Enron Mail

Subject:Update on Azurix - Buenos Aires water project
Date:Thu, 14 Sep 2000 09:32:00 -0700 (PDT)

This is not good news. As you know, this financing was very important in
helping to solve the liquidity problem. John did tell me that they had good
meetings with the Embassy this week. My experience with OPIC tells me that
with a change in administration in Washington and the concerns John mentions
in his memo, we should not count on the financing. Thanks, Joe
---------------------- Forwarded by Joseph W Sutton/ENRON_DEVELOPMENT on
09/14/2000 04:30 PM ---------------------------

Enron International

From: John Hardy 09/14/2000 02:40 PM

Subject: Update on Azurix - Buenos Aires water project

As an update to my earlier email on the Azurix water project, Azurix has
suspended OPIC's consideration of the project until either we are able to get
a more positive cable out of the US Embassy in Argentina or George moves on -
probably in late January.
But the OPIC pullback together with the publicity about Rebecca's departure
has caused serious concern on the part of IDB which is now pulling back. The
IDB has made it clear that they are concerned about Enron's intentions
regarding Azurix. I have talked to Azurix about seeking some statement of
support from Enron so that we can address this issue head on. You may well
be getting some communication from John Garrison on this issue. If we can
get back on track Azurix may be able to get IDB Board approval this fall.
Hope you are well. thanks John