Eltel's Power Distribution Business and Finnish Caruna Have Signed a new Frame Agreement for Cabling Projects in Finland

HELSINKI, Finland, Dec 21, 2016 /PRNewswire/ --

Eltel and Finnish power distribution system operator Caruna Oy have signed a three-year frame agreement to improve the medium voltage power distribution network in central and southwestern regions of Finland. The total value of the agreement is approximately EUR 17.5 million and the contract period is 2017-2019.

Eltel and Caruna have a long standing partnership and the new agreement is a continuation of previous successful collaboration in cabling projects in Finland. The new agreement consists of several separate projects, in which overhead power lines will be replaced by underground cables. In 2013 a new law was approved to secure improved electricity supply in the electricity market in Finland. This has resulted in increased investments by the utilities in underground cabling as a solution to ensure the so called weather proof electricity networks.

The new agreement is based on a turnkey delivery model. Eltel's responsibilities in the projects will span from overall planning to site planning, cable installations, commissioning and documentation. The agreement was won in a public tendering.

Juha Luusua, President - Eltel Power Distribution comments:

"During the past years Caruna has been investing significantly in improving the reliability of their power network. Eltel is proud to be one of their trusted partners supporting the plan to secure undisturbed and high-quality electricity supply for end customers. One of Eltel's core competences is executing of large underground cabling projects. Ever since the new law on the security of electricity supply we have been developing our work processes by utilising modern machine technology to deliver high quality and cost-effective cabling projects on time."

Jyrki Tammivuori, CEO - Caruna Oy, comments:

"In November 2014 Caruna started the renovation projects in Southern Finland as part of our multi-year network improvement programme. Works have progressed well and on schedule and through our new projects we are moving more outside the densely populated areas/urban into rural areas."

For further information:

Ingela Ulfves
VP – Investor Relations and Group Communications
Tel: +358 40 311 3009,
E-mail: ingela.ulfves@eltelnetworks.com

Hannu Tynkkynen
Director – External Communications and Sustainability
Tel: +358 40 311 4503,
E-mail: hannu.tynkkynen@eltelnetworks.com

About Eltel

Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. In 2015 Eltel net sales amounted to EUR 1,255 million. The current number of employees is approximately 9,600. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.  

About Caruna

Caruna is the largest company in Finland dedicated to the distribution of electricity. It provides power to 650,000 private and corporate customers in South, Southwest and West Finland, as well as in the city of Joensuu, the sub-region of Koillismaa, Lapland and Satakunta. Caruna employs approximately 270 employees and contracts directly 2,000 additional workers all over Finland. Caruna is investing heavily in the construction of a weatherproof network and, in addition, invests about EUR 200 million annually in the development of its electrical network. Caruna is owned by the Finnish employment pension companies Keva (12.5%) and Elo (7.5%) and by international investors in infrastructure, First State Investments (40%) and Borealis Infrastructure (40%).

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