Ref : AGPL/EM/

January 8, 2014

Mr. Mohammed RuqaitChairmanAl Marjan Island LLCRAK

Sub : Permission for construction of Subsation at Marjan Island 2 for supplying power ot Marjan Island

Dear Sir,

We have started construction of 33/11kV substation at Marjan Island 2 to facilitate availability of power to customers at Marjan Island. We have laid 11kV and 33kV cables from Al Hamra power plant to Marjan Island and supplying power to RAKIA Vacuum station, Hilton Double tree, Santorini and Pacific.

However, to meet total power demand of Marjan Island, we need to construct four substations at the Island. Presently we are seeking your approval and permission for starting construction one such substation.

In April 2011 RAKIA instructed Al Ghail Power to take over all power distribution of fee collection in Marjan Island. Accordingly, Al Ghail Power appointed consultant for detailed design and engineering of electricity infrastructure at Marjan Island. Al Ghail Power also taken up 33kV OHL interconnection between Al Ghail plant and Al Hamra Plant to facilitate power availability to Marjan Island. Cost of OHL interconnection will be recovered from connection fee from Marjan Island. Copy of MOM dtd 24th April 2011 is enclosed, which has above instructions from RAKIA/RERA.

Utility plots for construction of substation were allocated in Master plan of Marjan Island. RERA confirmed that those plots will be made available to Al Ghail Power as and when required, copy of MOM dtd.4th March12 is enclosed.

Based on recommendation of our consultant and electricity demand projection at Marjan Island, we have laid 33kV cables from Al Hamra plant to Marjan Island and have started process to construct 33/11kV substation at Island 2. The coordinates for construction are already approved by Marjan Island LLC.

We seek permission from your goodself to start construction the Substation so that Al Ghail Power can fulfill its commitment to supply power to Marjan Island.