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Page 1 CONFORMED COPY KINGDOM OF NEPAL February 5, 2002 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3581 NEP (Telecommunication Sector Reform Project) Section 4.02 (a) of the Development Credit Agreement: Action Plan Dear Sirs and Mesdames: We refer to the action plan to be carried out by the Kingdom of Nepal (the “Borrower