To, June 24, 2004
Board of Directors
Asian Development Bank.

Sub: Release of Final Inspection Report of Chashma Project to Requesters

Dear Board Member,

We are writing about the Final Report of the Chashma Inspection Panel that was submitted by the Panel to the Board Inspection Committee (BIC) on June 10, 2004. The BIC, according to procedures laid out in the 1995 Inspection Policy, is required to forward this Report to Management for its response. While it is understandable that Management is given 30 days to suggest "remedial steps that can be taken to address the failures", we would like to state that the same opportunity should be provided to the Requesters.

The Requesters have an important role to play in advising the Board on practical steps that can be taken to bring the Project into compliance. Their understanding of the Project and its shortcomings cannot be disputed; the Inspection Panel has already concurred with the Requesters assessment that all six (6) policies identified by them in the Inspection Claim have indeed been violated by ADB Management. Given the Requesters' knowledge of local conditions and appropriate remedies that are likely to be sufficient and successful (unlike those proposed by the GRSC, for example), we urge the ADB Board to:-

1. Immediately release the Final Report of the Chashma Inspection Panel to the Requesters, and
2. Proactively seek the views of the Requesters on remedial measures and arrive at a Mitigation Plan with their full involvement.

We realize this requires the Board to take a step that is not outlined in the 1995 Inspection Policy. At the same time, the Board has already acknowledged the necessity of involving Requesters in remedial measures by approving this principle in 2003 in the significantly improved ADB Accountability Mechanism. By taking this additional step, the Board would simply be ensuring that the suffering of the Chashma affectees is not prolonged yet again.

Problem solving is in everybody's interest. Thus we hope that after having read the Inspection Panel's report you will agree that the problems of the Chashma affectees can only be remedied if all stakeholders work together to arrive at realistic remedies. As primary stakeholders, the views of the affectees must be paramount in this effort.

Thank you and we look forward to your response.

Sincerely,

Mishka Zaman
Bank Information Center

Shannon Lawrence
Environmental Defense

Cc:
President Tadao Chino
Mr. Liqun Jin, Vice President (Operations 1)

Endorsed by:

Australia
Kate Walsh, AID/WATCH

Lee Tan, Australian Conservation Foundation

Bangladesh
Zakir Kibria, Bangla Praxis

Arup Rahee, LOKOJ

Shashanka Saadi, ActionAid Bangladesh

India
Himanshu Thakkar, South Asia Network on Dams, Rivers & People

Roy Laifungbam, Centre for Organisation Research & Education

Professor Sanjai Bhatt, Department of Social Work
Delhi University

Indonesia
Muhammad Riza, Yayasan Duta Awam (YDA) Solo

Japan
Yuki Tanabe, Japan Center for a Sustainable Environment and Society (JACSES)

Kyrgyz Republic
Natalia Ablova, Bureau on Human Rights and Rule of Law,

Pakistan
Muhammad Younus, Urban Resource Centre

Khawar Mumtaz, Shirkat Gah

Mustafa Talpur, Actionaid

Zafar Lund, Hirak Development Foundation

Naeem Iqbal, SUNGI Development Foundation

Irfan Mufti, South Asia Partnership-Pakistan

Aly Ercelawn, CREED Alliance

Zubeda Birwani, Pakistan Network for Rivers, Dams & People (PNRDP), Sindh

Holland
Henneke Brink, Both ENDS

Thailand
S.Parasuraman, ActionAid International
Asia Regional Office.

United Kingdon
Najib Afsar, Anti Mangla Dam Extension Action Committee, United Kingdom

USA
Dana Clark, International Accountability Project

Aviva Imhof, International Rivers Network