Kikagati Hydro Power Plant

Call for expression of interest

TrnderEnergi AS, on behalf of the Kikagati Power Company Ltd, hereby solicits expressions of
interest from contractors to develop the Kikagati HPP small hydropower project in Uganda. This is
the second project in a planned small hydro portfolio of 100MW in Uganda to be developed by the
Investors. The run of the river, low head, 4 x 5 MW Kikagati Hydro Power project, located in south
western Uganda on the Kagera River, is currently in the stage of project development. A detailed
design is being developed, and tender documents are expected to be released to a limited number of
bidders early Q4 2010.

Project description
The Kagera River is the main tributary to Lake Victoria and the river basin area includes Rwanda,
Burundi, Tanzania and Uganda. The hydroelectric potential of the river is largely undeveloped but
there are four Hydroelectric Projects currently at various stages of study, namely Rusumo Falls,
Kikagati, Nsongezi and Kakono. The Kikagati site is situated on the border with Tanzania, and the
power house and grid interconnection will be located on the Ugandan side of the border. The
average flow in the Kagera River is 194 m3/sec, with flood volumes of up to 810 m3/sec.

During the 1940s a 4 MW run of the river hydroelectric plant was built on the Kagera River at the
Kikagati site supplying both Uganda and Tanzania with electricity. However, the 4MW hydroelectric
plant was damaged in the war and ceased operation in the 1970s and was subsequently stripped of
all usable equipment and materials. In 2005, in conjunction with the Ugandan and Tanzanian
Authorities, a Chinese company initiated a Feasibility Study to consider a project for the construction
of a new 10 MW hydroelectric plant on the site of the former 4 MW hydroelectric plant. The Project
was considered technically and financially viable, but the initial developers shifted their attention to
their main activities in China and decided to sell the Project. After conducting a technical due
diligence of the Project, the Investors bought the rights to the Project and studies in 2009 and
transferred these to the newly established Ugandan subsidiary Kikagati Power Company ltd. The
project has since been further developed, and the current project design suggests an additional
increase in capacity of the plant to approximately 20 MW. This will include:

River weir 176m total length, maximum height 11,5m with gated spillway and flushing sluice
Power canal intake structure including coarse intake screens and bulkhead gates, designed to
divert a maximum flow of 260 m3/sec.
Power canal some 113 m long and of trapezoid cross section, 7.5 m wide at base.
Intake fine trash racks and gates at intake for each of the four turbine generator units.
Powerhouse housing turbine generator units and other plant.
Four 5 MW submersed tubular bulb turbine generator units and associated auxiliary plant.
Two 6.3 MVA 6.3/33 kV main transformers, switchyard and connection to a nearby 33 kV
distribution system.

There may be changes to these specifications as a more detailed design is under development.
The majority of the electricity produced by the Project will be supplied to the Ugandan grid under a
power purchase agreement. In addition, the Project will include construction of a transmission line to
the Murungo village in Tanzania and contribute to the electrification of the village.

Implementation schedule
In general, the Investors expect to use the rest of 2010 to prepare tender documents and design,
obtain and renew necessary permits and land rights, finalize the project structure for the Murungo
village electrification, negotiate off-take agreements and support agreements with Government of
Uganda and raise debt financing. The Investors expect to award the construction contracts and start
construction in the first quarter of 2011. The construction is expected to take 24 months and thus
commission the power plant in the first quarter of 2013.

To complete the project within this schedule, we are now soliciting interest to bid as a single EPC
contractor for this project (excluding the Murongo village electrification element). The process is
scheduled as follows:

- April 23rd Call for expression of interest

- May 24th
- May 25th June 4th
- June 7th August 31st
- September 1st 30th
- October 13th
Deadline for expression of interest
First evaluation of bidders
Visits to potential bidders
Establish shortlist for tender
Submission tender documents

Expression of interest
To express your interest in bidding for the design and construction of the Kikagati hydropower
project please submit

- Letter of expression of interest to bid for construction of the Kikagati HPP

- A brief company description
- Financial statements for the last 3 years
- References from hydropower projects, preferrably in Africa
- Companys ethical guidelines
- Companys HSE guidelines

The expresison of interest should be submitted by email to is@tronderenergi.no or by regular mail to

TrnderEnergi AS
P.O. Box 9480 Sluppen
N-7496 Trondheim
Norway
Att.: Inge Stlen

Submissions must be received no later than 16:00 GMT+1 on May 24th 2010.

Questions regarding the project can be directed to Mr. Inge Stlen by email at is@tronderenergi.no .
Investor profiles
Kikagati Power Company Ltd was incorporated in Uganda on 30 September 2009 as a consolidated
subsidiary of TrnderEnergi AS, with minority interests from Norfund and Swedfund International AB.
TrnderEnergi holds 51 percent of the shares, while Norfund and Swedfund hold 24.5 percent each
of the remaining shares in the Company. A short profile of TrnderEnergi and Norfund is presented
below. TrnderEnergi plans to develop a total of 100 MW of small hydro projects in Uganda over the
next 5 7 years.

TrnderEnergi AS

TrnderEnergi AS is a Norwegian power utility with operations in both hydropower production and
distribution. Its main business areas include power production, operation of power distribution lines
and power sales. TrnderEnergi owns and operates twelve hydro power stations and six wind power
stations in Norway with a total installed capacity of approximately 1400 MW and annual energy
production of about 2,000 GWh. TrnderEnergi is owned by twenty Norwegian municipalities and
has around 320 employees. In 2009 total revenues for the TrnderEnergi Group was NOK 986 million
and total assets were NOK 4 568 million.

Together with Norfund, TrnderEnergi owns Tronder Power limited in Uganda which owns and
operates the Bugoye Hydro Power Plant. TrnderEnergi oversaw the construction of the plant and
has the operational and maintenance responsibility for the Bugoye Hydro Power Plant. Bugoye was
commissioned in October 2009 and has an installed capacity of 13 MW.

Norfund

Norfund is a development finance institution owned by the Norwegian Ministry of Foreign Affairs
and serves as an instrument in Norwegian development policy. Norfund contributes to poverty
reduction and economic development in the poorest countries through investments in profitable
businesses and transfer of knowledge and technology. The fund always invests with Norwegian or
international partners. Norfund's geographical focus is on Sub Sahara Africa, with offices in Kenya
and Johannesburg. Norfund has 43 employees world-wide and NOK 5.3 billion in committed
investments in 2009.

In addition to the Bugoye Hydropower Plant investment with TrnderEnergi, Norfund owns 40
percent of SN Power Invest, a commercial investor, developer and operator of hydropower projects
in emerging markets. The remaining 60 percent is owned by the Norwegian public utility Statkraft,
the biggest renewable energy company in Europe. SN Power has 15 plants with net installed capacity
of 950 MW in five countries and another ten projects under development. In 2008, SN Power and
Norfund joined forces to form the subsidiary SN Power AfriCA. In 2009 the two regional power
companies BKK and TrnderEnergi became owners with a combined share of 36%. SN Power AfriCAs
mission is to explore business opportunities within the renewable energy sector in Africa and Central
America. The company has a goal of reaching a portfolio of 700 MW of generation capability within
2015.