and Technology to achieve the following goals: Conduct collaborative research projects. Utilize available potentials with each party such as laboratories, equipment and experimental plants. Exchange of knowledge and take advantage of the programs, training courses and higher studies. 2-Signing of collaborative research agreement between SWCC and Hitachi Zosen Company of Japan on 30/11/2011, to develop using solar energy in the field of thermal desalination . The agreement objectives include: Determine the optimum design and operating conditions for commissioning of thermal desalination units powered by solar energy. Joint commercialization of the research output. Exchange of experience. The project has already started at the beginning of 2012 and the pilot solar system is expected to be commissioned on January 2013. 3-A joint research collaborative agreement has been initiated between SWDRI and Doosan Heavy Industries & Construction Company. The project is intended to explore the possibility of operating Once-through Multistage Flash Desalination (OT-MSF) processes at elevated temperatures. The ultimate project objective is to identify the optimum design and operating conditions of a large scale (up to 25 MIGD) OT-MSF commercial distiller. 4-A research agreement has been signed with King Saud University to develop and optimize a solar assisted thermal desalination system. A solar pilot plant which has been initially tested at King Saud University premises was 48 Annual Report 1432 – 1433H transferred to the Institute site at Al-Jubail. 5- A commercial agreement with Sasakura Engineering Company and Water Reuse Promotion Center of Japan has been signed to jointly commercialize with SWCC, the developed trihybrid NF/RO/MED system. 6- Preparations are underway to initiate a research collaborative project with King Saud University to develop indigenous antiscalant materials to be employed for various desalination technologies. 7-The research project with the Singaporean Utility International Company Ltd., which concerns sorting and identifying types of microbial contamination for RO membrane and filers as well as analysis of water quality by using DNA technologies is in its final stages. 8-Preparation are under way to initiate a collaborative research agreement with French Corrosion Institute (FCI), France, for the project entitled “Corrosion and Biofilm of Stainless steels (and Ni-based alloys) in Temperature and Tropical Seawater-Effect of world location on seawater biofilm characteristics and corrosion of alloys”. The agreement has been approved by H.E. the Governor of SWCC and signing of the agreement will take place in March 2013. Internal Projects Five research projects have been completed including two applied research projects, one assessment and two trouble shooting projects. Commercial Projects Regarding commercial business, a number of projects contracts have been signed up to the end of 2012 at a total value of 9,420,700 Saudi Riyals. A number of chemical analyses and membrane dissections were carried out at more than 253,230 Saudi Riyals. Patents The Saline Water Desalination Research Institute obtained the following patents: Patent # 4743727 “Operation Management Device for a Vaporization Device, Fresh Water Generator Provided with the operation Management Device, and Operation Management Method and Fresh Water Generating Method for Vaporization Devices” Japan, Registration date May 20, 2011. 1-Patent # 2816 “Desalination Configuration and Method of Generating Fresh Water” KACST, Registration date January 4, 2012. 2-Patent # 4917962 “Desalination System and Method of Generating Fresh Water” Japan, Registration date February 3, 2012. 3-Patent # 5089236 “Desalination System and Method of Generating Fresh Water” Japan, Registration date September 21, 2012. Conferences and Scientific Publications Laboratories 2005:17025. The final Strategic Plan report from SRI was submitted to the board members of SWCC. The implementation of the strategic Plan is underway. Two members of the Institute has obtained Master degree from foreign universities. Laboratories of Saline Water Desalination Research Institute have been authorized as official reference for assessment of Bromate substance for all water factories and directorates of water in the Kingdom on regular basis. On the light of this, the Institute conducted the necessary analyses. A mobile RO unit was designed, fabricated and installed inside the Pilot Plant of the Institute using hollow fine fiber membranes from Toyobo Japan Company at capacity of 5m3/day. The final draft of Research Activities and Studies book issue No. 22 is under preparation. The Saline Water Desalination Research Institute has participated in regional and international conferences and presented many scientific papers. These papers included review of the Institute’s results and studies to highlight SWCC’s role and attention in the field of research studies. In addition, the Institute publishes papers in the known scientific magazines. In this regard, the Institute has contributed by presenting eight research papers in local and international conferences and published two papers in international scientific journals and eight papers are in press which will be published in 2013. Others Activities The quality system was upgraded to the new version 2008/9001. Work is underway currently so that the Institute gets ISO International Specifications for Annual Report 1432 – 1433H 49 Advisors Unit The advisors unit was established upon decision no. (29821) dated 17/7/1432H. This unit reports directly to H.E. Governor of SWCC. It aims at proposing views and opinions about the subjects submitted to the unit as well as about international cooperation agreements between SWCC and others. It also assesses scientific conferences and identifies importance of participation thereto. The unit also undertakes revision and adoption of scientific papers in addition to supervision on the science and technology unit and the related procedures, topics and budgets. It also coordinates with the supervisory committee on the national plan projects of science and technology in the Kingdom. 50 Annual Report 1432 – 1433H The advisors unit in 1432/1433H (2011) has implemented many tasks assigned to it which can be summarized as follows: Proposed views about numerous technical internal and external reports. Proposed views and assessment of technical papers submitted by SWCC employees for participation to national and international conferences and seminars. Prepared technical presentations to H.E. Governor of SWCC and submitted a number of presentations to some national and international conferences. Participated in meetings related to using renewable and atomic energy within and outside the country. Participated in a number of committees with desalination experts in GCC countries. Participated in Boards of Directors of research excellence centers at the Saudi universities. Participated in meetings of the national team for radiation and nuclear emergency response. Participated in meetings of unification of research efforts in the field of water desalination. Participated in a number of Saudi international joint committees such as Saudi Japanese joint committee, Saudi Korean joint committee, and Saudi Malaysian joint committee. Participated in a number of scientific committees for some national and international conferences suchas conference of water desalination in Arab countries (ARWADEX) and the Saudi forum of water and energy as well as conferences of the International Desalination Association (IDA)and European Desalinatiom society(EDS). Unit of Science and Technology For management and implementation of the national plan for science and technology, a unit for science and technology was established in each one of the government institutions participating in implementing the national plan. Accordingly, H.E. Governor of SWCC dated 17/3/1429H agreed on Assigning tasks of Science and Technology Unit in SWCC to the General Directorate of Researches and Desalination Technology, hence, its manager shall be the General Director of Researche and Desalination Technology. After issuance of decision no. 29821 dated 17/7/1432H regarding restructuring of SWCC, the Science and Technology Unit was put under supervision of the unit of advisors. The unit for science and technology undertakes planning, management, and implementation of programs and projects related to scientific and technological activities in SWCC, developing and coordinating them with priorities and directives of the national plan of science, technology and innovation at King Abdul Aziz City for Science and Technology. The unit during fiscal year 1432/1433 (2011) implemented (9) projects related to developing the Technical Training Center in SWCC. The unit has also provided three research projects to the supervisory committee for approval in the field of researches and technologies of water desalination. Annual Report 1432 – 1433H 51 Industrial Security and Environment The Directorate of Industrial Security and Environment is one of the most important units which undertakes preparation and application of confrontation and rescue plans for many anticipated disasters, incidents, and crises. The key task of this directorate is represented in providing and promoting safety and prevention in all plants in addition to training of employees therein on security and safety procedures. It also undertakes raising level of cultural and protective awareness and clarifying technical and engineering instructions and guidelines for requirements of security, safety, and environment that should be applied in various works and procedures. Attention is being focused in the first place on prevention of these dangers and enclosing, confronting, and handling them professionally and reducing their effects if they occurred. 52 Annual Report 1432 – 1433H The following is a review for some of the General Directorate of Industrial Security and Environment during the year 1432/1433H. First: Security: 1- Set up technical specifications and designs of the comprehensive security system. 2- About (50) specialized training programs were held with training centers specialized in programs of security, safety, and fire fighting for all employees of security, safety, and fire fighting at desalination plants and water transmission pipelines. 3- Rehabilitation and update of security fence in some plants and their utilities. 4- Development of access cards for schools and housing complexes affiliated to the plants. 5- Participation in awareness campaign about drugs harms and distribution of awareness brochures for this purpose. 6- Participation in events of the international day for civil defense. 7- Participation in events of traffic week. 8- Implementation of a number of virtual experiments (virtual security cases) with participation of some relevant security agencies. 9- Dealing with all types of accidents and finishing their procedures at a record time. 10- Qualifying audit and inspection team on procedures of security, safety, and environment in addition to developing work mechanisms. Annual Report 1432 – 1433H 53 Second: Safety and Fire Fighting 1- Some departments of safety and fire fighting got certificate of quality system (ISO 9100-2008) 2- Periodic issuance of monthly and quarterly safety bulletin. 3- Holding training awareness courses on risk of chemical materials and first aid. 4- Achieving record decreased level according to performance indicator of safety works in a number of SWCC plants and facilities in 1432H compared to the previous results enlisted during the year 1431 as follows: A) Recordable injuries have been decreased at a rate of 30%. B) Disabling injuries have been decreased at a rate of 10.1%. C) Lost workdays have been decreased at a rate of 48%. 5- Issuance and reissuance of (20,000) work permits at the different plants and utilities of SWCC. 6- Implementation of some drill exereises on processes of evacuation, fire fighting, and rescue. 7- Replace Halon gas by (Novec) in some desalination plants. 8- More than (50) specialized training programs have been held through specialized training centers for all officials of security, safety, and fire fighting at desalination plants and water transmission pipelines. 9- Implementation of many qualifying programs for all new employees to work according to rules and instructions of safety systems and regulations. 10- Holding of many awareness programs to school students 54 Annual Report 1432 – 1433H 11- 12- 13- 1415- in addition to the proper ways of handling with fires that occur in houses and the necessary procedures that should be taken in this regard. Distribution of safety prizes to departments and individuals who get the highest score in points of the evaluation followed in departments of safety and fire fighting at the plants. Implementation of a number of specialized courses on the way to conduct fire fighting works to employees of operation and maintenance in the plants. Inspecting and maintaining of all systems and devices of fire fighting, in addition to fire fighting water valves and their contents of hoses and equipment in all plants and housing complexes. Conducting practical, theoretical and sports trainings for safety and fire fighting individuals. Qualifying contractors who contract with SWCC according to rules and instructions of safety systems by providing comprehensive lectures on safety systems and conditions at work place and procedures followed in emergency cases. Annual Report 1432 – 1433H 55 Chapter 3 Chapter 3 Legal Affairs General Controller SWCC Financial Status Commercial Accounts 56 Annual Report 1432 – 1433H Legal Affairs The Department of Legal Affairs provides legal advice to all management units in SWCC in accordance with the applicable rules and regulations. It also provides legal advisors with the method of applying strategic approach in managing legal affairs, developing skills of legal advisors in (basics of drafting legal memoranda and their findings, art of pleading and the most important technical issues in proceedings, theory of arguments, ways of formulating contracts, procedures of filing suits, appeals before the judicial authorities, and arbitration). It addition, it activates the supervisory role of the General Department of Legal Affairs, and actively participates in upgrading the legal work and the general work in SWCC. The organizational structure of the General Department of Legal Affairs includes: Three leading departments, namely: 1- Department of Legislation, Contracts and Agreements. 2- Department of Opinion 3- Department of Suits and Investigations. In addition to two supporting sections: 1- Section of Intellectual Property Rights. 2- Proposed Section of Complaints. Annual Report 1432 – 1433H 57 Achievement of the Department of Legislation, Contracts and Agreements During this year 1432/1433H, the following was achieved:- 1- Preparation and revision of draft decisions such as decision of forming the different committees like valuation, sale, opening envelops, examining proposals etc. and the letters submitted to Custodian of the Two Holy Mosques, or those addressed to the ministries, governmental agencies, supervisory entities, or companies contracting with SWCC in relation with activity of SWCC. Volume of transactions referred to the department in this regard reached to (3226) transactions distributed as in the below table: Field of activity Departments directly related to Governor Sector of technical affairs and projects Sector of operation and maintenance Sector of planning and development Total Preparation and revision of draft decisions, letters, etc 855 341 1591 39 2826 Departments directly related to Governor 30.25% Sector of technical affairs and projects 12.07% Sector of planning and development 1.38% Sector of operation and maintenance 56.30% 58 Annual Report 1432 – 1433H 2-The volume of transaction dealings between SWCC departments and the General Department of Legal Affairs in relation to contracts and agreements and the amendments thereof amounted to (1657) transactions including phases of revision and preparation of competitors instructions, conditions, specifications, and replying to requests of opinion about questions raised during phases of competition, offer submission, opening of envelops and qualifying of the companies, in addition to the phase of preparing letters of award, contracts, and agreements to specify conditions that guarantee maintaining rights of SWCC and the contractor with it. The department of legal affairs also undertakes addressing the Ministry of Finance, and treating all aroused conflicts of breach in implementation of the contractual obligations. During the period of report, (266) contracts and agreements have been signed. The table below shows their numbers: Field of activity Departments directly related to Governor Sector of technical affairs and projects Sector of operation and maintenance Sector of planning and development Total contracts and agreements 4 11 249 3 267 Departments directly related to Governor 1.50% Sector of technical affairs and projects 4.20% Sector of planning and development 1.12% Sector of operation and maintenance 93.26% Annual Report 1432 – 1433H 59 3-Within the large contracts achieved by the General Department of Legal Affairs over the period of this report are: A- Contract of manufacture and supply of pipelines for Ras Al-Khair – Hafr Al-Batin water transmission pipeline system at a total value of SR 298,608,998. B- Contract of implementation of the project of Ras Al-Khair – Hafr Al-Batin pumping plant and water transmission pipeline system at a total value of SR 189,000,000. C- Contract of implementation of the project of Yanbu – Al-Madinah pumping plants and water transmission pipeline system third phase at a total value of SR 1,606,418,088. 4-The Department over the period of this report achieved the following agreements: A- Agreement of pumping plant 1 for eastern province water transmission system. B-Agreement of connecting electricity to pumping plant 1 for eastern province water transmission project. C-Agreement of power conversion with Electricity and Co-Generation Regulatory Authority. D- Agreement of assignment between Royal Commission for Jubail and Yanbu and SWCC concerning handover of the land parcels allocated for it in Ras al-Khair Mineral Industries City. E- Research agreement between SWCC and Saudi Research centers and universities as well as between SWCC and international development centers. 60 Annual Report 1432 – 1433H Achievements of the Department of Opinion During the period of this report, the following have been achieved: 1-The General Department of Legal Affairs undertakes giving opinion in the matters referred to it from all sectors of SWCC. 2-Transactions are different according to variety of their subjects in all aspects of legal work, in violations during implementing of contracts and agreements, or violations of staff concerning applicable rules, in suits, or in remarks of regulatory authorities etc.. 3-The below table shows number of transactions referred to the department during the period of this report. Field of activity Departments directly related to Governor Sector of technical affairs and projects Sector of operation and maintenance Sector of planning and development Total Provision of legal opinion 231 238 276 14 759 Departments directly related to Governor 30.43% Sector of technical affairs and projects 31.36% Sector of planning and development 1.84% Sector of operation and maintenance 36.36% Annual Report 1432 – 1433H 61 Achievements of the Department of Lawsuits and Investigation During the period of this report, the following have been achieved: 1- The General Department of Legal Affairs has prepared and studied pleadings of lawsuits and disputes filed by or against SWCC including collecting documents and proofs which are supporting position of SWCC in front of courts. Then, the Department of legal affairs has undertaken also preparation of notices and statements of claim and pleads therein in front of the Board of Grievances, labor committees, or agencies having competent jurisdiction or arbitration and followed up them until final rulings are issued. 62 2- The General Department of Legal Affairs has studied also rulings issued and filed appeals or resumed litigation if necessary after coordination with the relevant departments of SWCC. 3- The lawsuits filed from and/or against SWCC amounted to (45) cases of which (27) cases are pending in front of the Board of Grievances and (9) cases pending in front of the labor committees. Final rulings issued in (9) cases, where, thanks to grace of God and because of diligence of counselors undertaking these cases, the issued rulings in all cases thereof came in the interest of SWCC. Annual Report 1432 – 1433H Filed lawsuits 45 In the interest of SWCC 9 Pending lawsuits 36 Achievements of Intellectual Property Rights The Department of Intellectual Property Rights since its establishment has achieved the following: 1- Professional agreement was concluded with office of Ahmad Najdat Basarbashi – lawyer and legal counselors – agents of trademarks and patents registration dated 23/12/1427H corresponding to 14/1/2001 to register the slogan of SWCC as a trade mark. An amending appendix to this agreement was signed on 5/6/1428H corresponding to 20/6/2007. 2- SWCC slogan was published as a trademark of class (11) in Kingdom of Saudi Arabia dated 28/1/2006 corresponding to 5/10/1427H. 3- On 12/5/1425H corresponding to 30/6/2004 a professional agreement was concluded with the same above mentioned office to register two new patents related to increase productivity of desalination plants and reduce the energy using two phases of nano filter membranes and a turbine charger in between. These two patents were to be registered in European patent offices (Spain – Cyprus – Italy – France) Malta, Japan, USA, GCC countries or any of the said patent registration office as requested by SWCC. 4- Upon a letter from Ahmad Najdat Basarbashi dated in 27/1/1427H, registration applications were filed in each of Saudi Arabia, Kuwait, and Sultanate of Oman. 5- On 13/7/2007, SWCC slogan was registered as a trademark in class (37+42) in Kingdom of Saudi Arabia. 8- On 10/2/2007 SWCC slogan was published in Kingdom of Bahrain in class (37). 9- By its letter dated 30/5/1429H corresponding to 4/6/2008, Basarbashi’s office informed that SWCC slogan was registered as a trademark in class (37) in State of Kuwait. 10- By its letter dated 10/9/1429H corresponding to 10/9/2008, Basarbashi’s office informed that SWCC slogan was registered as a trademark in class (37) in State of Qatar. 11- By its letter dated 17/1/1430H corresponding to 14/1/2009, Basarbashi’s office informed that SWCC slogan was registered as a trademark in classes (37) and (43) in Sultanate of Oman. 12- By its letter dated 14/12/1430H corresponding to 1/12/2009, Basarbashi’s office informed that SWCC slogan was registered as a trademark in classes (37) and (42) in United Arab Emirates. 13- By its letter dated Safar 1431H corresponding to March 2010, Basarbashi’s office informed that SWCC slogan was registered as a trademark in classes (37) and (42) in State of Bahrain. 14- By issuance of registration certificate for SWCC slogan as a trademark in State of Bahrain, the registration of SWCC slogan as a trademark in Saudi Arabia and all GCC countries and the EU states was Completed. 6- By Basarbashi’s office letter dated 30/1/1428H corresponding to 18/2/2007, applications have been lodged for registering SWCC slogan as trademark and service mark in United Arab Emirates, Qatar, and Bahrain. 7- On 13/3/2007 SWCC slogan was published in European Union in class (37+42) and it was published in the official journal issue number 042/2007 dated 13/8/2007. Annual Report 1432 – 1433H 63 Participation with teams and committees inside and outside SWCC: 1- The General Department of Legal Affairs participates in committees of bid examination, bid envelope opening and analysis, and committees of investigation in SWCC. It also participates in committees of discussing comments issued from the General Auditing Bureau, Committee of establishment of Provision and Saving Fund in SWCC, Committee of Residents Violations, and Committee of Examination of the Organizational Structure of the Internal Audit Unit. 2- The General Department of Legal Affairs participates in the team of sale agreements related to Co-Generation including the following: A- Sale agreement of Marafiq project in Jubail. B- Sale agreement of Shuaibah project/3. C- Agreement of water linkage in Shuaibah/3. D- Agreement of water linkage in Shuqaiq/2. 3- The General Department of Legal Affairs undertakes representation of SWCC in the legal aspects in discussions with the other agencies. Of the most important current discussions is that which is carried out with the Ministry of Labor regarding work organization, penalties, and remunerations. This includes also discussion of updating electricity system with each of Ministry of Water and Electricity, Electricity and Co-Generation Regulatory Authority, and Saudi Electricity Company. 64 Annual Report 1432 – 1433H General Auditor Works of the Department of General Auditor are represented in observing work progress in SWCC and the affiliated plants to make sure that it complies with the approved laws, regulations, and procedures. It also suggests amendments it sees on financial and functional regulations of SWCC. According to financial regulations, the General Auditor or whomever it mandates investigates records or documents on regular basis to avoid any mistakes or violations. In addition, it makes unannounced visits to work sites and follows up employees’ working hours and means of security in all SWCC plants and the administrative buildings. It also meets with officials to discuss all work processes and development of self observations. It also receives inquiries that help in observatory works in the meaning of the whole observation in all forms. The Department of General Auditor in fiscal year 1432/1433H in cooperation with SWCC departments achieved many accomplishments as follows: First: the Follow up Department has achieved the following achievements: 1- (260) tours have been made on headquarter, the two coasts, plants and pipelines of the two coasts. The visits included meetings with officials of the departments and plants to check on work progress, employees’ attendance, safety of facilities, and the necessary means of security. The financial auditing has achieved the following works: 1- Achieving of (34) unannounced visits to SWCC warehouses. 2- Achieving of (50) inventory processes for advances of SWCC and its plants. 3- Achieving of (5430) pay orders for payments of SWCC clients. 2- (4776) work cards have been checked for employees of social service and handling the related recommended vacations, cut offs, or penalties. The Government Correspondences’ Department has achieved the following accomplishments: 1- Replies to (42) letters have been achieved which contained remarks of the General Auditing Board. 2- (855) contracts have been sent to government agencies outside SWCC. 3- A number of (20) change orders have been sent concerning the contracts concluded by SWCC. Annual Report 1432 – 1433H 65 SWCC Financial Status General Department of Strategic Planning and Budget prepared SWCC Annuale Report for the fisicle year 1432/1433H (2011) which included the achievements of: Operation and Mantanince for the 27 plants Study, Design and Exuction of new projects Saudization and devlopment of Human Resorcees Private Sector Participation SWCC Obstecales and the Suggested Solutions Follw up forms for the second year (2011) of the country,s9th devlopment plan, as well jop requirent of SWCC for the same year were perpared. On the other hand, SWCC finalized its strategic plan for the next five years(visson, mission, objectives, policies and intiatives), in addaioon to detled acton plans to the variouse departmets for the year of 2011 The total amount spent on SWCC projects until the end of fiscal year 1432/1433H reached (SR 88,710,105,058). In the same time, a total amount of (SR 37,502,974,919) was spent on operation and maintenance of desalination plants and their facilities. SWCC budget for fiscal year 1432/1433H at issuance amounted to (SR 14,919,300,000). Financial position of SWCC for fiscal year 1432/1433H (2011): 66 Item Approved after adjustment Expenditure Percentage of Expenditure First 79,128,278 72,638,669 92% Second 34,447,149 32,084,366 93% Third 4,917,790,312 4,581,905,993 93% Fourth 10,550,516,993 9,258,972,381 88% Total 15,581,882,732 13,945,601,409 90% Annual Report 1432 – 1433H Commercial Accounts The Department of Commercial Accounts assumes the role of coordinator and pursuer of applying accounting system in the center and branches of SWCC, including issuance of consolidated financial statements of SWCC due to the importance of commercial financial statements according to recognized accounting concepts, principles, and standards of for-profit establishments (commercial system) which support SWCC strategy in privatizing its productive facilities. On 24/2/1431H, His Excellency the Governor of SWCC issued his decision for applying accounting system of center and branches in SWCC starting from fiscal year 1430/1431H (2010). Accordingly, an integrated accounting book group was opened in each coast to ensure follow up and addressing of all its financial transactions with full integrated, interrelated, independency in connection with the center by mutual financial processes between them including issuance of financial statements for each. The Department of Commercial Accounts will assume the role of coordinator and pursuer for applying of this system including issuance of consolidated financial statements of SWCC. Since this (annual) report was issued before completing the closing accounts and before the end of the period completing fiscal year 2011, it was not possible to include therein any objective financial statements. In the meanwhile, the financial statements of 2008 have been issued with the report of certified auditor on these statements compared to statements of the fiscal year 2007. Department of Systems and Procedures: The Department of Systems and Procedures was established. The role of this department is represented in preparing and maintaining accounting policies and procedures according to Saudi standards (SOCPA) and the international standards (IFRS) in cooperation with the Consultant office (KPMG). It also supervises on applying the automated systems. Annual Report 1432 – 1433H 67 Chapter 4 Chapter 4 Training & HR Development Internal Communication &Knowledge Management Housing 68 Annual Report 1432 – 1433H Training and Development of Human Resources SWCC was keen on development and advancement of human resources in performing their functional tasks efficiently and with high technical ability. SWCC continued its efforts and interest in Saudization of its jobs where Saudis percentage reached 86%. Employees of WSCC amounted to (10129) including (9692) working in operation and maintenance sector at a percentage of (95.96%) and the remained (437) employees are subject to civil service system at a percentage of (4.31%). Classification Saudis Non Saudis Employees subject to civil service system 437 -- 100% Workforce on labor law* 8217 1475 84.8 Total 8654 1475 85.44 Grand Total Saudization Percentage 10129 * labors on operation and maintenance system. Annual Report 1432 – 1433H 69 During this year, SWCC has prepared career progression plans and implemented training programs of these plans and participated in forums and specialized conferences held abroad and in the Kingdom. This was in addition to the qualifying and developmental programs offered by the training center. SWCC has also provided the chance for a number of employees to study abroad to get higher academic qualifications where it achieved significant success represented by the increase of participants in these programs and the increase of training programs selected to befit the actual needs and choosing the qualified training centers for this purpose in order to transfer financial resources into human resources capable to achieve the SWCC message with high efficiency. Through this report, we shed the light on the main qualifying and developmental programs. First: Local and Outside Courses, Seminars, and Conferences 1- Local Conferences, Forums, and Seminars S Program Type Number of Programs Number of Participants 1 Administrative 240 5181 2 Scientific 25 577 3 Financial 42 513 4 Computer 52 712 5 Security and safety 78 1560 6 Engineering 132 1683 7 Legal 15 116 584 10342 Total 70 Annual Report 1432 – 1433H 6000 5000 4000 Number of Programs Number of Participants 3000 2000 1000 0 Administrative Scientific Financial Computer Legal Engineering Security and safety A- Cambridge International Diploma in Information Technology The certificate of Cambridge International Diploma in Information Technology CID-IT depends on Microsoft software and Windows Operating System. This certificate assesses a range of the most important needed IT skills. The certificate is available at two levels: the introductory and advanced levels. This program is a fast and efficient way to acquire approved skills in IT field. The total the training opportunities of the program this year 1432H (2011) amounted to (330) training opportunities. B-Leadership Development Program: This program aims at qualifying employees and workers in SWCC for the phase of the actual application of restructuring and the phase of conversion to a holding public company working on commercial bases. The total training opportunities for this year 1432H (2011) amounted to (2785) training opportunities. C- Financial and Accounting Employees’ Development Program: This plan aims at training employees on the latest developments in computer and information. It aims also at implementing the programs related to internal audit and the concept of financial accounting. The total training opportunities for this year 1432H (2011) amounted to (478) training opportunities. During the year 1431H (2010), (86) training courses have been implemented where 1653 opportunities provided. Annual Report 1432 – 1433H 71 2-Outside Conferences, Forums, and Seminars S Program Type Number of Programs Number of Participants 1 Administrative 15 78 2 Computer 4 20 3 Scientific 32 91 4 Legal 7 23 5 Engineering 13 55 6 Technical 2 8 7 Financial 2 4 Total 75 279 100 90 80 70 60 Number of Programs 50 Number of Participants 40 30 20 10 0 0 72 Administrative Annual Report 1432 – 1433H Scientific Legal Engineering Financial Technical Computer Second: Study Abroad: SWCC always seeks to send qualified staff to study in the best universities in the different world countries. It also seeks to exchange scientific experiences and build qualified and professional cadres in work environment. SWCC is keen on raising occupational professionalism and developing it though empowerment of its employees to obtain graduate degrees. The number of employees sent to study abroad during the training year (1432H/2011) reached (20) individuals. Academic Degree 1431/1432H (2010) 1432/1433H (2011) Bachelor Degree – Diploma 6 4 Master Degree 17 10 Doctorate Degree 6 6 Total 29 20 Third: Study inside the country: SWCC has given great attention to development of workforce as it is true pillar for the development. Thus, SWCC manages to give its employees the chance to obtain high degrees and certificates from approved universities, academic and training institutions inside the Kingdom. The number of employees who studied during the training year (1432H/2011) reached (11) individuals. (5) individuals studied for Bachelor degree (5) individuals studied for Master degree One individual studied for Diploma Annual Report 1432 – 1433H 73 Fourth: Programs of Training Center in Jubail 1- Qualifying Courses A-Qualifying Course for Engineers: These qualifying courses aim at qualifying new graduate engineers to work in the field of operation and maintenance of plants of desalination and production of electricity. The total number of trainees in the qualifying course number (21) for engineers amounted to (61) trainees and they have been graduated on 13/7/1432H. The qualifying course number (22) for engineers is being implemented with (56) trainees for (33) weeks starting from 19/10/1432H. The following table and graph show percentage of training opportunities for the two courses (21 and 22) as per sections. Course Mechanics Electricity Equipment Operation Others Total 21 12 11 7 12 19 61 22 15 8 7 15 11 56 70 60 50 40 Engineers Course(21) 30 20 10 0 74 Annual Report 1432 – 1433H Mechanics Electricity Machines Operation Others Total number B-Qualifying Course for Operators and Technician Assistants: This course aims at qualifying newly graduated Saudi cadres holding degrees of technical and industrial colleges to work in the field of operation and maintenance of plants of desalination and production of electricity. The total number of trainees in the qualifying course number (40) held for operators and technicians amounted to (170) trainees and they have been graduated on 26/8/1432H. The qualifying course number (41) for operators and technicians is being implemented with (177) trainees for (37) weeks starting from 19/10/1432H. The following table and graph show number of trainees in the two qualifying courses (40 and 41) as per sections. Course Mechanics Electricity Equipment Operation Others Total 40 21 18 22 93 16 170 41 23 20 27 97 10 177 180 160 140 120 100 Course of Operators and Technicians(41) 80 Course of Operators and Technicians(40) 60 40 20 Mechanics Electricity Machines Operation Others Total number Annual Report 1432 – 1433H 75 2-Development Programs: The Training Center implements programs with the aim of raising efficiency of the staff working in the plants through providing them with theoretical information and hands on practical training concerning their specialties. These programs are implemented based on the work need in the plants and potentials of the Training Center in implementation. Many officials of SWCC participate in these programs which include the following: 1) Programs of operation of desalination and electrical energy plants. 2) Programs of maintenance of desalination and electrical energy plants. 3) Computer programs. 4) English language programs. 5) Safety and fire fighting programs. 6) Administrative and behavioral programs. 7) Warehouse programs. In addition, (335) development courses have been implemented. Participants in these courses reached (3191) trainees in all specialties according to the following statement. 76 Annual Report 1432 – 1433H Specialty Number of Programs Number of Participants Computer 6 103 Operation 127 1195 Maintenance 171 1408 English 8 127 Safety and fire fighting 13 222 Management 8 136 Total 335 3191 Internal Communication and Knowledge Management The General Department of Internal Communication and Knowledge Management has achieved this year 1432 /1433H the following tasks: Studies and action plans: Communication with the advisory parties to prepare for developing the knowledge management strategic plan in the organization. Building the plan will start soon. Preparation policies, programs and models of event management in SWCC, and this expected to start next year. Exhibitions and Festivals: Supervision on pavilion of SWCC participated in Saudi forum of energy and water held on 9/1/1433H in Jeddah with printing and distribution of a number of souvenirs to visitors of SWCC pavilion. Activities and Events: Organizing a great ceremony for honoring the departments which obtained ISO and Excellence certificates within SWCC on 6/11/1432H in Riyadh. Organizing the annual meeting of headquarter staff at one of the desert parks in Riyadh. Seminars: Holding a seminar under title of “Successful towards the best” provided by Dr. Marshall Goldsmith dated 4/1/1433H. Organizing (4) seminars under title of “Dealing with people in Sharia’a of Islam” provided by Dr. Mohamed Al-Oraify. Organizing a seminar under the title of (Implementing Innovation in SWCC) provided by Dr. Rawan Gibson, the international expert in innovation and creativity. Other activities: Supply and distribution of a number of books to all libraries of SWCC and posting announcements about them. Supply of a number of electronic and paper subscriptions to a lot of electronic websites and relevant books, periodicals, and reports whether Arabic and international. Providing the external agencies with all types of the necessary information about SWCC. Annual Report 1432 – 1433H 77 Housing In context of SWCC keenness on comfort and stability of its employees in all aspects, the Corporation has established many housing complexes for its officials so that they reside close to the different plants and projects of the Corporation to facilitate their reach whenever circumstances require that at any time particularly that most of such projects are located outside urban boundaries. Design and implementation of theses complexes took into consideration the latest specifications. They were also equipped with all educational, health, and security facilities as well as mosques, parks, and malls in addition to public maintenance units around the clock. 78 Annual Report 1432 – 1433H Statement of the number of housing complexes and the associated units and utilities Section /Department Number of housing complexes Number of housing units Number of utilities Jubail plants 1 2493 44 Shoaibah plants 10 1489 32 Yanbu plants 4 816 28 Khobar plants 3 572 20 Shuqaiq plants 10 723 19 Jeddah plants 4 396 44 Small plants 8 227 50 Headquarters in Riyadh 2 150 4 Water transmission system (Jubail – Riyadh – Qassim) 12 204 4 Khafji plant 1 35 8 Gross total 55 7105 253 Annual Report 1432 – 1433H 79 Housing of Jubail plants Name of housing complex Number of utilities Mosques Schools Clinics Clubs Hospitality shops 5 10 1 3 4 5 10 1 3 4 Housing complex in Jubail plants Partial total Grand total Number of housing units (1) complex other Vilas Apartments Caravans Rooms other 21 771 1482 ---- 240 --- 21 771 1482 ---- 240 --- 44 2493 Number of units allocated for singles (423) type (apartments + rooms). Number of units allocated for families (2070) type (apartments) and (villas). Housing of small plants Name of housing complex Number of housing units Mosques Schools Clinics Clubs Hospitality shops other Vilas Apartments Caravans Rooms other Housing complex in Haql plant 1 --- --- 1 2 1 Playground + swimming pool 20 18 7 --- --- Housing complex in Duba plant 1 --- --- 1 2 1 Playground + swimming pool 20 18 11 --- --- Housing complex in AlWajh plant --- --- --- --- 1 --- --- --- 24 --- --- --- Housing complex in Umluj plant 1 --- --- 1 2 --- Playground + swimming pool 15 36 2 --- --- Housing complex in Rabigh plant --- --- --- --- --- --- --- --- 8 --- --- --- Housing complex in Aziziah plant --- --- --- --- --- --- --- --- 20 --- --- --- Housing complex in Al-Birk plant --- --- --- 1 2 --- --- 4 13 --- --- Housing complex in Farasan plant 1 --- --- 1 2 --- --- --- --- 11 --- Partial total 4 --- --- 5 11 2 6 59 137 31 --- Grand total 80 Number of utilities Annual Report 1432 – 1433H (8) complexes 28 227 --- Housing of Yanbu plants Name of housing complex Number of utilities Number of housing units Mosques Schools Clinics Clubs Hospitality shops Housing complex in Yanbu plants (first phase) 2 5 1 2 7 1 Housing complex in Yanbu plants (second phase) 1 --- --- --- 6 --- --- Housing complex in Mesaijid --- --- --- --- --- --- Housing complex in Madinah --- --- --- --- 2 3 5 1 2 15 Partial total Grand total (4) complexes other Vilas Apartments Caravans other --- 27 32 --- --- 102 --- 392 --- --- --- --- --- 10 --- --- --- --- --- --- 10 --- 1 1 243 102 27 444 --- 28 1 kindergarten 243 Rooms 816 Number of units allocated for families (352) type (villas), (apartments), and (Caravans) (464) units are rooms and caravans. Annual Report 1432 – 1433H 81 Housing of Shoaibah plants Name of housing complex Mosques Schools Clinics Clubs Hospitality shops Number of housing units other Vilas Apartments Caravans Rooms other Housing complex of families 3 4 1 --- --- --- Fuel station --- 366 --- --- --- New housing of singles 1 --- --- --- --- --- Football playground --- --- --- 560 --- Old housing of singles 1 --- --- --- --- --- Old football playground --- --- --- 352 --- Housing of engineers villas 1 --- --- 1 2 --- Social sports club 70 --- --- --- --- Housing villas first phase (fitchner) 1 --- --- 1 --- --- Swimming pool and old club 61 --- --- --- --- Caravan housing for families (fitchner) 1 --- --- --- --- --- --- 0 --- 28 --- --- Housing of pumping plant (Arafah) 1 --- --- --- 1 --- Swimming pool playground 11 --- --- 8 --- Housing of pumping plant (Shadad) 1 --- --- --- 1 --- Swimming pool playground 6 --- --- 4 --- Housing of pumping plant (Al-Kar) 1 --- --- --- --- --- --- 0 --- --- 8 --- Housing of pumping plant (Al-Taif) 1 --- --- --- 3 --- Swimming pool playground 15 --- --- --- --- 11 4 1 2 7 --- 7 163 366 28 932 --- Partial total Grand total 82 Number of utilities Annual Report 1432 – 1433H (10) complexes 32 1489 Headquarters in Riyadh Name of housing complex Number of utilities Number of housing units Mosques Schools Clinics Clubs Hospitality shops Housing complex in Olayah 1 --- --- --- --- 1 Housing complex in Takhassosy 1 --- --- --- --- --- 2 --- --- --- --- 1 Partial total Grand total (2) complexes other --- Vilas Apartments Caravans Rooms other --- 104 --- --- --- 1 meeting hall 46 --- --- --- --- 76 --- 28 --- 1 46 4 150 Housing of Khobar plants Name of housing complex Number of utilities Number of housing units Mosques Schools Clinics Clubs Hospitality shops other Vilas Apartments Caravans Rooms other Housing complex in khobar plants (first phase) 2 8 --- --- 1 7 --- 121 294 1 48 --- Housing complex in khobar plants (second phase) 1 --- --- --- --- --- --- --- 96 --- --- --- Housing complex in khobar plants (third phase) --- --- 1 --- --- --- --- --- 12 --- --- --- 3 8 1 --- 1 7 --- 121 402 1 48 --- Partial total Grand total (3) complexes 20 572 Annual Report 1432 – 1433H 83 Housing of Jeddah plants Name of housing complex Number of housing units Mosques Schools Clinics Clubs Hospitality shops other Vilas Apartments Caravans Rooms other Housing complex in Jeddah plants (1) --- 1 --- --- --- --- 1 cultural center 33 --- --- --- --- Housing complex in Jeddah plants (2) --- 3 --- --- --- 3 1 swimming pool 21 --- --- --- --- Housing complex in Jeddah plants (3) 1 1 1 2 12 5 1 social center 95 142 --- --- --- Housing complex in Jeddah plants (4) 1 3 --- 1 --- 5 Park + swimming pool --- 105 --- --- --- 2 8 1 3 12 13 5 149 247 --- --- --- Partial total Grand total 84 Number of utilities Annual Report 1432 – 1433H (4) complexes 44 396 Housing of Shuqaiq plants 1433H Name of housing complex Number of utilities Mosques Schools Clinics Number of housing units Clubs Hospitality Shops Other Vilas Apartments Caravans Rooms other Permanent Family Housing BLC 1 3 1 2 1 (16) rooms 1 1 Women house (special building) --- 108 --- --- 108 Permanent Family Housing BLA -- --- --- --- --- --- --- --- --- 132 --- --- 132 Permanent Single Housing BLB 1 --- --- --- --- --- 1 swimming pool --- --- --- 216 216 Single Caravans BHD --- --- --- --- --- --- 3 Housing management + maintenance + warehouse --- --- --- 168 168 Family Caravans FCA 1 1 --- --- 2 --- 1 Beach --- --- 50 --- 50 Family Caravans FCB --- --- --- --- --- --- 1 Gas station --- --- 15 --- 15 Villas of Engineers on Sea --- --- --- --- 2 --- --- --- 18 --- --- --- 18 Abha Family Housing AB 1 --- --- --- 1 --- 1 Football playground and attachments --- 8 --- --- 8 Abha Family Housing OV --- --- --- --- --- --- 1 Treatment plant 2 --- --- --- 2 Abha Single Housing BAR --- --- --- --- --- --- 1 Football playground + volleyball + basketball --- --- --- 6 6 4 4 1 2 6 1 1 Governor’s meeting hall 20 248 65 390 723 Partial total Grand total 29 Annual Report 1432 – 1433H 85 Housing of Khafji Plants Name of housing complex Number of utilities Number of housing units Mosques Schools Clinics Clubs Hospitality shops other Vilas Apartments Caravans Rooms other 1 --- --- 1 2 --- swimming pool meeting hall family hall events tent 5 16 --- 14 --- 1 --- --- 1 2 --- 4 5 16 --- 14 --- Khafji housing complex Partial total Grand total 86 Annual Report 1432 – 1433H 8 35 Housing of Pipeline Systems Department Name of housing complex Number of utilities Mosques Number of housing units Schools Clinics Clubs Hospitality shops other Vilas Apartments Caravans Rooms other Housing complex in Dhahran pumping plant (2AB) --- --- --- --- --- --- --- 3 --- --- 11 (1) Separate cabin Housing complex in Shadqam pumping plant (3AB) --- ---- ---- --- ---- --- --- 3 --- --- 14 (1) Separate cabin Housing complex in Hafuf pumping plant (4AB) --- ---- ---- --- ---- --- --- 4 --- --- 12 (1) Separate cabin Housing complex in Khurais pumping plant (5AB) --- ---- ---- --- ---- --- --- 3 --- --- 16 (1) Separate cabin Housing complex in Wasea pumping plant (6AB) --- ---- ---- --- ---- --- --- 2 --- --- 16 (1) Separate cabin Housing complex in Ledam pumping plant (2C) --- ---- ---- --- ---- --- --- --- 8 --- 9 --- Housing complex in Al-Shaab pumping plant (3C) --- ---- ---- --- ---- --- --- --- 8 --- 9 --- Housing complex in Wasea pumping plant (4C) --- ---- ---- --- ---- --- --- --- 8 --- 9 --- Housing complex in High Point (AB) 1 --- --- 2 --- --- --- 6 16 --- 20 (4) Separate cabin Housing complex in Al-Hasi pumping plant – Qassim 1 --- --- --- --- --- --- --- --- --- 6 --- Housing complex in Ghonaiman terminal pumping plant – Qassim --- ---- ---- --- ---- --- --- --- --- --- 6 --- Housing complex in Shaqraa plant – Qassim --- ---- ---- --- ---- --- --- --- --- --- 6 --- 2 --- --- 2 -- --- --- 21 40 --- 134 9 Partial total Grand total (12) complexes 4 204 Annual Report 1432 – 1433H 87 Chapter 5 Chapter 5 Computer & Information Electronic Transformation Program 88 Annual Report 1432 – 1433H Computer and Information Technology In the modern age, technology is one of the most important features that indicate the extent of progress achieved by different sectors whether they are public or private. In all life aspects, technology is accompanying us as a living creature that continues to provide indispensable services and continues to enable us overcome the obstacles and barriers in order to achieve our hopes and ambitions. The Kingdom of Saudi Arabia today is the largest country in the world in production of desalinated sea water represented in SWCC. Due to its huge work volume as a result of the spread of desalination plants all around the Kingdom, and the multiple phases in each plant which requires activating the role of information technology in organizing and accelerating business and reducing the processing cost and providing the accurate information needed for decision makers in a timely manner. Since SWCC is one of the institutions that invest in IT in order to achieve its business and serve its objectives and those of the state to achieve integration in electronic work, Computer and Information Technology Department has been able to achieve the following accomplishments during the year 1432/1433H corresponding to 2011. Prominent achievements of Computer and Information Technology Department are as follows: Annual Report 1432 – 1433H 89 Renewal of the management certificate in information security system management (ISO 27001:2500), which aims at developing a documented information security system in an effective and constant way according to the highest international standards in the field of information security. Renewal of the management certificate in the field of quality management system (ISO 9001:2008). Starting to prepare an RFP (Request for proposal) for the project of application of computer service management system ISO20000:2011 which includes expansion of the information security management system to cover all departments inside IT General Department. It also includes unifying all systems such as ISO20000, ISO9001, and ISO27001 in one system under the name PAS99:2012. Completing the project of expanding and developing local area network in Rabigh, Al-Wajh, and Umlouj. Start with the project of replacing backbone network switches in the major plants with new switches that achieve efficiency and stability of the local network in all sites through providing redundant switches in each site that work active - active mode to ensure constant service in case one of them breakdowns and getting the total operational capacity in the normal circumstances. Reorganizing settings of the main network switches in headquarter by creating virtual networks for systems and servers of windows operating environment and virtual networks for sun systems and servers with the aim to accommodate the future projects. Linking and testing communication for the system of internal protection firewall and ensure flow for all communications from and to servers of windows and sun through internal protection firewall to provide the highest degree of protection for SWCC servers and applications. Preparing and applying the feature of Access Control List ACL on circuits of the wide network through routers which ensure the optimum use of circuit capacities and provide the largest bandwidth portion for data exchange between servers and systems of SWCC. This also limits spread of viruses between networks of SWCC. Linking and commissioning communication circuits IP VPN of the east coast pipelines to work as backup lines for control devices in case the main line encounters any potential problems to help maintain the control devices under control and management of the staff. 90 Annual Report 1432 – 1433H Upgrading the network control system Enterprise PRTG to the latest version and increasing the number of control licenses to 1000. In addition, the alarming feature is activated through SMS messages which ensure Maintaining an Network Devies and Systems around the clock and at week end which ensures quick detection of troubleshooting. Conducting studies and designs for networks of the new projects and preparing Request for Prorosal (REFis) initatives for the network projects of plants. Adoption of a number of technical initiatives for eTP (electronic transformation project) and participation in preparation of Request for proposal for a number of technical programs initiatives. Continue to develop infrastructure for application servers which include reconfiguration and installation of applications. Installing the operational server control system SCOM 2007. Encoding access to website of SWCC nefith.swcc.gov.sa through SSL system. Encoding access to website of SWCC ext.swcc.gov.sa through SSL system. Upgrading database servers to the latest version of Solaris operating system to cope with requirements of eTP applications. Upgrading backup software to the latest version and supporting new services to ensure availability of backup copies in case data is lost. Linking SWCC to the Government Secured Network in collaboration with the Ministry of Communication and IT through (Yesser) program and completing all necessary preparations for this purpose and the required special installations. Preparing a new testing environment for services provided by the department. Providing technical advice and necessary support to manage knowledge and internal communication through participation in Video Conferencing project. Providing safe environment requirements by building and installing central protection firewalls against internal intrusion in order to protect systems and data servers of SWCC headquarter. Providing load distributors to increase constant reliability of internet services in four major plants in addition to headquarter. Registration of many international domains - Arabic and English – for SWCC site through the Saudi Center for internet data. Publishing a number of new sites for SWCC related to recruitment, suppliers, training of suppliers, Nafeth, FTP, electronic training on internet. Developing self service system for employees of civil service which includes some services as follows: Review of training courses for civil service employees on self service system from the training system database. Addition of emergency leave forms. Addition of regular leave forms and extending them. Addition of special leave forms and extending them. Inquiry about sick leave (for 4 years) and special leave (for 5 years) Developing technical support system for Housing Department: As the General Department of Computer and Information is keen to spread benefit and success achieved by its technical support system, a special technical support system related to General Department of Housing and Offices was established that facilitates for the department employees receipt and follow up applications and problems of residents of the housing complexes or SWCC offices. In addition, it will help the department to identify and sort maintenance problems. Developing technical support system for privatization program: a special technical support system was established for members of privatization program in the form of questions and answers to communicate with SWCC employees. Anybody who has an inquiry or suggestion related to SWCC privatization and restructuring program can send it to the team through technical support program where one of the officials in privatization program will answer it. Developing acquired experience exchange system: due to the presence of many desalination plants in SWCC on the east and west coasts of the Kingdom where there are many multidiscipline engineers working and due to the need for a mechanism for communication and experience exchange between easily and smoothly despite the long distance separating them, the acquired experience exchange system was developed which gathers technicians and engineers of SWCC plants. This system serves also as a tool for keeping the practical acquired experience over years. Training a number of website supervisors in the other departments on the method of managing and updating their internal sites. Receipt and dealing with nearly 430 maintenance orders and additions to the existent services which enter under supervision of Department of Applications. Setting up the annual training plan for employees of IT in line with the work needs. Publishing a survey to measure satisfaction of SWCC employees on IT services and acting cording to the report results. Collecting and analysis the required data in the measuring model of transfer to electronic transactions related to the electronic government program. Cooperating with Saudi universities by participation in the annual summer training program for students of computer and IT colleges from different universities and specializations and preparing integrated plans and programs for training them on the job. Annual Report 1432 – 1433H 91 Electronic Transformation Program (e-TP) SWCC faces a number of challenges including the constant and high demand on desalinated water due to high population growth in the Kingdom, and the wide urban boundaries. The other challenge is represented in far geographic distance separating cities of centre and north of the Kingdom where the transfer process requires giant projects. This is in addition to the challenge which forces SWCC to cope with the constant change and update of operation technologies and maintenance of plants. We should not also forget the importance of IT and the fast development in this area. Despite all these challenges, SWCC could achieve large and excellent significant successes. It is enough that SWCC is the largest producer of desalinated water in the world. SWCC has set up an ambitious plan for the coming years which targets increasing its production of water and electricity fulfill the steady growing needs. The plan envisages implementation of some gigantic projects the most important of which is Ras AI-Khair plant that is under construction currently. This project will be the largest plant of its kind in the world. 92 Annual Report 1432 – 1433H In relation to Information Technology, SWCC represented in (e-TP) has achieved distinctive successes in applying ERP (enterprise resource planning) system. Recently, in Safar 1432H, the third phase of (e-TP) was launched which includes applying a new range of administrative and technical initiatives to serve the remaining SWCC sectors after application of ERP systems which are implemented and managed by a group of the largest international and local companies with participation from work teams from SWCC staff. An ambitious plan is also in place to complete the project according to the specified period for implementing it. Whoever knows the nature of an industrial facility like SWCC realizes the extent of challenge and regulatory obstacles as being a governmental institution and the geographic challenge it faces. SWCC contains more than 16 sites along the east and west coast of the Kingdom. In addition, there is a large number of staff that exceeds ten thousand employees besides the Department of water transmission network which is in excess of 5000 kms and covers all urban regions of the Kingdom. To make it more difficult, SWCC is the strategic source of desalinated water in the Kingdom which increases pressure of work and care of the executive management to continue production. This makes the necessary time to develop the systems and quick acceptance of using them constitute additional burden on shoulders of employees in the program. Despite SWCC is an industrial facility that is concerned in the first place by production of desalinated water and then generation of electricity, but the initiatives for modernizing infrastructure and deploying the best and latest technologies is an obsession for its management at a top of which is H.E. Governor of SWCC. While digital control systems (DCS) took their place in managing operation units, SWCC has launched many initiatives to update the infrastructure and build a strategy for information technology. It has also launched an initiative for electronic transformation program which is envisaged to introduce specific shift through development of processes and enhancement of SWCC staff capacity as well as development of the used technologies by applying the optimum international practices in this direction. Through concentrated efforts, support of the senior management, dedication of SWCC work teams, and professionalism of the partners working in the program, SWCC celebrates its future accompaniment that is represented in (e-TP) by getting on the date of 28/12/1432 H (24/11/2011 G) the international award of leading leadership for applying the best practices in management of projects (PMO) for 2011. SWCC presented its (eTP) project in competition of this award competing with large number of international utility companies in many countries of the world. SWCC project has got Annual Report 1432 – 1433H 93 the highest evaluation as a model project that reflects a long term successful initiative for a huge institution like SWCC. Within the fruits of this distinguished success is the support and appreciation received by this program from SWCC Board of Directors which showed its satisfaction on work progress in the program, the achievements that have been accomplished and the local and international prizes obtained. The Board of Directors recommended continuous support to the program as a strategic project for SWCC. First: Objective of ( e-TP) The main objective of (e-TP) is to create specific shift in developing procedures and processes, enhancing capacity of SWCC staff as well as improving the used technologies by applying the optimum international practices in the area of information technology. This will be achieved through coping with the modem international trend in the transfer of the IT sector from being as a Service Provider to a Strategic Business Enabler. No doubt, achievement of this goal requires a lot of work, effort, planning, and coordination. Therefore, since the beginning of the Program it had been decided that work should be done through sophisticated technical and strategic plans. Additionally, it applies international methodologies in implementing all aspects of the program. Among these methodologies for example: {PMI), and Oracle methodology for developing applications known as (ABF). The program has also followed the policy of adopting the best international practices (Best Practice Approach) as an optimum style for achieving the best results based on successful experiences as the shortest way for access to direct practical results without the need to enter into projects 94 Annual Report 1432 – 1433H with uncalculated outcome. Consequently, (e-TP) has optimal successive successes that led to granting it regional and international prizes that will be mentioned in the subsequent chapters of this report. To ensure receiving a successful implementation methodology, (e-TP) adapts the Project Management Institute standard by the establishment of the Program Management Office (PMO) which undertakes management of the projects according to approved internationally tested systematic methodology. A program was designed and implemented for Change Management according to a scientific methodology to prepare the organization and workers to deal with the modern systems and application which is considered as one of the most important factors of success of such projects the application of which will be reflected on level and technique of business and employees performance in the Corporation. Second: Volume of (e-TP) The program currently consists of 11 major projects. Some projects have been completed, including the project of updating infrastructure, financial systems and supply development project, and change management project. These projects are being deployed in plants as well as introducing enhancements to some functions that proved important to users such as: 1-Project of establishment and operating Program Management Office (PMO). 2-Project of Change Management. 3-Project of infrastructure (updating computers). 4-Project of financial system development. 5-Project of supply chain system development. 6-Project of human resource system development. 7-Project of upgrading and deployment of maintenance system in the small plants. 8-Project of quality control for financial system, supply system, and human resource system. 9-Project of integrated connecting channel and roadmap for Information Technology. 10-Project of implementing and developing business initiatives. 11-Project of implementing and developing technical initiatives. Third: Achievement of (e-TP) (e-TP) has achieved unprecedented successes for the Corporation not only in the field of system application but also in application of project management concept and change management. The following is a brief description of the most important achievements of (e-TP) in this context which include: 1- Establishment and Operation of Project Management Office During the first phase of the program, the Project Management Office was established in cooperation with an international consulting firm. This included drawing up covenant of the project, document of policies and procedures, plan of communications, and the different models of work. Then. during the second phase of the program, application, and deployment of the project management system (EPM Tool) was done including introduction, updating, and follow up-dates of the different projects. Additionally, a mechanism of business was developed in compliance with the expansion in the different program projects by adopting the concept of new generation of PMO (project management office). 2-Implementation of Change Management Program In parallel with the establishment of project management office, a program of change management was implemented in cooperation with international consulting firm. Scope of work in this program included making a survey that covers all sectors of the Corporation with the purpose of evaluating knowledge level of SWCC staff about ERP and the extent of their capability and readiness to accept the change. The evaluation process has been ended by preparing a group of plans for change management that covered drawing up the plans related to communication, media and training and plans of change resistance. Annual Report 1432 – 1433H 95 3-Updating the Infrastructure (e-TP) has implemented a project for making a study to evaluate assets of computer department such as computers and their peripherals in cooperation with a consulting firm with the aim to identify requirements of applying ERP system and maintenance system as well as to identify requirements of developing the support systems to ensure provision of needs of the program from equipment, operating systems, and data storage areas for the next five years. Based on this, the program has contracted with a local firm to supply and install requirements of the program from servers and their peripherals besides systems of data storage and backup. 4-Financial System Development Oracle financial system was applied over a record period not exceeding 10 months. The system was operated on the actual work environment dated 20/12/2008. The program succeeded in developing the financial system which led after developing it to unify financial procedures for all financial departments of SWCC (in headquarter and coasts) for the first time in the history of the Corporation. The system is operating with high efficiency in the following sites: 1-Financial management in headquarter. 2-Management of planning and budget in head office. 3-Financial management in east coast. 4-Financial management in west coast 5-Material management in headquarter - section of planning and support (foreign purchase). 6-Plants (incidental advances). The following systems were applied at the level of all SWCC financial sections and departments (cash department, department of receivables and payables), general ledger, and documentary credits systems. Oracle system has become the only financial system approved in the Corporation. Some additional functions and works of the system have been achieved during fiscal year 2001 including the following: 1-Building account tree with multiple sections to meet requirements of financial system at the present time and also for the holding company later on privatization. 2-Producing financial statements of the Corporation automatically. 3-Producing monthly government schedules and sending them to Ministry of Finance. 4-Producing annual government closing schedules automatically (sent to Ministry of Finance last year). 5-Launching a comprehensive inquiry screen on the electronic portal to suppliers for all rounds of purchasing and contracting which facilitated the communication process with suppliers. 6-Liaison with the external institutions {the Bank- Ministry of Finance). 96 Annual Report 1432 – 1433H 5-Supply System Development Oracle supply system was applied over a record period not exceeding 10 months. The system was operated on the actual work environment on 20/12/2008. The system is operating with high efficiency in the following areas: 1-Resource management in headquarter (Foreign purchases, local purchases, material classification) 2-East coast (Purchases department at the east coast) 3-West coast (Purchases department at the west coast) 4-Desalination plants (Al Khobar desalination plants warehouses, all material requests in desalination plants departments, Jeddah desalination plants warehouses, and maintenance and operation department in logistic department of desalination plants). A number of processes and procedures have been implemented through the system including the following: 1-Scrutinizing, cleaning, and transfer of data related to spare parts (electronic catalogue project) with internal effort by SWCC resources. 2-Transfer of the basic data of supply system in a record period of time which exceeds 5 million records. 3-Annual purchases of spare parts in more than two billion Riyals were implemented through the system. 4-Suppliers were reduced from 14,000 to 2,500 suppliers only. Supplier database was also unified in one central database after there have been 25 different databases in SWCC. 5-The automated supply chain system was activated by connection of a group of local and outside suppliers with SWCC system. Some additional functions and works of the system have been achieved during fiscal year 2011 including the following: 1-Completing deployment of Oracle supply chain system in all SWCC plants. 2-Completing deployment of supply system in all departments that undertake purchase and contracting on the projects. 3-Launching the internet gateway (iSupplier Portal) for suppliers. 4-Warehouse inventory on Oracle system for employees in 2009 and 2010. 5-0perating Riyadh central warehouse. 6-Linking medical clinic warehouses with Oracle supply chain system. 7-Linking with mail server of the Corporation. 8-Developing and operating the system of purchase order follow up. 9-0perating Oracle system application for smart reports. 6- Development of Human Resource System Human resource system was developed and applied according to the same methodology followed in developing financial and supply chain systems. After completing development of the basic phases of human resource system, the actual work of human resource system was started which included the following services: The basic human resource system which include (organizational structures / jobs / employee data / management of recruiting processes / leaves / all affairs of employees). Self service system which includes provision of services (leaves / employee data / letters of introduction and services related to employees). Most works have been achieved in the second phase of Human Resource System Development during 2011 fiscal year and put into actual service. They included the following: 1-Developing and applying the electronic recruiting system. 2-Developing and applying the allowances and promotion system. 3-Developing and applying the performance evaluation system. 4-Implementation of self services across email. The following systems have been arranged in preparation of putting them in actual service: 1-Linking payments to the financial system. 2-Training system. 3-Time management system (attendance and leave). 4-Seating Order system. Annual Report 1432 – 1433H 97 7-Upgrading and deployment of maintenance system in small plants The Corporation represented in (e-TP) applied and operated the system by team work from the entire Corporation. Maintenance procedures have been standardized in all plants. Recently, in cooperation with the company possessing the system rights (lnfor), the maintenance system was updated through upgrading from the old version (071 7.6) to the new version of the system (lnfor EAM 8.3). The system is working currently at high efficiency in all the following plants: • Al-Khobar plants • Shuqaiq plant • Yanbu and Madinah plants • Jeddah plants • Shoaibah plants • Jubail plants During 2011, the system was applied and operated successfully in a number of small plants in the following sites: Aziziah plant • Leeth plant • Haql plant • Farasan plant • Debaa plant • Al- Qunfotha plant • Rabigh plant 8-Project of quality control for financial, supply chain, and human resource systems The purpose of this project was to ensure that the company applying Oracle systems implements the application process according to the international standards applicable in the similar projects. The scope of work in the project included conducting study of status of Oracle applications and providing the necessary recommendations to reach application of the optimum practices for Oracle programs in the Corporation. 9-Integrated Connecting Channel and Roadmap for Information Technology (e-TP) has implemented the project of setting up technical specifications of the integrated connecting channel and also for drawing the roadmap for Information Technology projects. The scope of work of the project included setting up technical specifications of the integrated connecting channel. The roadmap for Information 98 Annual Report 1432 – 1433H Technology projects was also for drawn which included 26 initiatives in addition to setting up technical specifications for initiatives that has priority in implementation. 10-The Project of Implementation and Development of Business Initiatives The program has contracted with the consulting firm (Booz & Co.) to set the technical specifications and scope of services for the administrative applications and then help in the process of evaluating the applicant companies which submit proposals to implement the initiatives mentioned below . The firm will then supervise on implementation and application of the specific quality control procedures of application. This has included the following: 1-Development of project management system. 2-Development of industrial security system. 3-Development of cost management system. 4-Development of planning and budget system. 5-Development of institutional performance management system. 6-Development of requirements management system. 7-Development of contract management system. 11-The Project of Implementation and Technical Initiatives The program has contracted with the consulting firm (Deloitte) to set the technical specifications and scope of services for the technical applications and then help in the process of evaluating the applicant companies which submit proposals to implement the below mentioned initiatives. The firm will then supervise on implementation and application of the specific quality control procedures of application. This has included the following: 1-Development of Document Management System 2- Development of Correspondence Management System 3- Development of Portal and Identity Management System 4- Development of Business Process Management 5- Development of Integration and SOA Capabilities 6- Development of IT Infrastructure and Monitoring Tool 7- Development of Help Desk 8- Development of Business Continuity 9- Development of Disaster Recovery Annual Report 1432 – 1433H 99 Chapter 6 Chapter 6 Prequalification Quality Privatization Common projects of the private sector 100 Annual Report 1432 – 1433H Prequalification Prequalification Department is separated out from Computer & Information Department with effect from 19/12/1427 H. The Department is now working independently under the direct patronage of H.E. The Governor of SWCC. The main responsbilities of the Department are: Prequalification of Subcontractors for SWCC Projects. Prequalification of Consultants. Prequalification of Manufacturers. Prequalification of Subcontractors & sub-subcontractors for the Projects under construction with SWCC. Issuing Performance Certificates to the Companies which have executed works for SWCC Projects. For the year 2011, SWCC Prequalification Department has Approved total 508 Companies out of request 905, for the 111 Tenders announced throw SWCC. We have registered 1261 New Companies and in the process developed data base of 3495 Companies Registered with SWCC. We are prequalifying Subcontractors/Manufacturers for our 14 under Construction Projects. Prequalification Programme: Developed a Data base that contains information about Companies and Projects (New & Under-Construction). We have also developed an Electronic System which enables us to complete the entire Prequalification Process Electronically. So, that the Companies intend to prequalify with us, can submit their request and the necessary requirements by simply logging on to our webiste i.e www.swcc.gov.sa without visiting our SWCC Riyadh Branch. Annual Report 1432 – 1433H 101 Quality Application of quality in the Corporation is one of the important matters in the light of a number of variables including participation of the private sector in the same field. So, these companies became strong competitor after SWCC was the only responsible for desalination of salt water. The most important achievements of Quality Department in SWCC are as follows: Continued participation in the process of internal audit of ISO quality systems 9001 and 27001 in headquarter. Exchange knowledge with the government agencies in application of quality systems and provide SWCC experience to the Bureau of Investigation and Public Prosecution and Saudi Food and Drug Authority. Arrangement for the project of applying European Excellence Model with the training center. Support of the General Department of Computer in preparation for the project of applying ISO 20000 system. Participation with (e-TP) program in selecting the implementing agency of business process management (BPM). Start with the project of empowerment to obtain ISO 9001 certificate and follow up providing of technical support to the following: 1-Shuqaiq plants. 2-Jeddah plants. 3-Department of small plants. 4-Department of Audit and technical follow up in west coast. 5-Azizia plant. 6-Rabigh plant. 7-Umluj plant. 8-Al-Wajh plant. 9-Debaa plant. 10-Haql plant. 11-Leeth plant. 12-Al- Qunfidah plant. 13-Farasan plant. 102 Annual Report 1432 – 1433H Privatization The Saline Water Conversion Corporation [SWCC] Privatization and Restructuring Program consists of four main stages as follows: Stages of SWCC Privatization and Restructuring Program COMPLETED From 8/2004 to 8/2006 24 months Preparation and Detailed Privatization Studies STAGE 1 COMPLETED From 1/2007 to 7/2008 18 months Strategy Approvals STAGE 2 CURRETN STAGE Started in 1/2009 Privatization and Restructuring Implementation STAGE 3 Privatization of Holding Company STAGE 4 Annual Report 1432 – 1433H 103 The Saline Water Conversion Corporation has embarked on a Privatization and Restructuring Program that consists of four major stages. The first two stages of the program have already been completed and resulted in developing the new high level organization structure, formulating the privatization strategy and securing all required approvals. The third stage of the Program, the Privatization and Restructuring Implementation stage was launched in Mouharram 1430H and is currently in progress. The third stage of the Program, the Privatization and Restructuring Implementation stage consists of two parts. The first part, “Detailed Implementation Studies”, centered on finalizing all preparatory work for the implementation of SWCC’s Privatization and Restructuring Program and was completed. The second part of the Implementation Phase, which is currently in progress is referred to as the “Rollout” and centers on the implementation and rollout of all restructuring and commercialization activities. The fourth and final stage of the Privatization and Restructuring Program will center on the introduction of private sector participation in the Holding Company, either through a Management Contract(s) or through an Initial Public Offering (IPO). Privatization and Restructuring Implementation Details (Phase 3) The Implementation Stage, the third stage of the overall Privatization and Restructuring Program, was launched in Mouharram 1430 H and is still ongoing to date. This stage aims at completing all activities to the migration to the new organization structure for all SWCC functions and business units, transforming SWCC into a Holding Company, and introducing private sector participation in production business units. This stage consists of two main parts: A-Detailed Implementation Studies (Completed) B-Rollout (In Progress) A. Detailed Implementation Studies: This part consisted of eight modules, each led by a SWCC Team supported by several advisors. The work on each of these modules was completed according to the set schedule and could be summarized as follows: Module 1: PML The main objective of this module was to provide leadership to the 104 Annual Report 1432 – 1433H various activities of the Program and manage coordination across the various modules to ensure the timely implementation of the scope of work. Activities that were completed as part of these modules could be summarized as follows: Assembled the Privatization and Restructuring Program Teams. Developed the PML reference manual. Developed the detailed master plan for all activities within the Program. Coordinated module timelines and work plans. Reviewed all deliverables submitted by the Advisors and ensure their alignment with the Program direction. Developed team member’s training plan for the SWCC PML team. Developed and presented periodic progress reports to relevant parties (such as Steering Committee, Supervisory Committee and Privatization Team Leaders). Module 2: Change Management The main objective of this module was to communicate and interact with all SWCC employees to raise their awareness and enhance their knowledge of the Program. Furthermore, this module aimed at assessing the readiness of the employees for change and identifies the initiatives, such as training and culture change, which need to be implemented to manage the change. The SWCC team focused on the following change management activities: Developed a detailed communication plan aimed at informing employees with the latest developments and outcomes of the Privatization and Restructuring Program. Formulated replies and clarifications on all employees’ questions and queries on the Program. Conducted regular awareness sessions for employees in headquarters, coasts and plants. Published the monthly newsletter “Akhbarona”. Issued the “Frequency Asked Questions” booklet. Conducted 5 surveys, and analyzed the results. Modules 3: Management & Organizational Restructuring The main objective of this module was to develop the detailed future SWCC organization structure, governance model and employee redeployment plan. Activities that were completed as part of this module could be summarized as follows: Developed the detailed organization structure. Developed the future manpower plan. Developed and detailed key management processes. Detailed key performance indicators. Developed employee redeployment plan. Developed Grievance Settlement Plan. Module 4: HR Readiness The main objective of this module was to assess the current capabilities of SWCC, and to prepare all documentation for the future HR processes, such as the career path matrix, grading and compensation and HR policies and procedures. Activities that were completed as part of this module could be summarized as follows: Developed an HR Strategy. Developed job descriptions. Developed Competencies and Skills dictionary Developed Career Paths and Possibility Matrix, and Grading and Compensation Performed the skill assessment of employees in SWCC Developed a comprehensive training plan based on analysis of needs Developed the HR Policies & Procedures Manual Module 5: Business Process Re-engineering & System Readiness The main objectives of this module were to develop and detail the new business processes and to follow up on their implementation. Activities that were completed as part of this module could be summarized as follows: Completed re-engineering business processes. This was done for the Finance, HR. Procurement and Supplier Qualification, and Quality Management functions. Performed an assessment of system readiness for existing business process Developed the IT strategy. Defined IT policies and procedures Developed a master plan for the implementation of IT strategy initiatives Module 6: Strategic Implications on Regulatory Requirements The main objectives of this module were to determine the requirements to transform SWCC into a holding company and to develop a communication plan for all stakeholders of the Privatization Program. Activities that were completed as part of this module could be summarized as follows: The program team coordinated with all stakeholders of the Privatization Program. It held many meeting with those parties to discus accounts payable and receivable, transfer of SWCC assets and properties to the Holding Company, financial requirements of the Holding Company, structure of commercial agreements and Tariff Levels, environmental impacts and exception that must be taken into account by the Holding Company. Module 7: Commercialization The main objectives of this module were to develop the draft of the Royal Decree for the creation of the Holding Company and to define the corresponding legal, financial, and technical restructuring requirements. Annual Report 1432 – 1433H 105 Activities that were completed as part of this module could be summarized as follows: Drafted the documentation required to create the Holding Company, including The Royal Decree, Council of Ministers Decisions, and company by-laws. Developed a sample employment contract. Developed the Fair Value Report for SWCC’s land assets Developed a report for the settlement of Accounts Receivables and Accounts Payables Developed a report on Boundary Issues and land assets of SWCC Developed the Opening Balance reports for the Holding Company. Developed financial policies and procedures. Module 8: Privatization The main objectives of this module were to develop the concept report for the Privatization of Yanbu Plant and to manage preparation and issuance of the corresponding tender documentation. Furthermore, the Request for Proposal (RFP) document for proposing future plants once SWCC starts operating on a commercial basis. Rollout Phase 1 of the Rollout of SWCC’s Commercialization and Restructuring Program was launched in Shawwal 1431H and spanned over 8 months (from Jumadah I 1432H (September 2010 to May 2011). The main objectives of this first phase Rollout were to benefit from the work achieved in the past phases. This first phase of the Rollout consisted of 3 main modules. The work completed on each of these modules could be summarized as follows: Module 1: PML This module was supervised by Director of the Privatization and Restructuring Program, and consisted of the following activities: Update the Program Management reference manual, define coordination requirements for the various modules and define the process for reviewing and approving deliverables. Coordinate module timelines and work plans Track, monitor and report progress against plans and schedules Review all the deliverables submitted on various modules and address any requirements related to the Program. Coordinate with external stakeholders on all matters related to the Privatization and Commercialization program. Module 2: Organization Restructuring This module was supervised by the Deputy Governor for Planning and Development, and consisted of two teams: 1- Management & Organization Restructuring & HR Readiness Team The MOR & HR Readiness activities focused on the actual implementation of the restructuring in the selected functions and Business Units (BUs), which will be used as a pilot to ensure the smooth and effective restructuring for the remaining functions and BUs in SWCC. These activities could be summarized as: Set up a rollout action plan for the selected functions and BUs. Assessed training needs Defined transition steps and timeline to start the implementation of new processes. Set up master plan detailing the steps required to migrate to the new organization structure. 106 Annual Report 1432 – 1433H Executed restructuring for six functions and BUs in SWCC and finalized redeployment of employees. Developed employee Performance Management process and tools. 2- Business Process Re-Engineering Team The BPR activities could be summarized as: Developed a transition plan and schedule for the implementation of the reengineered processes. Developed policies and procedures for selected functions Developed new processes for selected functions not covered in the previous phase of the program. Module 3: Commercialization This module was supervised by the Deputy Governor for Projects and Technical Affairs and consisted of three teams: 1- Commercial Agreements and Accounting Commercial Agreements and Accounting activities focused on developing the commercial agreements that will govern the relationship between the Holding Company and the relevant external parties and completion of the financial requirements of the Holding Company. Those activities could be summarized as: Managed the preparation of commercial agreements (from legal, technical, and commercial aspects) with relevant to external parties. Managed the interaction with external stakeholders. Finalized all financial requirements for the Holding Company. Developed the Opening Balance sheets up to 30/12/2009. Reviewed and validated the “cost identification model” and used it in the commercial agreements. 2- Fixed Asset Management Fixed Asset Management activities focused in the evaluation and classification of assets (plants, transmission lines, and land. Activities of the Fixed Asset Management Team could be summarized as: Determined the classification of fixed assets. Defined the depreciation levels of assets and determine the minimum value of each. Prepared record of fixed assets and verified presence and value of the fixed assets. Feed record of fixed assets with results of inventory and evaluation process. Loaded results and values of fixed assets inventory in Oracle system. Updated the organization structure of the Asset Management Unit and enact its role Developed authority limits and review the policies and procedure for the Fixed Asset Management Unit 3- Water Code and Tariff Structure Projects Water Code and Tariff Structure activities focused on coordinating with ECRA on the development of the “Desalinated Water Code” and the “Tariff Structure”. As SWCC awaits the issuance of the Royal Decree for the creation of the Holding Company, work is ongoing on the Privatization and Restructuring Implementation phase of the Program based on Supreme Economic Council Decree number 29/2 dated 29/06/1429H. This work is being conducted in a structured manner, based on a clear program and timeline, and with the participation of special advisors in SWCC. Annual Report 1432 – 1433H 107 Common projects of the private sector Saline Water Conversion Corporation (SWCC) has taken serious procedures in the way of privatizing its utilities and providing more opportunities to participation of the private sector in its activities and encouraging it to take part in investment in the field of water desalination. Within the projects operated by the private sector are: Shoaibah desalination plant (third phase), and expansion of RO Shoaibah desalination plant, both projects are owned by Shoaibah Water and Electricity Company. They include also the project of Shoaibah desalination plant (second phase), owned by Shoaibah Water and Electricity Company, and the project of Jubail desalination plant owned by Electricity and Water Marafiq Company in Jubail and Yanbu, and the two floating plants owned by International Barges Limited Company for Water Desalination (Bowarege). Common project with the private sector and independent water and power production Capacity of Water Production (m3/d) Capacity of Power Production (mw/h) Beneficiary Cities Shoibah (third phase) 880,000 900 Makkah, Holy Places, Jeddah, Taif and Al-Baha Shoaibah Expansion (RO) 150,000 - Jeddah Jubail – Marafiq* 800,000 2700 Jubail, Dammam, Safawi, Siyhat, Ras-Tanura, and Qatif Shuqaiq (second phase) 212,000 850 Asir and Jazan Two floating plants 50,000 - Currently Madinah and Yanbu Name of the Project * SWCC owns only 500,000 (m3/d). 108 Annual Report 1432 – 1433H No .of Depository 0275/16 ISSN 4542/1319