Thanks for your email response dated January 29, 2004.

Most confusing matter in our current correspondence is the issue of the relationship between the Chashma Environmental Management Plan (EMP) and the National Drainage Sector Program (NDP). Despite your clarification, I am still ignorant of the position of the Bank Management about the legal nature of relationship between these two projects. You may want me to be more specific and concrete. Let me put it straightforward in the following manner.

We would like to know the opinion of the Bank Management whether the NDP loan covenant (paragraph 22 to Schedule 5 of the Loan Agreement) and other social and environmental guidelines given in the loan agreement are applicable to social and environmental issues of the Chashma Irrigation Project or not. I am here specifically referring to the social and environmental issues that we have raised in our inspection claim. So far as the newly agreed Chashma Management Plan (January 2004) is concerned, it has nothing to do with the environmental and social issues that have been raised in our inspection claim.

This is the most critical question. This issue is not related with the overall scope of the policy compliance review in the on-going inspection process but will also help us to determine how much the Bank Management is sincere in its call for constructive (???) engagement on social and environmental issues.

I am surprised to know that the Government of Pakistan has no objection on the disclosure of the newly prepared Chashma Environmental Management Plan but is not prepared to disclose to us the plan prepared in 1995. We can guess the reasons................

You have referred in your email that the ADB consultants are not roaming in the west side of the project area, rather they are busy in systemetically collecting information and data for the implementation of the recommendations of the GRSC. If your own laws permit you, please disclose the terms of references and other details about these consultants.

I have a set of additional clarificatory questions as well as our response on certain issues being discussed in this current correspondence. However, I would first like to receive the Bank痴 response on this important matter.

Please advise Mr. Sohail Sober to pass on to me any information related to the Chashma Environmental Management through email. This is the most preferable way for me to making contact on such issues.

With best regards,

Mushtaq Gadi