OCP Pipeline in Ecuador
December 14, 2001

In connection with reports on the financing by WestLB of an oil pipeline in
Ecuador, the Bank issues the following statement:

1. The pipeline project is a project approved by the Government of Ecuador
under its sovereign responsibility and carried out by OCP (Oleoducto de
Crudos Pesados) as project sponsors.

WestLB has been entrusted with arranging the financing for the project, in
which other international banks are also involved.

2. When contracts were concluded, WestLB took care to ensure that the
project would be managed in a correct and responsible manner.

The project sponsors of the pipeline in Ecuador signed contracts to the
effect that strict environmental standards ­ also of the World Bank ­ will
be observed. In addition, WestLB demanded that expert opinions on
environmental compatibility should be obtained.

When contracts were signed between OCP and WestLB, four expert opinions of
renowned institutes were available which confirm compliance with the
required environmental standards: Entrix, the international consultants on
environmental matters, the Smithsonian Institute, the Netherlands
Environment Evaluation Committee Advisory Group and Stone & Webster, the
leading international firm of engineering and construction consultants.

In the course of the discussions on environmental aspects, an independent
team of environmental representatives has also been set up which is
responsible for monitoring the implementation and observance of the
standards. This team also has representatives of non-governmental
organisations, including BirdLife International (BLI), one of the largest
independent bird protection organisations in the world.

Furthermore, on November 26, 2001, the ambassador of the Government of
Ecuador and representatives of the project sponsors OCP were present at the
meeting of the Committee for Europe and One World of the North
Rhine-Westphalian State Parliament and were available to answer questions.

3. WestLB takes seriously the currently expressed concerns about the
environmental compatibility of the project and continues to view it as a
precondition that the project sponsors carry out the project, which from an
economic point of view is extremely important for Ecuador, with due regard
for the environment in accordance with the agreed environmental standards.

4. With this in mind, WestLB will exert its influence to ensure that OCP
remains available for talks with all interested parties. The Bank is
convinced that OCP will not be averse to entering into a dialogue with an
independent organisation or person in Ecuador in order to find a solution.