Message-ID: <5602296.1075846365916.JavaMail.evans@thyme> Date: Fri, 21 Jul 2000 07:49:00 -0700 (PDT) From: john.hardy@enron.com Subject: CY 2000 Accomplishments Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: John Hardy X-To: Steven J Kean@EES X-cc: X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Performance management X-Origin: KEAN-S X-FileName: skean.nsf The Washington Global Finance office is chartered with the responsibility to support Enron's activities with the Washington-based financing institutions - OPIC, EXIM, and the multilateral institutions - the World Bank and IFC and the InterAmerican Development Bank. Every project financing done by the company in the emerging markets over the past several years has involved these agencies and this year is no exception. In the past six months we have supported five projects before these institutions: Cuiaba - Disbursement is now projected for mid-August. OPIC is pleased with the progress. We have had to tweak the process to keep the project moving forward; that process has been successful. We have also been heavily involved in the environmental aspects of the project, working with the project team on the Environmental Health and Safety program, the international NGOs and the Conservation Program to keep these aspects on track. Gaza - We have been heavily involved throughout the first half of the year getting OPIC to a Board vote which was successful in March. We used the Department of State and other agencies to pressure OPIC politically to do the deal. Since the board vote the developers have been focussed on the financing with Arab Bank but we are now in a process of pushing State to get OPIC to move forward to financial close on reasonable financial lterms and conditions. Guatemala barge mounted plant at Puerto Quertzal - OPIC and MARAD are to provide financing. We have been working with the finance team to keep the project moving forward and are now looking at fijnancial close by the end of the summer. Argentina water for the Province of Buenos Aires - This office is pushing both the financing parties, OPIC and IDB, and Azurix to an end of September Board approval on a financing that started late spring. the time frame is extremely short but unless we keep on schedule we will lose close to six months. We are driving the schjedule and then overseeing all parties to keep the financing on track, so far successfully. RioGen - We have been working with the Rio team to ensure that consultation on the environmental assessment is conducted properly to avoid Cuiaba type problems and help the IDB financing. We are getting the requirements with the team sorted out so that the process will go forward in an appropriate manner. In the past six months we have supported the development efforts of the following projects: Nigeria - We were heavily involved in getting the World Bank to back away from their opposition to our project, as well as getting the State Department, DOE and Treasury to aggressively support our efforts to conclude a deal in Lagos. We finally persuaded the Bank to take the position that it was not fully current on the status of the project and so could not comment. The USG supported our efforts and did help the process by which Enron was finally able to conclude a deal. Camisea - We were heavily involved in sorting out the environmental requirements for this project in Peru to go forward. We spent considerable time educating the developer team on these requirements. We met on several with the Peruvian Minister of Energy and had him meet with OPIC, IDB and the World Bank to better understand the impact of environmental issues on financing. Bulacan Biomass project, Philippines - We are working with the project team to obtain political risk insurance for the project through OPIC or MIGA. LNG project, Venezuela: We are working with the finance team exploring OPIC, IFC, IDB financing for this project. Pipavov power project, India - Working with the project team regarding OPIC, IFC financing for the project Subsea fiber laying project, Caribbean: We have undertaken discussions with financing and other institutions re sub-sea fiber laying jproject, including addressing licensing requirements of the FCC for international telecom projects. SIEPAC - We have had meetings with the project team on the status of this Central American electricity transmission project and how we might get involved. Puerto Suarez - We have been working with the project team to address environmental issues relating to the transmission line that is in the Pantanel in preparation for OPIC or IDB financing. Cuiaba II - We have been working with the team to develop a strategy to address the siting of compression stations so that the environmentalists will not create major problems. This is a problem for both Phase I and II. EES Projects in Southern Cone and Eastern Europe - We have met with the IDB, IFC and OPIC and have arrived at an agreed upon financing strucure which now awaits EES projects in these regions. In the past six months we have also been involved in supporting our existing asset base on a variety of issues before these institutions as well as to agencies of the USG: Dominican Republic - Have been working with the DR team to broaden pressure on the government regarding our payment problems, including the IFC and World Bank, the IDB and the USG, especially State, Treasury and DOE. Trakya, Turkey - We have been working with the asset team to mobilize USG support through OPIC, EXIM, state and Treasury to address payment problems. the USG is now aggressively supporting Enron in our effort to get these issues under control. We are also in discussion with OPIC and EXIM about the prospective selldown of our equity interest in Trakya, as we are for Cuiaba and Dabhol. In the past six months we have also been involved in a range of other issues of importance to the company: Transfer issues: I have developed a strategy as to how to approach OPIC, EXIM, MIGA and the other financing institutions in the event there is a transfer situation. We are now awaiting whether it will be needed. OPIC in Mexico: As part of our overarching relationship with OPIC we have agreed to spearhead an initiastive to assist OIPIC develop a program in Mexico. that effort has been very well received by OPIC and George Munoz and is ongoing. EXIM Relationship: As part of our effort to establish a relationship with EXIM and Chairman Jim Harmon we agreed to spearhead the analysis of the market windows issue. the effort has been very well received; Joe Sutton is now on the EXIM Advisory Board and Enron will be on the commission considering EXIM's future. Harmon and EXIM have been very complimentary of Enron's initiative in this regard. Environmental Issues: I am working with Kelly Kimberly and her team, and with the Southern Cone to better address our environmental needs in that region and throughout the emerging markets. EES financing Liberalization efforts - SCone, Petrobras OPIC - efforts in Mexico