Compliance officer (6) re Cernavoda - January 22, 2004

January 22, 2004

Mr. Fraser Reilly-King

Halifax Initiative

153 Chapel Street, Suite 104

Ottawa, ON  K1N 1H5

Re: Compliance program file number 2236-4-1-2003

Dear Mr. Reilly-King:

With this letter I would like to follow-up on my letter to you dated December 8, 2003 and provide a cursory update as to the status of your complaint.

In my December letter I clarified the outcome of my recommendation to EDC Management that a compliance audit be done into the application of EDC's Disclosure Policy, Code of Business Ethics, and Environmental Review Directive to the Cernavoda 2 nuclear power plant transaction. It was noted that EDC Management will decide how they wish to deal with this recommendation and what action should be taken.

EDC Management has decided to accept this recommendation in part. Also, determinations are being made as to what such work may encompass.

As always, should you have any concerns, questions, or comments, please do not hesitate to contact me.

Sincerely,

Alison C. Lawford, LL.B., LL.M.

Compliance Officer