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Enron Mail |
John:
We still do not have a deal with the government. They have delayed giving us a written proposal over the last two weeks. The latest is that they have said that they will give us something on Tuesday of next week. With respect to the burn rate, we are projecting about $20 million in expenditures over the next month. Our current investment is about $220 million. I think you should also have a rough idea of how we are funding this and what the plan is over the next couple of months. The investment is currently funded through an off-balance sheet / on-credit vehicle with WestLB. The WestLB vehicle is structured to fund the plant through commercial operations. The plan is to have the OPIC financing in place to take out the WestLB vehicle. This would infer an approximate $95 million equity investment upon the take-out of the WestLB vehicle. We are currently in the process of syndicating the equity. We have one indicative proposal for 50% of the equity. We hope to have another next week. There are some specific timing issues that you need to be aware of. WestLB did not want to take operating risk in the financing. Our position with WestLB is that we do not reach commercial operations until we reach the start date of the Petrobras contract. We are currently producing energy into the grid. At some point, WestLB could try to force us to take out the entire vehicle prior to the OPIC funding. Depending upon the timing, this could represent a cash flow of up to $280 million for a short period of time. Please let me know what other questions you have. Brett From: John J Lavorato/ENRON@enronXgate on 10/26/2001 02:10 PM CDT To: Brett R Wiggs/SA/Enron@Enron cc: Subject: did we sell the power to the government? What is our cash burn on the project right now and over the next month?
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