Identifier
Created
Classification
Origin
06MUSCAT903
2006-06-06 10:36:00
UNCLASSIFIED
Embassy Muscat
Cable title:
NOMINATION FOR CORPORATE EXCELLENCE AWARD: AES
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 MUSCAT 000903
SIPDIS
SIPDIS
STATE FOR EB/CBA (NSMITH-NISSLEY) AND NEA/ARP
COMMERCE FOR ITA C.OBERG
E.O. 12958: N/A
TAGS: ECON BEXP ELAB ENRG KSEP SENV AMGT MU
SUBJECT: NOMINATION FOR CORPORATE EXCELLENCE AWARD: AES
BARKA
REF: STATE 64726
--------
Summary
--------
UNCLAS SECTION 01 OF 02 MUSCAT 000903
SIPDIS
SIPDIS
STATE FOR EB/CBA (NSMITH-NISSLEY) AND NEA/ARP
COMMERCE FOR ITA C.OBERG
E.O. 12958: N/A
TAGS: ECON BEXP ELAB ENRG KSEP SENV AMGT MU
SUBJECT: NOMINATION FOR CORPORATE EXCELLENCE AWARD: AES
BARKA
REF: STATE 64726
--------------
Summary
--------------
1. Embassy Muscat is pleased to nominate AES Barka for the
Secretary's 2006 Award for Corporate Excellence. AES Barka's
SIPDIS
pivotal role in meeting Oman's increased electricity and
water demands through private sector generation, and its
strong commitment to corporate governance, community service
and security, development of local talent, and protection of
Oman's environment, make this company the right choice for
the 2006 Corporate Excellence Award. End Summary.
--------------
Bringing More Power and Water to Oman
--------------
2. In 1996, the Omani government established a policy of
increasing electricity and water production through private
sector construction of power and water desalination plants.
In 2000, AES Barka, a consortium of Arlington,
Virginia-headquartered AES Corporation and Omani-based
Multitech, LCC, a division of Suhail Bahwan Company, won a
government tender to construct a 427 megawatt power and 20
million gallons per day water desalination plant in Barka, a
community located approximately 60 km northwest of Muscat.
Under a 15-year Build, Own, Operate (BOO) contract with the
government, AES Barka initiated power and water production on
June 11, 2003. Since then, the plant has achieved a 99%
reliability factor in generating 2,747 gigawatt hours of
electricity and 27.7 million cubic meters of water per year.
--------------
Eye for Corporate Governance
--------------
3. Reflecting the value system of its U.S. parent, AES Barka
places a strong emphasis on good corporate governance. The
company's CEO reviews this commitment with plant tour
participants during each of his welcome presentations. AES
Barka has also published a code of business conduct and
ethics that guides all employees on such topics as legal and
regulatory compliance, conflicts of interest, public
disclosure, protection of information, government
interaction, and environment, health, and safety standards.
The company enjoys solid working relationships with the
electricity regulator, and with officials from the Power and
Water Procurement Company, Ministry of Housing, Electricity,
and Water, and the Ministry of Regional Municipalities,
Environment, and Water Resources.
--------------
Involved in the Community
--------------
4. AES Barka is an exemplary corporate citizen. Recognizing
the impact the new power and water desalination plant would
have on its host community, the company financed the
installation of street lights along 7 kilometers of roadway
leading to the plant, mitigating a potentially dangerous
situation caused by increased traffic flows. AES has also
been involved in other road improvement projects, including
the paving of a thoroughfare in the town of Barka.
5. In addition, AES has been actively involved in upgrading
the facilities and equipment in local schools. For example,
AES Barka financed the installation of a water well for one
local school, donated computers to several others, and
purchased sun shade covers for school playgrounds. AES Barka
has also constructed six housing units for low-income
families and purchased wheelchairs to fill a critical need
area for a local disability center.
6. Finally, AES Barka has taken a strong interest in the
security of the community. AES Barka's CEO has volunteered
to serve on the Executive Working Group of Muscat's newly
forming Overseas Security Advisory Council (OSAC),and
maintains open lines of communication with the Royal Oman
Police and the Embassy's Regional Security Office.
--------------
Investing in Human Resources
--------------
7. In keeping with one of the Omani government's most
important economic development priorities, AES Barka has been
strongly committed to developing its Omani human resources.
In September 2004, the company initiated an annual trainee
program aimed at preparing recent Omani college and technical
school graduates for employment in the power generation
field. Working with the Ministry of Manpower, AES Barka
formulated a one-year program that combines three months of
classroom training with hands-on plant operations experience
under the supervision of a mentor. Nine participants have
since completed the program.
8. To complement this initiative, AES Barka also established
an apprenticeship program in association with Sultan Qaboos
University, the Sultanate's premier higher education
institution. Using a similar format, AES Barka accepts four
students during school term recesses to further their
understanding of plant operations. Both of these programs
support AES Barka's commitment to recruit qualified Omanis,
who now comprise 48% of the company's operations and
maintenance workforce, well ahead of projected Omanization
targets.
9. AES Barka also strives to provide a safe workplace
environment for its employees. The company finished 2005
without a single workplace accident, representing 165,099
worker-hours. Overall, the plant's employees have logged
over 400,000 hours without a lost-time accident, the result
of collaborative efforts to attend safety meetings, conduct
safety walks, and rectify potential safety hazards.
--------------
Mindful of the Environment
--------------
10. AES Barka is committed to producing power and water in a
safe, clean manner. For example, the company uses low sulfur
Omani natural gas for fuel. The plant's gas turbines also
use a dry, low-NOx technology to control emissions, resulting
in NOx emissions that were only 30% of the permitted value.
Furthermore, AES Barka utilizes a continuous emissions
monitoring system to measure real-time air quality, and
monitors water discharge to ensure it meets environmental
regulations. In short, government officials view the
facility as a model for the implementation of a clean plant
with the right technology.
11. AES Barka also undertook a project in 2005 to reduce
waste production. The company installed a caustic liquid
bulk storage tank in place of using solid caustic shipped in
bags. As a result, the company will be able to reduce
hazardous waste production of up to 12,000 waste bags
annually.
GRAPPO
SIPDIS
SIPDIS
STATE FOR EB/CBA (NSMITH-NISSLEY) AND NEA/ARP
COMMERCE FOR ITA C.OBERG
E.O. 12958: N/A
TAGS: ECON BEXP ELAB ENRG KSEP SENV AMGT MU
SUBJECT: NOMINATION FOR CORPORATE EXCELLENCE AWARD: AES
BARKA
REF: STATE 64726
--------------
Summary
--------------
1. Embassy Muscat is pleased to nominate AES Barka for the
Secretary's 2006 Award for Corporate Excellence. AES Barka's
SIPDIS
pivotal role in meeting Oman's increased electricity and
water demands through private sector generation, and its
strong commitment to corporate governance, community service
and security, development of local talent, and protection of
Oman's environment, make this company the right choice for
the 2006 Corporate Excellence Award. End Summary.
--------------
Bringing More Power and Water to Oman
--------------
2. In 1996, the Omani government established a policy of
increasing electricity and water production through private
sector construction of power and water desalination plants.
In 2000, AES Barka, a consortium of Arlington,
Virginia-headquartered AES Corporation and Omani-based
Multitech, LCC, a division of Suhail Bahwan Company, won a
government tender to construct a 427 megawatt power and 20
million gallons per day water desalination plant in Barka, a
community located approximately 60 km northwest of Muscat.
Under a 15-year Build, Own, Operate (BOO) contract with the
government, AES Barka initiated power and water production on
June 11, 2003. Since then, the plant has achieved a 99%
reliability factor in generating 2,747 gigawatt hours of
electricity and 27.7 million cubic meters of water per year.
--------------
Eye for Corporate Governance
--------------
3. Reflecting the value system of its U.S. parent, AES Barka
places a strong emphasis on good corporate governance. The
company's CEO reviews this commitment with plant tour
participants during each of his welcome presentations. AES
Barka has also published a code of business conduct and
ethics that guides all employees on such topics as legal and
regulatory compliance, conflicts of interest, public
disclosure, protection of information, government
interaction, and environment, health, and safety standards.
The company enjoys solid working relationships with the
electricity regulator, and with officials from the Power and
Water Procurement Company, Ministry of Housing, Electricity,
and Water, and the Ministry of Regional Municipalities,
Environment, and Water Resources.
--------------
Involved in the Community
--------------
4. AES Barka is an exemplary corporate citizen. Recognizing
the impact the new power and water desalination plant would
have on its host community, the company financed the
installation of street lights along 7 kilometers of roadway
leading to the plant, mitigating a potentially dangerous
situation caused by increased traffic flows. AES has also
been involved in other road improvement projects, including
the paving of a thoroughfare in the town of Barka.
5. In addition, AES has been actively involved in upgrading
the facilities and equipment in local schools. For example,
AES Barka financed the installation of a water well for one
local school, donated computers to several others, and
purchased sun shade covers for school playgrounds. AES Barka
has also constructed six housing units for low-income
families and purchased wheelchairs to fill a critical need
area for a local disability center.
6. Finally, AES Barka has taken a strong interest in the
security of the community. AES Barka's CEO has volunteered
to serve on the Executive Working Group of Muscat's newly
forming Overseas Security Advisory Council (OSAC),and
maintains open lines of communication with the Royal Oman
Police and the Embassy's Regional Security Office.
--------------
Investing in Human Resources
--------------
7. In keeping with one of the Omani government's most
important economic development priorities, AES Barka has been
strongly committed to developing its Omani human resources.
In September 2004, the company initiated an annual trainee
program aimed at preparing recent Omani college and technical
school graduates for employment in the power generation
field. Working with the Ministry of Manpower, AES Barka
formulated a one-year program that combines three months of
classroom training with hands-on plant operations experience
under the supervision of a mentor. Nine participants have
since completed the program.
8. To complement this initiative, AES Barka also established
an apprenticeship program in association with Sultan Qaboos
University, the Sultanate's premier higher education
institution. Using a similar format, AES Barka accepts four
students during school term recesses to further their
understanding of plant operations. Both of these programs
support AES Barka's commitment to recruit qualified Omanis,
who now comprise 48% of the company's operations and
maintenance workforce, well ahead of projected Omanization
targets.
9. AES Barka also strives to provide a safe workplace
environment for its employees. The company finished 2005
without a single workplace accident, representing 165,099
worker-hours. Overall, the plant's employees have logged
over 400,000 hours without a lost-time accident, the result
of collaborative efforts to attend safety meetings, conduct
safety walks, and rectify potential safety hazards.
--------------
Mindful of the Environment
--------------
10. AES Barka is committed to producing power and water in a
safe, clean manner. For example, the company uses low sulfur
Omani natural gas for fuel. The plant's gas turbines also
use a dry, low-NOx technology to control emissions, resulting
in NOx emissions that were only 30% of the permitted value.
Furthermore, AES Barka utilizes a continuous emissions
monitoring system to measure real-time air quality, and
monitors water discharge to ensure it meets environmental
regulations. In short, government officials view the
facility as a model for the implementation of a clean plant
with the right technology.
11. AES Barka also undertook a project in 2005 to reduce
waste production. The company installed a caustic liquid
bulk storage tank in place of using solid caustic shipped in
bags. As a result, the company will be able to reduce
hazardous waste production of up to 12,000 waste bags
annually.
GRAPPO