European Bankfor Reconstruction and Development

Horst ReichenbachActing Secretary General

Ms Sona TaghiyevaHead of DepartmentPublic Control over International Financial Institutions' ActivitiesOil Workers Rights Protection Organisation Public Union38, Sh.BedelbeyliBakuAZERBAIJAN

4 June 2007

Dear Ms Taghiyeva,

Further to my letter of 9 May 2007 and in accordance with the "ImplementingProcedural Provisions for dealing with Public Information Requests and Appeals" ofthe EBRD Public Information Policy (PIP), the purpose of this letter is:. to advise you that I have completed the inquiries into your appeal regarding the

ADDY Railways project; and. to inform you of my decision on your appeal.

Appeal

Your appeal, received by the Bank on 5 May 2007, concerned the refusal of the Bankto release specific documents/information. More specifically you complained that theEBRD was:

"1. Refusing to disclose:(i) Project Environmental Analysis;(ii) Feasibility Study (if available)(iii) Information on public consultation

2. Acting inconsistently with the presumption of the PIP that 'informationconcerning the Bank's operational activities will be made available to the publicin the absence of a compelling reason for confidentiality' and not complying withthe commitment to release documents that are outside the categories of'confidential information' as defined in Box 2 of the PIP and Clarificationsregarding confidential information."

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One Exchange Square, London EC2A 2JN, United KingdomTel:+442073386000or+442074966000 Fax: +442073386100or+442074966100 Telex:8812161EBRDL G Website:www.ebrd.com

Analysis

As a preliminary comment, I would remind you that, according to Section 4.3 of thePublic Information Policy ("PIP"), "The Bank's commitments concerning the releaseof environmental information on projects are contained in the Environmental Policy".

The ADDY Railways project has been classified as a Category B project for thepurposes of that policy. According to the Environmental Policy, prior to Boardconsideration, a Project Summary Document ("PSD") and its Environmental Sectionmust be published on the EBRD website and made available through the ResidentOffice, and a brief Environmental Review Summary must be disclosed locally by theCompany. In compliance with these disclosure requirements, a Project SummaryDocument has been posted on the EBRD website, as the Bank is required to do, atleast 60 days prior to Board consideration. In addition, the project sponsor is in theprocess of releasing the Environmental Review Summary in the relevant locallanguage. This operation has not yet been submitted to the EBRD's Board ofDirectors for consideration and approval.

With regard to your specific points, please note that:. the availability or disclosure to the public of the Project Environmental

Analysis is not required or contemplated under the Environmental Policy;. the availability or disclosure to the public of the project's Feasibility Study is

not required or contemplated under the Environmental Policy; and. as there is no requirement under either the Environmental Policy or the PIP for

public consultation in relation to this project, no public consultation has beendone.

Nevertheless, in accordance with Section 6.4 of the PIP, the Bank endeavours torespond as appropriate to reasonable requests for additional information subject to theprinciples of confidentiality set out in Box 2 of the Policy and the Clarificationsregarding confidential information as set out in Box 2 of the Public InformationPolicy. In this spirit, in relation to the first Bank loan to ADDY concerning themodernisation of the Balajari Tank Wagon Washing Plant, the Bank provided youwith a summary of relevant issues and a number of pictures showing thetransformation of the plant to demonstrate the positive efforts of ADDY and the Bankto date.

The Project Environmental Analysis and Feasibility Study you have requested containproprietary information on the technical design, costs, etc. of the project. Thisinformation falls within the ambit of Box 2 on confidential information as being"Financial, business or proprietary information of private entities received by theBank in the analysis or negotiation of loans", which may not be disclosed "unlesspermission is given by those private entities to release this information". As clarified,this category applies "to any information receivedfrom any private or state ownedenterprises or other sub-sovereign entity or their representatives or any externalconsultant(s) in the analysis of any project considered or financed by the Bank or inthe negotiation of any investment, loan or other operation". The permission to releasethe information has not been given to the Bank.

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Decision

I regret to inform you that, in view of the foregoing, your appeal cannot be upheld. Inaccordance with the Implementing Procedural Provisions of the PIP referred to above,this decision is final.

Yours sincerely

Horst ReichenbachActing Secretary General

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