Annual Report - 2008eng

ELECTRICITY DISTRIBUTION COMPANY Public Shareholding Company
THE ANNUAL REPORT 2008
His Hashemite Majesty, King Abdullah (II) Bin Al-Hussein (May Allah Bless & Safeguard Him)
Electricity Distribution Company
Table of Contents
Board of Directors A message from the chairman of the board of directors The Company Executive Management Scope of Our Activities The Organizational Framework of the company for the Year 2008 The Administrative Achievements Commercial Achievements Technical Achievements Financial Performance Indicators The Year 2008 in Numbers The Independent Accounts Auditor Report Financial Statement Confirmation of the Board of Directors Recommendations EDCO Headquarters and Branches Addresses 6 7 13 21 22 23 27 31 44 45 50 56 72 73 74
Board of Directors
First: Between (1/1/2008 1/7/2008) Hashemite Kingdom of Jordan Government, represented by Messrs:
- His Excellency, Mr . Abdul Karim Abdul Rahman Salameh Al Malahmeh - His Excellency, Dr.Shabeeb Ammari (Chairman of the Board of Directors) (Chairman of the Board of Directors for Jordan Telecom Company)/Vice Chairman of the Board of Directors Member) (Aqaba
- His Excellency, Engineer Marwan Abdullah Mohammed Bushnaq - His Excellency, Engineer Munthir Ali Al Mutlq Khleifat - His Excellency, Engineer Omar Mahmmoud Al-Rousan - His Excellency, Mr/ Issa Saleh Yaseen - His Excellency, Engineer Mahmoud Al-Ees
(General Manager of Jordan Electricity Company/ (Member)
Representative / Member)
Special
Economic
Zone Authority
(Ministry of Finance Representative/ Member) (Planning Manager - Ministry of Energy and Mineral Resources /Member)
Second: Between (13/7/2008 31/12/2008) Kingdom Electricity Company, represented by Messrs:

His Excellency, Mr / Abdul Karim Abdul Rahman Salameh Al Malahmeh (Chairman of the Board of Directors) (Member) (Member) (Member) (Member) (Member from 31 /7/ 2008)
His Excellency, Dr / Adnan Mohammed Hassan Sa'ad His Excellency, Mr / Saad Adnan Saeed Abu Oudah His Excellency, Mr / Saleh Ali Ou'dah Al-Hlalat
His Excellency, Mr / Mohammed Oudah Hassan Al-Najadat His Excellency, Engineer / Ahmad Ali Sa'ad Theinat His Excellency, Mr / Khalid Mohammed Oudeh Al-Qar'an
(Vice Chairman of the Board of Directors)
General Manager
His Excellency, Engineer Mohammed Ameen Abdul Al-Hafith Al-A'arif Al-Freihat
Accounts' Auditors
Messrs.: Talal Abu Ghazaleh & Associates Company
A message from the Chairman of the Board of Directors

In the Name of Allah, the Most Gracious, the Most Beneficent Distinguished Shareholders: On behalf of the Directors, I have the pleasure of putting in your hands the tenth annual report on the Company performance and achievements, published as at the end of the fiscal year 2008, and the financial statements of the year ending on 31/ 12/ 2008 plus estimates for the year 2009. The Distribution Company is keen to maintain the momentum of progress and prosperity, which stems from the vision it has adopted towards achieving distinction in presenting the electric energy commodity to promote the company performance up to its best production levels in a bid to realize financial revenues on investments, and to boost its competition abilities. This care reflects the Company's determination to conduct its responsibilities and mission as assigned to it in the field of managing one of the most vital facilities in the country, to match up and be closely related to the growth requirement on the economic and social levels- along with its other fellow companies operating in the sector, thus contributing to the overall course of progress and promotion of Jordan. . The year 2008 witnessed a significant development in the Company, being the conclusion of its privatization process in line with government plans and programs concerning the electricity sector restructure and privatization, ratified in mid-1990s. The electricity sector privatization decree ratified by the prime ministry in 2001 and the public interim electricity law ratified in the same year which came to be one of the requirements and means for executing this strategy, and a guarantee for the electrical sector organizing board. As I have mentioned, the privatization of the Company was completed upon signing the agreements related to the sale process and the accomplishment of all the procedures required for transferring the ownership of the Distribution Company with percentage of 100% to the investor Kingdom Electricity Company on 2 / 7 /2008. During 2008, the Company continued to promote and utilize significant achievements in the technical, administrative and financial fields that the Company undertook. This report reflects the most outstanding results, figures and indicators on the size and levels of achievements in spite of the difficulties and challenges facing the Company. One of the most prominent difficulties is the problem of the commercial electrical loss ascribed to illegal electrical energy consumption and the disorders in the electrical tariffs. A part of these disorders was treated in the tariff framework approved on 14/ 3 /2008 .
Honorable Shareholders : The Company was able to depend on its own resources and available capabilities when executing its projects, implementing its various work programs and achieving its goals, by depending on its qualified and competent cadres. The Company does its best to take care of, to motivate and qualify these cadres to keep up with the increasing development and demands of loads, especially in Aqaba Special Economical Zone and some other development Zones. Besides achieving these projects, the Company's continues to maintain high standards of networks performance, decreasing the electrical interruptions to the minimum possible limits and limiting electrical loss to acceptable frames despite the great transgressions of illegal energy drawing by some people. This has become especially acute after the rise of fuel prices. Moreover, the Company followed all the available means to boost the relationship with its consumers, realizing that their satisfaction on the commodity quality and the rendered service is a crucial element of its success. On the financial side, the ability of the Company, to realize good financial revenues on investments, was promoted. Accordingly, the Company over passed the problem it was suffering from in previous years, being its inability to realize operational profits due to the disorders in the electrical tariff. The Company was able to realize after tax profits of JD (4.101) million as at end of 2008 with a remarkable increase over profits achieved during the year 2007. The Company continues to uphold its relationship with public departments, whether esponsible for setting policies or organizing and controlling it. The Company renders great attention and due care to this relationship to consolidate all efforts towards serving the goals of this sector and realizing the legal interest with the maximum degrees of efficiency and transparency. Moreover, the Company believes in its ability to face future with complete trust and confidence achieving further development, progress and success. In conclusion, I am pleased to extend my utmost congratulations to the executive core and members of the Kingdom Electricity Company on all their achievements and incessant efforts in making the work flow of this Company successful. Furthermore, I am pleased to convey my thanks and appreciation to all the brothers and colleagues in the Board of Directors, the Director General, his assistants, executive directors, all officials and employees therein for the blessed efforts and incessant contributions that resulted in achieving distinguished successes this year. We hope that this Company will achieve all progress and prosperity, and to share in building Jordan under the enlightened leadership of His Majesty King Abdullah II, May Allah save & protect him for the safe of this country.
Chairman of the Board of Directors Abdul Karim Abdul Rahman SalamehAl Malahmeh
Board of Directors / Kingdom Electricity Company Representatives

His Excellency, Mr. / Abdul Karim Abdul Rahman Salameh Al Malahmeh/Chairman
Date of Birth: 1952 Date of Membership: 13/7/2008 B.A in Sociology / Faculty of Arts from Baghdad University, B.A in Law from Beirut Arab University and High Diploma in Management - Jordan.
Practical Experiences:
1975 1995 held several administrative positions in Al-Karak Governorate where he was promoted from district director to province director, province ruler then governor deputy. 1995-2005: he held a governor position for the following governorates, respectively: Tafila, Madaba, Aqaba, Irbid and the Capital. 7/2005 11/2005: Minister of State for the Parliamentary Affairs. From 24/6/2006 till now: board of directors chairman for the Electricity Distribution Company. Obtained the first-class independence medal. Former chairman of the Board of Directors in Irbid Electricity Distribution Company (2000-2002). Former chairman for the Local Council of Princess Basma for social services in many locations ( Madaba, Al-Tafeelah, Aqaba, Irbid) Former vice chairman of Al-Hassan City for the Youth Board of Directors / Irbid , and former member in the Central Consultation Council Board of Directors for the Jordan University of Science and Technology and also in many colleges' councils.
His Excellency, Dr. / Adnan Mohammed Hassan Sa'ad / Vice Chairman

Date of Birth: 1944 Date of Membership: 13/7/2008 PhD in Petrochemicals from Manchester University (Britain) /1976
1977 1983 Head of Petrol Section in Al-Kuwait Institution for Scientific Researches. 1983 1990 energy expert in OPEC then a consultant for oil companies in Kuwait. 1990 2003 A General Manager for different companies dealing with oil and gas in: Kuwait, Jordan, Qatar and Abu Dhabi. 2003 till now: General Manager of Al-Sharqiyyah Company for Trading and Contracting in Jordan. He has 6 management certificates from Ohio in America and 3 appreciation certificates in General Management from Abu Dhabi, Syria and Egypt and 3 patents registered under his name. Board of Directors member in the Kingdom Electricity Company and member in Irbid Electricity Company board of directors.
His Excellency, Mr. / Mohammed Oudeh Hassan Al-Najadat

Date of Birth: 1939 Date of Membership: 13/7/2008 Master in Military & Administrative Sciences
Officer in the Jordanian Armed Forces. Consultant in his Royal Highness Prince Hassan office in the everlasting Royal Court. A member of the Jordanian Parliament. Minister of State of Mr. AbdulKareem Al-Kabarety Cabinet. Minister of State in Mr. Adnan Badran Cabinet He obtained the following medals: Military Merit/ the Jordanian Planet/ Renaissance/ Independence.
His Excellency Engineer /Sa'ad Adnan Sa'eed Abu Oudeh

Date of Birth: 1966 Date of Membership: 13/7/2008 Communications Engineering Bachelor (B.Sc.) Virginia University /1988
1990 1994 designation and planning engineer in private companies in the United States of America and Jordan. 1994 1999 general manager of Qatar Company for Mobile Phones and Communication (Qatar). 2000-2007 he occupied many positions and came up the scale till he occupied the position of the executive head for Commercial Administration in Zain International Group Companies , then an executive head for the operations in (Fastlink )Zain Company Jordan 2008 till now: he is holding the position of the executive head in the Kingdom Electricity Company (Jordan). Irbid Electricity Public Limited Company/ Board of Directors Vice Chairman
His Excellency, Mr. / Saleh Ali Oudeh Al-Hlalat

Date of Birth: 1965 Date of Membership: 13/7/2008 Royal Military College Certificate/1985
1985- 2006 Officer in the Jordan Armed Forces (retired as a colonel). 16/6/2006 1/9/2008 administrative director in the United Arab Investors Company. 1/9/2008 till now: the office manager of the chairman of the board of directors/ secretary of director board in the United Arab Investors Company. He obtained the following medals: Military Merit / Jordan Planet/ Austrian Special Presidency Medal.
His Excellency, Engineer. / Ahmad Ali Sa'ad Theinat
Date of Birth: 1944 Date of Membership: 31/7/2008 Master in Electrical Engineer/1975
1965- 1969 Teacher in the Ministry of Education/ Electrical Workshops. 1975- 1984 Manager of projects in (Telefunken AEG) Company/ Germany, and representative for High Voltage Technology Directorate in the Company. 1984- 3/2002 He was promoted in some functional positions starting from maintenance and operating as section head, and finally the region's department manager for Irbid Electricity Company. 3/2002 until now: General Manager / Irbid Governorate Electricity Distribution Company.
His Excellency, Mr. / Khalid Mohammed Oudeh Al-Qar'an
Date of Birth: 1966 Date of Membership: 31/7/2008 B.A in accounting from the University of Jordan in 1988 and two certificates MBA & CPA from Buffalo University at New York State in 1990.
1991- 1994 Accounting Editor in Arthur Anderson Company. 1994 1996 the Financial and Administrative Manager in the Middle East Company for Canning (Jordan). 1996- 1999 Financial Controller for Ole Holdings Group Company (U.A.E, Dubai). 1999- 2007 Financial Manager (CFO) in transferring group then HMBS Company and member of the Board of Directors in the International Modern Industries Company. 2007- until now: Financial Manager (CFO) in Jordan Dubai Capital Company.
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Amounts Paid to the Board Directors' Chairman and Members for the Year 2008
Board of Directors Members' Names

Until 1/7/2008 His His Excellency, Mr./ Abdul Karim Abdul Rahman Salameh Al Malahmeh His Excellency, Dr./ Shabeeb Amari His Excellency, Engineer Marwan Abdullah Mohammed Bushnaq His Excellency, Engineer Munther Ali Al Mutlaq Khleifat His Excellency, Engineer Omar Mahmmoud Al-Rousan His Excellency, Mr./ Shadi Abdul Salam Al-Majali His Excellency, Mr./ Issa Saleh Yaseen His Excellency, Engineer Mahmoud Al-Eees Total From 21/7/2008 His Excellency, Mr./ Abdul Karim Abdul Rahman Salameh Al Malahmeh His Excellency, Dr./ Adnan Mohammed Hassan Sa'ad His Excellency, Mr./ Mohammed Oudeh Hassan AlNajadat His Excellency, Mr./ Sa'ad Adnan Sa'eed Abu Oudeh His Excellency, Mr./ Khalid Mohammed Oudeh AlQar'an His Excellency, Mr./ Saleh Ali Oudeh Al-Hlalat His Excellency, Engineer./ Ahmad Ali Sa'ad Theinat Total Gross Total
Total of Annual Monthly Rewards Transporting Rewards

JD JD JD 9000 0 0 0 0 0 0 0 9000 2400 2400 2400 2400 2157 243 2400 2400 16800 1500 1500 1500 1500 1500 0 1500 1500 10500
Total
JD 12900 3900 3900 3900 3657 243 3900 3900 36300
9371 0 0 0 0 0 0 9371 18371
0 0 0 0 0 0 0 0 16800
2678 2678 2678 2678 2516 2678 2678 18584 29084
12049 2678 2678 2678 2516 2678 2678 27955 64255
Members of the Board financial rewards of the year2007were paid during the year 2008, but Chairman of the Board reward for the year 2008,
will be determined and distributed after General Assembly meeting as per stipulations of the companies' law.
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The Company major owners and number of their shares in the year 2008 Compared to the Year 2007:
The following are the names of the shareholders who own 5% and more of the capital of the company and their contribution as shown on 31/12/2008.
No. 1 Name Kingdom Electricity Company Shares Number on 31/12/2008 None Percentage Shares Number as shown in 31/12/2008 10.000.000 Percentage 100%
A list of the board of directors members' names, representatives of Kingdom Electricity Company, administration of the executive board , the amount of their contribution and their relatives' contribution (wife and minor children) in the capital of the company: Name
His Excellency, Mr./ Abdul Karim Al Malahmeh His Excellency, Dr./ Adnan Mohammed Sa'ad His Excellency, Mr./ Mohammed Oudeh AlNajadat His Excellency, Mr./ Sa'ad Adnan Abu Oudeh His Excellency, Mr./ Khalid Mohammed AlQar'an His Excellency, Mr./ Saleh Ali Al-Hlalat His Excellency, Engineer./ Ahmad Ali Theinat Member type (Legal, Natural) Legal Member Legal Member Shares Number 2007 No of restrained shares for membership 500 500 500 500 500 500 500
Legal Member Legal Member Legal Member Legal Member Legal Member
Notes: There are no contributions by the chairman and members of the board directors and the administration executive company relatives (wife, minor children and relatives) in the Company capital.
There are no companies controlled by of the Board of Directors' members, their relatives, the executive higher administration personnel and their relatives. There are no contracts, projects and commitments held by the subordinate, brother and affiliate companies or chairman and members of the board of directors or the general manager or any employee in the Company or their relatives.
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The Company Executive Administration

His Excellency, Engineer. / Mohammed Ameen Abdul Hafith Al-A'arif Al-Freihat/ General Manager Date of Birth: 1960 Date of Appointment: 15/7/2006 Electrical Engineering, B.Sc. 1988 Practical Experiences: 1990- 1996 promoted up to several job positions as of an engineer of planning to the technical studies section head, then to the technical planning department director and finally to the general director assistant for planning affairs at the National Electricity Company ( The Jordanian Electrical Authority, previously). 7/2006- till now: The Electricity Distribution Company General Manger. His Excellency, Mr. / Marwan Omar Mustafa Al-Aswad/ Assistant Director General for financial affairs/ Main Offices. Date of Birth: 1950 Date of Appointment: 1/11/1976 License in English Language and Literature Practical Experiences: 1974- 1976: he worked for the Procurement Department at the Jordan Petroleum Refinery. 1976- 1993: the Materiel Section Head at the Jordanian Electricity Authority. 1993- 1999: the Tenders Commission Secretary at the Jordanian Electricity Authority then at the Electricity Generation Company. 2000- till now: the General Director assistant for financial affairs at the Electricity Distribution Company. His Excellency, Mr. / Mohammed Ya'qoub Shoumer Al-Shamaileh/ Assistant Director General for administrative affairs/ Main Offices. Date of Birth: 1957 Date of Appointment: 20/12/1981 High Diploma in law studies after the first university degree from the Higher Institute of Legal Studies and Research / Cairo 2000. Practical Experiences: 1979 - 1981: A section head/ Ministry of Transportation. 1981- 1999 till now: promoted up to several job positions starting from an administrative, then an administrative section head, up to acting Employees' Affairs and Training Department head for the National Electricity Power Company and the Jordanian Electricity Authority (previously). 1999- till now: the Administrative Affairs head, then the Administrative and legal Affairs Administrative head, then the Administrative Affairs general director at the Electricity Distribution Company. During his service career, he worked as an administrative consultant deputized in Queen Alya' Fund for (6) months during the year 1994 and a part-time administrative consultant / member of administrative and organizational studies commission/ Prime Ministry 1995.
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Engineer/ Yousef Khaleel Mohammed Al-Smadi / Assistant General Director for Technical Affairs until 15/7/2008, whereas his services end by his death, May Allah have mercy on him. Date of Birth: 1956 Date of Appointment: 8/7/2000 Electrical Engineering, BSc / 1976 Practical Experiences: 1978 1989 He promoted in the work starting from an electricity engineer and ending with an electricity manager of Al-Karak region in Jordan Electricity Authority. 1989 - 2000 General supervisor in Bin Laden Saudi Group. 2000 - 7/2008 He promoted in some job positions starting from a manager of consumer studies department and ending with a general director assistant for technical affairs in the Company until his death on 15/7/2008. Engineer/ Reem Mohammed Sa'eed Ahmad Hamdan / Acting Assistant General Director for Technical Affairs from 20/7/2008/ Main Offices. Date of Birth: 1969 Date of Appointment: 20/2/1993 Electrical Engineering, B.Sc. / 1993 Practical Experiences: 1993- until now : She was promoted in some job positions starting from a studies engineer to head of consumers studies section then a planning department manager and ending with a technical affairs general director assistant in the Electricity Distribution Company ( Former Jordan Electricity Authority). Engineer/ Fawzi Mohammed Saleem Al-Hakeem / Executive Director for Al-Aqaba Electricity Distribution Area until 15/4/2008, He is working from that Date on as a technical consultant in Al-Aqaba Area. Date of Birth: 1948 Date of Appointment: 19/5/1976 Electrical Power Engineering, B.Sc. / 1973 Practical Experiences: 1974 - 1975: He worked as supervisor engineer on the electrical installation for the Ministry of Public Works and Housing. 1975 - 4/2008: He was promoted in some functional positions starting from a distribution engineer then an area manager and ending with an executive director in Al-Aqaba electricity distribution area in the Electricity Distribution Company. 4/ 2008 - until now: A technical consultant in Al-Aqaba electricity distribution area.
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Engineer/ Adnan Fallah Muslih Al-Habahbeh / Executive Manager for Al-Aqaba Electricity Distribution Area Executive Director as of 15/4/2008. Date of Birth: 1958 Date of Appointment: 3/2/1990 Electrical Engineering, B.Sc. / 1983 Practical Experiences: 1983 - 1990: A resident and supervisor engineer on the electrical installation works for buildings and factories. 1990- 2002: He worked as distribution engineer then manager of Al-Tafeelah electricity area for Electricity Distribution Company (Former Jordan Electricity Authority). 2003 2006 Substations' Department Head in Ma'an area for the National Distribution Power Company. 2007- 2008: Technical department Manager at Al-Karak electricity distribution area for the Electricity Distribution Company. 1/2008- until now: Maintenance and Operating Department Manager then an executive manager at AlAqaba electricity distribution area. Engineer/ Yaseen Khalid Sa'eed Al-Khasawneh / Executive Director for Jordan Valley and Eastern Electricity Distribution Area. Date of Birth: 1955 Date of Appointment: 1/6/1987 Electrical Engineering, B.Sc. / 1977 Practical Experiences: 1977- 1985 Electricity engineer in Jordan Valley Authority then at electrical and contracting projects in Saudi Arabia. 1985- 1987 Head of electrical maintenance for a glass factory in Jordan. 1987 1995 He was promoted in some job positions starting from a distribution engineer to a Ma'an area manager in the Jordan Electricity Authority. 1995- until now: Manager of Jordan Valley area then an executive director for the Jordan Valley and Eastern in the Electricity Distribution Area. Engineer/ Mohammed Mohammed Suleiman Al-Mazaydah / Executive Director for Ma'an Electricity Distribution Area. Date of Birth: 1957 Date of Appointment: 2/12/1981 Electrical Engineering (power), B.Sc. / 1981 Practical Experiences: 1981 - 1992 He was promoted in the work from an electricity engineer to a manger of Al-Tafeelah electricity department in the Jordan Electricity Authority. 1992-until now: An area manager then an executive director for Ma'an electricity area in the Electricity Distribution Area.
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Engineer/ Hassan Ahmad Slamah Thneibat / Executive Director for Al-Karak Electricity Distribution Area. Date of Birth: 1957 Date of Appointment: 7/11/1981 Electrical Engineering (power), B.Sc. / 1981 Practical Experiences: 1981- until know: He was promoted in some job positions in Al-Karak electricity distribution area starting from an electricity engineer then an area manager, and ending with an executive director for Al-Karak Electricity Distribution Company. Dr./ Nehad Ahmad Yousef Al-Omari / Manufacturing Department Manager Date of Birth: 1955 Date of Appointment: 19/7/1980 PhD in Civil Engineering / 1997 Practical Experiences: 1981: He was promoted at the work in some job positions in the manufacturing department for Jordan Electricity Authority (formerly) starting from a production engineer and ending with the manufacturing department manager in the Electricity Distribution Company, except the period between (1986-1988), whereas he was delegated for (C.T Main) Company, to work in designing and studying the Aqaba Thermal Station second stage tender. Engineer / Abdul Al-Rasul Yousef Saleh Foudeh/ Al-Tafeelah Electricity Distribution Area Director. Date of Birth: 1954 Date of Appointment: 18/9/1990 Electrical Engineering, B.Sc. / 1982 Practical Experiences: 1982- 1991: An electricity engineer worked in many projects for private companies. 1991- 2002: An electricity distribution engineer in Ma'an area then the head of the technical department in the area. 2002- until now: Director of Al-Tafeelah area department for the Electricity Distribution Company.
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Total Salaries, Allowances, and Rewards and Traveling Expenses Inside and Outside the Kingdom for the Executive Management in the Company during the Year 2008
Total of Salaries, allowances & Annual Rewards JD Traveling Expenses & Transporting Inside the Kingdom JD Traveling Expenses Outside the Kingdom JD
Shift Allowance
Name
Engineer. / Mohammed Ameen Abdul Hafith Al-A'arif Al-Freihat
Position
Commissions Rewards & incentives JD
JD
General Manager Assistant General Director for financial affairs
33700 21254 21044 15893
150 100
2450 1200 1400
145 1050 -
Mr. / Marwan Omar Mustafa Al-Aswad Mr. / Mohammed Ya'qoub Shomer Al-Shamaileh Engineer/ Yousef Khaleel Mohammed Al-Smadi Engineer/ Reem Mohammed Sa'eed Ahmad Hamdan
Assistant General Director for administrative affairs General Director Assistant for technical affairs/ till 15/7/2008
Acting Assistant General Director for technical affairs & Secretary of the Board from 23/7/2008 Executive Director for Al-Aqaba Electricity Distribution Area till 15/4/2008 & Technical Consultant in the Area now.
12634
1300
2568
Engineer/ Fawzi Mohammad Saleem Al-Hakeem
25161
200
800
600
Engineer/ Adnan Falah Mousleh Al-Habahbeh Engineer/ Hassan Ahmad Slamah Thneibat Engineer/ Mohammed Mohammed Suleiman Al-Mazaydah Engineer/ Yaseen Khalid Sa'eed Al-Khasawneh Engineer / Abdul Al-Rassoul Yousef Saleh Fodah Dr./ Nehad Ahmad Yousef Al-Omari Total
Executive Director at Al-Aqaba Electricity Distribution Area from 15/4/2008 Executive Director for Al-Karak Electricity Distribution Area
16086
450
1400
720
1245
24196 23737
200 250
1400 200
720 720
1388 121
Executive Director for Ma'an Electricity Distribution Area Executive Director for Jordan Valley and Eastern Electricity Distribution Area
21969
800
720
1846
Director of Al-Tafeelah Electricity Distribution Area Department Manager of Manufacturing Department
14192 25535 255401
1650 200 3200
1400 12350
720 4200
375 750 9488
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The Company Competition Situation:

The Company has no competitor within the sector of its activity as it works within a distribution license as of 2/7/2007 within a specified region.
The Extent of Dependency on Certain Suppliers:

- The Company mainly depends on purchasing the electrical energy from the National Electricity Power Company within a tariff specified by Electricity Regulatory Commission. Also, the Company purchases other limited quantities from the Fertilizers' Company in Aqaba with a ratio of no more than (0.04%). - Jordan Water Company (Miyahuna) is considered one of the Company main consumers as it purchases (17%) of the total monthly sales of the Company for the consumption of their projects' electrical energy in the field of Zara Main, Al-Subaihi and Abu Al-Alzeeghan.
The Governmental Protection or Privileges Enjoyed by the Company or any of its Products under Laws and Regulations.etc.
- The Application agreement signed between the Company and the Government of the Hashemite Kingdom of Jordan, valid from 2/7/2008 to 31/12/2010 grants governmental protection from any financial obligations, occurring to the Company, of more than 200 thousand dinars as a result of taxes or fees amendments. - The Company works under a retail distribution and supply license as of 2/7/2008, issued by the Electricity Regulatory Commissioners Council, valid for 25 years. - Capital commodities, materials, instruments and production material, within the core of the Company Projects are exempted from customs' duties, public tax on sales and others under the letter of the prime ministry cabinet no. 12/11/4/2828 on 2/3/2000. - The government guarantees that the Company will achieve minimum annual profits, for its shareholders, based on the methodology of the electrical tariff appended to the retail distribution and supply license. - The Company obtained no patents.
Decisions Issued by the Government, International Organizationsetc which have a Substantial Effect on the Company or on its Products or its Competition Ability:
- The Electricity Regulatory Commissioners Council, on 28/12/2006, issued the instructions of delivery assignments no (1) for the year 2007, enforced as of 1/1/2007. - The decision of Electricity Regulatory Commission amending the wholesale tariff of the sold electrical power from the National Electric Power Company to the Electricity Distribution Company as of 14/3/2008 of increasing the day and night power tariff by (1.2) Fils/KWH and raising the tariff of the maximum load from (2.4 JD/KW) to (2.98 JD/KW) monthly. - Meters Testing and Maintenance Lab / Amman / main offices acquired the ISO 9001 for the quality management system at the category of the procedures related to purchase, storage, release, and issue of the electrical power meters.
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Risks Facing the Company:
- There are no risks threatening the Company works. - No operations of non-recurring nature occurred during the year 2008, are not included within the Company main activity.
The Company Contributions:

The Company owns JD (12.03%), (300781) JD value of the electrical equipment industry shares amounting up to JD (2.5) million. The value of each share is one dinar only. This company manufactures transformers for distribution. This Company uses a part of its production.
The Company Subordinate Companies:

The company has no subordinate companies.
Capital Investment Size:

The capitalistic investment volume in the Company for the year 2008 amounted up to JD (16.092) million.
Auditor's Fees:
The Company accounts auditor fees during the year 2008 are JD (11440) including a sales tax of (16%).
The Company Activities in the Field of Environment Protection and Safety:

The Company is careful to execute its works within the optimal safety measures and operational efficacy through the public safety section which supervises the following-up of the executive technical instruments commitment of the Company various sites to the public safety principles to limit work accidents and injuries, protecting lives and property. Moreover, the Company published a manual on the public safety regulations and principles to be distributed to all the workers to abide by. The Company purchases clothes, tools and safety equipment from the best manufacturing companies. Regarding environment conservation, the Company works on reducing the usage of any material with a negative harm to the environment, spreading health and environment awareness, continuously.
The Company Activities in the Field of Local Community Service:

The Company contributes, through its main service, in supplying the electrical current to various locations, through reflecting the importance in the public life in adopting the required infrastructure to promote local community and its institutions. Within the policy of cooperation with the local Scocity, the company trained (5) engineers from the Ministry of Public Works & Housing, (7) newly graduated engineers from the engineers' association, (34) students from the universities and community colleges within the field training, (1) student within the Arab and foreign students' training programs and (13) female trainees from the Vocational Training Center. Moreover, the Company presents financial support to several beneficiary associations and supports social projects, sport and cultural clubs and national awareness programs.
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Donations and Grants Presented by the Company during the Year 2008
The following table shows donations which the Company contributes in during the Year 2008, and the bodies presented for compared with the Year 2007. 2008 (in dinars) 2007 (in dinars)
The Beneficiary Body from the Donation

The Sublime Thinking Institution Al- Fahd Beneficiary Association The Jordanian Science & Cultural Association Al-Karak Sons Diwan Association/ Dabouk Al-Qasr Castle Beneficiary Association Al-Joud for Academic Care Institution
1000 500 300 300 1000 200 300 150 2501 859 500 200 200 2806 400 35 100 500
Yanabee' Al-Khair (Blessing Fountions) Association for Zaita / AlKhaleel Population Al-Hashimiya University Jordan Cancer Society Jordan Armed Forces AUB Alumni Club Al-Tafeelah Great Municipality The Eighth Comprehensive School for Girls/Aqaba
250
1308 500 838 300 300
South Shounah District Governorate Sheehan Club/ Al-Karak Ma'an Municipality
Jordan Iraqi Brotherhood Association Ma'an Sons Beneficiary Association The Renewable Energy Exhibition Visions' Association for the Blind Karak Multi-purpose Cooperative Association Handicaps Care Association / Al Karak The Jordanian Football Union
250 300 100 250 500 300 300 200 500 200 500 3000 300 750
The Unemployed Training and Rehabilitation Center/ Al-Karak
The Jordanian National Forum For Women Mu'ta Cultural, Sports and Social Club Al-Karak National Nights Scientific Research Friend Association
Abu Ayoub Al-Ansari Zakat Committee The Jordan Cigre National Committee Total
The Jordanian Women Committee / Al-Karak Branch Electricity Workers Public Syndicate of Jordan
11851
10946
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Scope of Our Activities

The region of supplying The Electricity Distribution Company extends in the governorates of :Al-Karak , Al-Tafeelah , Ma'an, Al-Aqaba and Jordan Valley ( from Al-Himmeh , in the north, to the Dead Sea in the south ) and in the Eastern region areas ( Al-Rweished, Al-Reesha, Al-Azraq, Al-Safawi ), as demonstrated in the attached layout :
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The Organizational Framework of the Company for the Year 2008

Board of Directors General Manager Auditing Committee out of the Board of Directors Internal Auditing Department

Electricity Networks Department
Maintenance and Operation Department
Financial and Consumers Services Department
Manufacturing Department
Secretariat of Tendering Committees
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Assistant Director General for Administrative Affairs Assistant Director General for Technical Affairs
Administrative Services Department
Legal Affairs Department
Assistant Director General for Financial Affairs
Executive Director for Aqaba Electricity Distribution Area

Technical Department
Wadi Musa Electricity Department
Financial Department Planning Department Engineering Department Transportation Department Institutional Services Department Transportation Department
Human Resources Department
Financial Department and Consumers Services
Executive Director for Maan Electricity Distribution Area

General Accounts Department
Executive Director for Karak Electricity Distribution Area

Commercial Affairs Department
Southern Shounah Area Electricity Department
The Eastern Area Electricity Department
Executive Director for Jordan Valley and Eastern Electricity Distribution Area
Supplies and Warehouses Department
Tafila Electricity Department
Administrative Achievements
Human Resources Development
The number of employees at the Company reached (1047) employees by the end of 2008, (981) of them work within the distribution activity and (66) work within the manufacturing activity in addition to (46) trainee-technicians. Fifty eight (58) employees Services were terminated for different reasons during this year. Therefore, the number of employees was (1093) with a percentage of about (3.8%) less than the previous year. The employees are distributed according to their occupational field, geographical locations of the work area, academic and professional qualification as follows:
Number of employees in the Company, broken down according to the appointment type, during the years (2004-2008) 2005 1020 5 84 1109 Figure No. (1)
Table No. (1)
Appointment Type Regular Contract Daily Paid Trainee Total
2004 945 54 3 63 1065
2006 1005 3 101 1109
2007 1066 70 1136
2008 1037 10 46 1093
Development in employees numbers during the years (2004-2008)
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Number of employees in the Company according to the occupation field for the two Years (2007- 2008)
Consumer services Female/ male trainees -technicians Support services
Table No. (2)
Year
Engineering
Administrative
Finance
Computer
Total
2007 2008
72 63
96 103
114 114
12 13
159 158
491 474
192 168
1136 1093
Breakdown of employees and technicians trainees according to their working Area for the two Years (2007-2008)
Main Offices Poles Factory Jordan Valley & the Eastern
Table No. (3)
Year
Al- Karak
Al-Tafila
Ma'an
Al-Aqaba
Total
2007 2008
212 209
76 66
227 216
209 206
94 91
162 161
156 144
1136 1093
Breakdown of employees and technicians trainees according to the Academic Qualification for the two Years (2007-2008)
Master degree High Diploma Bachelor Degree Secondary Certificate Less than Secondary Certificate
Table No. (4)
Year
PhD
Diploma
Total
2007 2008
1 1
12 13
2 2
180 177
128 129
376 401
437 370
1136 1093
Breakdown of employees according to their working Area for the - Year (2008)
Figure No. (2)
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Training & Rehabilitation
The company has been keen to comply with the developments in the field of training and meet the works requirements and needs in the technical, financial and administrative fields. It pays a great attention to train its employees by delegating them to take part in courses, specialized seminars and official missions in all fields inside and outside the Kingdom. In compliance with the approach adopted by the Company to provide efficient technical manpower capable of implementing plans and programs seeking to achieve, The year 2008 witnessed the follow up of (46) Electricity Training Center trainees in various Company's areas' locations.
Table No. (5)
Numbers of Employees Participating in Courses, Seminars and Official Missions During 2007 Number 30 16 39 85 Participants 152 155 54 361 During 2008 Number 25 30 43 98 Participants 69 156 69 294
Description Training courses Scientific Seminars & Conferences Outside Official Missions Total
Administrative Development:
In pursuance of the role which the Company has adopted to boost the efficiency of the administrative organization and to enhance performance and increase productivity, the Company went on revising the administrative organization to execute the goals of the strategic plan. The most prominent accomplished modifications were as follows: - Establishing new department of electricity distribution in Wadi Musa and Shoubak at electricity distribution Area of Ma'an, formed of two sections: technical sections, financial and administrative section. - Merging Inspection and Public Safety section with engineering department within technical affairs divisions. - Merging Inspection and Complaints sections attaching it directly to the executive directors under the title: Inspection & Complaints Unit at the organizational level section. The job description for created jobs and new sections was prepared.
The Organizational, Occupational Guide, Regulations and Instructions:

- Setting the strategic plan for the Company within the years (2008-2010). - Updating the Company organizational guide for the year 2008 in the light of the modifications took place on administrative level to include the new and modified administrative units. - Preparing draft copy for job description guide for the financial affair divisions. - Preparing a guide for auditing the quality management, and prepare a guide of quality assurance for the Company.
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- Amendments were made on Human Resources Department, including the Internal Regulation for organizing the work, Supplies & Warehouses Regulations, Health Insurance Fund Regulation, updating The Social Insurance Regulation. - Setting organizational instructions concerning action of inspection and complaints at Company sites, instructions of remedial centers claims , issuance of the organizational instructions concerning the electrical energy meters test and clearance at the main meters lab. Amendments were made on organizational instructions related to the Company employees' travel, mobility, public safety instructions, professional health, organizational instructions concerning granting loans, aids to the employees and updating the organizational instructions related to delay for the formal working hours.
Employees Funds and Occupational Privileges

The Company is currently working on subjecting all its employees to the rules of the Social Security Law and life insurance against death and accident. The employees enjoy an electric discount of (75%) of their monthly consumption, in addition to several other benefits which are mainly: social insurance, health insurance, housing, provident fund, and health insurance after retirement.
Transportations
In harmony with the Company policies concerning boosting the facilitating services at the Company for increasing the productivity efficiency and as a result of the operating vehicles importance in Company's various works and activities, especially the technical works at the sites, this sector realized the following achievements: - Increasing the dependency on the main workshop where more than 200 light, medium and comprehensive maintenance cases were conducted. - Hiring vehicles for serving the technical workshops, and some other works in the Company in the light of the studies' results and the economical and operational feasibility for each case, for the purpose of reducing the capital expenses. - Increasing the numbers of those technicians authorized to drive cars to promote their efficiency, work readiness and contribution in administrative expenses control. - Measuring the rates of vehicles movement, and setting programs for maintenance and operation in the light of conclusions. - Providing the Company with nine various vehicles in addition to a forklift.
The Legal Department

The legal department, through its employee staff and the external offices contracted within Aqaba, Ma'an, Tafeelah, Karak, Jordan Valley and the Eastern, to follow up the multi-cases of the company as for removing the electric lines and installations intersecting with the citizens' lands instead of paying compensations. This decision played a big role in reducing the size of the required compensations. Replacing the lines with new ones contributed in reducing the burden of the old lines maintenance. The department also follows up getting of the company rights of their legal and panel aspects, and providing the required legal consultations concerning the company' work.
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Commercial Achievements
Consumers
During the year 2008, the electrical energy service was supplied to (8803) new consumers, (7561) of them were installed with one phase meter and (1242) consumers with a three- phase meter. Their total number, till the end of 2008, was (163197) against (154464) in the year 2007 with a growth rate of about (5.7%).
Table No(6)
Number of Consumers in the distribution areas No of Consumers during 2008 Single phase 2206 992 1767 1380 1216 7561 Three phase 143 32 311 659 97 1242 Accumulative No. of Consumers by the end of 2008 Single phase Three phase 2637 701 4912 5155 1760 15165
Area
Grand Total 50822 17043 39064 32913 23355 163197
2008 Consumers Growth Rate Rate against the grand total % 4.8% 5.9% 5.6% 6.6% 6.0% 5.7% 31.1% 10.4% 23.9% 20.2% 14.3% 100%
Karak Al-Tafeelah Jordan Valley & Eastern Area Aqaba Ma'an Total
48185 16342 34152 27758 21595 148032
Figure No (3): segment showing the consumers numbers percentage in the distribution areas by the end of 2008
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Development of Consumers during the years(2004-2008) Type of Subscription Single phase Three phase Total 2004 122540 10632 133172 2005 128192 11629 139821 2006 134443 13000 147443 2007 140541 13923 154464 2008 148032 15165 163197 Growth rate 5.3% 8.9% 5.7%
Table No. (7)
Figure No. (4) Growth Of Consumers Numbers During The Years (2004-2008)
Electrical Energy Purchases

The electric energy volume, purchased in 2008, was (2210.38) GWH with a value of JD (84.511) million, realizing an increase of (9.3%) in the purchased energy volume, whereas the purchased value increase was (22.3%).
Table No. (8)
The purchased electrical energy (in GWH) and its value for the two years (2007-2008) Year 2007 Year 2008
Subscription Categories Day energy purchases Night energy purchases Other purchased energy Total Peak Load Total
Volume GWH 1392.47 628.40 1.98 2022.85
Value JD Million 46.731 14.774 0.068 61.573 7.910
Purchased volume (%) 68.8% 31.1% 0.1% 100%
Volume GWH 1530.66 678.16 1.56 2210.38
Value JD Million 56.152 18.090 0.059 74.300 10.211
Purchased volume (%) 69.2% 30.7% 0.07% 100%
2022.85
69.482
100%
2210.38
84.511
100%
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Electric Energy Sales
The volume of electric energy sold in 2008 was (1928.54) GWH for a value of JD (103.66) million, with an increase of (8.6%), whereas the value increase rate was (27.7%).
Table No. (9)
Volume, values and ratios of the sold electrical consumption (in gwh) distributed according to the consumers' categories for the two years (2007-2008) Year 2007
Subscription Categories Water pumps Housing & public buildings Commercial & Hotels Industrial Agricultural Streets lighting The Army Charities Total
Quantity GWH 666.05 462.87 219.68 159.32 147.50 58.98 56.15 5.77 1776.31
Value JD Million 26.64 23.95 13.62 6.95 4.57 1.52 3.65 0.28 81.19
Consumption Rate (%) 37.4% 26.1% 12.4% 9.0% 8.3% 3.3% 3.2% 0.3% 100%
Quantity GWH 724.11 499.63 249.67 175.38 155.36 54.90 62.73 6.74 1928.54
Value JD Million 29.25 30.92 20.75 8.78 6.97 1.77 4.79 0.43 103.66
Year 2008
Consumption Rate (%) 37.5% 25.9% 12.9% 9.1% 8.1% 2.8% 3.3% 0.3% 100%
to consumption categories for the year (2008)
Electrical energy sales according
Figure (5)
growth in (GWH) during the years (2004-2008)
Purchased and sold energy volume
Figure (6)
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Electrical Tariff
The following table (10) shows the electrical tariff applied in the Kingdom effective as of 14/3/2008:
A. Purchase tariff from NEPCO for EDCO: A .1 Peak Load (JD/KW/month) A .2 Day Supply (Fils/KWH) A. 3 Night Supply (Fils/KWH) The Electrical Tariff for the year(2008)
37.35 27.30 32 71 113 86 86 49 3.79 46 36 3.79 46 36 41 3.79 81 70 51 81 58 73 One JD 86 47 85
2.98
1. Tariff for ordinary Consumers:
A.1 First Category : from 1-160 KWH monthly (Fils/KWH)
A .2 Second Category : from 161 300 KWH monthly (Fils/KWH) A .3 Third Category : from 301-500 KWH monthly (Fils/KWH) 2. Broadcast and T.V (Fils/KWH) A .4 Fourth Category : more than 500 KWH monthly (Fils/KWH) 3. Commercial Tariff (Fils/KWH) 5. Medium Industries Tariff 2. Day Supply (Fils/KWH)
4. Small Industries Tariff (Fils/KWH) 1. Peak Load ( JD/ KW/month) 3. Night Supply (Fils/KWH)
6. Agriculture (Fils/KWH) fixed Tariff (1) 1. Peak Load ( JD/ KW/month) 2. Day Supply (Fils/KWH) 3. Night Supply (Fils/KWH)
7. Water Pump (Fils/KWH)
8. Hotels (Fils/KWH) fixed tariff (2) 1. Peak Load ( JD/ KW/month) 2. Day Supply (Fils/KWH) 3. Night Supply (Fils/KWH)
9. Streets Lighting (Fils/KWH) (3) 10. Armed Forces (Fils/KWH) 11. Port Authority (Fils/KWH)
12. Mixed Tariff Commercial/Agricultural (Fils/KWH) Minimum monthly consumption A. Ordinary Consumers B. rest of Consumers
1.25 JD
1) The farmers supplied with the electrical energy can choose, before the enforcement of these tariff rules, between applying the fixed tariff, mentioned above, or applying the triple tariff above, compulsorily on agricultural consumers whose load exceeding 100 kVA and are connected to the network after the enforcement of this tariff rules. 2) Four Stars or more Hotels, supplied with the electrical energy will be given the choice before the enforcement of the rules of this tariff between applying the fixed tariff, above, or applying the triple tariff above, and the triple tariff is applied compulsorily on the four-star or more hotels connected to the network after the enforcement of the of this tariff rules. 3) This applies on consumption above 1988 consumption level.
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Technical Achievements
Substations
The number of the new substations, constructed in 2008, was (261), with a total capacity of (105.2) MVA against (180) substations with a capacity of (61.2) MVA constructed in 2007.
Table No. (11)
The substations completed during the two years (2007-2008) The end of 2007 No 18 19 3 2238 3 706 8 2995 KVA 326000 260000 25000 628675 12500 362595 5800 1620570 0 0 0 206 0 55 0 261 During 2008 No KVA 0 0 0 77615 0 27570 0 105185 The end of 2008 No 18 19 3 2444 3 761 8 3256 KVA 326000 260000 25000 706290 12500 390165 5800 1725755
Voltage (KV) 33/11 33/6.6 33/3.3 33/0.4 11/6.6 11/0.4 6.6/0.4 Total
The total number of constructed substations and their accumulative capacity in the companys distribution areas, until the end of 2008 ,was (3256) substations ,with a capacity of (1725.8) MVA with an increase ratio over the year 2007 by (8.7%) and (6.5%) in substations number and their capacity, respectively.
Medium Voltage Networks

During the year 2008, about (181) km of overhead medium voltage lines of (11 33) KV, were constructed and electrified, in addition to (27) km underground cables (11, 33) KV. Also, the year 2008 witnessed the constructed and electrification of (159) km of low overhead lines in addition to (18) km underground cables of low voltage.
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Medium and Low Voltage Networks Lengths constructed During the Two Years (2007-2008) Description Overhead Networks Voltage Medium 33KV Medium 11 KV Total Medium 33KV Underground Cables Medium 11 KV Total Voltage Low voltage overhead networks Low voltage underground cables Total 2007 (km) 149 29 178 2007 (km) 80 14 94 19 20 39 2008 (km) 146 35 181 18 9 27 2008 (km) 159 18 177
Table (12)
The total lengths of medium and low voltage lines for both overhead and underground cables were (9318) km by the end of 2008, against (8933) km by the end of 2007 with an increase of (4.3%).
Table (13)
Development of the total distribution networks lengths during the years (2004-2008) in km Voltage Medium Voltage Networks Description Overhead lines 33 KV Overhead lines 11 KV Underground cables 33 KV Underground cables 11 KV Total Lengths of Medium Voltage Networks 400 Volt Overhead lines Low Voltage Networks 400 Volt Underground cables Total Lengths of Low Voltage Networks Total Lengths of Distribution Networks 2004 2598 415 220 163 3401 4013 426 4439 7840 2005 2680 437 394 198 3713 4171 512 4683 8396 2006 2733 444 402 202 3785 4307 530 4837 8622 2007 2813 458 421 222 3918 4456 559 5015 8933 2008 2959 493 440 231 4125 4616 577 5193 9318 Growth in 2008 (%) 5.2% 7.6% 4.4% 4.0% 5.3% 3.6% 3.3% 3.5% 4.3%
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Figure (7): Medium and low voltage networks growth during the years (2004-2008)
Continuity of the Electric Supply

The outage rate of the company electric system during 2008 was (14) hours/ consumer against (11) hours/ consumer during 2007. The outages rate includes the outages types (scheduled, unscheduled, third party and external). The figure below shows the Company outages rates during the years (2004-2008).
Figure (8): Outage rates in the year 2008 compared with the years (2004-2007)
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Peak Load:
The peak load of the Company's electricity system, during August 2008 was (355) MW against (327) MW in 2007, with a growth rate of (8.6%).
Figure (9): Peak Load Growth for 2008 against the Years (2004-2007)
The table shows the Company peak load growth during (2004-2008) and the load forecast for the years (2009-2013):
Table (14)
Peak Load during the last five years peak load forecast for the five coming years
Year 2004 2005 2006 2007 2008
Peak load in MW 241 268 300 327 355
Actual growth rate (%) 13.4% 11.4% 11.7% 9.0% 8.6%
Year 2009 2010 2011 2012 2013
Peak load in MW 377 400 421 443 466
Expected growth rate (%) 6.2% 6.1% 5.5% 5.0% 5.0%
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Meters Testing and Maintenance
The meters testing and maintenance centers, at the Company locations of (Amman, Jordan Valley) accomplished the following works:
Table (15)
The tested meters in the company locations during the two years (2007, 2008) Work type Testing and clearance of new single phase meters Testing and clearance of old single phase meters Testing and clearance of new three phase meters direct connection Testing and clearance of old three phase meters direct connection 2007 12650 100 1400 100 106 43 980 24 30 780 30 2008 11296 618 2152 101 280 44 24 1005 38 34 210 14
Testing and clearance of new three phase meters with current transformers Testing and clearance of old three phase meters with current transformers
Testing and programming of new three phase meters - with current and voltage transformers Testing different types of Consumers services meters Programming of new three phase meters with current transformers
Programming of new three phase meters with current and voltage transformers Testing various sizes of current transformers Testing various sizes of circuit breakers
The main meters testing laboratory located in Amman / main offices obtained the ISO 9001 quality certificate for quality administration systems in the procedures category concerning the purchase, storage, clearance and release of the electrical energy meters.
The Local Achieved Projects

During the year 2008, the Company executed and delivered several projects including:
of Jordan Company for Investment Projects Development.
1. Installing 33 KV switching station, for (10) panels at the Touristic project Tala Bay in Aqaba Zone for the interest 2. Supplying electric energy to the following hotels projects:
3. Supplying electric energy to Calcium Carbonate Production factory in Tafeelah for Al Ahliyah Co. for Mining at capacity of (5 MVA).
- Holiday Inn Resort at the Dead Sea, Moon Coast Hotel and Zara Hotel project in Aqaba.
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4. Implementation of eastern coastal road lighting project for the benefit of the Jordan Valley Authority through the 5. Lighting various roads on behalf of the Ministry of Public Works and Housing, as follows: (32) lighting poles lighting poles poles installation of (100) lighting poles and installing 33 KV (3.8) km long electrical networks.
- Lighting the (1.2) km long road at Ala'is turnaround towards Jurf Al-Daraweesh at Tafeelah region, by installing - Lighting the northern (2.5) km long entrance of Mu'ata University at Karak, (2.5) km long by installing (52) - Lighting the (3.5) km long road of the Cement Factory, Al-Qadisiyah, Tafeelah region, by installing (100) lighting
6. Promoting the reliability of our electric supply and boosting the electrical networks at both regions: Karak and Tafeelah, by executing several procedures including: - Installing and energizing Al-Qaser 33 KV switching station including (10) panels, to reduce electrical interruptions on the northern feeder at Karak, in addition to installing a new 33 KV overhead line parallel to the above existing northern feeder to supply Al-Qaser switching station. - Laying and energizing a (5) km long underground cable from Al-Rashadiyah station towards AlQadisiyah town in Tafeelah governorate, (4) package stations were installed instead of the existing overhead network with the external stations at the same place. - Replacing low voltage overhead lines with (100) km long twisted cables. 7. Installing a 33 KV switching station, in Rasul Naqab area, Ma'an, for the purpose of increasing the reliability for Rasul Naqab supplier loads.
Local Projects Under Construction:

During the year 2008, the Company went on following up the execution of the major development projects including: 1. Supplying the electrical energy to Saraya Al Aqaba project for the benefit of Saraya Al Aqaba with a capacity of (57) MVA by installing a 33/11 KV substation with a capacity of (25*3) MVA and (12) km long 33 KV underground cables.
36

2. Installing a 33/11 KV, (25*2) MVA substation (A5) and 33 KV (10)km long underground cables , on the expense of the Electricity Distribution Company for meeting the loads growth and development in Aqaba city. 3. Supplying the electrical energy to the first stage for Aqaba Development Company Complex for warehouses and light industries located at the east of the rear road in Aqaba by installing 33KV (10) panels switching station. 4. Supplying the electrical energy to Crown Plaza hotel and resort the Dead Sea for the benefit of the Social Security Corporation with a capacity of (10) MVA. 5. Supplying the electrical energy to the Al-Abyad Factory for Fertilizers and Ptrochemicals with a capacity of (10) MVA, by installing a 33 KV panel and the erection of a 33 KV (25) km long, overhead line. 6. Supplying the electrical energy for the Touristic Village project at the Dead Sea with a capacity of (40) MVA for the benefit of the Jordan Valley Authority by installing 33 KV switching station including (14) panels and (17) km long underground cables. 7. Supplying the electrical energy to the crystal project in the Dead Sea with a capacity of (40) MVA for the benefit of the Jordan Valley Authority by installing 33 KV switching station including (14) panels and (27) km long underground cables. 8. Completing the execution of the (37) km long Desert Road Lighting project works within the populated areas for the benefit of Public Works and Housing Ministry for the roads of Al Hassa , Alhussainiyah, Alhimaimah, Alqatranah and the entrance of Aqaba Zone ( Alu'sailah, Dabbat Hanout, Al Rashidiyah and Ummul-Bassateen). 9. Supplying the electrical energy to the project of feeds planting at Almuhamadiyah region at Ma'an governorate on the expense of providing the Jordanian rural areas with an electricity project by installing 33 KV (25) km long medium voltage overhead lines, plus a (1.2) km long medium voltage underground cable, and the installation of (20) overhead substations with a capacity of (250) KVA each. 10. Supplying the electrical energy to the projects of Aldughailah and Ummulmasayil in the eastern region on the expense of providing the Jordanian rural areas with electricity project by installing (48) km long medium voltage overhead plus (14) overhead substations with a capacity of (100) KVA each. 11. Supplying the electrical energy to Water Authority wells sites at Al Qatrana region in Al Karak governorate by installing (10)km long medium voltage overhead lines and (7) distribution substations with a total capacity of (1.75) MVA.
Performance Development and Enhancement Projects

1. Carrying out a pilot project at southern Shouneh region (Nahdah Village) using the smart remote meters. Electronic meters were installed, equipped with units that convey meter reading through low voltage networks to (5) compiling units installed inside the distribution panels of the feeding voltage transformers of the village. These readings are sent to a central computer to control and compile the readings. The project comprises of (315) single phase meter installations, (12) three phase meter of direct linking, and (13) three phase meter working on current transformers. This project aims at calculate the actual loss rates in the village and its surroundings, and then decreasing these rates by using the appropriate technical methods.
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2. Applying the project of the portable readers at various regions by using mobile instruments for reading the meters of the consumers, for about (50%) of the consumers. 3. Regarding to the necessity and importance of having a database for the distribution networks components connected to their geographical locations; the company started the work at 2008, to apply the Geographical Information System for medium voltage networks and substations as first stage where hardware, software and surveying (GIS) equipments were purchased. And through coordination with Royal Jordanian Geographic Center, we started by building digital format for medium voltage networks and main substations from paper maps.
External Projects and Consultations

The Company presents engineering and consulting services for each of the following: 1. Electricity Public Authority of Yemen in cooperation with NEPCO. The company took part in implementing the works of the fifth energy project including electrifying (88) districts in nine governorates of the Republic of Yemen. The project's works comprises designing, manufacturing, providing, constructing, and operating the main and secondary substations and medium and low voltage networks needed for this project. 2. Nippon Jordanian Fertilizers Company, through the supervision on the installation of the 33/6.6 KV substation with a capacity of (5*2) MVA for supplying the project.
The Project of Optical Fibers Installation

Within the Jordanian government project of connecting Public schools using fiber optics, the Company signed with the Ministry of Communication and Information Technology on 20 /7/2006 the rental agreement of EDCOs electrical poles to install optical cables. Till the end of the year 2008, the poles in at Al Qwerah /Al Aqaba region were used with a total length of (189) km fiber optics long.
Jordan Rural Areas Electricification Project

In the year 2008, for the advantage of the Jordan Rural Areas Electricification Project, EDCO provided several villages and residential settlements, within the company's supply areas, with electrical energy. EDCO installed and electrified and (43.1) km of medium voltage overhead lines (2291) low voltage poles, (62) substations with a total capacity of (10.625) MVA. The total costs of the executed works, carried out during 2008, were about JD (2.15) million.
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Works carried out on behalf of the rural electrification in the company supply areas Table (16)
Region
Medium voltage networks (km)
Low voltage networks (pole)
Distribution transformers No. Capacity (KVA) 1250 825 5750 1050 1750 10625
Al-Karak Al-Tafeelah Ma'an Al-Aqaba Jordan Valley & Eastern Area Total
4.965 1.073 26.445 1.85 8.724 43.057
1003 222 285 117 664 2291
9 6 25 6 16 62
Civil Engineering Projects

During the year 2008, the Company accomplished several various civil works projects. Moreover, the Company supervised other projects including the following: 1. The housing building project accomplishment for Aqaba employees at a cost of (450000) JD. 2. Rasul Naqab substation project accomplishment at a cost of (16000) JD. 3. The Jordan valley administration walls and yards / Dair Alla accomplishment at a cost of about (27000) JD. 4. Wadi Mousa offices building walls and yards project accomplishment at a cost of around (7250) JD. 5. Ma'an region administration building accomplishment at a cost of around (255000) JD. 6. Designing and supervising the execution of the Tourist Village Project Switching Station at the Dead Sea region. The rate of project achievement reached (95%) with a cost of around JD (130000). 7. Designing and supervising Alqasr switching station project building and consumer services / Al Karak .The ratio of achievement, therein , reached (85%) with a cost of about JD (190000). 8. Design and supervising the execution of the substation building for the Phosphate Station Project / AlAqaba , the ratio of achievement , therein , reached (45%) with a cost of about JD (38000). 9. Supervising the execution of Saraya Al Aqaba substation and Tala Bay switching station building / Aqaba. 10. The accomplishment of the design works and the supervision on the execution of the light industries switching station building/Aqaba and the building of the Nippon Jordan Fertilizer Company Substation/ Aqaba.
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Information Technology & Computers

First: The accomplished projects in systems & applications field: 1. Supporting and increasing the main and personal computers in the Company to keep up with work requirements. 2. Providing the Company main sites with the internet services and activating the electronic mail to facilitate data exchange among the Company various sites. 3. Providing the offices of the consumers' services and administrations with UPS to insure the continuity of the systems' work in case of the electrical current interruption. Second: Achievements in the Field of Information Systems and Performance Improvements. 1. Different company sites were completely linked to the main offices through a modern computer network by using a Frame Relay. 2. The expansion in business intelligence system application, in some company sites, to assist the Company employees acquire information in a flexible efficient manner. 3. Setting the required specifications to attract offers to present consultation services for the consumer services and a billing information system. 4. Launching the electronic Company gate which enables the employee to acquire a lot of services, including: An electric library along with the systems and regulations classified according to their nature. Enquiring the employee about his personal data entered in the manpower system and the capability of updating them and various types of leaves. The employee capability of controlling his various types of loans and advance payments. Providing the mechanism for the opinion poll. It is known that the employee's personal information is submitted to the informative security system to securing privacy. A library for some Company current models and an album for some of the company activities. Securing a space for the employee, enabling him to build his own site. Inquiring the employee about his salary card for all years and months.
Electric Materiel Manufacturing

During the year 2008, the Manufacturing Department worked to meet the Company requirements of all the materials produced therein, where the demand of the materials increased with the increase of the Company projects. The quantities of production and sales of the cement and steel poles and other products reached a record number, never reached within the last five years, in spite of the low numbers of employees. The size of all products, i.e. the cement poles and metal products increased by (50 %) and more than (100%) for steel poles compared with the products of the last year. Regarding sales, they increased from JD (1.7) million in 2007 up to JD (3.3) million during the year 2008 with an increase of about (94 %). The table below shows the growth production volume within the last five years.
Table (17)
Volume of main products during the years (2004-2008) Main materials 2004 2005 2006 2007 2008
Concrete poles for medium voltage networks Distribution boards of different sizes Steel poles for low voltage networks
1716 5694 120
1598 3288 122
1541 4503 125
1552 2725 132
2268 5540 110
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Performance Indicators
Pursuing the approach adopted by the company in following up the performance indicators; this table shows the most important indicators during the years (1999-2008):
Table (18)
Statistics and performance indicators for the Company works, development and their Characteristics No of Consumers No 109141 113659 118533 123524 127563 133172 139821 147443 154464 163197 Consumer /Employee 126 121 128 137 147 136 136 143 145 159 Sold Electric Energy GWH 910.5 916.7 969.7 1009.7 1117.1 1305.2 1427.9 1560.3 1776.3 1928.5 Distribution Networks' Lengths Substations No 1554 1738 1887 2059 2228 2407 2661 2815 2995 3256 Substation/ Employee 1.8 1.9 2.0 2.3 2.6 2.5 2.6 2.7 2.8 3.2
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Number of Employees 869 940 926 900 870 982 1029 1028 1066 1027
GWH/ Length Km/ Employee (km) Employee 1.05 0.98 1.05 1.12 1.28 1.33 1.39 1.52 1.67 1.87 5527 6026 6367 7012 7413 7840 8396 8622 8923 9318 6.4 6.4 6.9 7.8 8.5 8.0 8.2 8.4 8.4 9.1
*The Manufacturing Departments employees were excluded since its activity is independent and supportive and it has nothing to do with the companys main activity regarding the electric energy distribution.
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Figure (10): Employee Productivity for the Year 2008 Compared with (1999-2007)
Prospects For The Year 2009 And The Expected Work Plan
Within the future trends of the Company, the most important strategic works, for the coming year, will include the following: 1. Completing the projects work aiming at performance development and improvement. The most important works herein are: - Replacing the current applied billing system at the Company and setting reference conditions to introduce an investment Company to purchase the consumers' services and billings to keep up with the modern developments, in work. - Setting the specifications required for integrated programs to plan and manage the financial resources. - Setting the reference conditions required for setting the technical specifications proper for supervision and control center of the Company networks. - Completing the geographical information system project on the networks of the medium voltage and connecting it with the proper database. - Starting the application of the work project on the live electricity in cooperation with EMECO to reduce the programmed interruptions on the medium voltage network and to promote reliability of the networks electrical supply. - Using the computer software for designing the medium and low voltage networks. - Using the troubleshooting instruments on the medium voltage networks to limit the periods of interruptions and to enhance reliability. - Starting the usage of a call center for receiving the consumers' calls (Call Center). 2. Realizing the culture of partnership with all the categories of the consumers' based on work principles, in a commercial method, for achieving consumers' satisfaction. 3. The continuing in the Company policy , aiming at limiting the manipulation and messing with the meters and drawing energy by using illegal methods, to reduce the rate of commercial electric loss in the Company.
42

4. Managing the financial resources in a form achieving the Company objectives for the minimum costs and maximum benefits by reducing the operating capital through decreasing receivables and for achieving the stock optimal management. 5. Going on developing various work methods and procedures by using the best technological means to insure the work velocity and quality and the increase of the productivity efficiency on the purpose of enhancing the quality of the services rendered to the consumers.
43
Financial Performance Indicators

Assets:
The Company total assets value was JD (195.393) million as at December 31, 2008, with a growth rate of (6.6 %) over the previous year. Total current assets amounted to JD (56.972) million with an increase of (4%). As for net fixed assets , they amounted to JD (121.515) million with a growth rate of (4.1%). The Company achieved additional fixed assets of JD (12.312) million, most of the latter were additional to operational assets (substations, overhead lines, and underground cables). (50 %) of these additions were funded by the consumers subscriptions and the rural fils. Projects under construction and down- payments contractors amounted to JD (10.497) million by the end of 2008, where their value in the previous year was JD (6.627) million.
Liabilities
The Companys total liabilities amounted to JD (141.182) million as at December 31, 2008, with an increase of (6.1 %) against the previous year. there was a liabilities sum of JD (67.190) million of costumers subscriptions and the rural fils amortized by an annual rate of (4%).These amortizations are registered as a revenue in the income statement.
Net Shareholders Equities

The net shareholders' equities reached JD (54.211) million on December 31, 2008, against JD (50.233) million in the previous year, with a growth rate of (7.9%). The total net shareholders equities amounted to about (27.2%) of the total company assets. The share book net value was JD (5.4).
Net Energy Sale Revenues and Operation Revenues

The total energy sale, after deducting the purchase cost, in the year 2008 reached JD (18.707) million with a growth rate of (59.9%) over the last year. Other operational revenues, in the year 2008, reached JD (2.075) million with a growth rate of (19.9%) over the last year.
Operational Expenses
The operational expenses, for the year 2008 were JD (20.941) million with an increase of (37.7%) over the last year, including salaries and wages, maintenance, consumer services expenses, depreciation expenses and provisions.
Profits & Losses

The net profits, before tax, for the year 2008, accounted to JD (3.044) million compared with JD (516) thousand in the year 2007.
44
The Year 2008 in Figures

2008 Annual Financial Growth Indicators Total Assets (JD 1000) Total operation revenues (JD 1000) Total shareholders' equities (JD 1000) Net profit (loss) (JD 1000), after tax Projects under construction (JD 1000) . Indicators of Annual Technical Growth Peak load on the networks (MW) Sold Electric Energy ( GWH) The number of consumers Medium voltage networks Lengths (km) Low voltage networks' Lengths (km) No. of main substations ( 33/11,6.6) KV 355 1928.5 163197 4125 5193 37 586 3219 1139.8 1093 327 1776.3 154464 3918 5015 37 586 2958 1034.6 1136 8.6 % 8.6 % 5.7 % 5.3 % 3.5 % 8.8 % 10.2 % -3.9 % 195393 105738 54211 4101 10497 183331 82921 50233 302 6627 6.6% 27.5 % 7.9 % 1258% 58.4 % 2007 Change (%)
Capacity of main substations ( 33/11,6.6) KVA Number of distribution transformers Capacity of distribution transformers (MVA) No. of Employees (including manufacture staff, technicians and trainees.) Annual Performance Important Indicators Sold Energy per Employee GWH/employee*)
1.87 159
1.67 145
12 % 9.7 %
No. of Consumers per Employee (consumer/employee*)
*Number of employees excluding manufacturing department staff
45
The Realize Profits, Net Equity and the Dividend Profits / in JD for the Years (2004 2008)
Realize Profits Year 2004 2005 2006 2007 2008 Profit (loss) before tax 1192436 154698 (1205219) 516186 3044036 Tax (159859) (139452) (169925) (213985) (1057122) Profit (loss) after tax 1032577 15246 (1375114) 302201 4101158 Equity 51413151 51408503 50016559 50232576 54211417 Dividend Profit 750000 0 0 0 0
Company Establishment Date The date of transferring its ownership from the government to the Kingdom Electricity for Energy Investments Company Date of the right to start work The Company is not listed
12/2/1998 2/7/2008 1/1/1999 Not listed
46
ELECTRICITY DISTRIBUTION COMPANY AMMAN-THE HASHEMITE KINGDOM OF JORDAN PUBLIC SHAREHOLDING COMPANY
FOR THE YEAR ENDED DECEMBER 31, 2008
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS AND
47
48
INDEX
Independent auditor's report Balance sheet as of December 31, 2008 Income statement for the year ended December 31, 2008 Statement of changes in equity for the year ended December 31, 2008 Cash flow statement for the year ended December 31, 2008 Notes to the financial statements 50 51 53 54 55 56
49
INDEPENDENT AUDITOR'S REPORT

TO THE CHAIRMAN AND MEMBERS OF BOARD OF DIRECTORS ELECTRICITY DISTRIBUTION COMPANY PUBLIC SHAREHOLDING COMPANY AMMAN - THE HASHEMITE KINGDOM OF JORDAN We have audited the accompanying financial statements of ELECTRICITY DISTRIBUTION COMPANY (PUBLIC SHAREHOLDING COMPANY), which comprise the statement of financial position as at December 31, 2008, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting polices and other explanatory notes.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of ELECTRICITY DISTRIBUTION COMPANY (PUBLIC SHAREHOLDING COMPANY), as at December 31, 2008, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
Legal Requirements
The company maintains proper accounting records, and the audited financial statements and the financial information stated in the report of the board of directors which was addressed to the shareholders are in the agreement with those records. We recommend the General Assembly to approve them. Talal Abu-Ghazaleh & Co. International Steve S. Karadsheh (License # 756) Amman March 26, 2009
50
Balance sheet as of December 31, 2007

ASSETS Non - Current Assets Fixed assets Accumulated depreciation Fixed assets - Net Assets from subscribers' contributions and new rural fils Accumulated amortization Assets from subscribers' contributions and new rural fils - Net Old rural fils assets Accumulated amortization Old rural fils assets - Net Projects under construction Deferred assets Long-term loan receivable Investment in securities available for sale Deferred tax assets Total non current assets Current Assets Inventories Letters of credit Other debit balances Accounts and subscribers' receivable Cash and cash equivalents Total current assets TOTAL ASSETS 9 10 11 8 11,771,841 1,235,537 107,120 42,341,544 1,516,016 56,972,058 195,393,021 13,098,275 482,528 91,626 37,932,394 3,183,604 54,788,427 183,331,011 4 5 25,6 7 3 3 3 Notes 2008 JD 73,422,390 (19,238,647) 54,183,743 94,275,129 (27,084,692) 67,190,437 278,888 (137,586) 141,302 10,497,078 4,154,803 504,595 300,781 1,448,224 138,420,963 128,542,584 Restated - Note 25 JD 67,314,072 (15,667,802) 51,646,270 88,070,798 (23,165,265) 64,905,533 278,888 (126,430) 152,458 6,627,304 4,405,643 504,595 300,781 2007
51
Balance sheet as of December 31, 2008

EQUITY AND LIABILITIES Equity Authorized and paid- in capital of (10) millions share of JD 1 par value each Statutory reserve Voluntary reserve Special reserve Retained earnings Total Equity Non-Current Liabilities 12 13 14 25 Notes 2008 JD 2007 Restated - Note 25 JD
10,000,000 794,768 698,678 38,887,115 3,830,855 54,211,416
10,000,000 490,364 698,678 38,887,115 156,419 50,232,576
Amortization of subscribers' contributions and new rural fils Subscribers' contributions and new rural fils against fixed assets - Net Old rural fils deposits - against fixed assets Amortization of old rural fils deposits Old rural fils deposits - against fixed assets - Net Provision for end-of-service indemnity Subscribers' deposits Deferred revenues Advances received on uncompleted job orders Total non-current liabilities Current Liabilities Accounts payable and other credit balances Income tax provision Short - term loan Total current liabilities Total liabilities TOTAL LIABILITIES AND EQUITY
Subscribers' contributions and new rural fils against fixed assets
94,275,129 (27,084,692)
88,070,798 (23,165,265)
67,190,437 278,888 (137,586) 141,302 15 16 4,528,151 7,101,799 17,126,597 21,526,541 117,614,827
64,905,533 278,888 (126,430) 152,458 3,560,404 5,916,779 17,085,891 13,570,362 105,191,427
17 7
23,232,163 334,615 23,566,778 141,181,605 195,393,021
27,646,953 144,251 115,804 27,907,008 133,098,435 183,331,011
52

INCOME STATEMENT FOR THE YEAR ENDED CECEMBER 31 , 2008
2007 2008 Notes OPERATING REVENUES Electric power sales revenue, net Other operating revenues Total operating revenues OPERATING EXPENSES Salaries, wages and related benefits Maintenance and subscribers' services expenses Operating and administrative expenses Depreciation, net Provision for end-of-service indemnity Special compensation for ranked employees Allowance for doubtful debts Provision for obsolete inventory and balance differences Amortization of deferred assets Total operating expenses Gross operating (loss) profit Poles manufacuring revenues, net Amortization of deferred revenues Debit interests Credit interests Currency differences Other revenues Profit (loss) before tax and deduction Income tax surplus (expense) Universities of Jordan fees Scientific research support fees Technical and vocational education and training support fund fees Board of Directors remuneration Profit Retained earnings Proposed dividends to be distributed as following: Statutory reserve Voluntary reserve Retained earnings Total Weighted average number of shares during the year Earnings per share 25 7 22 16 23 24 20 21 7,035,502 1,434,363 1,845,235 2,788,706 947,254 1,682 1,255,250 550,522 659,374 16,517,888 (7,352,737) 1,396,352 551,810 (246,650) 435,955 39,418 472,736 (4,703,116) 1,402,735 1,804,590 241,073 604,572 782,190 238,172 701 522,725 229,255 4,423,278 7,192,850 255,809 (102,711) 116,372 16,415 268,417 7,747,152 (345,613) 8,840,092 1,675,436 2,449,807 3,570,896 1,185,426 2,383 1,777,975 779,777 659,374 20,941,166 (159,887) 1,396,352 807,619 (349,361) 552,327 55,833 741,153 3,044,036 1,057,122 (30,440) (30,440) (26,438) (35,000) 3,978,840 156,419 4,135,259 304,404 3,830,855 4,135,259 10,000,000 0.398 JD 7,770,553 1,198,246 1,695,540 2,389,740 533,913 851,718 147,737 618,521 15,205,968 (1,774,041) 458,315 817,531 (1,042,000) 1,274,648 (96,079) 877,812 516,186 (213,985) (6,559) (6,559) (2,152) (16,800) 270,131 83,057 353,188 65,589 131,180 156,419 353,188 10,000,000 0.027 JD 18 19 Other locations except Aqaba JD 7,873,948 1,291,203 9,165,151 Aqaba JD 10,832,620 783,508 11,616,128 Total JD 18,706,568 2,074,711 20,781,279 Restated - Note 25 All locations JD 11,701,664 1,730,263 13,431,927
53
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2007
54
Capital reserve JD
567,498 567,498 131,180 698,678 794,768 698,678 38,887,115 38,887,115 38,887,115 38,887,115
Statutory reserve JD JD
137,171 (54,114) 83,057 270,131 (196,769) 156,419 3,978,840 (304,404) 3,830,855
Voluntary reserve earnings
Special
Retained
Total JD
50,016,559 (54,114) 49,962,445 270,131 50,232,576 3,978,840 54,211,416
JD
10,000,000 10,000,000 10,000,000 10,000,000 304,404 490,364 65,589 424,775 424,775
JD
Balance as at January 1, 2007 - Before adjustment
Prior years adjustment - Note 25
Balance as at January 1, 2007 - Adjusted
Profit
Transferd to the reserves
Balance as at December 31, 2007
Profit
Transferd to the reserves
Balance as at december 31, 2008

Statement of cash flow for the year ended December 31, 2008
2007 2008 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax and deductions Adjustments for: Depreciation Amortization of deferred revenues Amortization of deferred assets Allowance for doubtful debts Provision for obsolete inventory and balance differences Provision for end-of-service indemnity Gain on sale of fixed assets Deferred assets Inventories Letters of credit expenses Other debit balances Accounts and subscribers> receivable Advances received on uncompleted job orders Accounts payable and other credit balances Cash used in operations End-of-service indemnity paid Income tax paid Net cash from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets Proceeds from sale of fixed assets Paid on projects under construction Net cash from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Subscribers' contributions and new rural fils Loans Subscribers' deposits Deferred revenues Net cash from financing activities Net change in cash and cash equivalents Cash and cash equivalents - beginning of the year Cash and cash equivalents - end of the year 6,204,331 (115,804) 1,185,020 893,997 8,167,544 (1,667,588) 3,183,604 1,516,016 5,533,807 (90,002) 787,513 2,528,652 8,759,970 (2,605,981) 5,789,585 3,183,604 (12,312,784) (3,869,774) (16,182,558) (9,399,043) 13,278 346,313 (9,039,452) 3,570,896 (853,291) 659,374 1,777,975 779,777 1,185,426 10,164,193 (408,534) 546,657 (753,009) (15,494) (6,187,125) 7,956,179 (4,537,024) 6,765,843 (217,679) (200,738) 6,347,426 2,389,740 (817,531) 618,521 147,737 533,913 (2,714) 3,385,852 (914,933) (1,320,526) 174,207 (471,005) (6,567,475) 4,183,296 (421,244) (1,951,828) (174,191) (200,480) (2,326,499) JD 3,044,036 Restated - Note 25 JD 516,186
55
NOTES TO THE FINANCIAL STATEMENTS

1. LEGAL STATUS AND ACTIVITY - Electricity Distribution Company was registered with Ministry of Industry and Trade on February 12, 1998 as a public shareholding company under number (335) and in implementation of the Council of Ministers resolution dated October 4, 1997, regarding establishment of a separate company from the National Electricity Company, to undertake the distribution of electric power, and to be 75% owned by government and 25% by National Electricity Company until privatization, in which all of distributing activities assets will construe to National Electricity Company. - The Company commenced its industrial and commercial activities at January 1, 1999. - The Company was registered at Aqaba Special Economic Zone Authority under registration No. (1101103002) on October 30, 2001 in accordance with the provisions, regulations, and instructions of Aqaba Special Economic Zone Law No. (32) for the year 2000. - As of July 2, 2008, all Companys shares that were registered in the name of the government of the Hashemite Kingdom of Jordan were transferred to the Kingdom Electricity Company for Power Investments (Limited Private Shareholding Company). - The financial statements have been approved by the board of directors in their session dated March 26, 2009. 2. SIGNIFICANT ACCOUNTING POLICIES The financial statements are prepared in accordance with the International Financial Reporting Standards and the related interpretations originated by the International Financial Reporting Interpretations Committee. The following is a summary of the significant accounting policies applied: a) Fixed assets - Fixed assets are recorded at cost less the accumulated depreciation and any accumulated impairment losses. Lands are not depreciated. - The Company uses the straight-line method in depreciating its fixed assets over their estimated useful lives at the following annual rates:
Buildings and constructions Up to June 30, 2008 2% - 20% 4% 4% From July 1, 2008 3% 2%
Furniture and office equipment
Other equipment
Tools
Operating equipment
Laboratory equipment
Vehicles
Computers
Telecommunication equipment
Subscribers' meters
Transformers stations and network lines
Underground cables
7.14% - 20% 10% - 25% 20%
2% - 2.56%
5% - 7% 12% 7%
7.7% - 25% 11.11% - 25% 10% - 25% 10% - 25% 10% - 25%
9% - 20% 9% - 20% 20%
9% - 20%
15%
20%
9% - 20%
56

- - An asset is impaired when its carrying amount exceeds its recoverable amount. If indication of such impairment exists, the asset is written down to its recoverable amount. The gain or loss arising from the disposal of an item of fixed assets shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. This gain or loss is included in the income statement. The costs of day- to- day repair and maintenance for fixed assets are recognized in the income statement as incurred.
b) Subscribers contributions and rural fils Subscribers contributions and rural fils are recorded as governmental dues to related parties, and are presented in the statement of financial position in both of assets and liabilities side by the same amount under the category of subscribers contributions and rural fils, and are amortized using straight-line method at an annual rate of 4% of the contributions balance at end of the year. c) Projects under construction - Amounts paid to construct fixed asset item are charged first to projects in progress account. When project becomes ready to use, it is transferred to the related fixed assets caption. - Borrowing costs that are directly attributable to the construction of a qualifying fixed asset are capitalized as part of the cost of that asset during the period necessary to complete and prepare the qualifying asset for its intended use, and also a part of technical salaries and wages is charged to the fixed assets caption at a percentage determined by the accountable persons of the company. d) Deferred assets Electricity Regulatory Commission board of directors in his capacity as a delegate for the Commission counsel decided in its meeting held on October 18, 2003 to consider the compensation paid by electric companies to real estate owners, in which electricity networks pass through their plots of land, as a capitalized assets starting from January 1, 2003. These amounts are amortized over a period of 10 years. e) Investment in available for sale securities Investments in available for sale securities that do not have a quoted price in an active market, and whose fair value cannot be reliably measured shall be measured at cost. f) Inventories - Inventories are measured at the lower of cost and net realizable value. - Net realizable value is the estimated selling\usage price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale\usage. - The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. - The costs of inventories are assigned using the weighted average formula. g) Trade receivables - Trade receivables are stated at invoice amount less any provision for doubtful debts. - A provision for doubtful debts is taken when there is an indication that the receivables may not be collected.
57
h) Cash and cash equivalents - Cash and cash equivalents comprise cash on hand, current accounts and deposits in banks. - Any bank balance which fluctuates from being positive to overdrawn is included as a component of cash and cash equivalents. i) Provision for end of - service indemnity Provision for end - of - service benefits is computed based on the last salary and allowances for the accumulated years of service at the statement of financial position multiplied by the number of years in service, and is deducted by the companys payment to the social security department on behalf of the employees at the statement of financial position date. j) Revenue recognition Revenue from selling of energy is recognized when invoice is issued; services are rendered to and accepted by client, provided that all of the following conditions have been satisfied: - The amount of revenue can be measured reliably. - It is probable that the economic benefits associated with the transaction will flow to the company. - The stage of completion of the transaction at the statement of financial position date can be measured reliable - The cost incurred for the transaction and the cost to complete the transaction can be measured reliably. The company follows the percentage-of-completion method in determining the results of operations of rural fils projects and other main consultancy services. Accordingly, the projects revenues and incurred expenses are matched at a certain stage of completion. Furthermore, the projects revenues and expenses are recognized in the income statement in the period in which the operations take place. The costs of completed works consist of materials, direct labor, and additional expenses. A provision for estimated loss (if any) to complete the project is recognized in the income statement. k) Tax - Accrued income tax is recognized as an expense during the period in which profit is recognized in accordance with the income tax law. - Some temporary differences are resulting from an expense or income that is included in the computation of accounting profit in one period and in the computation of taxable income in a different period, consequently, a recognized deferred tax liability (asset), which is expected to be paid (recovered) in future financial periods as a result of differences between the value of assets and liabilities in the financial statements in which the tax were computed on it. l) Interest on unpaid energy sales Interest on unpaid amounts from energy sales and purchases is computed according to the Electricity Tariff Regulations at a monthly rate of 1% starting from the due date of the invoice to the date of partial or full settlement provided that it does not exceed 9% of the total due invoices annually. Excess of interest income over interest expense at year-end is suspended and recorded as revenue when received.
58

m) Allocation of general and administrative expenses Some of the general and administrative expenses are allocated between the Companys distribution zone and Aqaba distribution zone according to the Aqaba Special Economic Zone income tax law and its amendments No (53) for the year 2005. n) Foreign currencies Foreign currency transactions occurring during the year are expressed in Jordanian Dinars at rates of exchange prevailing on such transaction dates. Assets and liabilities denominated in foreign currencies are expressed in Jordanian Dinars at rates of exchange prevailing at the statement of financial position date, and all foreign currency gains and losses are credited or debited to the income statement as they arise. o) Financial instruments - A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. - The companys financial instruments principally comprise cash and bank balances, accounts receivable and payable, investments and loans. - Some of the above paragraphs lay down the accounting policies regarding these financial statements.
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3- Fixed assets
This item consists of the following:

Cost As at December Additions JD 187,734 923,750 1,638,503 8,732,066 266,546 26,462 100,607 231,334 40,600 90,962 32,228 41,992 12,312,784 6,204,331 6,108,453 135 135 760,006 167,976,407 278,888 94,275,129 73,422,390 374,936 1,102,467 931,861 167,355 741,890 240,275 511,013 38,959,497 126,430 23,165,265 15,667,802 3,100 3,097 2,175,073 1,644,758 1,019,647 579,967 135 217,465 145,835 25,014 136,408 136,799 89,599 98,831 39,355 40,701 7,501,479 11,156 3,919,427 3,570,896 12,698,995 3,290,443 596,159 110,925,235 25,700,685 5,252,525 51 51 51 27,026,498 4,496,040 923,983 7,879,422 1,438,139 162,105 2,861,702 1,600,244 5,420,023 30,953,210 3,886,602 170,798 716,375 1,781,557 3,097 256,954 840,721 279,630 551,714 46,460,925 137,586 27,084,692 19,238,647 JD JD JD JD JD JD Disposals 31, 2008 1, 2008 Additions Disposals 31, 2008 JD 2,861,702 6,279,178 21,606,475 79,972,025 8,812,393 46,667 303,272 393,516 3 674,907 261,746 95,306 208,292 121,515,482 141,302 67,190,437 54,183,743 January December December 31, 2008 As at As at December 31, 2007 JD 2,673,968 5,517,533 20,891,955 76,492,484 9,142,006 45,303 339,073 298,981 3 723,906 269,615 102,433 207,001 116,704,261 152,458 64,905,533 51,646,270 Accumulated Depreciation Net Book Value
As at

JD 191,138 919,040 3,100 891,261 342,708 718,014 278,888
January
1, 2008
60
Description
Lands - Note 3/b
2,673,968
Buildings and constructions
6,955,672
Underground cables
25,387,995
Transformers stations and network lines
102,193,169
Subscribers' meters
12,432,449
Telecommunication equipment
Computers
Vehicles
1,943,739
Laboratory equipment
Operating equipment
Tools
1,011,505
Other equipment
Furniture and office equipment
155,663,758
Deduct:
Old rural fils assets
Subscribers' contributions and new rural fils assets
88,070,798
Fixed assets
67,314,072

4. DEFERRED ASSETS
Movement of this item is as follows during the year:
2008 JD Juridical compensations at beginning of the year Additions during the year Juridical compensations at end of the year Accumulated compensations amortization at beginning of the year Amortization during the year Accumulated compensations amortization at end of the year End of the year balance 1,779,567 659,374 2,438,941 4,154,803 1,161,046 618,521 1,779,567 4,405,643 6,185,210 408,534 6,593,744 2007 JD 5,270,277 914,933 6,185,210
5. LONG TERM LOAN RECEIVABLE

This item represents the balance of the loan granted to the Companys Employees Housing Fund. The loan granted without interest and definite repayment schedule. The Fund is 100% owned by the company; accordingly, all of its returns will belong to the company in case of liquidation.
6. INVESTMENTS IN SECURITES AVAILABLE FOR SALE

This item represents 12.3% ownership in Electrical Equipment Industries Company Limited Liability Company.
7. INCOME TAX
a) This item consists of the following:
2008 Aqaba JD Total JD 2007 All locations 130,746 JD
Locations other than Aqaba Balance - beginning of the year Paid during the year Provided during the year (52,011) (7,975) JD
196,262 (192,763) 394,601 391,102
144,251 (200,738) 334,615 391,102
Balance - end of the year
(59,986)
(200,480) 144,251
213,985
61
b) Deferred tax assets consist of the following:

2008 Locations other than Aqaba JD Defered tax assets related to prior years losses Defered tax assets related to end of service indemnity provision Total defered tax assets Income tax provision provided during the year Income tax surplus ( expense ) 859,980 542,755 1,402,735 1,402,735 Aqaba JD 45,489 45,489 (391,102) (345613) Total JD 859,980 588,244 1,448,224 (391,102) 1,057,122
No final income tax settlement has been concluded in Amman for the years 2002, 2003, 2006 and for the years 2006 and 2007 in Aqaba Special Economic Zone, the matter that may result in a future tax liability over the Company. 8. INVENTORIES a) This item consists of the following:
2008 JD Materials and spare parts in warehouses Deduct: provision for obsolete inventory and balance differences - Note 9/b Materials and spare parts in warehouses - Net Materials under manufacturing Total 12,960,863 (1,226,130) 11,734,733 37,108 11,771,841 2007 JD 13,643,833 (569,386) 13,074,447 23,828 13,098,275
b) Movement of this item is as follows during the year:

2008 JD 2007 JD
Balance - beginning of the year Addition during the year Materials written off
569,386 779,777
915,961 -
Balance - end of the year
1,226,130
(123,033)
(346,575) 569,386
62

9. OTHER DEBIT BALANCES
2008 JD Prepaid expenses Refundable deposits Total 88,701 18,419 107,120 2007 JD 74,583 17,043 91,626
10. ACCOUNTS AND SUBSCRIBERS RECEIVABLE

2008 JD Other subscribers receivable - Note 10/b Water Authority receivable - Note 10/b Jordanian Rural Electricity project Other debit balances Checks under collections Water Authority - Job orders Deduct : Allowance for doubtful accounts - Note 10/c Net 32,615,253 6,211,148 4,054,781 1,249,571 777,671 (2,566,880) 42,341,544 2007 JD 26,839,871 5,978,225 2,194,906 2,073,494 1,356,144 278,659 (788,905) 37,932,394
b) Water Authority and other subscribers receivable include interest on unpaid energy sales amounting to JD 2,494,465 as of December 31, 2008 (JD 2,106,026 as of December 31, 2007). c) Movement of this item is as follows during the year:
2008 JD Balance - beginning of the year Additions during the year Balance - end of the year 788,905 1,777,975 2,566,880
2007 JD 641,168 147,737 788,905
63
11. CASH AND CASH EQUIVALENTS

2008 JD Petty cash Cash at banks - Current accounts Cash at banks - Deposits Total 1,509,291 1,516,016 6,725 2007 JD 10,884 591,968 2,580,752 3,183,604
12. STATUTORY RESERVE

Statutory reserve is determined in accordance with the Jordanian companies law by deducting 10% of the net income of the year. Such deduction is stopped when the reserve reached 25% of the subscribed capital. However, the Company may, with the approval of the general assembly, continue to deduct this annual ratio until this reserve equals the subscribed capital of the Company in full.
13. VOLUNTARY RESERVE

The board of directors may suggest deducting up to 20% of its annual net income to the voluntary reserve. This reserve shall be used for the purpose determined by its board of directors. The general assembly may distribute that reserve in full or in part as profit to shareholders if it has not been used for those purposes.
14. SPECIAL RESERVE

This item represent the company's share in the equity when separating of the companies after deducting capital.
15. PROVISION FOR END-OF-SERVICE INDEMNITY

2008 JD Balance - beginning of the year Provided during the year Paid during the year Balance - end of the year 3,560,404 1,185,426 (217,679) 4,528,151
2007 JD 3,200,682 533,913 (174,191) 3,560,404
64

16. DEFERRED REVENUES
a) The following is the movement during the year:
2008 Revenues Deferred revenues - beginning of the year Additions during the year Deferred revenues - end of the year Accumulated amortization Accumulated amortization of deferred revenues beginning of the year Amortization during the year - Note 16/b Accumulated amortization of deferred revenues -end of the year Net 3,352,377 853,291 4,205,668 17,126,597 2,534,846 817,531 3,352,377 17,085,891 JD 20,438,268 893,997 21,332,265 2007 JD 17,909,616 2,528,652 20,438,268
b) According to the distribution and supplies retail license applied on July 3, 2008, amortization of realized deferred revenues after July 3, 2008 was reclassified as other operating revenues. Amortization distribution in the income statement during the year was as the following:
2008 JD Non - operating revenues Other operating revenues - Note 19 Total 807,619 45,672 853,291
2007 JD 817,531 817,531
65
17. ACCOUNTS PAYABLE AND OTHER CREDIT BALANCES

2008 National Electric Power Company- energy purchases New rural fils project - Note 17/b JD 2007 JD
13,827,135 2,993,925 3,569,966
19,366,250 2,665,323 913,333 504,436 123,342 51,935 114,297 3,315,108
National Electric Power Company-energy payables before Energy prices received in advance Notes payable year 1999 - Note 17/ c
Other credit balances
Governmental and other payables
1,707,331 504,436 125,421 111,467
National Electric Power Company - Others
123,342 77,609 63,958 37,007
Accrued expenses and interests support fees
Contractors' retentions
545,970 14,881 6,567 6,559
Provisions for scientific research and professional training Board of directors remuneration
Provision of universities of Jordan fees training support fund
35,000 30,440 25,126
16,800
Provisions for technical and vocational education and Total
23,232,163
27,646,953
2,152
b) Included in National Electric Power Company - energy purchases, an interest of payment delays of purchased power amounting to JD 2,727,466 as of December 31, 2008 (JD 2,385,313 as of December 31, 2007). Transactions with National Electric Power Company are trading in nature. The transactions which presented in the income statement are amounted to JD 84,956,607 that represent the purchased energy for the year ended December 31, 2008 (JD 69,488,640 for the year ended December 31, 2007). c) The National Electricity Power Company payables (before year 1999) will be settling with the Company.
18. ELECTRIC POWER SALES REVENUE, NET

2008 Locations other than Aqaba JD sold energy purchases energy NET 70,220,229 62,346,2817,873,948 Aqaba JD 33,442,946 (22,610,326) 10,832,620 Total JD 103,663,175 (84,956,607) 18,706,568 2007 All locations JD 81,190,304 (69,488,640) 11,701,664
66

b) According to the distribution and supplies retail license granted to the company on June 30, 2008 from Electricity Regulatory Commission, the annual return from core activities before tax was determined by 10% from the organizing base over the assets basis. The company computed the actual realized return for the core activities, so that the net increase of this return over the average return determined in the license for the period from the license date to December 31, 2008 reached an amount of JD 169,497. This amount will be discounted from tariff accounts for the following period in case the amount is a deficit it would be added to the tariff for the following periods, within electricity tariff mentioned in the distribution license, since this amount is still under negotiation and subject to review and adjustment by Electricity Regulatory Commission in accordance with the license.
19. OTHER OPERATING REVENUES

2008 Aqaba JD 239,678 Total JD 760,095 2007 All locations JD 597,086
Locations other than Aqaba Subscribers services JD 520,417 19,140 172,200 80,161 23,133 1,291,203
Total
Amortization of deferred revenues - Note 16
Rural electrification projects revenue
Abuse penalty revenues
Income from the decline in the power factor
Meters fees
476,152
158,291 304,365 25,793 32,842 22,539 783,508
634,443 323,505 197,993 113,003 45,672 2,074,711
580,272 271,365 200,699 80,841 1,730,263
67
20. OPERATING AND ADMINISTRATIVE EXPENSES

Locations other than Aqaba JD Vehicles expenses Telephones and courier Electricity and water License fees - Electricity Regulatory Commission Transportations and per diem University fees and stamps Guarding Stationery and printing Board of directors and committees remunerations Professional and consultation fees Labor juridical compensation Hospitality and cleanliness Government fees Computer maintenance Employees benefits Insurance Subscriptions and activities Training Rent Public safety Heating Advertising Conferences Donation Material write-offs Miscellaneous Total 522,193 156,025 130,823 109,957 103,044 82,409 97,632 61,405 57,106 55,513 55,151 49,733 43,507 41,916 43,602 39,437 39,786 34,411 22,873 18,991 13,476 11,058 9,073 8,367 7,260 30,487 1,845,235 2008 Aqaba JD 105,288 54,040 64,282 45,789 41,896 34,155 16,532 22,274 23,781 23,117 22,966 14,575 18,776 17,455 15,009 16,423 15,037 14,330 7,400 4,119 4,902 4,605 3,741 3,484 3,023 7,573 604,572 Total JD 627,481 210,065 195,105 155,746 144,940 116,564 114,164 83,679 80,887 78,630 78,117 64,308 62,283 59,371 58,611 55,860 54,823 48,741 30,273 23,110 18,378 15,663 12,814 11,851 10,283 38,060 2,449,807 2007 All locations JD 361,120 115,633 151,509 128,908 138,150 114,088 90,073 67,320 70,589 68,404 1,703 56,359 27,587 36,649 18,450 48,442 39,738 30,975 29,844 12,799 14,823 9,963 1,945 10,946 49,523 1,695,540
68

21. DEPRECIATION, NET
2008 Locations other than Aqaba JD Depreciation Amortization of subscibers contribution and new rural fils Amortization of old rural fils Net 5,738,379 (2,939,695) (9,978) 2,788,706 Aqaba JD 1,763,100 (979,732) (1,178) 782,190 Total JD 7,501,479 (3,919,427) (11,156) 3,570,896 2007 All locations JD 5,895,640 (3,494,744) (11,156) 2,389,740
22. REVENUES FROM POLES PLANT- NET

2008 Poles plant sales Net JD 3,333,985 1,396,352 2007 JD 1,786,869 458,315
Deduct: Cost of poles plant production
(1,937,633)
(1,328,554)
b) The net revenue of the poles plant is mainly resulting from sales made to the Company according to predetermined fixed prices. The costs of the poles are determined by the Companys management.
23. DEBIT INTERESTS

2008 Aqaba JD Total JD 2007 All locations JD
Locations other than Aqaba Interest on unpaid amounts of purchased energy Loans interest Total JD
241,561 -
Bank interests
5,089
100,592
2,119 -
342,153 -
7,208
1,026,479
15,455 66
246,650
102,711
349,361
1,042,000
69
24.CREDIT INTERESTS
Locations other than Aqaba Bank interests JD 156,505
2008 Aqaba JD Total JD 156,505
2007 All locations JD 248,169
Total
Interest on unpaid amounts of sold energy
279,450 435,955
116,372 116,372
395,822 552,327
1,026,479 1,274,648
25. PRIOR YEARS ADJUSTMENTS

The investment in Electrical Equipment Industries Company for the years 2006 and 2007 was accounted for using the equity method. The investment was classified as available for sale investment. In addition, these is no active market for this investment. The cost method is being used in accounting for this investment according to International Accounting Standard No. (39). Accordingly, the following adjustments have been made:
2007 Investment in available for sale security - before restatement JD 494,607
Reversal of share of profit of investment in available for sale security for year 2007 Reversal of share of profit of investment in available for sale security for year 2006 Investment in available for sale security - restated
(139,712) (54,114)
300,781
Accordingly, retained earnings available for distribution as at January 1, 2007 was decreased by JD 54,114, and revenues and profit for 2007 were decreased by JD 139,712.
26. LITIGATIONS
According to the Companys lawyer's letter, there were (121) legal actions against the Company as at the statement of financial position date in which their value amounting to (JD 400,000) that was considered for the purpose of determining the legal fees, and there were (1294) legal actions against others with undetermined values that are still outstanding in courts.
27. FINANCIAL INSTRUMENTS

a) Fair value - Carrying value of financial assets and liabilities are approximately equal to their fair values. - Notes to the financial statements indicate the fair value of those instruments. In addition, some of the accounting policies in note (2) present methods used in evaluating those instruments.
70

b) Market risk Market risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises the following risks - Currency risk - Currency risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. - Risks related to the financial instruments denominated in USD are low due to the constancy of exchange rate of JD against USD. Risks related to other foreign currencies were reflected in the income statement. - Interest rate risk - Interest rate risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. - The financial instruments in the statement of financial position are not subject to interest rate risk with the exception of deposits that are subject to market interest rate. - Other price risk - Other price risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices - other than those arising from interest rate risk or currency risk-, whether those changes are caused by factors specific to the individual instrument or its issuer or factors affecting all similar financial instruments traded in the market. - The financial instruments in the statement of financial position are not subject to other pricing risk except of investment. c) Credit risk - Credit risk is defined as the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. - The company maintains cash at financial institutions with suitable credit rating. - The company maintains a proper control over the customers credit limits and collection process. d) Liquidity risk - Liquidity risk is defined as the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. - The company is not subject to liquidity risk.
28. COMPARATIVE FIGURES

Some comparative figures were reclassified to conform to the current year financial statements presentation.
71
Confirmation of the Board of Directors

1) The board of director confirms that there are no substantial which may affect the continuation of the company in the next fiscal year. 2) The board of director confirms its responsibility for the preparation of financial statements and the provision of an effective control system in the company.
Chairman of the Board of Directors
Vice Chairman of the Board of Directors
Member
AbdulKarim Al-Malahmeh Member Member
Dr. Adnan Sa'ad Member
Mohammed Al-Najadat Member
Eng. Salih Hlalat
Eng.Ahmed Theinat
Khalid Al-Qura'an
Eng. Sa'ad Abu Oudeh
2. The board of directors' head, the general manager and the assistant financial affairs general manager acknowledge that the information and the data, mentioned in this report, are correct, accurate and complete.
Chairman of the Board of Directors AbdulKarim Al-Malahmeh
General Manager, Eng. Mohammed Ameen Fraihat
Assistant General Manager for Financial Affairs Marwan Al-Aswad
72
Recommendations
Based on the content of the report summary, the balance sheet and the income statements, the board of directors suggests your approval on the following: 1. Reciting and discussing the board of directors' report concerning the Company works for the year 2008 and the future plan of the next year. 2. Report of the Company's auditors on the balance sheet of the company final accounts and financial status and positions during the year 2008. 3. Discussing the balance sheet, the income statement, the reserves and the allowances stated, therein, for the year 2008. 4. Approving the board of directors' recommendation on the profits to be distributed. 5. Election of the Companys auditors of the next fiscal year, and deciding on their remuneration or authorizing the board of directors to determine same. 6. Acquitting the board of directors for the year ending on December31, 2008 in compliance with law jurisdictions. 7. Ratifying the loan granted to the Company from IFC and the purchase of Irbid electricity Company shares owned by the Kingdom Electricity Company. 8. Any other matters stipulated by the board of the directories to be inserted in the agenda for discussion in compliance with the law of companies. In the conclusion, the board of directors thanks the honorable shareholders and all the Company employees for their great efforts exerted for developing the performance in the Company. We ask Allah, the Sublime, to attain success, under the reign of his majesty, King Abdullah 11 Bin Al Hussein, May Allah bless & safeguard him.
73
Electricity Distribution Company (EDCO) Offices' Addresses

Main Administration Offices Aqaba Distribution Area Offices Amman- Khalda Wasfi Al-Tal St. Extension / Al-Khaldeen Quarter P.O Box 830878 Amman 11183 Jordan -Addustor Quarter Departments Complex- beside the Central Bank of Jordan Al-Shareef Hussein Bin Ali St. - Consumer Services Office : Aqaba - Consumer Services Office: Al-Qweira Beside Municipality Building. Ma'an Distribution Area Offices - Behind Travels Complex Al-Mahatta Road Tel : ( +962-6)5331330 Fax : ( +962-6)5341213 Tel : 03/2014141 Tel : 03/2014143 Tel : 03/204711303/2047114 Tel : 03/2132308 : 03/2132737 : 03/2132673 Tel : 03/2132077 Tel : 03/2156050 :03/2157308 Tel : 03/2164230 : 03/2164174 Tel : 03/2387210 Tel : 03/2354238 Tel : 03/2351187 Tel : 03/2315410 Tel : 03/2302630 Tel : 03/2242696 : 03/2242063 : 03/2241395 Tel : 03/2242661 03/2243165 Tel : 03/2267131 Tel : 05/3573111 05/3573112 05/3573116 Tel : 05/3581123 05/3581135 Tel : 02/6587443 02/658798 Tel : 02/6560743 Tel : 05/3835121 05/3835122 Tel : 02/6292219 Tel :06/5341022 06/5344054 06/5350362
- Consumer Services Offices : Downtown Hassan Al-Banna - Wadi Musa Office: Al-Inarah. - Al-Shoubak Office : Najl Al-Karak Distribution Area Offices Al-Thanyah Al-Karak Amman Street Opposite to Police Triangle. Consumers' Services offices Offices: Al-Karak City- the Italian Hospital Street. Consumer Services Offices: Southern Mazar Main Street Soul Triangle. Consumers' Services Offices: Al-Qasr Islamic Bank Building. Consumers' Services Offices: Ghour Al-Safi Main Street. Al-Tafeelah Distribution Area Offices - Administration Building: Al-Tafeelah Governorate Al-Baqee' Quarter near Al-Tafeelah Police Directorate. - Consumer Services Offices: Al-Tafeelah City Center Al- Shaheed Wasfi Al-Tal Street. - Consumer Services Offices : Bsaira Al-Rabas Quarter. Jordan Valley & AlEastern Area Distribution Offices - Deir Alla Main Street.
- Consumers' Services Offices: Southern Shounah Opposite to Municipality Building Bridge Street. - Consumers' Services Offices: Northern Shounah - Consumers' Services Offices: Al-Mashari' General Street. - Consumer Services Offices:Al-Azraq. - Consumer Services Offices: Rwaishid near the Municipality Building. Manufacturing Department Offices Swailih near the traffic light- Medical City Way. P.O Box : (1) Swailih 11910
74

Annual Report - 2008eng

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Annual Report - 2008eng

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ELECTRICITY DISTRIBUTION COMPANY Public Shareholding Company

THE ANNUAL REPORT 2008

THE ANNUAL REPORT 2008

Electricity Distribution Company

(General Manager of Jordan Electricity Company/ (Member)

Second: Between (13/7/2008 31/12/2008) Kingdom Electricity Company, represented by Messrs:

(Vice Chairman of the Board of Directors)

THE ANNUAL REPORT 2008

Electricity Distribution Company

A message from the Chairman of the Board of Directors

THE ANNUAL REPORT 2008

Electricity Distribution Company

Board of Directors / Kingdom Electricity Company Representatives

His Excellency, Dr. / Adnan Mohammed Hassan Sa'ad / Vice Chairman

His Excellency, Mr. / Mohammed Oudeh Hassan Al-Najadat

His Excellency Engineer /Sa'ad Adnan Sa'eed Abu Oudeh

His Excellency, Mr. / Saleh Ali Oudeh Al-Hlalat

His Excellency, Engineer. / Ahmad Ali Sa'ad Theinat

Date of Birth: 1944 Date of Membership: 31/7/2008 Master in Electrical Engineer/1975

His Excellency, Mr. / Khalid Mohammed Oudeh Al-Qar'an

Electricity Distribution Company

Board of Directors Members' Names

Total of Annual Monthly Rewards Transporting Rewards 

9371 0 0 0 0 0 0 9371 18371

2678 2678 2678 2678 2516 2678 2678 18584 29084

12049 2678 2678 2678 2516 2678 2678 27955 64255

THE ANNUAL REPORT 2008

Electricity Distribution Company

The Company Executive Administration

THE ANNUAL REPORT 2008

Electricity Distribution Company

THE ANNUAL REPORT 2008

Electricity Distribution Company

Commissions Rewards & incentives JD

General Manager Assistant General Director for financial affairs

33700 21254 21044 15893

2450 1200 1400

Engineer/ Fawzi Mohammad Saleem Al-Hakeem

Director of Al-Tafeelah Electricity Distribution Area Department Manager of Manufacturing Department

14192 25535 255401

1650 200 3200

375 750 9488

The Company Competition Situation:

The Extent of Dependency on Certain Suppliers:

THE ANNUAL REPORT 2008

Electricity Distribution Company

The Company Contributions:

The Company Subordinate Companies:

Capital Investment Size:

The Company Activities in the Field of Environment Protection and Safety:

The Company Activities in the Field of Local Community Service:

The Beneficiary Body from the Donation

1308 500 838 300 300

South Shounah District Governorate Sheehan Club/ Al-Karak Ma'an Municipality

The Unemployed Training and Rehabilitation Center/ Al-Karak

THE ANNUAL REPORT 2008

Electricity Distribution Company

Scope of Our Activities

The Organizational Framework of the Company for the Year 2008

THE ANNUAL REPORT 2008

Secretariat of Tendering Committees

Legal Affairs Department

Assistant Director General for Financial Affairs

Total of Annual Monthly Rewards Transporting Rewards