ALSTOM Responds to IRN Letter on Merowe Dam

Friday, March 19, 2004

International Rivers Network
1847 Berkeley Way
Berkeley, CA 94703

Paris, 19 March 2004

Re: Merowe Dam, Sudan

Thank you for your letter regarding the Merowe Dam project in Sudan for which
ALSTOM was recently selected to supply electromechanical equipment by the Ministry
of Irrigation and Water Resources – Merowe Dam Implementation Unit (MDPIU).
I have noted your serious concerns regarding this project and your conclusion that it
violates international standards on human rights, resettlement, environmental assessment
and cultural protection.

I do not, however, share your views; Merowe will practically triple the power generation
capacity of Sudan (currently only 500 MW, i.e. less than one percent of the installed
capacity in California, a US State with the same population as Sudan), providing vital
infrastructure which can only aid the country’s social and economic development over
the years to come. As a member of the International Hydro Association we support all
efforts made to ensure that a full and serious assessment of the environmental and social
impact of a large-scale hydro project is carried out in the project planning stage. In the
case of Merowe, the feasibility and environmental impact of the dam project were studied
by reputed international institutions and consulting engineers. To our knowledge, plans
are in place to mitigate the social and environmental impact of this project.

In conclusion, we have no intention of withdrawing from the Merowe Dam project and
will honour our contractual obligations towards our Customer, MDPIU.

Patrick Kron
Chairman & Chief Executive Officer