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Enron Mail |
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-------------------------- Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net) -----Original Message----- From: Romero, Isabel <Isabel.Romero@ENRON.com< To: Walls Jr., Rob <Rob.Walls@ENRON.com<; Hayslett, Rod <Rod.Hayslett@ENRON= .com<; Norris, Michael <Michael.Norris@ENRON.com<; Fischer, Luitgard <Luitg= ard_Fischer@ENRON.net<; Boe, Larry A. (Lawrence) <Larry.A.Boe@ENRON.com<; Y= ao, Anne S. <Anne.S.Yao@ENRON.com<; Wantschek, Lloyd <lloyd.wantschek@enron= .com<; Jernigan, Steve <Steve.Jernigan@ENRON.com<; Berger, Peter <Peter.Ber= ger@ENRON.com< Sent: Mon Nov 19 08:50:04 2001 Subject: FW: Weekly Report =20 -----Original Message----- From: Mahan, Mariella=20 Sent: Sunday, November 18, 2001 10:43 PM To: Horton, Stanley; Hughes, James A. Cc: Tortolero, Elio; Boe, Larry A. (Lawrence); Sommers, Jeffrey E.; Walls J= r., Rob; Donahue, Jeff; Lundstrom, Bruce; Romero, Isabel Subject: Weekly Report Stan/Jim, =20 Following is a list of last week's most salient events. =20 Central America/DR: =20 Guatemala: MARAD will reply this week as to their position vis-a-vis the r= eduction of Enron's contingent support from $28 to $10 million. It is poss= ible they will ask for additional information. =20 =20 Nicaragua: Current credit ratings required the funding of approximately $6= .3 million into a debt service reserve account (project was allowed to swee= p the funds against a corporate guarantee by Enron, which was backstopped b= y the partners pro-rata to their ownership in the project). Partners to re= imburse Enron their pro-rata share, such that Enron's ultimate outflow will= be approximately $2.2 million. Team tried to get MARAD to agree to altern= ative solutions but MARAD simply refused citing bad past experience and pol= itical implications. =20 Panama: Team in Houston last week to review the upcoming PPA bids by Elekt= ra (one of the two distribution companies in Panama). Three issues are wor= th noting: (i) requirement to post bid bonds (approximately $10 million) wi= ll likely need some sort of Enron support (BLM can't get bid bonds on its o= wn although local management continues attempting to do so); (ii) BLM's mar= ginal costs are among highest in Panama. A preliminary strategy has been m= apped out; and (iii) PPA terms are a bit "one-sided" in favor of the distri= butor. BLM and other market participants have tried repeatedly to get the = distco to change terms without success. =20 =20 Dominican Republic: El Paso confirmed it can't work with us. Operationall= y, the plant is working well. As noted on an earlier e-mail, EFI's fuel su= pplier for SECLP, Vitol, asked for a letter of credit or pre-payment terms.= Enron rejected the request. SECLP bought cargo directly from Vitol. We = are working closely with Tom Moran of ENE credit on these issues. =20 Ecoelectrica: This week was a very productive week. Update as follows: Lender Process: = Based on several conversations this week, lenders have stated they underst= and that Mirant's insurance package is the result of market conditions. Le= nders are prepared to pursue credit committee approval with the $300 millio= n coverage. Mirant offered a 6-month only waiver on the deductibles. Lend= ers appear content with that option. ENE insurance has approximately 75% o= f the underwriters on board with our back-up plan to provide the additional= $200 million tranche. Backup will be used only if credit committee(s) kic= k back existing coverage. Mirant to issue a certification of compliance wi= th QF (by Eco) and a legal opinion asap. Based on the progress this week a= nd the remaining commitment on deliverables, it is expected that the lender= 's agent can put together the entire lender package and submit it to the le= nder group by Tuesday of next week. Finally, Mirant also committed to prov= iding comments (if any) to the Lender Consent Agreement. ENE and EME have = reviewed and provided comments already. GE Consent: Mirant committed to s= ending their "versions" of the key documents on the GE buy-out on Friday ni= te (late). I have not seen the document but they have repeatedly stated th= at the documents are "conforming". Union Carbide Guarantee: Plan to final= ize language early next week. Schedule: Mirant has committed to fulfillin= g CP's as early as possible (and is acting on that statement) as long as we= can allow them to fund on 12/19. They state they are confident they can c= lose CP's by earlier than 12/14 and can fund on 12/19. CSFB has not shed l= ight on the apparent funding (timing) limitation but has offered to investi= gate further. =20 =20 APACHI =20 =20 Philippines: The team did an excellent job of advancing discussions and neg= otiations with NPC but was unable to move the slow government machinery fas= t enough to make it to a signing by last Thursday's New York event. Nevert= heless, momentum is high and team continues to work toward a 12/15 agreemen= t date; funding wouldn't occur until early next year.=20 =20 Guam: Continue discussions with Mirant and AES with a focus on getting the= m over the hump on the issue of Enron's contingent obligation to cover the = potential shortfall under a GPA buy-out event. Work continues. Meetings h= ave been set with Dr. Boyce to discuss his interest in the Guam project. = =20 =20 China: Unit 2 still scheduled to come back on line on 11/23. Two likely c= auses still under investigation (poor vaccum or material design flaw). Wor= k on capital reduction for Chengdu on hold until discussions are held with = Houston to ensure consensus. In the mean time, several parties have approa= ched us with interest in Chengdu. On Hainan, team is paying several visits= to the new SAFE representatives, first to work on the mid November repayme= nt ($10 million). Next step would be liquidation. =20 =20 Europe =20 =20 Gaza: Waiting to hear from CCC (partner) on conceptual proposal: ENE to pr= ovide limited technical support and financial services support to help put = in place cost over-run facility and to help with remaining construction act= ivities and CCC to take our equity (at no cost) and any remaining obligatio= ns. Aim is to eliminate the potential exposure on ENE's $9 million of guar= antees. =20 =20 Trakya: During meetings in London, OPIC informed us that they had had good= meetings with the Ministry of Finance and Ministry of Energy. Government = stated they would "clean up" arrears but could not do so before January 200= 2 (presumably there are no budget funds left). Government committed to wor= k with OPIC on resolving the forex dispute issue but acknowledged that the = legal opinion they had sought and received didn't address the issue properl= y and thus needed additional work to provide the Government with the backin= g it needed to give the issue resolution. OPIC agreed to send the Governme= nt "terms of reference" on their conceptual agreements. On our question of= change in frequency in the distribution of dividends OPIC stated they woul= d expeditiously move to review our proposal, indicating no pre-disposed pos= ition against it. =20 =20 Sarlux: team continues to prepare to submit response to EPC contractor's c= laim, as well as our own counter-claim, all scheduled to be submitted on No= vember 30th. Team continues to work on sorting out technical issues at th= e plant, including meetings with senior Texaco officials. =20 =20 ENS: local team and Adam Overfield worked to resolve remaining issue over = final completion certificate. Issue was related to CO2 emmissions on GT12 = vs the EPC contract parameters. Team has convinced the lender's engineer t= hat issue is of no relevance. Team is now moving to secure lender approval= . This releases $1.95 million of contingent support by ENE. =20 =20 Europe Sales Prospects: IPower submitted preliminary proposals for ENS and= Trakya, both well below expectations. =20 Other: Team is working closely with RAC to come up with updated fair marke= t valuations, cashflow projections by month for the quarter ended Dec. 31, = and revised/updated transfer restriction information. =20 Thanks, Mariella =20 Isabel: please distribute to team as customary. =20 =20 =20 =20
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