By Daniel Flynn and Katrina Manson

FREETOWN, Aug 12 (Reuters) - War-scarred Sierra Leone counted votes on Sunday from its first elections since U.N. peacekeepers left two years ago, polls its people hope will speed recovery from an 11-year civil war.

On the streets of the dilapidated capital Freetown, Sierra Leoneans desperate for change huddled around radio handsets in shops and kiosks as local networks broadcast early returns from Saturday's presidential and parliamentary polls.

Enthusiastic voters turned out in huge numbers on Saturday in polls billed as a test of stability, five years after the end of a conflict fuelled by diamonds and notorious for the hacking of limbs off civilians, sometimes by drugged child soldiers.

With around 5 percent of votes counted, unofficial returns showed Ernest Bai Koroma of the opposition All People's Congress (APC) comfortably ahead in Freetown and the north of the former British colony, which contain about half its 2.6 million voters.

The ruling Sierra Leone People's Party (SLPP) candidate, 69-year-old Vice President Solomon Berewa, was performing strongly in the party's traditional fiefdoms in the south.

The first official results were due late on Sunday from the National Electoral Commission. If no presidential candidate wins more than 55 percent, a runoff will be held in September.

"It looks like we will definitely get into a runoff. SLPP is not making headway in the north, even in the home town of their vice-presidential candidate," said Ransford Wright, coordinator of the Independent Radio Network.

HIGH EXPECTATIONS

Sierra Leone ranks second from bottom of the U.N. Human Development Index. With more than 60 percent unemployment, most people survive on less than a dollar a day and whichever party wins the polls will face daunting expectations for change.

"The war destabilised everything. We need freedom, food, water, electricity and jobs," said Mohamed Ba, sitting outside a wooden kiosk at a roundabout in downtown Freetown, radio in hand. "But I don't trust the politicians."

President Tejan Kabbah, re-elected on a wave of postwar euphoria in 2002, is stepping down as required by the constitution amid widespread anger at corruption, which many believe has drained away generous foreign aid.

Sierra Leone received $1.6 billion in debt relief last year, but still relies on donors for a third of its budget.

Foreign observers hailed the elections as a success and contrasted them with other recent fraud-tarnished West African polls, such as Nigeria's presidential ballot in April. Saturday's voting was peaceful, marred by only a few scuffles in Freetown.

"These elections were free and fair but there is still a tense political atmosphere in Freetown," said Eoin Ryan, head of a delegation of European Parliament members, who said he would recommend an increase in EU aid.

A second round could make a kingmaker of the PMDC leader Charles Margai, a scion of Sierra Leone's most famous political family who split from the SLPP last year.

"I am a PMDC man, so if the election goes to a second round we will vote APC, because if the SLPP gets back in there will be problems for us," said Saliou Diallo, a waiter.

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