Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698079621734.pdf (Seychelles)
ANNUAL REPORT 2022 TABLE OF CONTENTS 1 PAGE NO FOREWORD FROM THE CHAIRMAN AND CEO ABOUT US 2022: A YEAR IN PICTURES VALUING OUR EMPLOYEES 2022: BY THE NUMBERS ELECTRICITY - GENERATION ELECTRICITY – TRANSMISSION & DISTRIBUTION RENEWABLE ENERGY WATER SUPPLY WATER DISTRIBUTION SEWERAGE COMMERCIAL SUPPORT SERVICES LOOKING AHEAD CORPORATE GOVERNANCE FINANCIAL HIGHLIGHTS 2022 AUDITED FINANCIAL STATEMENTS CONTACT INFORMATION 2 5 7 8 9 10 12 15 16 18 20 24 27 29 30 32 34 83 FOREWORD FROM THE CHAIRMAN AND CEO 2 On behalf of the Board of Directors, our management team and employees, we are pleased to present this 2022 Annual Report to our stakeholders.
This report documents the progress achieved under our first full year of leadership as Chairman and CEO.

A year of transformation 2022 was a transformative year.

Amidst a backdrop of challenges, including the enduring impact of the Covid-19 pandemic and economic shifts sparked by the Russian-Ukraine conflict, we remained steadfast in our commitment to deliver sustainable, safe and reliable services – a goal we achieved through a harmonious partnership with Seychelles’ government.
As we undertook our new leadership roles as Chairman and CEO of the Corporation, our strategic transition saw the reinforcement of our organizational structure with key appointments, including the recruitment of a Chief Operations Officer and a Chief Internal Auditor; and the recommendation to increase Board membership from seven to nine members.

The new structure frees the CEO to focus on the strategic objectives of the Corporation.
Health & Safety In 2022 we intensified our health and safety standards and training.

Through consultations with staff at all levels, we emphasized and prioritized the importance of safe working practices and the correct use of protective gear and equipment.

We conducted fire-prevention and fire- fighting training with 105 employees, and 61 employees completed their First Aid training.

In collaboration with the Ministry of Health, our core services teams were provided with regular medical examinations.
Our strategic restructuring and reinforced commitment to safety saw the Safety Officer now report directly to the CEO.

In preparation for our 2023 public presentations, we collaborated closely with the Disaster Risk Management Division, refining emergency plans for the La Gogue Dam.

During public consultations, residents within the vicinity of the dam will be informed of evacuation plans.
Leonard Alvis Chairman Joel E. Valmont Chief Executive Officer “Amidst a backdrop of challenges, including the enduring impact of the Covid-19 pandemic and economic shifts sparked by the Russian-Ukraine conflict, we remained steadfast in our commitment to deliver sustainable, safe and reliable services FOREWORD FROM THE CHAIRMAN AND CEO Sustainable investment Our dedication to responsible business practices and sustainable development has been evident in our inclusive workplace and environmental initiatives.
By fostering a diverse and inclusive culture of career development, we are contributing not only to the success of our organization, but to Seychelles’ wider society.

Notably in 2022, we marked significant milestones that bolstered our resilience against climate change: the inauguration of the 5MW Ile De Romainville solar PV farm and the successful re-commissioning of the La Gogue Dam.
We also awarded two contracts for the construction of the La Digue Wastewater Network and the La Digue Wastewater Treatment plant, and remained committed to mitigating the environmental impact of our operations, including energy delivery, source-water treatment, operating desalination plants and managing wastewater.
Investment in our infrastructure persisted, enhancing efficiency and reliability through the replacement of aged and obsolete assets, renovation of critical assets, extension and capacity enhancement of utilities networks, strategic plants and storage systems.

This strategic approach aligns with our commitment to Seychelles' growth, modernization and climate resilience.
Risk management “By fostering a diverse and inclusive culture of career development, we are contributing not only to the success of our organization, but to Seychelles’ wider society.” A robust risk management strategy underpinned our governance in 2022 and guided us through a year of dynamic regulatory changes and supply chain challenges.
We identified and managed critical risks and opportunities related to the upcoming changes in policy and the government’s request to evaluate major divergence in electricity production, significant fuel-price volatility and continued supply chain challenges.

This approach helps ensure that we can achieve our long-term strategic priorities.
Driving renewable energy transition Our relationship with the Government of Seychelles remains strong, as we work towards their 2050 carbon neutrality goals and foster local growth and development.

We have an opportunity to drive the energy transition and we intend to seize it.

Looking to the future, our strategy is predicated upon the production of cleaner fuels, renewable electricity, energy efficiency and critical utilities infrastructure.
Underpinning this strategic focus are three foundational pillars: leveraging core assets and investments to advance energy transition; optimizing utilities infrastructure assets and adding new plants, and generating cash flow to improve financial strength and growth capacity FOREWORD FROM THE CHAIRMAN AND CEO Vote of thanks Our gratitude extends to our dedicated employees, the cornerstone of our success.
In August of 2022, we also bade farewell and extended our sincere thanks to Dr. Selwyn Gendron, whose expertise and mentorship have indelibly shaped our Corporation.

His expertise and resourcefulness in finance, economics, engineering and sustainability were obvious to all of us who worked with him, and his mentorship remains evident in the terrific women and men who now lead our businesses.
We’d also like to thank our Shareholder and members of the Board of Directors for their support and continued trust you place in us.

We are very keen and optimistic about the future of PUC.
ABOUT US 5 CUSTOMER FOCUS  To provide an efficient, safe and reliable HONESTY & TRANSPARENCY supply of electricity and treated water, and to collect, treat and dispose of waste water, paying due regard to the environment and customers’ interest.

INNOVATION  To keep up with changes in technology so as to improve services.
CONTINUOUS IMPROVEMENT TEAM CULTURE  To promote a culture where the employees have a sense of belonging and loyalty to the organization and develop and grow with it.

SUSTAINABILITY to environmental stewardship.

 To demonstrate our long-term commitment TRUSTWORTHINESS EXCELLENCE  To promote the sustainable development of renewable energy to ensure reduced dependence on imported fossil fuels.

To be a model organization working for the sustainable and socio-economic development of Seychelles.
ORGANISATION STRUCTURE BOARD OF DIRECTORS AUDIT & RISK COMMITTEE FINANCE & INVESTMENT COMMITTEE REMUNERATION COMMITTEE 6 INTERNAL & TECHNICAL AUDITS CHIEF EXECUTIVE OFFICER LEGAL SECURITY COMMUNICATIONS HEALTH & SAFETY DEPUTY CEO CHIEF OPERATING OFFICER SUPPORT SERVICES FINANCE WATER SERVICES SEWERAGE SERVICES ELECTRICITY SERVICES PRASLIN / LA DIGUE PROJECT MANAGEMENT INFORMATION & COMMUNICATIONS TECHNOLOGY CFO & DCFO GM & DGM GM & DGM GM & DGM GM PROJECT DIRECTOR CTO & DCTO WATER TREATMENT PLANTS OPERATIONS SEWERAGE TREATMENT PLANTS GENERATION - PLANTS DESALINATION PLANTS OPERATIONS SEWERAGE NETWORK TRANSMISSION & DISTRIBUTION - NETWORKS EME & AUTOMATION FOR ALL WATER AND SEWERAGE PLANTS TRANSMISSION & DISTRIBUTION - NETWORKS PLANNING & SURVEY OPERATIONS, COMMERCIAL, FINANCE & ADMINISTRATION PROJECT MANAGEMENT SYSTEM APPLICATIONS & DEVELOPMENT ASSET MANAGEMENT SYSTEM INFRASTRUCTURE GIS & DRAWING OFFICE APPLICATION SYSTEMS ERP SURVEY + NEW CONNECTIONS SURVEY + NEW CONNECTIONS INSPECTORATE & NEW CONNECTIONS PROJECT CONSTRUCTION COMMERCIAL & CUSTOMER SERVICES CCO PROCUREMENT PROCUREMENT DIRECTOR HUMAN RESOURCE MANAGEMENT HRM OCCUPATIONAL DEVELOPMENT ODM FLEET MAINTENANCE & MANAGEMENT WORKSHOP MANAGER 2022: A YEAR IN PICTURES 7 Serving a customer at Anse Royale Service Centre Electricity breakdown team at work Inauguration ceremony of Ile de Romainville Solar Park PUC Sports Day winners Performing engine overhaul % 35% 25% 3% VALUING OUR EMPLOYEES Our mission to provide safe and reliable services around the clock to our customers is made possible by the tremendous efforts, sacrifices and dedication that our employees, at all levels of the Corporation, bring to their work each day.
We value their work and owe our success to them.

At the end of 2022, our workforce comprised of 1,226 employees, of which 766 employees (62% of the workforce) represented the core services - electricity, water and sewerage – whilst 460 employees (38%) provided support services across the board.

A total of 40 expatriate employees constituted 3.3% of the total workforce.

Health & Safety The health and safety of our employees has always been our top priority.
We have, from the onset, stressed the importance of our employees being Number of PUC Employees - 2022 Core Services Support Services Division Electricity Water Sewerage Commercial & Customer Services Corporate & Support Services Finance Project Management & Construction Total 423 302 41 766 62% Health & Safety Statistics in 2022 Total Number of days lost due to accidents well-equipped with all necessary resources and Fire firefighting training safety equipment to ensure they are able to deliver and maintain quality services to our customers on First aid training all three main islands.
Whilst we focus a lot of our efforts in reviewing and managing the risks Medical examinations embedded in the processes across all our operations, our Group and Personal Accident insurance policy covers the risk of accidents or injury to our employees on a 24-hour basis.
Training & Development Vaccinations (Hepatitis B injections) - sewerage, laboratory and electromechanical staff Covid-19 positive cases 215 18% 107 9% 6% 5% 71 67 460 38% 130 days 27 employees 66 employees 140 routine exams 13 174 cases reported Over the years, we have prioritized the training and development of our employees.

During the year, 191 employees attended various training programmes via classroom-based training (locally and overseas), as well as online.
The amount invested in training in 2022 was SCR 2.28 million compared to SCR 2.16 million in 2021.
2022: BY THE NUMBERS SCR 1.94 billion Revenue SCR 202 million Net Profit 1,226 Number of employees 9 Y T I C I R T C E L E R E T A W E G A R E W E S 457.5 GWh Electricity Production 44,183 Electricity Customers 99.5 % Electricity Supply Coverage 1,527 New Electricity Connections 63,000 kW Peak Demand - Mahé 9,470 Peak demand - Praslin 16 million m³ Water Production > 95 % Water Supply Coverage 37,095 Water Customers 1,229 New Water Connections 2.1 million m³ Volume of Wastewater billed 6,009 Sewerage Customers < 20 % Sewerage Coverage 81 New Sewerage Connections Our operations span over the islands of Mahé, Praslin and La Digue l y g r e n E e b a w e n e R n o i t c u d o r P 8.6 GWh Solar PV Farm 6.6 GWh Wind Farm 7.9 GWh Rooftop PV r e t a W e u n e v e R - n o N x e d n I 29.22 % NRW - Mahé 22.12 % NRW - Praslin 48.89 % NRW – La Digue ELECTRICITY - GENERATION As the economy started to bounce back in 2022, demand for energy started to grow back to the 2019 pre-Covid levels.
A total of 457 million kWh of electricity was produced during the year, which represented 3.3% increase from 442.7 million kWh generated in 2021.

Total units generated on Mahé increased by only 1.3%, whilst there was a more significant increase of 21.4% on Praslin, which reflected revival of tourism on the island.

Peak demand in 2022 was 63,000 kW on Mahé and 9,470 kW on Praslin.
The volume of HFO used for electricity generation (used exclusively on Mahé) increased by 1% to 88 million litres in 2022, compared to 87 million litres in 2021.

On Praslin, there was a 22% increase in LFO consumption from 12 million litres in 2021 to 15 million litres in 2022.

We were not spared from the global fuel price escalations on account of the Russian-Ukraine conflict, and consequently incurred 19% increase in fuel cost from SCR 969 million in 2021 to SCR 1.15 billion in 2022.
The average fuel cost of SCR 96 million per month was absorbed in part by our cash reserves and in part by fuel- related increase in electricity tariffs to customers.
10 VICTORIA STATION C - MAHE 74 MW available capacity 58 MW safe generating capacity VICTORIA STATION B - MAHE 14.5 MW 6 MW available capacity safe generating capacity BAIE STE ANNE PRASLIN POWER STATION 14.05 MW 9.45 MW available capacity safe generating capacity LA DIGUE EMERGENCY BACK-UP PLANT 1.8 MW available capacity RENEWABLE ENERGY CAPACITY 6 MW Wind Farm 6 MW Solar Farm ELECTRICITY GENERATION - STATISTICS 11 Total units generated (kWh) Units generated LFO (kWh) Units generated HFO (kWh) Wind energy (kWh) PV - Solar farm (kWh) PV – Third Party Rooftops (kWh) Energy sent out (kWh) Station use (kWh) LFO consumed (litres) HFO consumed (litres) Total units generated (kWh) Units generated LFO (kWh) Units generated HFO (kWh) Wind energy (kWh) PV - Solar farm (kWh) PV – Third Party Rooftops (kWh) Energy sent out (kWh) Station use (kWh) LFO consumed (litres) HFO consumed (litres) Total units generated (kWh) Units generated LFO (kWh) - Praslin Units generated LFO (kWh) – La Digue PV – Third Party Rooftops (kWh) - Praslin PV – Third Party Rooftops (kWh) – La Digue Energy sent out (kWh) Station use (kWh) LFO consumed (litres) TOTAL 2022 457,490,108 2021 442,740,481 2020 441,834,384 54,943,768 45,231,090 46,093,224 379,457,764 378,887,853 384,036,200 6,580,429 8,577,203 7,930,944 5,078,618 5,985,764 6,403,205 715 7,139,715 - 196 5,719,196 444,886,322 429,780,285 428,703,398 12,603,786 12,960,196 13,130,986 15,180,231 12,447,790 12,628,334 88,010,775 87,102,737 88,436,223 MAHE 2022 401,945,664 2021 396,980,423 2020 395,411,421 452,774 441,733 396,599 379,457,764 378,887,853 384,036,200 6,580,429 8,577,203 6,877,494 5,078,618 5,985,764 6,403,205 6,169,014 - 4,992,858 390,575,484 384,980,316 383,232,728 11,370,180 12,000,107 12,178,693 134,145 129,600 114,888 88,010,775 87,102,737 88,436,223 PRASLIN / LA DIGUE 2022 55,544,444 54,401,112 89,882 893,595 159,855 2021 45,760,058 44,679,453 109,904 790,850 179,851 2020 46,422,963 45,586,721 109,904 726,338 - 54,307,838 44,799,969 45,470,670 1,236,606 960,089 952,293 15,046,086 12,318,190 12,513,446 ELECTRICITY – TRANSMISSION & DISTRIBUTION Our Transmission and Distribution (T&D) Section is 12 responsible for the safe and reliable transmission and distribution of electrical energy on Mahé, Praslin, La Digue and the inner islands.
It also provides an inspectorate service to the public to maintain a reasonable standard of safety and electrical wiring in all installations.

On Mahé, energy produced at the power station is transmitted and distributed to various areas through 33 kV and 11 kV feeders.

On Praslin, energy is generated at Baie Ste Anne Power Station and distributed to customers 33 KV TRANSMISSION NETWORK 15 KM overhead line circuit length 132 KM underground cable circuit length via overhead and underground cable networks.
On La 11 KV TRANSMISSION NETWORK Digue, electricity supply is fed via two undersea cables and, in cases of emergency, a back-up plant is also available.

214 KM overhead line circuit length 160 KM underground cable circuit length 33 kV South Mahé Project The 33 kV South Mahé project commenced in November LOW VOLTAGE 2017 with the prime objective of improving the reliability DISTRIBUTION NETWORK and quality of electricity supply of South Mahé.
The project entails extension of 33 kV network from Roche Caiman power station to Anse Boileau around the entire coast of Mahé and the creation of eight 33/11 kV substations, including a SCADA network for new and existing substations on Mahé.

The project is being funded by Saudi Fund for Development (SFD), BADEA, Government of Seychelles and PUC.

The EPC contract was awarded to Consolidated Power Africa (CONCO) for the sum of USD 31.5 million (excluding taxes) in September 2017.
The project is expected to be completed by the first half of 2023.
115 KM low voltage underground 1,500 KM low voltage overhead 11 KV UNDERSEA CABLE 6 KM Mahe to Ile Au Cerf 32 KM Praslin to La Digue ELECTRICITY – T&D 33 kV South Mahé Project 13 Undersea Cable Works Praslin – La Digue At the end of 2022, we achieved substantial completion of the 33 kV South Mahé project, as depicted below: Component Progress Substations Procurement Cable-laying SCADA Overall Progress 97% 99% 99% 87% 97% In April 2022, we successfully completed works on one of the undersea cables which transmit electric power from Praslin to La Digue.
The undersea cable, which originally interconnected Praslin, Round Island and La Digue, was temporarily put out of service to facilitate direct interconnection of a newly installed length of cable from Praslin.

The interconnection works were done with minimal interruption of electricity services due to the application of the stand-by generators on PUC team involved in cable laying operations La Digue.
The works, which involved cable installation, cable terminations, cable jointing, testing and commissioning, required a high level of technical expertise which our in-house team have acquired with experience, thus allowing them to successfully deliver on the job.

The cable now directly interconnects Eve Island to “Dan Goulo” on La Digue.
Whilst we anticipate that the works done will considerably improve the reliability of electricity supply to the island of La Digue, we will continue to monitor the cable for signs of weakness.

To further enhance the reliability of electricity services on La Digue, the installation of a third undersea cable is required; an investment that has to feature in the CAPEX plan of PUC in 2023.
14 ELECTRICITY – T&D Service Connection Enquiries (SCE’s) SERVICE TYPE Additional load Our Planning & Design Section is responsible for ensuring Alteration of service that all electricity Service Connection Enquiries (SCE) position proposals are technically feasible, cost-effective and that Changing of meter position all electrical installations meet the BS 7671 required Diversion QTY 119 28 180 194 standard.
This section also processes various forms of New Supply - Electricity 1,491 66 19 259 2,356 Planning applications, including but not limited to new development projects, subdivision of land, and change of New Supply – Electricity from temporary supply use.

In 2022, a total of 2,356 SCEs were approved.

Vegetation Management Vegetation management represents one of our recurrent expenditures that are crucial to ensuring reliability of electricity supply as well as public safety.
The programme entails a preventative approach including identification and maintenance of “vegetation-free” zones; tree pruning and removal; vegetation control around poles, substations and other electric facilities; pre- and post- inspections of work and right of way issues.

We have an in-house trees team that generally takes care of minor tree clearance activities on the electricity lines and also assists the construction team when stringing overhead lines.
Due to the time, efforts and resources required to clear extensive lengths of overhead HV and LV lines, a significant portion of the vegetation management function is outsourced to licensed contractors.

In 2022, a total of:  396 vegetation management contracts, comprising of Rewiring Temporary supply Grand Total Major T&D Projects Commissioned in 2022 SCR 16 million  66 HV contracts and 330 LV contracts, spent on vegetation management were outsourced to 125 contractors.
in 2022 15 RENEWABLE ENERGY 5.05% 1.87% 1.44% 1.73% Share of total electricity production from renewable energy Share of total electricity production from the Solar PV Farm at Ile de Romainville Share of total electricity production from wind farm Share of total electricity production from third-party roof top solar PVs 19.2 MW Total installed capacity of Renewable Energy Sources 6 MW Installed capacity of Ile de Romainville Solar Farm 6 MW Installed capacity of wind farm 7.2 MW Installed capacity of third-party solar PV rooftops Seychelles has a medium-term target to generate 15% of its energy from renewable sources by 2030 (Energy Policy, 2010-2030).
The country has also made commitments to the Paris Agreement to reduce its greenhouse gas emissions by 26% in 2030 relative to baseline emissions.

PUC is taking a more prominent role in driving the transition to clean energy in line with the national targets either through its own equity or in partnership with independent power producers (IPP) or via other business models.
In 2022, renewable energy sources contributed 23.1 GWh of electricity, equivalent to 5.05% of the total electricity produced on Mahé, Praslin and La Digue.

The 6 MW Ile de Romainville Solar Farm produced 8.6 GWh of electricity (1.87% of total electricity production).

The 6 MW Port Victoria wind farm generated 6.6 GWh of electricity (1.44% of total electricity production), an increase of 32% from the previous year.
The wind farm availability was 87% during the year given that three wind turbines - namely WTG4, WTG6 and WTG7 - were not operational for some parts of the year due to breakdown and maintenance.

Third-party rooftop solar PV production contributed 7.9 GWh (1.73% of total electricity production).

During the year, 66 rooftop PV systems with a combined capacity of 708 kW were connected to the grid.

This brought the cumulative number of rooftop PVs to 699 and installed capacity to 7.2 MW at the end of 2022.
The renewable energy production of 23.1 GWh in 2022 is equivalent to annual electricity consumption of approximately 6,500 homes.

This has avoided the emission of 15,900 tons of CO2 and saved about 5.3 million litres of fuel worth around SCR 55 million (based on weighted average fuel prices in 2022).
WATER SUPPLY Demand for water continues to rise, and this puts intense pressure on fresh water supplies which are derived  Dams (on Mahé only) 16 principally from reservoirs, rivers (surface water) and boreholes.

We are continually searching for alternative sources of fresh water and making operational improvements in order to build resilience in the water supply system and distribution networks.
During the year, the Rochon Dam water level was closely monitored, being the main water storage in operation with the La Gogue Dam being out of operation for the fifth consecutive year.

The water level at Rochon Dam was maintained at not less than 80% to ensure some buffer storage at all times.

The other main fresh water sources were monitored and recorded on a daily basis.
Six desalination plants located on Mahé, Praslin and La 1,600,000 m³ capacity La Gogue Dam upon completion 50,000 m³ capacity Rochon Dam  Desalination Plants Providence Anse Boileau Digue, with total capacity of 28,550 mᶾ per day, have Ile Perseverance played an important role in supplementing the limited Belombre available water sources during prolonged periods of Baie Ste Anne Praslin drought in 2022.
However, colossal electricity charges of La Passe, La Digue SCR 141 million were incurred to operate the plants due TOTAL to the energy intensive processes involved, compounded by the impact of fuel price escalations during the year.

 25 Water Treatment Plants In 2022, a total of 16,239,448 m³ potable water was  115 Pumping Stations produced, representing a 6.5% increase from 15,253,107 m³ produced in 2021.
 152 Reservoirs 2022 Production of Potable Water (mᶾ) Location Mahé Praslin La Digue Surface Water Desalinated Water Desalination Percentage 10,311,074 4,026,155 28.1% 846,574 421,829 33.3% 287,511 346,305 54.6% Total 11,445,159 4,794,289 29.5% Depleted barrage during dry season Mᶾ per day capacity 16,000 3,750 2,000 2,500 2,900 1,400 28,550 WATER SUPPLY Raising of the La Gogue Dam Project La Gogue Dam Works-in-Progress The key objective of the La Gogue Dam project is to increase in Pictures 2022 17 the storage capacity of the dam by 60% from 1 million m³ to 1.6 million m³, thus augmenting the water treatment capacity serving the central and north eastern parts of Mahé.
The project is being financed by a USD 20.6 million loan from the African Development Bank (AfDB), as well as funding from Government of Seychelles and PUC.

The contract for raising of the dam was awarded to M/S Synohydro in August 2017 for the sum of SCR 185 million, whilst the consultancy services for design, review and supervision have been awarded to Studio ing.

G. Pietrangeli Srl.
G. Pietrangeli Srl.

Construction of a water treatment plant at the toe of the dam of 4,400 m³ capacity per day has been deferred due to this component of the loan being allocated to additional works required to address seepages on the right abutment and slope stability on the south saddle dam.

Impoundment of the dam tentatively commenced at the end of December 2022.
This process is subject to careful monitoring in order to observe the behaviour of the dam and to take remedial actions, if any, before the dam can be safely put back into operation.

The maximum height of the dam is 150 metres a.m.s.l.

(above mean sea level).


A series of public meetings has been scheduled with stakeholders and residents within the vicinity of the dam at the start of 2023 in order to heighten awareness about the safety measures instituted and to sensitize the public about the emergency preparedness plan.

Commissioning of the dam is anticipated to take place the first half of 2023 when it is certified safe for operations.
Piling works ongoing on right abutment in March 2022 Construction of wave wall on south saddle dam ongoing in March 2022 Embankment filling completed; Jet grouting works under spillway ongoing in September 2022 18 WATER DISTRIBUTION Water Meter Connections During the year, a total of 1,346 new water meter connections were installed, at an average rate of 112 connections per month.
1,138 94 111 3 15mm Connections Domestic 15mm Connections Commercial 40mm Connections Larger Connections Water Distribution Breakdowns A total number of 8,600 customer complaints, relating to major bursts, minor bursts and other network issues, were logged and attended to in 2022.

This constitutes an average of 717 water-related issues per month.
6,762 97 1,741 Minor Bursts Major Bursts Other Complaints Electro-mechanical preventive Maintenance The Electo-mechanical section provides operations & maintenance support for the Water, Wastewater and Desalination plants and other infrastructures.

A total number of 1,714 works orders were raised and attended to during the year, representing an average of 143 works orders per month.
Key Achievements Water Operations in 2022 Commissioning of Anse Major Project Construction of three barrages to collect water from the catchment area which will be transmitted to Belombre for treatment and distribution.

Yield: 1,500 m³ per day.

Installation of new Chlorinator System at Hermitage Treatment Plant An alternative for calcium hypochlorite for safe treatment of potable water by means of electrolysis using chlorinsitu equipment and salt.
The chlorinator system will be installed at other main treatment plants on Mahé.

Improvement of Filtration System at La Digue Desalination Plant Use of cartridge filters instead of bag filters which decreases clogging time, allowing the containerized unit to remain in operation.

Electro-mechanical Breakdown Maintenance A total number of 798 breakdowns related to water, sewerage and desalination operations were attended to in 2022, representing an average of 67 breakdowns per month.
665 613 436 446 316 36 Water Sewerage Desalination Water Breakdowns Sewerage Breakdowns Desalination Breakdowns 19 WATER DISTRIBUTION Non-Revenue Water Catchment monitoring Spot checks were performed at all the water catchments throughout the year.

Activities monitored included excavation for crop farming, grazing cattle and construction activities within the catchments.
Planning Applications A total number of 2,316 planning applications of developments were received for comments during the year.

Five were in the water catchment areas and were approved.

Seven were approved with special conditions.

Tree Cutting Permits Non-revenue water (NRW) is an important key performance indicator (KPI) that PUC devotes a lot of time, effort and resources on.

NRW is water that has been collected and treated but is lost or unaccounted for before it reaches the customers.
The losses are typically caused by leakages, illegal water abstraction, faulty meters, meter tampering, and aging & non- performing pipelines.

In 2013, NRW was registered at a high level of 55%.

Since then, we have embarked on an intensive NRW programme which has yielded significant benefits including reduction in A total number of 24 tree cutting permits were received water losses, reduction in the amount of and evaluated during the year.
22 permits were approved treated water production and increase in as they were all outside of PUC’s drinking water billing revenues.

catchments.

Two applications were refused on the basis To date, we have established 61 DMAs (district that they will have some impact on the water catchments.
metering areas) on Mahé and 12 DMAs on Livestock Applications A total number of 65 livestock permit applications were received and evaluated during the year, all of which were approved as most of them are within the Val d’en D’Or area which has been relinquished by PUC for agricultural activities.
Water & Wastewater Laboratories Routine samplings were collected and analyzed every month with regards to monitoring of the water quality at Praslin in order to more efficiently coordinate pipe leak detection, investigate fraud and replace basic or faulty meters.

In the second half of 2022, we launched our NRW efforts on La Digue where NRW levels in excess of 46% were observed.
The NRW programme features as a component under Project Neptune but will continue to be financed by PUC and implemented as part of our operations.

the different water treatment works, networks and RO NRW Levels at 31st December 2022: plants.

Similarly, samplings were collected and analyzed at different stages of the wastewater treatment processes and at the brine and effluent discharge sites.
29.22% 22.12% 48.89% Mahé Praslin La Digue 20 SEWERAGE There is continuous demand from customers to be connected to the PUC sewerage network.

Over 80% of the population continue to operate stand-alone sewage treatment systems, predominantly septic tanks with soak pits for the majority of buildings.
The septic tanks and soak aways reportedly suffer from design issues, old age and inherently poor soil conditions and are prone to overflow situations.

Sewerage Treatment Plants 4 Sewerage Treatment Plants  Greater Victoria 7,000 m³/day capacity  Beau Vallon 2,500 m³/day capacity Currently, only four sewage treatment plants (STPs) are in operation on Mahé, and these are unable to cope with  Pointe Larue the current and future demand.
300 m³/day capacity Designed to treat 7,000 mᶾ of sewage per day, the Providence STP operated at only 50% of its treatment  Ile Soleil capacity in 2022 and is due for major refurbishment.

50 m³/day capacity The Beau Vallon STP, with a treatment capacity of 2,500 mᶾ per day, had no major operational issues but treated on average only 900-1000 mᶾ per day; with scope to take 52 on board more consumers to the system.
Sewerage Lifting Stations The ongoing challenge at the Pointe Larue STP is hydraulic overload from infiltration of water in the system.

The infiltration issues are being addressed through ongoing maintenance to ensure that the flow of water remain within the treatment capacity.
109 km Length of Sewer Network In January 2022, the operations and maintenance of the sewerage system at Ile Soleil, including all the assets Volume of Wastewater treated in 2022 Providence STP 2,890,763 mᶾ constituting the network, were transferred to PUC.

The Beau Vallon STP 369,730 mᶾ Ile Soleil STP serves not only the Ile Soleil Community, but also customers at the Chetty Flats at Anse Aux Pins who were previously connected to the Pointe Larue STP.
Pte Larue STP Ile Soleil STP 63,923 mᶾ 11,097 mᶾ Total Flow 3,335,513 mᶾ 21 SEWERAGE Sewerage Network The condition of the sewerage networks is continually being monitored as a matter of priority.

An assessment has been done in Greater Victoria but major investment will be required to replace all the aging sewerage infrastructures which are in a critical state.
Some works are being done to repair leaking manholes and replace pipes that have deteriorated with time in the most critical areas of the network.

Pump Station Maintenance Pump station breakdowns can lead to major environmental incidents due to the build-up of sewage and potential overflows, hence the necessity to invest time and resources in preventive maintenance (balance Wastewater team at work between cost and repercussions on operations if too much emphasis is placed on cost reduction).
Pump station cleaning is an important component of the preventive maintenance programme.

In 2022, this was performed at 106% on average, with greater frequency in the second half of the year in order to alleviate occurrences of blockages and overflows in the system.

Infiltration One of our ongoing challenges is the amount of infiltration into the sewerage networks.
A number of infiltration points originate in the form of:  Broken manholes  Downpipes diverting rainwater into PUC’s manholes Many of the common issues that affect the pump stations  Surface run-off water diverted into can be avoided if consumers use the sewerage system more responsibly.
The accumulation of fats, oils, grease, baby wipes and personal hygiene products, rags, items of clothing, and kitchen towels are amongst the common factors contributing towards blockages and overflows in the PUC’s sewer network.

In 2022, we recorded and attended to:  446 network blockages PUC’s manholes  Illegal connections A survey was conducted on the sewer network in Victoria where all the major infiltration points have been identified.
The infiltration issues have been flagged as a matter of priority but require heavy investment.

PUC plans to re-line about 2 kilometres of pipeline  189 pump station breakdowns in the Victoria network in 2023 22 SEWERAGE La Digue Wastewater System La Digue Island is undergoing significant development, especially in the tourism sector.
La Digue is dependent on a combination of surface water, groundwater and desalinated water for its drinking water sources and the disposal of sewage from the point sources in the plateau will seriously hinder the present abstraction of both ground and surface water on the island.

Sanitation Master Plan In order to increase coverage and meet increasing demand, the existing wastewater system requires upgrading and expansion.
To this end, a Comprehensive and Integrated Sanitation Master Plan (CISMP) which was financed by the African Water Facility, was developed and validated in 2019.

The CISMP sets out strategies for the To this end, the construction of a wastewater system on sanitation sector for the next 25 years, based La Digue is being addressed as one of the final on a new paradigm which considers waste as components of Project Neptune, which is financed by the a resource.
European Investment Bank (EIB), Agence Française de Development (AFD), Government of Seychelles and PUC.

The project has been split up into two components, namely the wastewater networks (collection system) and the wastewater treatment plant (WWTP).
The network component comprises of two lots, namely: Implementation of the CISMP is expected to cost around EUR 100 million, equivalent to approximately SCR 1.6 billion, and will require financing interventions through a combination of increases in tariffs, subsidies and loans.
 the North part, which has been awarded to Earth Proposed sanitation schemes include: Development Pty Ltd for SCR 79.3 million and Mahé: includes an estimated 7.5 km of gravity sewers, 230 Construction of 6 new decentralised sewerage manholes, and 0.75 km of force mains; and treatment plants, 200km of new sewers and  the South part, which has been awarded to Ascent 43 sewerage pumping stations, rehabilitation/ Projects Sey Pty Ltd for SCR 54.9 million and includes replacement of 20 km of the existing sewers an estimated 7.0 km of gravity sewers, 290 manholes and 17 sewerage pumping stations, and 2.1 km of force mains.
construction of 100 km of the recycled water The WWTP component which will have the capacity to network and 9 pumping stations.

treat an average flow of 1,000 mᶾ per day is being considered for outsourcing to a state-owned enterprise.

Praslin: At the end of 2022, the due diligence process was still ongoing.

The contract is expected to be awarded in the first quarter of 2023.

Although hindered by wayleave issues, the project is targeted for completion end of 2023.
Construction of the 2 new STPs, 31 km of the sewerage network, 10 sewerage pumping station, 24 km of the recycled water network and 2 pumping stations.
PROJECTS KEY ELECTRICITY PROJECTS PROJECT COST Environmental performance improvement of Baie Ste Anne Power Station 33kV underground cable network to South Mahe 5 MW solar photovoltaic system on Ile de Romainville - inaugurated on 12th December 2022 0.946MW of rooftop PV (Domestic + GOS Buildings) SCR 88.6 million SCR 615 million SCR 173 million SCR 47 million 23 KEY WATER PROJECTS Raising of La Gogue Dam by six metres: - including additional works to be undertaken on the right embankment & South Saddle SCR 421 million Refurbishment of water treatment plants at Hermitage & Cascade Water Transfer from Anse Major & Mare Aux Cochons Replacement of non-performing pipeline to reduce non-revenue water NRW Programme for Praslin & La Digue Procurement of Electrolysis system for Mahe Water Treatment Plant SCR 86 million SCR 54 million SCR 20 million SCR 18 million SCR 9 million KEY SEWERAGE PROJECTS PROJECT COST Sewerage System for La Digue Rehabilitation of existing Providence sewerage treatment plant, pump stations and force mains SCR 290 million SCR 155 million 24 COMMERCIAL Our commercial services are delivered at various customer service centres located on Mahé, Praslin and La Digue.
We provide over 99% electricity coverage and over 95% water coverage on all three islands, whilst connection to the sewerage network is currently limited to less than 20% of our customers on Mahé only.

Electricity A total of 44,183 electricity customers were Number of Electricity Customers registered in our billing system at the end of 2022, Mahé Praslin La Digue Total out of which 89% are based on Mahé, 8% on Praslin and 3% on La Digue.
Total electricity consumption in 2022 amounted to Domestic 31,908 3,395 1,148 36,451 Commercial 5,523 709 338 6,570 412,192,372 kWh, representing a growth of 2.65% Government 1,043 90 29 1,162 from 401,564,385 kWh in 2021.

The commercial sector experienced a higher growth of 4.25% as the economy bounced back from Covid-19, whilst domestic and government consumption saw more modest increases of 0.76% and 1.38% respectively.
Electricity revenues increased by 17% to SCR 1.7 billion in 2022, compared to SCR 1.48 billion in 2021, mainly due to higher average tariffs and increase in consumption.

Although domestic customers make up 82% of total electricity customers, they contributed only 20% of revenues in 2022.

In contrast, the commercial sector with a customer base of 15% brought in 62% of revenues.

Government (3% of total customers) made a significant contribution of 18% of revenues.
Average Electricity Tariffs (SCR / kWh) Domestic Commercial Government Total Average 2022 2021 2.53 5.00 5.47 4.23 2.16 4.51 4.50 3.70 Total 38,474 4,194 1,515 44,183 Electricity Consumption by Sector (kWh) Government, 56,252,751 , 14% Domestic, 139,794,391 , 34% Electricity Sales by Sector (SCR) Government, 307,741,996 , 18% Domestic, 353,372,769 , 20% Commercial, 216,145,230 , 52% Commercial , 1,081,306,511 , 62 25 COMMERCIAL Water Number of Water Customers Mahé Praslin La Digue Total The total number of registered water customers at Domestic 29,154 3,019 1,126 33,299 the year-end was 37,095.
Region-wise, 87% are based on Mahé, 9% on Praslin and 4% on La Digue.

The total water consumption in 2022 was 10,136,404 m³, representing a growth of 3.5% from 9,796,130 m³ consumed in 2021.

A sharp growth of 23% was seen in the commercial sector as a result of Covid-19 post recovery.

There was a decrease in consumption of 1.5% by domestic customers compared to 2021, mainly due to the impact of water restrictions imposed during prolonged drought periods in 2022.
The government sector also saw a decline in consumption of 9.7%, which was mainly attributed to concerted efforts to fix persistent leakages.

There was an overall 5.8% increase in water revenues to SCR 240.6 million 2022, compared to SCR 227.5 million in 2021.

However, this increase was mainly attributed to the commercial sector which brought in 23.9% increase in revenues.
On the other hand, the domestic sector saw a 1.7% reduction in revenues whilst government revenues decreased by 9.6% due to decline in consumption for these two sectors.

The domestic sector, which comprises 90% of the water customer base, generated only 50% of revenues in 2022.

The commercial and government sectors which collectively represent 10% of total water customers, contributed 39% and 11% of revenues respectively.
Commercial Government 2,733 484 213 3,430 310 34 22 366 Total 32,197 3,537 1,361 37,095 Water Consumption by Sector (m³) Government, 771,800 , 7% Commercial, 2,812,320 , 28% Domestic, 6,552,284 , 65% Water Sales by Sector (SCR) Government, 26,283,511 , 11% Commercial, 94,247,481 , 39% Domestic, 120,122,495 , 50% Average Water Tariffs (SCR / M³) Domestic Commercial Government Total Average 2022 18.33 33.51 34.05 23.74 2021 18.36 33.27 34.03 23.22 COMMERCIAL Sewerage The total number of registered sewerage customers at the year-end was 6,009, all of whom are based on Mahé.
There is no centralised system on Praslin currently.

On La Digue, works started on the construction on a wastewater system in 2022, and this is expected to bring on board around 1,000 more customers in the billing system in 2024.

In 2022, the total amount of sewerage billed was 1,995,402 m³, representing a growth of 2.70% from 1,878,788 m³ in 2021.
However, the growth was mainly attributed to the commercial sector which saw an increase of 24.44%; closely mirroring the increase in commercial water consumption.

Similarly, the domestic and government sectors saw decreases of 2.96% and 12.35% respectively, in alignment with decrease in water consumption for these two sectors.

Sewerage revenues increased by 16.5% to SCR 35.2 million, compared to SCR 30.2 million in 2021.
This increase was mainly attributed to the commercial sector which brought in 49.3% increase in revenues.
The domestic sector saw a marginal 1.7% increase in revenues whilst government revenues decreased by 11.2% Average Sewerage Tariffs (SCR / M³) Domestic Commercial Government Total Average 2022 11.65 25.14 19.62 18.81 2021 11.02 20.96 19.36 17.11 26 Number of Sewerage Customers on Mahé Domestic Commercial Government Total 5,422 491 96 6,009 Sewerage Billed by Sector (m³) Commercial, 774,313 , 37% Government, 359,313 , 17% Domestic, 960,397 , 46% Sewerage Revenues by Sector (SCR) Government, 7,050,489 , 20% Domestic, 11,197,968 , 32% Commercial, 16,955,640 , 48% PUC Customer Service Centre at Anse Royale 27 SUPPORT SERVICES Customer Services As the main provider of electricity, water and sewerage services, we uphold our commitment to put our customers first and be responsive to their evolving needs and expectations.
We are therefore continually seeking innovative ways to improve and modernize our customer life cycle, from initial application for new connections, Call Centre Our Call Centre acts is the first point of contact between us and our customers, particularly in the event of electricity, water or sewerage breakdown or other disruptions to services.

Fault reports are logged, referred to the appropriate on-call teams and followed through until closure of each case.
meter reading, billing, payments to eventual termination In 2022, the Call Centre received a total of of services.

In April 2022, we officially opened our customer service centre at Anse Royale in order to better serve our customers in the south of Mahé.

109,864 calls, an increase of 2% compared to 107,538 in 2021.

Of these, 15,925 calls were attributed to breakdown or disruption of services, an increase of 2.9% from 2021.
In our bid to better engage with our customers and Breakdowns 2022 2021 2020 provide instant communications via SMS about billing, Electricity 3,475 3,590 4,740 payment and other customer-related issues, we have Water 12,060 11,546 13,033 amassed over 55,000 mobile numbers in our database.
Sewerage 390 338 370 Whilst we recognise that some customers prefer to pay Total 15,925 15,474 18,143 their bills in person, we have broadened our payment modes and physical service centres, as well as increased online options such as online banking platforms and the PUC online customer portal.

Since its introduction in 2019, the PUC online customer portal has seen a surge in popularity especially over the past two years.
Customers are increasingly recognising the benefits of accessing their utility accounts at their own convenience and in their own time, including but not limited to: user-friendly dashboard, the ability to view and/or print invoices online, downloading of statements of account, tracking of consumption patterns, and fast and efficient online payments which are accompanied by 2022 C-SAT Survey A 12-month Customer Satisfaction Survey was conducted by the Office of the Call Centre Manager to assess the performance of the Call Centre agents and breakdown technicians, and also to assess the overall responsiveness of the Call Centre agents and technicians combined.
A total of 1,560 participants were invited to participate in the survey.

The overall average customer ratings, out of 5 (5 being most satisfied), were: 4.63 4.44 4.52 documented receipts.

At the end of 2022, there were 7,029 users who were registered to the customer portal.
Call Centre Performance Complaint Resolution Overall Responsiveness 28 SUPPORT SERVICES ICT Plans - Medium Term Information and Communication Technology The following ICT goals have been initiated going forward: Our Information and Technology (ICT) Department has  Archival of ERP data to improve made concerted efforts over the years to continuously performance and streamline the size of modernize and upgrade the ICT infrastructure of PUC to the production database.
bring it up to the standards of a professional enterprise environment.

 Development of an Android-based solution to replace end-of-life current In 2022, three major incidents relating to the database MRI (meter reading instruments) occurred, which significantly impacted our operations solution.

and necessitated realignment of Annual Support Services for Microsoft Dynamics AX to a new service provider, StayConnect; a firm based in UAE.
 Setting up of a new server room at Electricity House for migration of existing services and replication of key services Key achievements of the ICT team in 2022 include: being served from Malavois.

 Development and deployment of a versatile solution for Billing that can be used in the event that the AX/MECOMS is unavailable, thus allowing customer- centric operations to proceed uninterrupted.

 Development and deployment of an application for engineers to capture and monitor water pump readings onsite.
 Significant efforts were committed to ensuring stability and performance improvement for the ERP solution.

BSI Accreditation  Implementation of a Queue Management System to at key customer service centres to improve services.

 Implementation and use of smart meters solution using a Head End System developed by Iskraemeco, following pilot testing at key PUC infrastructures.

 Upgrade from Microsoft Dynamics AX 2012 to Microsoft Dynamics 365.
We are committed to ISO 9001:2015 Quality Management System that promotes a culture of customer focus, teamwork, continual improvements and high standards.

We are further committed to ISO 14001:2015 Environmental Management System that promotes environmental sustainability in service delivery.

We also embed risk management practices in line with ISO 31000 in all our operations.
In 2022, based on the results of external BSI audits conducted in March and October, we were successfully recertified for ISO 14001:2015 (expiry 17-Dec-2023) and ISO 9001:2015 (expiry 17-12-2023).
LOOKING AHEAD KEY ELECTRICITY PROJECTS 2023-2030 KEY WATER PROJECTS 2023-2030 29  Expansion of the generating capacity at Roche Caiman power station by 16 MW This entails increasing the generating capacity on Mahé by 16 MW to meet growing demand for electricity and to cater for de-rating of existing generating plants.

The tender process began in mid-2022.

Expected timeline for completion is end of 2024.


 Expansion of the generating capacity of the Baie Ste Anne Praslin power station by 8 MW The additional conventional production capacity of 4x2MW stationery sets is urgently required to replace four obsolete (400 kW) generator sets, and to meet the operational challenges and the envisaged growth in demand on Praslin and La Digue.

Expected timeline for completion is first quarter of 2025.
 Third undersea cable from Praslin to La Digue: Procurement of the undersea cable was initiated in 2022.

Laying of the cable from Baie Ste Anne Power station to La Passe on La Digue will be undertaken during a window of favourable sea conditions.

Expected timeline for completion is first half of 2024.
 33 kV transmission network for North Mahé Due to the increase in tourism, commercial and residential developments in the north of Mahé, there increase the is a need to electricity supply capacity by constructing a new 33 kV network for this region.

The project is being done on a phased approach; phase 1 - cable network and phase 2 - substation works.
 Renewable energy projects - all three islands These are expected to be implemented on IPP basis and/or in collaboration with Masdar of UAE, with initial focus being on Praslin and La Digue.

timeline of phased implementation of about 20 MW distributed PV plants is between 2023 to 2030.

Expected  New Power Station on Mahé on an IPP/PPP or loan financing basis by 2028.

 New Power Station on Praslin on an IPP/PPP or loan financing basis by 2030.
 Numerical Model for the Rochon Dam The numerical model will address safety and structural concerns of the Rochon Dam.

The study will be completed in 2023.

 Remedial and rehabilitation actions on the Rochon Dam These will be the next steps based on the recommendations the Numerical Model.

arising from  Proposed dam at Grand Anse Construction of a dam at Grand Anse in the medium to long term would greatly improve water supply reliability in the southern and western regions of Mahé.
The feasibility study and detailed design has been completed.

 Proposed dam at La Plaine Hollandaise There is a need to scale up freshwater storage capacity and reduce reliance on desalination production on Praslin.

This is a medium term project.

KEY SEWERAGE PROJECTS 2023-2030  Re-construction of sewerage pump stations at Le Rocher and Roche Caiman This is to improve reliability of the pump stations at Le Rocher and Roche Caiman.

Works will start in first quarter of 2023.


 Refurbishment of Central Victoria Sewerage System The WWTP at Providence is in urgent need of major refurbishment.

The tender was launched in 2022 and works are expected to be completed in 2025.

 Implementation of the Comprehensive and Integrated Sanitation Master Plan in the medium to long term, subject to availability of financing.
30 CORPORATE GOVERNANCE The Public Utilities Corporation is headed by a Board of Directors and falls under the portfolio of the Ministry of Agriculture, Climate Change and Environment (MACCE).

The daily operations of the Corporation fall under the direct responsibility of the Chief Executive Officer (CEO), who reports to the board and to the Minister for ACCE.
The Corporation strives to uphold the principles and practices of good corporate governance to ensure transparency, integrity and accountability; in accordance with its internal Corporate Governance Policy and the guidelines set out by the Public Enterprise Monitoring Commission (PEMC).
The board accepts responsibility for the preparation and fair presentation of the financial statements of the Corporation, in accordance with the International Financial Reporting Standards (IFRS) and in compliance with the Public Utilities Corporation Act, 1985 and PEMC.

The board comprises of a maximum of seven (7) members who have each been appointed by the President’s Office.
All Board members are professionally qualified, possess diverse sets of skills, and have relevant experience in the industry and/or memberships on other boards.

With the resignation of Dr. Selwyn Gendron in August, the composition was reduced to six (6) at year-end.

Nine board meetings were held during the year with high level of engagement and attendance by board members.
Name Function Tenure Areas of Expertise Leonard ALVIS Chairman 15/11/2021 to 14/10/2023 30 years expertise and experience in senior management, specifically in the tourism industry.

Joel VALMONT Ex-Officio Member 15/11/2021 to 14/10/2023 MSc in Power System Engineering and Economics, BEng in Electrical & Electronics and extensive management experience in the utility sector.

Irene CROISE Member 15/10/2020 to 14/10/2023 Master’s degree in Economics, Bachelor’s degree in Finance & Accounting.
Nanette LAURE Member 6/02/2014 to 14/10/2023 Environment assessment, waste enforcement and permits (MSc).

Stephen ROUSSEAU Member 15/08/2017 to 14/10/2023 Civil Engineer, with specialisation in hydrology.

Philippe CHONG SENG Selwyn GENDRON Member Member 15/08/2017 to 14/10/2023 Professional Electrical Engineer, specialising in consultancy.

15/08/2017 to 25/08/2022 Physicist, with expertise in business administration.
2022 Attendance 8 out of 9 9 out of 9 6 out of 9 8 out of 9 9 out of 9 9 out of 9 6 out of 31 CORPORATE GOVERNANCE Sub-Committees to the Board The board is supported in its work by a number of sub-committees.

The main objective of the committees is to handle specific tasks or undertake work of a technical nature in order to allow the board to focus on its priorities more efficiently.
Any recommendations made by a committee are referred to the board for final review and approval.

Each committee is chaired by a non-executive director.

To further ensure independence of the work of the committees, the chairperson of the board does not chair any of the committees and the CEO is a non-member but attends all committee meetings and is a vital contributor to their work.

Six sub-committees were originally established.


However, it was recognised that due to the limited composition of the board, the level of commitment, time and efforts required to sit on multiple committees stretched the capacities of board members.

Furthermore, with restricted membership of only two non-executive directors per committee, a lack of quorum would arise should one member be unable to attend a meeting.
The number of committees were thus streamlined to three principal committees in order to improve their effectiveness, and the membership was increased to three per committee.

The board approved the terms of reference of the new committees in August 2022.
Former Committees Revised Committees Audit Committee Remuneration Committee Audit & Risk Committee Remuneration Committee Chair: Ms. Irene Croisé Member: Mr. Leonard Alvis Member: Mr. Stephen Rousseau Chair: Mr. Stephen Rousseau Member: Mr. Leonard Alvis Member: Mrs. Nanette Laure Finance & Chair: Mrs. Nanette Laure Finance & Investment Committee Investment Member: Ms. Irene Croisé Committee Member: Mr. Philippe Chong Seng Risk Committee Merged with the Audit Committee Corporate Governance Committee Responsibility absorbed by the board Ethics & Integrity Committee Responsibility absorbed by the board 32 FINANCIAL HIGHLIGHTS FINANCIAL OVERVIEW 2022 2021 2020 Revenue from Operations (SCR) 1,937,351,306 1,687,613,847 1,523,019,225 Net Profit (SCR) 202,065,814 489,557,976 (253,879,046) Earnings before Interest and Taxes (EBIT) (SCR) 207,163,410 486,164,970 (247,306,539) Total Assets (SCR) Shareholders’ Equity (SCR) Year-end Cash Holding (SCR) Total Debt (SCR) 2022 SOCI Highlights 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 - -500,000,000 2022 2021 2020 6,000,000,000 5,000,000,000 4,000,000,000 3,000,000,000 2,000,000,000 1,000,000,000 Revenue Operating cost EBIT 1,937,351,306 1,730,187,896 1,687,613,847 1,201,448,877 207,163,410 486,164,970 Net profit 202,065,814 489,557,976 1,523,019,225 1,770,325,764 (247,306,539) (253,879,046) 2022 2021 2020 2022 SOFP Highlights - 2022 2021 2020 Total Assets Total Liabilities Shareholders' Equity Total Debt Year-end Cash Holding (SCR) In 2022, we reported a net profit of SCR 202 million, compared to SCR 489 million in 2021.
As exchange rates stabilized in 2022, the bottom line has not been distorted by massive that were rate differences exchange experienced in 2020 and 2021.

Revenue increased to SCR 1.94 billion in 2022, a 15% increase from SCR 1.69 billion in 2021.

This is primarily due to higher average tariffs of electricity in 2022 of SCR 4.23 per kWh, compared to SCR 3.71 per kWh for 2021.
There was no respite in the aftermath of the Covid-19 pandemic as we were faced with a new threat in the form of the Russian invasion of Ukraine, which disrupted global energy markets and resulted in the biggest surge in crude oil prices in decades.

This was seen in the hike of fuel cost from SCR 969 million in 2021 to SCR 1.15 billion in 2022 (19% increase) which largely contributed to 44% increase in operating cost from SCR1.2 billion in 2021 to SCR 1.7 billion in 2022.
Of the cash holdings of SCR 762 million at the end of 2022, roughly SCR 400 million are available for operational use and investment of assets; the balance being loan funds from EIB and AFD which are held with the Ministry of Finance.
33 FINANCIAL HIGHLIGHTS FINANCIAL RATIOS Current Ratio Quick Ratio Debt-to-Equity Total Debt to Capital Gross Profit Target > 1 time > 1.5 times < 82% < 45% >= 22% Operating Cost Coverage ratio > 1 time Net Profit Return on Capital Employed Return on Equity Return on Assets >= 5% >= 1% >= 4% >= -17% -5% -12% -5% SEGMENTAL HIGHLIGHTS ELECTRICITY Number of customers Electricity Sales (kWh) 2022 44,183 2021 42,656 2020 41,316 412,192,372 401,564,385 400,836,410 Electricity Revenue (SCR) 1,742,421,276 1,484,971,541 1,314,894,373 WATER Number of customers Water Sales (m³) Water Revenue (SCR) SEWERAGE Number of customers Sewerage billed (m³) 2022 37,095 2021 35,866 2020 34,726 9,900,802 9,796,130 9,900,802 240,653,487 227,498,373 231,548,041 2022 6,009 2021 5,928 2020 5,793 2,094,023 1,911,859 1,878,788 Sewerage Revenue (SCR) 35,204,097 29,553,846 28,654,427 2022 AUDITED FINANCIAL STATEMENTS PUBLIC UTILITIES CORPORATION MEMBERS’ REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2022 34 CONTENTS Members’ Report Opinion of the Auditor General PAGE 1 - 2 3 – 3(b) Statement of Profit and Loss and Other Comprehensive Income 4 Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements 5 – 5(a) 6 7 – 7(a) 8 – 42 35 MEMBERS’ REPORT The Members are pleased to present their report together with the audited financial statements of the Corporation for the year ended 31 December 2022.
1 PRINCIPAL ACTIVITIES The Public Utilities Corporation (the Corporation) is a parastatal organisation formed in the year 1986 subsequent to the merger of two previous parastatals, namely the Seychelles Water Authority and Seychelles Electricity Corporation Limited.

The Corporation is engaged in generation and distribution of electricity; storage, treatment and distribution of potable water; and treatment and disposal of waste water.
These activities have remained unchanged as compared to the prior financial years.

RESULTS Profit for the year Retained earnings brought forward Retained earnings carried forward PROPERTY, PLANT AND EQUIPMENT SR 202,065,814 1,218,730,814 1,420,796,628 The property, plant and equipment of the Corporation and the movements therein are detailed in note 12 to the Financial Statements.

The Capital work in progress of the Corporation and the movements therein are detailed in note 13 to the Financial Statements.
The Members are of the opinion that the carrying value of the property, plant and equipment at December 31, 2022 approximates its fair value.
MEMBERS AND MEMBERS' INTEREST The Members of the Corporation since the date of the last report and the date of this report are: Chairman Chief Executive Officer Mr. Leonard Alvis Mr. Joel Valmont Non-executive members: Ms. Irene Croise Mrs. Nanette Laure Mr. Stephen Rousseau Mr. Philippe Chong-Seng Dr. Selwyn Gendron (Resigned effective 25 August 2022) Ms. Taryn Auguste (Appointed effective 1 April 2023) Members hereby confirm that none of them held any interest in the Corporation nor entered into any contracts or arrangements (other than service contracts and normal course of business) or made any profit from the operation of the Corporation.
MEMBERS’ REPORT 36 OPINION OF THE AUDITOR GENERAL 37 OPINION OF THE AUDITOR GENERAL 38 OPINION OF THE AUDITOR GENERAL 39 40 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 4 Figures in SR Description Revenue Revenue from operations Other income Expenditure Direct operating expenses Staff costs Other operating overheads Exchange differences Depreciation of property, plant and equipment Amortisation of intangible assets Amortisation of right-of-use assets Provision for credit impairment Profit before financing activities Finance income Finance expense Notes 2022 2021 15(b) 17(f) 11(a) 11(b) 1,937,351,306 106,971,110 2,044,322,416 1,687,613,847 124,007,206 1,811,621,053 1,197,952,834 1,016,532,649 273,255,918 225,481,663 (51,611,622) 186,748,743 2,372,566 341,211 2,617,693 250,402,512 264,162,291 (402,160,134) 186,956,220 3,864,881 3,034,949 2,662,715 207,163,410 486,164,970 11,568,067 13,422,545 (16,665,663) (10,029,539) Profit and Total comprehensive income for the year 202,065,814 489,557,976 The notes on pages 10 to 46 form an integral part of these financial statements Auditor General's Opinion on pages 3 to 3(b STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 41 Figures in SR Assets Non-current assets Property, plant and equipment Capital work in progress Intangible assets Right-of-use assets Trade and other receivables Current assets Inventories Trade and other receivables Cash and bank balances Total assets Equity and liabilities Equity
 Assigned capital Retained earnings Total equity Non-current liabilities Borrowings Trade and other payables Employee benefit obligations Deferred grants Current liabilities Lease liabilities Borrowings Trade and other payables Employee benefit obligations Deferred grants Total liabilities Total equity and liabilities Notes 12 13 14 15(b) 17 15(d) 20 21 22 23 5 2022 2021 2,239,101,357 1,595,353,737 2,436,389 - - 110,510,442 243,056,183 23,355,625 83,622,255 460,544,505 490,841 94,058,267 187,936,265 7,443,890 105,749,187 395,678,450 2,730,750,262 2,746,940,575 5,591,290,481 5,405,414,980 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 (CONTINUED) 6 42 43 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022 Figures in SR Description Assigned capital Retained earnings 7 Total At 1 January 2022 1,439,743,591 1,218,730,814 2,658,474,405 Total Comprehensive Income for the year - 202,065,814 202,065,814 At 31 December 2022 1,439,743,591 1,420,796,628 2,860,540,219 At 1 January 2021 1,439,743,591 729,172,838 2,168,916,429 Total Comprehensive Income for the year - 489,557,976 489,557,976 At 31 December 2021 1,439,743,591 1,218,730,814 2,658,474,405 The notes on pages 10 to 46 form an integral part of these financial statements Auditor General's Opinion on pages 3 to 3(b O
C O R P O R A T I O N 2 0 2 2 A N N U A L R E P O R T STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 44 Description OPERATING ACTIVITIES Profit for the year Adjustments for: Net gain on termination of leases Amortisation of deferred grants Fixed assets written off Profit on disposal Finance income received Finance expense Strategic parts expensed Depreciation of property, plant and equipment Amortisation of intangible assets Amortisation of right-of-use assets Provision for obsolete inventory Provision of credit impairment Foreign currency differences on borrowings Employee benefit obligations charge Exchange loss on cash and cash equivalents Operating profit before working capital changes Movement in working capital: Decrease in trade and other receivables Movement in inventories Movement in bank balances retained for letters of credit Movement in trade and other payables Cash generated from operations Interest receivable on overdue trade receivables Employee benefit paid Net cash inflow from operating activities INVESTING ACTIVITIES Additions to property, plant and equipment Proceeds on disposal Additions to capital work in progress Movement in term deposits Interest on term deposits Interest on loan to employees Net cash outflow from investing activities 6 11(a) 11(b) 12 12 14 15(b) 16(a) 17(f) 20 22(b) 10 17 16 18 21 11(a) 22(b) 12 13 18 11(c) 11(a) Notes 2022 SR 8 2021 SR 202,065,814 489,557,976 6 - 6 & 23 9 &12 (106,867,010) 33,611 (139,319) (123,640,087) 9,982,203 (227,800) (13,422,545) 10,029,539 24,539,758 186,956,220 3,864,881 3,034,949 6,318,989 2,662,715 (595,530,797) 14,036,634 219,510,122 237,533,438 (13,864,010) (18,334,568) 948,268 (68,855,541) 137,427,587 12,264,538 (17,707,338) 131,984,787 (104,100) (11,568,067) 16,665,663 15,738,690 186,748,743 2,372,566 341,211 299,383 2,617,693 (80,586,940) 16,609,564 29,439,128 273,805,949 (27,134,730) 43,085,098 9,163,184 59,837,460 358,756,961 10,787,863 (18,761,407) 350,783,417 (33,364,039) 104,100 (27,743,130) 227,800 (308,003,786)
 (231,505,698) (10,549,031) 643,482 8,992 (351,160,282) (25,729,926) 1,123,510 34,497 (283,592,947) The notes on pages 10 to 46 form an integral part of these financial statements Auditor General's Opinion on pages 3 to 3(b STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 45 (CONTINUED) Figures in SR Description FINANCING ACTIVITIES 9 Notes 2022 2021 Proceeds from borrowings Repayment of borrowings Government and other grants received Principal paid on lease liabilities Interest paid Net cash inflow from financing activities 20 20 23 15(c) 11(b) 83,995,459 (78,094,249) 108,167,651 (490,841) (16,665,663) 96,912,357 183,251,750 (99,867,920) 81,203,938 (3,156,801) (10,029,539) 151,401,428 NET CHANGE IN CASH AND CASH EQUIVALENTS 96,535,492 (206,732) MOVEMENT IN CASH AND CASH EQUIVALENTS: At 1 January Increase/(Decrease) during the year Exchange loss cash and cash equivalents At 31 December 647,740,956 867,457,810 96,535,492 (29,439,128) 714,837,320 (206,732) (219,510,122) 647,740,956 10 18 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 46 1.
GENERAL INFORMATION 10 The Public Utilities Corporation is a Parastatal organisation formed in the year 1986 under the Public Utilities Corporation Act, 1985 (as amended), subsequent to the merger of two previous parastatals, namely the Seychelles Water Authority and Seychelles Electricity Corporation Limited.

The Corporation is domiciled in the Republic of Seychelles with its administrative office situated at the Electricity House, Roche Caiman, Mahe.
The Corporation is engaged in generation and distribution of electricity; storage, treatment and distribution of potable water; treatment and disposal of waste water.

These activities have remained unchanged as compared to the prior financial years.

These financial statements of the Corporation are approved by the Members and presented to the Minister of Agriculture, Climate Change and Environment.

2.
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied for all years presented, unless otherwise stated.

Where necessary, comparative figures have been amended to conform with the change in presentation in the current year.
2.1 Basis of preparation The financial statements of Public Utilities Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS and are in compliance with the Public Utilities Corporation Act, 1985 (as amended).
These financial statements have been prepared under the historical cost convention as modified by the application of fair value measurements required or allowed by relevant accounting standards.
2.2 New standards, interpretations and amendments adopted effective January 1, 2022 The following amendments to various International Financial Reporting Standards (IFRS) are mandatorily effective for reporting periods beginning on or after January 1, 2022: • • • • Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37); Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16); Annual Improvements to IFRS 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41); and References to Conceptual Framework (Amendments to IFRS 3).
Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) IAS 37 defines an onerous contract as a contract in which the unavoidable costs (costs that the Corporation has committed pursuant to the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 47 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 11 New standards, interpretations and amendments adopted effective January 1, 2022 (Continued) 2.2 Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) (Continued) The amendments to IAS 37.68A clarify that the costs relating directly to the contract consist of both: • • Provide temporary relief to entities from having to meet requirement when an RFR instrument is designated as a hedge of a risk component; An allocation of other costs that relate directly to fulfilling the contract: e.g., allocation of depreciation charge on property, plant and equipment used in fulfilling the contract.
the separately identifiable This resulted in accounting policy change for performing an onerous contract assessment.

Previously, the Corporation included only incremental costs to fulfil a contract when determining whether that contract was onerous.

The revised policy includes both incremental costs and an allocation of other costs incurred to fulfil the agreement.

The amendments apply prospectively to contracts existing at the date when the amendments are first applied.
The Corporation analysed contracts existing on January 1, 2022, and determined that none of them would be identified as onerous applying the revised accounting policy – i.e.

there was no impact on opening equity balance as at January 1, 2022 as a result of the change.
Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) The amendment to IAS 16 prohibits an entity deducting from the cost of an item of property, plant and equipment any proceeds received from selling items produced whilst the entity is preparing the asset for its intended use (for example, the proceeds from selling samples produced during the testing phase of a manufacturing facility after construction but before commencement of commercial production).
The proceeds from selling such samples, together with the costs of producing them, are now recognised in Statement of Profit or Loss.

These amendments had no impact on the year-end financial statements of the Corporation as there were no sales of such items produced by property, plant and equipment made available for use on or after the beginning of the earliest period presented.
Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16 & IAS 41) IFRS 1: Subsidiary as a First-time Adopter (FTA) IFRS 9: Fees in the ‘10 per cent’ Test for Derecognition of Financial liabilities IAS 41: Taxation in Fair Value Measurements • • • • None of the amendments had an impact on the financial statements of the Corporation as it was neither a first-time adopter, nor had modifications to the Corporation’s financial instruments during the period nor had assets under IAS 41 as at the reporting date.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 48 2.
2.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) New standards, interpretations and amendments adopted effective January 1, 2022 (Continued) 12 References to Conceptual Framework (Amendments to IFRS 3) In May 2020, the IASB issued amendments to IFRS 3, which updated a reference to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.
These amendments had no impact on the financial statements of the Corporation as there were no contingent assets, liabilities or contingent liabilities within the scope of these amendments that arose during the period.

2.3 New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Corporation has decided not to early adopt.
(i) The following amendments are effective for the period beginning 1 January 2023: • • • • (ii) • • • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); Definition of Accounting Estimates (Amendments to IAS 8); Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) ; and IFRS 17 Insurance Contracts - In June 2020, the IASB issued amendments to IFRS 17, including a deferral of its effective date to 1 January 2023.
The following amendments are effective for the period beginning 1 January 2024: IFRS 16 Leases (Amendment – Liability in a Sale and Leaseback); IAS 1 Presentation of Financial Statements (Amendment – Classification of Liabilities as Current or Non-current); and IAS 1 Presentation of Financial Statements (Amendment – Non-current Liabilities with Covenants).
The Corporation is currently assessing the impact of these new accounting standards and amendments and does not expect any other standards issued by the IASB but not yet effective, to have a material impact on its financial statements.

2.4 Use of estimates and judgements The preparation of financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates.
It also requires Corporation's Management to exercise judgement in applying the Corporation's accounting policies.

The areas where significant judgements and estimates have been made in preparing the financial statements and their effect are disclosed in note 3 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 13 49 2.5 Foreign Currencies Functional and presentation currency Items included in the financial statements are measured using Seychelles Rupee (SR), the currency of the primary economic environment in which the entity operates ("functional currency").

The Financial Statements of the Corporation are presented in Seychelles Rupee, which is its functional and presentation currency.
Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Profit or Loss.
Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
2.6 Revenue (i) Grant income When the grant relates to an expense item, it is recognised as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

(ii) Interest income Interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (i.e at amortised cost of the financial asset before adjusting for any expected credit loss allowance), or to the amortised cost of financial liabilities.
(iii) Revenue from contracts with customers The Corporation’s main revenue activity is the supply of electricity, water and sewerage services, which is recognised when electricity and water is consumed by the user, and when the services are delivered to the customer.

Revenue is recognised when a customer obtains control of the goods or services supplied.
The amount of revenue recognised is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties 50 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 14 2.6 Revenue (Continued) (iii) Revenue from contracts with customers (Continued) Revenue from unbilled services is recognised as accrued, based on past experience on the consumption pattern and effective rates thereof, on the reporting date as services are already provided (note 2.10 ).

Revenue activity Electricity sales Nature and timing of satisfaction of performance obligation electricity is Performance settled when is supplied to the customer.
Most customers pay for electricity after consumption and have 30 days to pay.

Some customers prepay for electricity.

Revenue recognition (i.e.

when control Revenue is recognised over time as electricity is consumed by the customer is transferred) and is billed for on a is monthly the measured consideration the contract with the customer and collected on excludes amounts behalf of third parties.

Revenue on specified based basis.


in Water and Sewerage Services Other obligation Performance is settled when water is supplied to the customer and sewerage services is delivered to the customer.

Most customers pay sewerage for services after consumption and have 30 days to pay.

water and Ad hoc requests for electricity- are services related distinct of from the electricity or the connection of customers to the grid.

that sale Revenue is recognised over time is consumed by the as water customer is (i.e.
when control transferred) and is billed for on a is monthly the measured consideration the contract with the customer and excludes amounts collected on behalf of third parties.

Revenue on specified based basis.

in Revenue is recognised at a point in time is the completed.

service when 2.7 Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and any impairment in value.
Initial cost of property, plant and equipment comprises its purchase price and any attributable costs of bringing the asset to working condition for its intended use.

Such cost also include the cost of replacing components of the property, plant and equipment provided the replacement increases the effective useful lives of assets for which the spares are replaced.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 15 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.7 Property, plant and equipment (Cont'd) 51 Borrowing costs for long-term construction projects are capitalised only if the recognition criteria is met and the borrowing costs can be directly attributable to the purchase or construction of the asset.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow and the cost can be reliably measured.

Properties in the course of construction for operation purposes are carried at cost less any recognised impairment loss.
Cost includes professional fees for qualifying assets and borrowing costs capitalised only if the project is viable and the Corporation would pursue it further.

Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.
When significant parts of property, plant and equipment are required to be replaced at intervals, the Corporation derecognises the replaced part, and recognises the new part with its own associated useful life and depreciation.

Costs incurred for major maintenance is recognised in the carrying amount of the property, plant and equipment as a replacement if the recognition criteria are satisfied.

All other repair and maintenance costs are charged to the Statement of Profit or Loss.
The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of respective assets only if the recognition criteria for provision is met and the Corporation is able to estimate the cost.

However since the cost of decommissioning cannot be reliably estimated, this policy is currently not in use.
Depreciation on property, plant and equipment is provided for on a straight line basis to write off the cost of each asset evenly to its residual value over their estimated useful lives as stated below: Land & buildings Dams & reservoirs Water & sewerage equipment Electricity equipment Other plant & machinery Other equipment Furniture & fittings Motor vehicles Years 50 20-50 30-50 14-25 8-14 4-5 8 5- NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 16 52 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.7 Property, plant and equipment (Continued) Freehold land and construction work in progress are not depreciated.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit or Loss.

The assets residual values, useful lives and methods of depreciation are reviewed periodically and adjusted prospectively, if appropriate.

Property, plant and equipment are subject to impairment in line with the Corporation’s policy as described in note 2.6 impairment of non-financial assets.
2.8 Intangible assets Intangible assets acquired separately are measured on initial recognition at cost.

Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any.

The useful lives of intangible assets are assessed as either finite or indefinite.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.
All other expenditure is recognised in the Statement of Profit or Loss when incurred.

Intangible assets are amortised on a straight-line basis in the Statement of Profit or Loss over their estimated useful lives, from the date that they are available for use.

The estimated useful life of software for the current and comparative periods was 5 years.

Intangible assets' residual value, useful life and amortisation methods are reviewed and adjusted if appropriate, at the end of each reporting period.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit or Loss when the asset is derecognised.

The intangible assets are subject to impairment in line with the Corporation’s policy as described in note 2.6 impairment of non-financial assets.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 53 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.9 Leases 17 The Corporation assesses at contract inception whether a contract is, or contains, a lease.

That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Corporation applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.

The Corporation recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

In 2021 for any new leases with lease term of >12 months, the Corporation opted to treat the lease term as the notice period for termination provided in the lease agreement as the non- cancellable period.
i) Right-of-use assets The Corporation recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use).

Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

Right-of-use assets are depreciated on a straight-line basis over the lease term.

The right of use assets are subject to impairment in line with the Corporation’s policy as described in note 2.10 impairment of non-financial assets.
ii) Lease liabilities At the commencement date of the lease, the Corporation recognises lease liabilities measured at the present value of lease payments to be made over the lease term.

The lease payments include fixed payments (less any lease incentives receivable), variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Corporation and payments of penalties for terminating the lease, if the lease term reflects exercising the option to terminate.

Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs.
2.10 Impairment of non-financial assets The Corporation assesses, at each reporting date, whether there is an indication that Property, plant and equipment, Right of use asset, Intangible assets and Other non-financial assets may be impaired.

If any indication exists, or when annual impairment testing for an asset is required, the Corporation estimates the assets recoverable amount.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 18 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.10 Impairment of non-financial assets (Cont'd) 54 An asset’s recoverable amount is the higher of an asset’s or cash generating unit's (CGU) fair value less costs of disposal and its value in use.
The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining fair value less costs of disposal, recent market transactions are taken into account.

If no such transactions can be identified, an appropriate valuation model is used.
2.11 Financial assets a) Initial recognition 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.

Financial assets are recognised when the Corporation becomes a party to the contractual provisions of the respective instrument.
b) Classification and Measurement With the exception of trade receivables that do not contain a significant financing component or for which the Corporation has applied the practical expedient, the Corporation initially measures a financial asset at its fair value plus transaction costs.

Trade receivables that do not contain a significant financing component or for which the Corporation has applied the practical expedient are measured at the transaction price.
The classification of financial assets depends on the financial asset’s contractual cash flow characteristics and the Corporation’s business model for managing them.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding.

This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 19 2.11 Financial assets (Continued) b) Classification and Measurement continued 55 The Corporation’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows.
The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment.

Gains and losses are recognised in Statement of Profit or Loss when the asset is derecognised, modified or impaired.

The Corporation’s financial assets at amortised cost includes trade and other receivables and cash and bank balances.
c) Impairment of financial assets The Corporation assesses, on a forward looking basis, the expected credit losses ("ECL") associated with its debt instruments carried at amortised cost.

The impairment methodology applied depends on whether there has been a significant increase in credit risk.

The Corporation applies the simplified approach to IFRS 9 to measure the loss allowance which uses lifetime expected losses.
The Corporation determines the expected credit losses by using a provision matrix, estimated on historical credit loss experience and based on past due dates of the receivables adjusted appropriate to reflect current conditions and estimates of future economic conditions.

No impairment was recognised for cash and bank balances and other receivables since the Members are of the opinion that the risk of default is negligible.
d) Derecognition Financial assets are derecognised when the right to receive cash flows from the asset has expired or has been transferred and the Corporation has transferred substantially all risks and rewards of ownership.

2.12 Inventories Inventories of the Corporation comprise fuel for generators, lubricants, strategic spares for generators and general maintenance spares and consumables.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 20 56 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.12 Inventories (Continued) Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value.

Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Weighted average cost is used to determine the cost of ordinarily interchangeable items.
2.13 Cash and cash equivalents For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts if any.
2.14 Assigned capital Financial instruments issued by the Corporation are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.

2.15 Deferred grant Grants from Government, International Organisations and third parties are recognised where there is reasonable assurance that the grant will be received and on compliance with all the attached conditions thereof.
Grants are classified as current and non-current based on their expected utilisation pattern.

When the grant relates to an expense item, it is recognised as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Where the grant relates to an asset, it is recognised as deferred income in the Statement of Financial Position until it is complete for intended use and then recognised in the Statement of Profit or Loss as Grants Income.
2.16 Borrowings and finance costs Borrowings are recognised initially at fair value being their issue proceeds net of transaction costs incurred.

Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statement of Profit or Loss over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities and non - current depending on the repayment period.
57 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.16 Borrowings and finance costs (Continued) Borrowing costs are capitalised, net of interest received on cash drawn down yet to be expended when they are directly attributable to the acquisition, contribution or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
21 2.17 Employee benefit obligation Short-term employee benefits The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as bonuses and non-monetary), are recognised in the period in which the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.
The expected cost of profit sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.

Defined contribution schemes A defined contribution plan is a pension plan under which the Corporation pays a fixed contribution into a separate entity.
The Corporation has no legal or constructive obligations to pay further contributions if the funds do not hold sufficient assets to pay all employees the benefits relating to employees service in the current and prior periods.

The Corporation and Seychellois employees contribute to the Seychelles Pension Fund (SPF).

This is a pension scheme which was promulgated under the Seychelles Pension Fund Act, 2005.
Defined benefit schemes A defined benefit plan is a post employment benefit other than a defined contribution plan.

The Corporation currently operates an unfunded scheme for employees' end of service benefits that follows relevant local regulations and is based on periods of cumulative service and levels of employees' final basic salaries.

The liability for staff terminal benefits is determined as the liability that would arise if employment of all staff was to be terminated at reporting date.
2.18 Provisions Provisions are recognised when the Corporation has a present or constructive obligation as a result of past events; it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 22 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.19 Trade and other payables 58 These amounts represent liabilities for goods and services provided to the Corporation prior to the end of the reporting period which are unpaid.

The amounts are unsecured and are usually paid within 30 days of recognition.

Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest rate method.

3.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judegments are continuously evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Corporation makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed as follows: 3.1 Calculation of expected credit loss allowance (ECL) The Corporation recognises lifetime expected credit losses (ECL) for trade receivables.
The expected credit losses on these financial assets are estimated using a provision matrix based on instruments, the the Corporation’s historical credit loss experience.

For all other financial Corporation recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition.
The expected credit loss model requires the Corporation to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets.

ECL for bank balances have been assessed to have low credit risk at each reporting date as they are held with reputable banking institutions.

Management have estimated impairment to be immaterial.
3.2 Impairment of non- financial assets The Corporation's main non-financial assets are generators that produce electricity, distribution network that supply electricity and water treatment plants that supply treated water to the country.

A decline in the value of those plant and equipment could have a significant effect on the amounts recognised in the financial statements.
Management assesses the impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Factors that are considered important which could trigger an impairment review include the following NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 23 59 3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) 3.2 Impairment of non- financial assets (Continued) i) ii) iii) Significant change in the useful life which would be expected from the passage of time or normal use.

Significant changes in the technology and regulatory environments.

Evidence that the performance of the plant and equipment could have negative impact on the operating results.
3.3 Government grants The Corporation receives contributions from the Government of Seychelles and other external entities towards investments in capital projects for improvements of infrastructure and ameliorating services being offered.
Significant judgement is required to determine whether these contributions are in the nature of government grants, in which case they are recognized in the Statement of Profit or Loss systematically in accordance with the related liability or expense, or in the form of equity, in which case they are recognized in the Statement of Financial Position as capital contributions.
3.4 Depreciation and estimated useful lives of non-financial assets Estimated useful lives and residual values of non-financial assets are assigned based on the intended use of respective assets and their economic lives.
Subsequently if there are changes in circumstances such as technological advances or prospective utilisation of the assets concerned that could result in the actual useful lives or residual values differing from initial estimates, the estimated useful lives and residual values are readjusted in line with the current circumstances.

The Management have reviewed the residual values and useful lives of major items of property, plant and equipment and determined necessary adjustments.
3.5 Employee benefit Employee benefit obligations (other than defined monthly contributions to pension fund with no further obligations) comprise gratuity; compensation for length of service determined based on length of service; unutilised leave pay; and end of contract bonus on fixed term contracts.

Length of service The amendments to the Seychelles Employment Act in the year 1999 entitled one day wage for each completed month of service provided the employee has completed five years continuous service.
The Corporation accrues this liability on a current basis and carries it to a provision account for payments to be made as and when they occur.

The Management have estimated that the amount of the liability provided will not be materially different had it been computed by an external Actuary NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 60 24 3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) End of contract payment Where the Employee satisfactorily completes the term of engagement under the contract, the Employer at the end of the term of engagement, grant to the Employee an end of contract payment ranging from 5% to 15% of the total remuneration earned as specified on the contract.

For the purpose of provision, the Members estimated the liability based on the prior years' averages of 14%.
3.6 Capitalisation of projects The Corporation capitalises development costs for projects in accordance with its accounting policies.

Initial capitalisation of costs is based on Management’s judgement that technological and economical feasibility is confirmed, usually when a project has reached a defined milestone according to an established project Management model.
In determining the amounts to be capitalised, Management makes assumptions regarding the expected future cash generation of the project, discount rates to be applied and the expected period of benefits.

Capitalisation is based on technical evaluation carried out internally by the Corporation's project team.

3.7 Calculation of unbilled units The billing cycle of the Corporation is area based and therefore results in different billing dates for customers.
Revenue from unbilled services at the reporting date is recognised as accrued, based on the past experience of the consumption pattern and effective rates thereof as services are already provided.

3.8 Limitation of sensitivity analysis Sensitivity analysis demonstrates the effect of a change in key assumption while other assumptions remain unchanged.

In reality, there is a correlation between the assumptions and other factors.
However, these sensitivities are non-linear and larger or smaller impacts should not be interpolated or extrapolated from the results arrived.

4.

FINANCIAL INSTRUMENTS - RISK MANAGEMENT The Corporation is exposed through its operations to the following financial risks: - Currency risk; - Cash flow and fair value interest rate risk; - Credit risk; and - Liquidity risk.

In common with all other businesses, the Corporation is exposed to risks that arise from its use of financial instruments.
This note describes the Corporation's objectives, policies and processes for managing those risks and the methods used to measure them.

Further quantitative information in respect of these risks is presented throughout these financial statements 61 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 4.
FINANCIAL INSTRUMENTS - RISK MANAGEMENT (CONTINUED) 25 There have been no substantive changes in the Corporation's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.
The principal financial instruments used by the Corporation, from which financial instrument risk arises, are as follows: - Trade and other receivables; - Cash and cash equivalents; - Borrowings; and - Trade and other payables.

4.1 General objectives, policies and processes The activities of the Corporation expose it to different financial risks; market risks (including currency and fair value interest risk), credit and liquidity risk.
The Members have the overall the establishment, oversee and monitoring of the Corporation’s risk responsibility for Management is responsible for designing, developing and monitoring the Corporation’s risk Management policies, which are approved by the Members.

Senior Management reports regularly to the Members and committees of the Government on its risk Management activities.

framework and is assisted by Senior Management.


Senior Management The Corporation’s risk Management policies are established to identify and analyse the risks faced by the Corporation, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

Risk Management policies and systems are reviewed regularly to reflect changes in market conditions and the Corporations' activities and its role in the Republic of Seychelles.
The Corporation, through its training and Management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The following are the Corporation's exposure to each of the above risks, the Corporation's objectives, policies and processes for measuring and managing risk, and the Corporation’s Management of capital.
a) Currency Risk The Corporation is exposed to currency risk arising from acquisition of supplies and capital projects that are denominated in currencies other than its functional currency.

The currencies in which these transactions are primarily denominated are Euro (“EUR”), United States Dollar (“USD”), Singapore Dollar ("SGD"), South African Rand ("ZAR") and Great Britain Pounds (“GBP”).

The Corporation aims to aggregate a net position for each currency so that natural hedging can be achieved.
62 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 26 4.
FINANCIAL INSTRUMENTS - RISK MANAGEMENT (CONTINUED) 4.1 General objectives, policies and processes (continued) a) Currency Risk (Continued) If the Seychelles Rupee had weakened/strengthened against the below currencies by 5 basis points with all other variables at the end of the year remaining constant, the impact (increase/(decrease)) on the results for the year would have been as depicted below: Euro +/- USD +/- GBP +/- OTHERS +/- December 31, 2022: Cash and bank balances 15,137,199 691,823 246,578 - Trade and other payables (649,339) (700,493) (23,528) (323) Borrowings Net exposure (24,569,021) (10,081,162) (34,178,756) (34,187,426) - 223,050 December 31, 2021: Cash and bank balances 18,118,627 900,823 Trade and other payables (370,440) (28,291,727) Borrowings (10,543,541) Net exposure (45,080) (33,188,032) (32,332,288) 94,914 (36,786) - 58,128 - (323) - (3,617) - (3,617) The currency portfolio of financial assets and liabilities is summarised as follows: EURO USD GBP Other SR Financial assets Financial liabilities 2022 SR 2021 SR 2022 SR 302,743,982 362,372,537 504,367,213 13,836,459 18,016,462 697,584,973 2021 SR 575,195,507 671,413,713 4,931,554 1,898,278 470,564 735,712 - - 1,752,545 72,331 662,504,617 984,016,612 511,934,430 894,221,707 370,314,668 1,574,489,963 341,421,243 1,588,838,506 Financial assets exclude prepayments amounting to SR 47.8m (2021: SR 44.5m) (note 17).
Financial (2021:4.2m) (note 21).

liabilities exclude provisions amounting to SR 3.3m included in other payables b) Cash flow and fair value interest rate risk The Corporations' cashflow exposure to interest rate risk arises primarily from long-term borrowings at floating rates for funded developmental projects 63 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 27 4.
FINANCIAL INSTRUMENTS - RISK MANAGEMENT (CONTINUED) 4.1 General objectives, policies and processes (continued) b) Cash flow and fair value interest rate risk (Continued) Market risks are thoroughly discussed in regular Management meetings.

Tariff adjustments are carried out based on impact on fuel prices.

Market risks and strategies to combat these risks are also discussed by Members at the meetings.
At period ends, if interest rates are moved by 1% higher/lower with all other variables at the end of the year held constant, results for the year would have been as shown below, mainly as a result of higher/lower interest rate expense on loans.
Borrowings c) Credit risk 2022 SR 2021 SR ± 166,657 ± 100,295 The Corporation's credit risk arises when a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Corporation’s receivables from customers, deposits, cash at banks and other receivables.

The Corporation's exposure to credit risk is influenced mainly by characteristics of each customer.
However, Management also considers the demographics of the Corporation's customer base, including the default risk of the industry in which customers operate, as these factors may have an influence on credit risk.

Although geographically there is no significant concentration of risk, at the reporting date, majority of the Corporation's trade receivables from customers were domiciled domestically.

The Corporation applied the simplified approach of IFRS 9 to measure loss allowance of lifetime ECL.
The Corporation determines the expected credit losses using a provision matrix as already explained earlier.

In order to minimise credit risk, the Corporation has adopted a policy of only dealing with credit worthy counterparties.

Credit approvals and other monitoring procedures are in place to ensure follow up is done to recover overdue debts.
d) Liquidity Risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
The Corporation through its regular budgets and forecasts manages liquidity to ensure that it will always have sufficient liquidity to meet its liabilities as and when they fall due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Corporation’s reputation.

The table below analyses the Corporation's financial exposure into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date.
64 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 28 4.
FINANCIAL INSTRUMENTS - RISK MANAGEMENT (CONTINUED) 4.1 General objectives, policies and processes (continued) d) Liquidity Risk (Continued) Less than 1 year Between 1 to 5 years SR SR After 5 years SR Total SR 136,017,339 680,156,842 783,188,256 1,599,362,437 243,056,183 379,073,522 48,437,008 728,593,850 - 783,188,256 291,493,191 1,890,855,628 29,804,146 739,897,854 951,424,116 1,721,126,117 187,936,265 43,719,466 490,841 218,231,252 - 783,617,320 951,424,116 - - 231,655,731 490,841 1,953,272,689 At 31 December 2022: Gross Borrowings Trade and other payables At 31 December 2021: Gross Borrowings Trade and other payables Lease liabilities 4.2 Fair value estimation The face values less any estimated credit adjustments for financial assets and liabilities with a maturity of less than one year are assumed to approximate their fair values.
4.3 Capital risk Management The Corporation’s policy is to maintain a strong capital base designed to provide sufficient liquidity to the business, maintain market confidence and sustain future growth of the business.
The Corporation’s main objectives when managing capital are: - - to maintain flexibility to pursue strategic infrastructure development opportunities and ensure adequate liquidity to withstand weakening economic conditions; and to maintain an appropriate balance between debt financing vis-a-vis capital as measured by gearing ratio.

The Corporation monitors capital on the basis of the debt-to-equity ratios.

The ratio is calculated as net debt to total equity.
Net debt is calculated as total debt less cash and cash equivalents.

Total equity comprises all components of equity (i.e.

assigned capital and retained earnings).

During the financial year ended 31 December 2022, the Corporation's strategy, which was unchanged from the financial year ended 31 December 2021, was to maintain the debt-to-total equity ratio at a reasonable level in order to secure access to finance at a reasonable cost.
The debt-to-total equity ratio at 31 December 2022 and 31 December 2021 were as follows 65 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 4.
FINANCIAL INSTRUMENTS - RISK MANAGEMENT (CONTINUED) 4.3 Capital risk Management (Continued) 29 2021 SR 2022 SR Total debt (notes 15(c) & 20) Less: Cash and cash balances (note 18) 1,286,324,667 (761,560,286) 524,764,381 1,361,501,238 (692,950,345) 668,550,893 Total equity (page 7) 2,860,540,219 2,658,474,405 Debt-to-total equity ratio 18.34% 25.15% 5.
REVENUE FROM OPERATIONS Supply of electricity Supply of water Waste disposal Other services 2022 SR 2021 SR 1,655,118,396 236,242,050 32,276,221 13,714,639 1,937,351,306 1,412,412,946 229,681,637 32,313,351 13,205,913 1,687,613,847 (a) Revenue from related parties: Income from service supplied to Government and Government related entities: Supply of electricity Supply of water Waste disposal Other services 2022 SR 2021 SR 158,286,309 26,240,603 6,874,742 43,220 191,444,874 146,720,830 34,762,090 9,652,961 42,910 191,178,791 (b) The Corporation's own consumption of electricity and water was SR 155,053,597 (2021: SR 137,245,079) and SR 3,758,347 (2021: SR 3,458,963) respectively.
These amounts have been eliminated from reported revenue NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 66 6.

OTHER INCOME Amortisation of deferred grants (note 23) Gain on early termination of leases (notes 15(b) & 15(c)) Profit on disposal 7.
DIRECT OPERATING EXPENSES Generation fuel and lubricants Materials and equipment charges Other consumables Fuel and oil for vehicles VAT write off (a) Purchase from related party- SEYPEC Heavy fuel oil Light fuel oil 8.
STAFF COSTS Salaries Members' emoluments (notes 8(b) & 26) Pension contribution Employee benefit obligations (note 22(b)) Other employee related costs 30 2021 SR 2022 SR 106,867,010 - 104,100 106,971,110 123,640,087 139,319 227,800 124,007,206 2022 SR 2021 SR 1,152,901,957 969,105,135 34,081,808 2,547,812 8,421,257 - 36,304,582 3,891,884 7,231,048 - 1,197,952,834 1,016,532,649 2022 SR 2021 SR 901,805,171 235,772,486 1,137,577,657 785,319,000 140,702,003 926,021,003 2022 SR 2021 SR 229,188,700 218,013,188 2,606,282 8,351,902 16,609,564 16,499,470 273,255,918 2,173,480 5,677,359 14,036,634 10,501,851 250,402,512 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 67 8.
STAFF COSTS (CONTINUED) a) Members' emoluments: Mr. Joel Valmont (from November 15, 2021) Mr. Leonard Alvis (from November 15, 2021) Ms. Irene Croise Mrs. Nanette Laure Mr. Stephen Rousseau Mr. Philippe Chong-Seng Dr. Selwyn Gendron (until August 25, 2022) Mr. Philippe Morin (until November 14, 2021) Mr. Eddy Belle (until April 12, 2021) 31 2021 SR 2022 SR 2,231,349 305,232 91,200 60,800 60,800 60,800 60,800 40,533 - - 2,606,282 11,348 60,800 60,800 60,800 60,800 60,800 1,522,500 30,400 2,173,480 b) The Corporation provides for end of contract bonus with respect to fixed term employees.
The total provision as at the year end for the financial year amounted to SR 5,042,035 (2021: SR 4,124,008) with respect to all existing fixed term contracted employees.

End of contract bonus is payable based on individual performance which is assessed at the end of the contract.

For the purpose of provision, the Members estimated the liability based on the prior years' averages of 14%.

c) Included in other employee related costs are staff rentals amouting to SR 2,888,060 (2021: SR 58,406) (note 15(e)).
In 2021 staff rentals totalling SR 1,395,406 were paid and SR 1,337,000 were classified as lease payments under IFRS 16.

9.
OTHER OPERATING OVERHEADS Repairs and maintenance Hire Administration expenses Tree clearance Technical services Bank charges Other insurance Feasibility study Licenses and insurance vehicle Rent (note 15(e)) Professional fees Audit fee Drought expenses Fixed assets written off (note 12) Provision for obsolete inventory (note 16(a)) 2022 SR 2021 SR NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 68 10.
EXCHANGE DIFFERENCES Borrowings (note 20) Cash and cash balances Others 11.
FINANCE INCOME AND EXPENSE (a) Finance income Interest receivable on overdue trade receivables Interest on term deposits Interest on loan to employees Total finance income (b) Finance expense 32 2021 SR 2022 SR (80,586,940) 29,439,128 (463,810) (51,611,622) (595,530,797) 219,510,122 (26,139,459) (402,160,134) 2022 SR 2021 SR 10,787,863 771,212 8,992 11,568,067 12,264,538 1,123,510 34,497 13,422,545 Interest expense on borrowings Interest expense on lease liabilities (note 15(c)) Total finance expense 16,657,679 7,984 16,665,663 9,862,140 167,399 10,029,539 finance Net Statement of Profit or Loss (expense)/income recognised in the (5,097,596) 3,393,006 (c) An amount of SR 123,730 was accrued for interest on term deposit as at December 31, 2022.
For Cashflow only SR 643,482 has been considered and for 2021 the full amount of SR 1,123,510 was collected 69 33 Total SR NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 12.
PROPERTY, PLANT AND EQUIPMENT (PPE) COST At 1 January 2021 Group reclassification Additions Transfer from WIP (note 13) Write off adjustment Strategic parts expensed Disposal adjustment At 31 December 2021 Additions Transfer from WIP (note 13) Write off adjustment Strategic parts expensed Disposal adjustment At 31 December 2022 ACCUMULATED DEPRECIATION At 1 January 2021 Group reclassification Charge for the year Write off adjustment Disposal adjustment At 31 December 2021 Charge for the year Write off adjustment Disposal adjustment At 31 December 2022 Water & sewerage equipment SR Electricity equipment SR Other plant & machinery SR Other equipment SR Furniture & fittings SR Motor vehicles SR Strategic parts SR Land & buildings SR Dams & reservoirs SR 304,089,275 173,374,329 - 180,000 5,213,162 - - - - - - - - - 1,166,865,680 910,938 120,000 35,848,351 (10,931,323) 1,474,374,152 (398,678,369) - 27,355,312 (972,376) 542,111,394 397,674,062 - 117,401,570 (1,143,666) 54,511,387 93,369 1,436,140 3,003,858 (29,550,056) - - - - - - - - 29,494,698 1,492,051 309,482,437 173,374,329 1,192,813,646 1,102,078,719 1,056,043,360 - 4,592,114 - - - - - - - - - - - 251,128,478 172,777,718 75,809,564 - - - - - - - - - - (563,188) - - 314,074,551 314,074,552 173,374,329 173,374,330 1,443,942,124 1,443,942,124 0 1,274,856,437 1,274,856,437 1,131,852,924 1,131,852,923 1 30,423,561 30,423,561 312,641 312,641 113,877,511 (14,046) 6,949,868 46,406,480 - 4,429,076 - - - - 581,652,759 17,221 42,828,808 (1,006,240) - 776,789,814 (215,653,886) 57,047,645 (919,075) - 336,275,486 215,650,633 63,104,212 (1,143,666) 44,719,673 - 4,338,380 (29,546,237) 3,097,595 78 36,016 (2,925,815) - - 120,813,333 7,023,618 50,835,556 4,429,075 623,492,548 47,413,903 617,264,498 48,267,360 613,886,665 66,622,118 - - - - - - - - - - 19,511,816 4,259,784 (529,577) - 127,836,951 55,264,631 670,906,451 665,531,858 680,508,783 23,242,023 3,238,456 74,364,622 73,346,853 3,866,276,148 - - - (2,925,815) - - 312,641 - - - - - - 207,874 31,129 - - 239,003 - - 9,941,556 16,065,434 - - - (1,586,361) 82,719,817 1,496,229 - - - (2,188,086) 82,027,960 82,027,960 54,593,544 - 8,222,215 - (1,586,361) 61,229,398 8,701,756 - (2,188,086) 67,743,068 - - (24,539,758) - 64,872,529 30,375,759 - - (15,738,690) - 79,509,598 - - - - - - - - - - - 27,743,130 188,822,253 (45,523,236) (24,539,758) (1,586,361) 4,011,192,176 33,364,039 504,307,874 (563,188) (15,738,690) (2,188,086) 4,530,374,125 1,957,412,862 - 186,956,220 (35,541,033) (1,586,361) 2,107,241,688 186,748,743 (529,577) (2,188,086) 2,291,272,768 NET BOOK VALUE - 127,836,951 - 55,264,631 - 670,906,451 - 665,531,858 - 680,508,783 - 23,242,023 - 239,003 - 67,743,068 At 31 December 2022 186,237,600 118,109,698 773,035,673 609,324,579 451,344,141 7,181,538 73,638 14,284,892 79,509,598 2,239,101,357 At 31 December 2021 188,669,104 122,538,773 569,321,098 484,814,221 442,156,695 9,982,882 104,767 21,490,419 64,872,529 1,903,950,488 70 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 34 12.
PROPERTY, PLANT AND EQUIPMENT (CONTINUED) (a) Government owned land parcels Certain land parcels acquired by the Corporation are not registered in the name of the Corporation.

These were land parcels acquired from the Government of Seychelles which were allocated to the Corporation but not physically transferred to the Corporation.

This is in line with the policy of the Government to allocate land parcels to the Corporation based on its requirements.
The Government of Seychelles is the Ultimate Beneficiary and Owner of the 13.
CAPITAL WORK IN PROGRESS (WIP) At 1 January Expenditure during the period 2022 SR 2021 SR 1,791,657,825 1,748,974,380 308,003,786 231,505,698 Transfer to PPE during the year (note 12) (504,307,874) (188,822,253) Buildings (note 12) Water and sewarage equipment (note 12) Electricity equipment (note 12) Other equipment (note 12) Other plant and machinery (note 12) At 31 December (4,592,114) (5,213,162) (251,128,478) (35,848,351) (172,777,718) (27,355,312) - (3,003,858) (75,809,564) (117,401,570) 1,595,353,737 1,791,657,825 13.1 Included in capital work in progress above are specific projects funded jointly by European Investment Bank ('EIB') and Agence Francaise De Developpement ('AFD'); and certain projects funded by African Development Bank ('AFDB'), Arab Bank for Economic Development of Africa ('BADEA'), The Saudi Fund for Development ('SAFD'), The Abu Dhabi Fund for Development ('ADFD') and Seychelles International Mercantile Banking Corporation Limited (Nouvobanq) which are detailed per note 13.4.
Drawdowns from the approved loan facilities from EIB and AFD are held by the Government of Seychelles in separate accounts with the Central Bank of Seychelles to ensure specific disbursements as per the terms of the loan agreements.

Movements in the Central Bank of Seychelles account are also analysed per note 13.5.

13.2 Capital work in progress are carried at cost.


Capitalisation of completed projects is carried out as and when they are completed based on the technical evaluation carried out by the projects division of the Corporation.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 71 13.
CAPITAL WORK IN PROGRESS (CONTINUED) 13.3 Details of Capital Projects funded by loan facilities: Non revenue water program Improvements to Mahe-La Digue wastewater system Raising of the La Gogue Dam 33kv cable from Turtle Bay to Anse Boileau Providence Desalination Extension 5MW Solar Park 13.4 Source of funding for the above projects: Agence Francaise De Developpement ('AFD") African Development Bank ('AFDB') Arab Bank for Economic Development in Africa ('BADEA') The Saudi Fund For Development ('SAFD') Seychelles International Mercantile Banking Corporation Ltd Adu Dhabi Fund for Development (ADFD) 13.5 Movements in balances held with Central Bank of Seychelles: At 1 January Utilised during the year Exchange rate fluctuation At 31 December 35 2021 SR 774,188 1,230,201 52,275,032 42,865,921 84,351,000 3,759,797 185,256,139 2022 SR 9,647 16,019,415 44,135,639 34,836,694 - 5,022,258 100,023,653 2022 SR 2021 SR 16,029,062 44,135,639 13,379,434 21,457,260 - 5,022,258 100,023,653 2,004,389 52,275,032 18,687,330 24,178,591 84,351,000 3,759,797 185,256,139 2022 SR 2021 SR 345,195,899 (18,424,855) (31,872,539) 294,898,505 551,986,767 (2,004,389) (204,786,479) 345,195,899 Balances held with Central Bank of Seychelles denominated in Euro: European Investment Bank ('EIB') Agence Francaise De Developpement ('AFD") 19,054,054 476,036 19,530,090 19,054,054 1,744,011 20,798,065 Balances held with Central Bank of Seychelles denominated in USD: Arab Bank for Economic Development in Africa ('BADEA') - 765 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 72 14.
INTANGIBLE ASSETS Computer software COST At 1 January, Write off adjustment At 31 December, AMORTISATION CHARGE At 1 January, Amortisation for the year Write off adjustment At 31 December, NET BOOK VALUE At 31 December, 15.

LEASES a) Lease contracts 36 2021 SR 2022 SR 41,874,605 - 41,874,605 43,893,861 (2,019,256) 41,874,605 37,065,650 2,372,566 - 39,438,216 35,220,025 3,864,881 (2,019,256) 37,065,650 2,436,389 4,808,955 The Corporation has lease contracts for its staff accommodations and offices.
The lease terms ranges between 1 to 4 years.

The Corporation’s obligations under its leases are secured by the lessor’s title to the leased assets.

Generally, the Corporation is restricted from assigning and subleasing the leased assets.

There are no lease contracts that include extension and termination options and variable lease payments.

The Corporation also has certain leases with terms of 12 months or less.
The Corporation applied the ‘short-term lease’ recognition exemptions under IFRS 16 for these leases.

b) Right-of-use assets At 1 January Depreciation charge (note 15(e)) At 31 December Accomodations SR 192,887 (192,887) - 2022 Offices SR 148,324 (148,324) - Total SR 341,211 (341,211) - NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 73 15.
LEASES (CONTINUED) b) Right-of-use assets (continued) Accomodations SR At 1 January, Reclassification Depreciation charge (note 15(e)) Derecognition of terminated leases (note 6) At 31 December, 1,852,332 578,191 (1,189,529) (1,048,107) 192,887 c) Lease liabilities At 1 January, Finance cost (notes 11(b) & 15(e)) Lease payments Derecognition of terminated leases (note 6) At 31 December, 37 Total SR 4,424,267 - (3,034,949) (1,048,107) 341,211 2021 SR 4,835,068 167,399 (3,324,200) (1,187,426) 490,841 2021 Offices SR 2,571,935 (578,191) (1,845,420) - 148,324 2022 SR 490,841 7,984 (498,825) - - The Corporation had total cash outflows for short-term and long-term leases of SR 5.3m (2021: SR 5.7m).
d) The maturity analysis of lease liabilities is as shown below: Between 3 and 12 Up to 3 months and 12 months SR SR Between 1 Between 1 and 2 years SR Lease liabilities At 31 December 2022 - - At 31 December 2021 403,626 87,215 - - e) The following are the amounts recognised in the Statement of Profit or Loss: Total SR - 490,841 2022 SR 2021 SR Depreciation on right-of-use assets (note 15(b)) Interest expense on lease liabilities (note 15(c)) Expense relating to short-term leases included in: - Other employee related costs (note 8(c)) - Rental cost (note 9) Total amount recognised in the Statement of Profit or Loss 341,211 7,984 3,034,949 167,399 2,888,060 1,954,856 5,192,111 58,406 2,363,813 5,624,567 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 74 16.
INVENTORIES Electricity generation fuel and lubricants Spare parts and non saleable items Provision for obsolete inventory (note 16(a)) (a) Provision for obsolete inventory is as follows: At 1 January Charge during the year (note 9) At 31 December 17.
TRADE AND OTHER RECEIVABLES 38 2021 SR 29,660,228 742,652,525 772,312,753 (6,318,989) 765,993,764 2021 SR - 6,318,989 6,318,989 2022 SR 43,601,833 685,625,822 729,227,655 (6,618,372) 722,609,283 2022 SR 6,318,989 299,383 6,618,372 2022 SR 2021 SR Trade receivables (notes 17(a) to 17(c)) 174,661,559 164,542,294 Storage tank loan receivables Unbilled units (note 17(d)) Gross trade receivables Less: Specific provision (notes (17(e) and 17(g)) Less: Expected credit loss (note 17(g)) Net trade receivables Loans and advances to staff (note 17(h)) Prepayments Analysed as: Due beyond one year Due within one year 1,360,371 72,800,931 248,822,861 (21,854,716) (5,550,450) 221,417,695 1,034,197 47,777,537 270,229,429 1,640,649 56,892,987 223,075,930 (18,248,689) (6,538,784) 198,288,457 2,893,822 44,530,113 245,712,392 1,106,560 269,122,869 270,229,429 875,044 244,837,348 245,712,392 a) b) c) d) The carrying amounts of trade and other receivables measured at amortised cost approximate their fair value.
These are denominated in Seychelles Rupees.

Certain amounts of trade receivable bear surcharge at 2% per month for late payments.

At 31 December 2022, trade receivables included SR 20,509,540 (2021: SR SR 12,606,207) from Government and parastatal organisations which the Members have estimated as recoverable.

The Corporation accrues revenue for proportionate unbilled units to complete 12 months billing cycle for each customer (note 3.7).
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 17.

TRADE AND OTHER RECEIVABLES (CONTINUED) e) Specific provision represented 100% provisions made for trade receivables SR 21.9m (2021: SR 18.2m) that were over 365 days past due.

The legal team of the Corporation is continously undertaking an exercise case by case to recover sums due from the respective defaulters where possible.
f) Movement in the provision for credit impairment of trade and other receivables is as follows: 75 39 At 1 January ECL charge during the year Write off At 31 December g) The lifetime expected loss provisions for trade receivables and contract assets are as follows: 2022 SR 2021 SR 24,787,473 2,617,693 - 27,405,166 39,860,563 2,662,715 (17,735,805) 24,787,473 December 31, 2022 Gross carrying amount Less: Specific provision (note 17(e)) Gross carrying amount excluding specific provision Expected loss rate Expected credit loss provision December 31, 2021 Gross carrying amount Less: Specific provision (note 17(e)) Gross carrying amount excluding specific provision Expected loss rate Expected credit loss provision Less than 30 days 31 to 60 days 61 to 90 days Over 90 days Total 111,910,369 22,488,568 6,981,861 111,910,369 0.68% (760,991) 22,488,568 6,981,861 4.52% (315,694) 0.96% (215,890) 107,442,063 (21,854,716) 85,587,347 4.97% (4,257,875) 248,822,861 (21,854,716) 226,968,145 (5,550,450) 166,384,119 17,539,896 - 166,384,119 0.44% (732,090) - 17,539,896 1.47% (257,836) 6,017,687 - 6,017,687 4.70% (282,831) 33,134,228 (18,248,689) 14,885,539 35.38% (5,266,026) 223,075,930 (18,248,689) 204,827,241 (6,538,784) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 17.
TRADE AND OTHER RECEIVABLES (CONTINUED) h) Although loans and advances to staff are interest bearing, the Members have estimated that no ECL is required since repayments are deducted monthly from salaries and wages and there has been no history of default.

They are analysed as follows: 40 76 Due within one year Due beyond one year 18.
CASH AND CASH EQUIVALENTS 2022 SR 976,859 57,338 1,034,197 2021 SR 2,803,099 90,723 2,893,822 2022 SR 2021 SR Balances with banks Deposit with treasury (note 18(a)) Term deposits with banks (note 18(b)) Undeposited funds (note 18(c)) Cash on hand Cash and bank balances per Statement of Financial Position Term deposits with banks (note 18(b)) Bank balance retained for letters of credit (note 18(d)) Cash and cash equivalents per Statement of Cash Flows 413,056,690 294,898,505 41,725,790 11,763,596 115,705 761,560,286 (41,725,790) (4,997,176) 714,837,320 310,640,599 345,195,899 31,049,029 5,949,318 115,500 692,950,345 (31,049,029) (14,160,360) 647,740,956 a) b) Borrowings from Government of Seychelles through Agence Francaise De Developpement and European Investment Bank are received in the treasury account held with the Central Bank of Seychelles for spending on the Projects of the Corporation.
Those deposits are denominated in Euro and are non-interest bearing.

Movements in these accounts are provided in note 13.4.

Term deposits with banks comprise short term call deposits and other short term deposits with periods of 12 months, depending on the immediate cash requirements of the Corporation and earn interest at varying short term interest rates.

c) Undeposited funds comprised amounts unbanked at end of period date.
d) Amounts retained against letters of credit facility provided by Seychelles International Mercantile Banking Corporation Limited (Nouvobanq) to the Corporation were USD 286,200 and AED 213,137 (2021: USD 654,000 and EUR 253,000).

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 77 19.
ASSIGNED CAPITAL Transferred from: - Seychelles Electricity Corporation Limited - Seychelles Water Authority Loans taken over as capital contribution Transfer of revaluation Reserve (note 19(a)) Transfer of capital contribution reserve (note 19(b)) 41 2021 SR 2022 SR 42,069,280 8,551,125 841,512,062 158,537,000 42,069,280 8,551,125 841,512,062 158,537,000 389,074,124 1,439,743,591 389,074,124 1,439,743,591 a) b) On April 1, 1992, the Government of Seychelles transferred certain dams, reservoirs, water and sewerage treatment works and pipeline networks to the Corporation for which no consideration was paid by the Corporation.
The Corporation recorded these assets at value determined by the technical team of the Corporation based on the current cost at the time of recording them in the books of the Corporation with a contra credit to the revaluation reserve account.

This was rectified retrospectively in the year 2014 by crediting the Assigned Capital towards contribution other than cash from the owner of the Corporation.
Prior to the year 2010, the Corporation received contributions from the Government of Seychelles for major capital works undertaken by the Corporation.

Subsequently certain capital grants were included in this account which were reclassified to Deferred Grants in the year 2010 and the amount received for major capital works was carried in this account with no further subsequent movements.
This was rectified retrospectively in the year 2014 by crediting the Assigned Capital towards contribution other than cash from the Owner of the Corporation.

20.
BORROWINGS Borrowings for infrastructure development are as follows: European Investment Bank (note 20(a)) Agence Francaise De Developpement (note 20(a)) The African Development Bank (note 20(b)) The Arab Bank for Economic Development in Africa (note 20(c)) The Saudi Fund For Development (SFD) (note 20(d)) Seychelles International Mercantile Banking Corporation (note 20(e)) Abu Dhabi Fund for Development (ADFD) (note 20(f)) Analysed as: Due beyond one year Due within one year 2022 SR 2021 SR 372,620,430 118,759,999 232,830,359 138,307,366 194,818,573 421,649,934 144,184,614 215,792,702 130,111,495 200,677,771 111,369,125 117,618,815 1,286,324,667 131,415,212 117,178,669 1,361,010,397 2022 SR 2021 SR 1,175,814,225 110,510,442 1,286,324,667 1,266,952,130 94,058,267 1,361,010,397 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 78 20.
BORROWINGS (CONTINUED) The movement in borrowings is as follows: At 1 January Received during the year Repayment during the year Foreign currency differences (note 10) At 31 December 42 2022 SR 2021 SR 1,361,010,397 1,873,157,364 83,995,459 (78,094,249) (80,586,940) 1,286,324,667 183,251,750 (99,867,920) (595,530,797) 1,361,010,397 a) b) c) d) The Corporation entered into two indemnity agreements relating to certainty of payment obligations under the European Investment Bank (EIB) and Agence Francaise De Developpement (AFD) with the Republic of Seychelles relating to the upgrade of Seychelles Water and Sewerage infrastructure.
The total approved borrowing is Euro 36,737,000 of which Euro 26,737,000 is financed by EIB and the balance Euro 10,000,000 by AFD.

These loans bear interest at 6 months Euribor + margin 1.48% per annum (2021: Euribor + margin 1.48% per annum).

Principal repayments commenced in 2018.


The Corporation entered into an indemnity agreement relating to certainty of payment obligation under The African Development Bank (AFDB) with the Republic of Seychelles for financing part of the USD component and the entire Seychelles Rupee component of the Mahe Sustainable Water Augmentation Project (La Gogue).

The total approved borrowing is USD 20,600,000 with closing date of drawdown as 31 December 2023.
The loan bears interest at 6 months Libor + margin 0.60% per annum (2021: Libor + margin 0.60% per annum) and is repayable after a grace period of 5 years.

Repayment is to be in 30 equal instalments following the 5 year grace period.

Current balance represents drawdown at the reporting date.

This Project is also expected to be funded with three grants approximating to Euro 1.5 million.
The Corporation entered into an indemnity agreement relating to certainty of payment obligation under The Arab Bank for Economic Development in Africa (BADEA) with the Republic of Seychelles for financing the Improvement of Electricity Network in South Mahe Project.

The total approved borrowing is USD 11,000,000 with closing date of drawdown as 31 December 2023 .
The loan bears interest at 2.5% per annum (2021: 2.5% per annum) and is repayable after the Grace period of 5 years in 34 semi annual instalments with interest.

Current balance represents drawdown at the reporting date.

The Corporation entered into an indemnity agreement relating to certainty of payment obligation under The Saudi Fund For Development (SFD) with the Republic of Seychelles for financing the Electrification of South Mahe Island Project - Second Phase.
The total approved borrowing is USD 20,000,000 with closing date of drawdown as 30 June 2024.

The loan bears interest at 2% per annum (2021: 2% per annum) and is repayable in 30 semi - annual instalments of USD 666,667 with interest effective November 15, 2020 after a 5 year grace period.

Current balance represents drawdown at the reporting date.
79 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 43 20.

BORROWINGS (CONTINUED) e) f) The Corporation entered in to a loan agreement with Seychelles International Mercantile Banking Corporation Limited (Nouvobanq) to borrow SCR 159,351,000 to finance the Desalination Plant Extension Project.
This loan is fully pledged against generator set A51 (Serial Number PAAE269991) and generator set A61 (Serial Number PAAE269992) and bears interest at 8.00% per annum (2021: 8.00% per annum) and is repayable from the 13th month of the loan, which was in September 2020, in monthly installments of SCR 2,483,679.

The current balance represents the drawdown in full less the principal repayments at the reporting date.
The Corporation entered into loan agreement with the Abu Dhabi Fund for Development, guaranteed by the Government of the Republic of Seychelles for financing the Ile de Romainville Solar Power Field Project.

The total approved borrowing is AED 31,220,500.00 (USD 8.5m) with the closing date of drawdown as 31 December 2023.

The loan bears interest at 2.00% per annum (2021: 2.00% per annum) and is repayable in 15 years following a grace period of 5 years in 30 semi annual instalments with interest.
Current balance represents drawdown at the reporting date.

21.

TRADE AND OTHER PAYABLES Trade payables Other payables Customer deposits (note 21(d)) Analysed as: Due beyond one year Due within one year 2022 SR 2021 SR 139,861,424 103,194,759 48,437,008 291,493,191 99,841,295 88,094,970 43,719,466 231,655,731 2022 SR 2021 SR 48,437,008 243,056,183 291,493,191 43,719,466 187,936,265 231,655,731 a) The carrying amounts of trade and other payables' approximate their amortised costs.
b) Trade and other payables are denominated in the following currencies: SR USD EURO OTHER GBP 2022 SR 2021 SR 262,257,738 14,009,860 12,986,784 1,768,244 470,564 291,493,191 213,833,652 7,653,076 9,360,959 72,332 735,712 231,655,731 80 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 21.
TRADE AND OTHER PAYABLES (CONTINUED) c) The Corporation did not offer any securities with respect to trade and other payables.

d) Customer deposits comprise the following: 44 Electricity Water 22.
EMPLOYEE BENEFIT OBLIGATIONS Accrued leave Gratuity Length of service compensation Total employee benefit liabilities (note 22(b)) Due within one year (note 22(a)) 2022 SR 42,649,058 5,787,950 48,437,008 2021 SR 38,666,243 5,053,224 43,719,467 2022 SR 2021 SR 15,212,936 6,592,500 93,204,470 115,009,906 (23,355,625) 16,013,204 7,042,509 94,106,036 117,161,749 (7,443,890) Due beyond one year 91,654,281 109,717,859 a) Analysis of amounts due within one year: Accrued leave Gratuity Length of service compensation b) Movement in employee benefit obligations is as follows: At 1 January, Charge to Statement of Profit or Loss (note 8) Paid during the year At 31 December, 2022 SR 15,212,936 2,565,000 5,577,689 23,355,625 2021 SR 234,876 2,573,667 4,635,347 7,443,890 2022 SR 2021 SR 117,161,749 16,609,564 (18,761,407) 115,009,906 120,832,453 14,036,634 (17,707,338) 117,161,749 c) The Corporation recognised and provided for employee benefit obligations arising on account of gratuity based on the regulations applicable to parastatal organisations; leave salary and length of service severance compensation based on the provisions of Seychelles Employment Act.
With respect to fixed term employees, the Corporation used average grades of past years to compute the estimated end of contract bonus.

The Corporation proposes to meet these liabilities as and when they fall due, out of its working capital 81 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 22.
EMPLOYEE BENEFIT OBLIGATIONS (CONTINUED) d) Employment benefit obligations have been determined using the method suggested by the Seychelles Employment Act and the Management has estimated that the amount of liability provided will not be materially different had it been computed by an external Actuary.

45 23.

DEFERRED GRANTS At 1 January Received from Government of Seychelles Received from others Less: Amortisation for the year (note 6) At 31 December Analysed as: Non-current Current 24.
CAPITAL COMMITMENTS a) Capital Commitments Approved and contracted for Approved but not yet contracted for 2022 SR 2021 SR 1,036,621,857 60,000,712 48,166,939 1,144,789,508 (106,867,010) 1,037,922,498 1,079,058,006 40,000,000 41,203,938 1,160,261,944 (123,640,087) 1,036,621,857 2022 SR 2021 SR 954,300,243 83,622,255 930,872,670 105,749,187 1,037,922,498 1,036,621,857 2022 SR 2021 SR 705,948,985 1,549,512,679 2,255,461,664 514,488,789 1,396,321,465 1,910,810,254 b) Operating lease commitments - where the Corporation is the lessee The Corporation leases accomodations and offices under operating lease agreements.
The leases have varying terms, escalation clauses and renewable rights.

The future aggregate minimum lease payments under operating leases are as follows: Not later than one year 844,250 981,600 2022 SR 2021 SR 82 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 46 25.

CONTINGENT LIABILITIES There were no contingent liabilities as at December 31, 2022 (2021: Nil) 26.
RELATED PARTY TRANSACTIONS In the normal course of its operations, the Corporation enters into transactions with related parties.

Related parties include Government and key Management personnel, consisting of Members of the Board of Directors.

Unless stated, all transactions with related parties take place at arm’s length.
The following are material transactions entered into with the Government and other government owned entities: 2022 SR 2021 SR Revenue and services (note 5a)) 191,444,874 191,178,791 Purchase of fuel (note 7a)) 1,137,577,657 926,021,003 Key Management Personnel Key Management personnel comprises the Chief Executive Officer, Chairman and the Non- Executive Board members.
The latters are considered to be part of the key Management personnel as they have the authority and responsibility for planning, directing and controlling the activities of the Corporation.

The aggregate remuneration provided for and paid to key Management personnel (note 8).
Members' emoluments (note 8(a)) 2,606,282 2,173,480 2022 SR 2021 SR CONTACT INFORMATION 83 ELECTRICITY DIVISION Electricity House Roche Caiman Mahé Tel: +(248)-4678000 COMMERCIAL & CUSTOMER SERVICES DIVISION Creole Spirit Building Victoria Mahé Tel: +(248)-4678000 FINANCE DIVISION Maison de Malavois Bois de Rose Avenue Mahé Tel: +(248)-4678000 WATER & SEWERAGE DIVISION New Port Victoria Mahé Tel: +(248)-4678000 HUMAN RESOURCES DIVISION Maison de Malavois Bois de Rose Avenue Mahé Tel: +(248)-4678000 PRASLIN / LA DIGUE DIVISION Baie Ste Anne Praslin Tel: +(248)-4280053 CALL CENTRE BREAKDOWN MAHE, PRASLIN & LA DIGUE Tel: +(248)-4678910 COMPANY INFORMATION PUBLIC UTILITIES CORPORATION Head Office: Electricity House, Roche Caiman, P.O.
Box 174, Mahé, SEYCHELLES Tel: 4678000 Website: www.puc.sc T