Eltel Networks has extensive experience providing infrastructure projects in Ghana since the 1990s, including electrification projects in Greater Accra, Volta, Ashanti and Eastern regions. Key success factors have included access to concessional financing, a track record and relationship with the Ghanaian Ministry of Energy as a trusted supplier, and flexibility given the long lead times and potential scope changes in projects. Eltel's experiences demonstrate the importance of clear but practically interpreted contracts, as well as being supportive of reasonable scope variations without claims in order to maintain cooperative relationships.

1. Eltel Networks in Ghana A presentation of Eltel Networks: Projects and experiences in Ghana

2. A new infrastructure is emerging in our society Based on a more effective interplay between Electricity Telecom IT/IP Eltel has the critical competences and combines them in service delivery Offers synergies and opportunities for operators and utilities Adds new dimensions to our everyday life 2 Infranet

3. Railway Fixed telecom Mobile telecom Power distribution Wind power Smart grid Homeland security Road Power transmission Aviation Smart metering Enterprise Our areas of competence 3

4. We boost earnings for customers like these 4 Norwegian provider of telecomms services worldwide The Swedish National Public Safety Radio Communication System The Swedish Civil Aviation Administration Polish Transmission System Operator Leading Danish provider of telecomms solutions One of leading energy companies in Nordic, Russian and Baltic area World’s largest telecomms company in mobile Network access and telecommunication services in Nordic, Baltic and Eurasian regions Swedish Transport Administration European electricity company with focus on electricity and heat Swedish Transmission System Operator Leading Nordic provider of communications services Integrated telecommunication, IT and television services provider in Lithuania Polish national telecomms services provider Largest telecomms and IT provider in Estonia Finnish Transmission System Operator

5. The European No. 1 Infranet service company 7,700 specialists In 9 countries Sweden Finland Poland Denmark Norway Germany The Baltic countries Romania At 300 locations Export projects in 90 countries EUR 856 million turnover 5

7. History of Eltel Merge of IVO (Finnish VRA) and Neste (State Oil Company)  Fortum Divestment of transmission engineering  Eltel Networks During 90's in Ghana IVO International (Finnish company) Transelectric (Swedish company) 7

9. Ashanti Region Electrification (Finnish CC)Two ongoing projects with Finnish Concessional Credit Rural Electrification Project in Ashanti and Eastern Regions Vessel Traffic Management Information System 8

10. Key success factors Financing Subsidized financing has been available for social electrification Experience and references with financing scheme Relationship with the Customer (Ministry of Energy) All projects delivered in time and budget As trusted supplier, no claims or arguments, high quality Targets are mutual, requirements and working methods known Understanding the local conditions Flexibility, scope variations, external parties Turn-key responsibility, site conditions vary Risk taking capacity 9

12. 1/2008 Feasibility Study and draft contract agreement basing on proven formula

13. 2/2008 financing application to Finnvera & MFA pre-assessment

14. 5/2008 Contract Agreement (MoEn& Eltel) signed

15. 9/2008 – 3/2009 MFA evaluation trip / report and decision / recommendation

16. 11/2008 Ghana Government and Parliament approvals

17. 12/2008 – 4/2009 Value For Money –audit

18. 5/2009 MFA final approval

19. 6/2009 Credit Agreement MoFEP & BNP Paribas

20. 8/2009 Public Procurement Act –clearance

21. 8/2009 Contract (MoEn& Eltel) into force

22. 10/2009 Advance Payment, commencement in only 2 years from the initiation10

23. Experiences (2): Track record necessary Track record Capability to technically perform in prevailing conditions Strength to handle the financing arrangements Trusted to take full responsibility Previous behaviour is a strong indicator for future behaviour In Ghana Eltel has always completed the projects in time and budget with good qualityand cooperating spirit. Even the reputation of 90’s is still remembered. 11

24. Experiences (3): Contract mgmt practice Contract agreements must be clear, properly prepared and approved legal documents fair for both parties with no clever tricks Seemingly important for other, external parties But practical interpretation is a must Common targets, both parties should know what and how to do Aggressive contract management with claims will turn against all parties E.g. in running Rural Electification project Contract agreement (document) has not been opened or clauses referred Contract signed in MoEn in Accra, all activities in Kumasi / Ashanti & Eastern No claims entertained, changes / variations in good understanding 12

25. Experiences (4): Flexibility required Scope or other basic parameters can vary due to actions of external parties Contractor must be flexible and supportive within reasonable limits E.g. in running Rural Electificationproject Scope covered originally 79 villages 22 of them appeared to be part of other previously started programs 25 new villages were added to increase total amount to 82 villages Original scope completed by now, new areas still under construction Number of consumers still unclear, new listed every day (23rd month of 24) No claims entertained, despite of delayed scope revisions and more difficult areas No escalation in unit prices despite of various complications The name of the game 13

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