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International Centre for Settlement of Investment Disputes

1818 H Street, N.W., Washington, D.C. 20433, U.S.A.

Telephone: (202) 458-1534 Faxes: (202) 522-2615/2027

Website: www.worldbank.org/icsid

April 25, 2008

By e-mail

E.T.I. Euro Telecom International N.V.
c/o Messrs. Robert L. Sills and
Steven J. Fink
Orrick, Herrington & Sutcliffe LLP
666 Fifth Avenue
New York, NY 10103

Republic of Bolivia
c/o H.E. Evo Morales Ayma
Presidente Constitucional de la República
Palacio de Gobierno
La Paz, Bolivia

H.E. David Choquehuanca Céspedes
Ministro de Relaciones Exteriores y Cultos
Plaza Murillo- c. Ingavi esq. c. Junín
La Paz, Bolivia

H.E. Ambassador Gustavo Guzmán
Embassy of the Republic of Bolivia
3014 Massachusetts Ave. N.W.
Washington D.C. 20008

Ref: E.T.I. Euro Telecom International N.V. v. Republic of Bolivia
(ICSID Case No. ARB/07/28)

Dear Sirs,

This will confirm our receipt of a letter of April 24, 2008 from counsel for the Claimant.

By letter of January 30, 2008, the Claimant informed the Secretary-General that it had elected the formula provided for in Article 37(2)(b) of the ICSID Convention. This choice was confirmed in a letter from the Claimant of April 24, 2008. I understand that copies of these letters were sent by the Claimant to the Respondent. For ease of reference, however, these letters are being transmitted herewith to the Respondent.

Rule 2(3) of the Arbitration Rules of the Centre provides that at any time 60 days after the registration of a request for arbitration, if the parties have not agreed on the number of arbitrators and the method of their appointment, either party may inform the Secretary-General of the Centre that it chooses the formula provided in Article 37(2)(b) of the ICSID Convention. This formula calls for an arbitral tribunal consisting of three

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arbitrators, one arbitrator appointed by each party and the third, who will be the President of the Tribunal, appointed by agreement of the parties.

More than sixty days having elapsed since the registration of the request for arbitration, I hereby inform you, in accordance with ICSID Arbitration Rule 2(3) and on behalf of the Secretary-General, that the arbitral tribunal in this case is to be constituted in accordance with Article 37(2)(b) of the ICSID Convention.

Sincerely yours,

Signature

Eloïse M. Obadia
Senior Counsel