Subject: FW: Arcor Skilling Approval
From: [email-masked]
To: [email-masked]
Date: Wed, 7 Feb 2001 05:39:59 -0800 (PST)

kIM PRINT THIS STUFF AND MAKE IT A HIGH PRIORITY FOR ME TODAY,.

 -----Original Message-----
From: 	Guerriero, Michael  
Sent:	Tuesday, February 06, 2001 4:38 PM
To:	Lavorato, John J.; David W Delainey@ECT
Cc:	Kishkill, Joe
Subject:	Arcor Skilling Approval

Per your request here are the documents you might need regarding Arcor. This was what Dave reviewed last with the exception of the latest currency forwards.

Short Story Version:	Plant close pending Monday February 12th
			Need Skilling's approval because most recent revisions to the dash incorporated a new market view of Argentina devaluation risk 				lowered the Project IRR below RAC Capital Price 18.92% vs 21.88%.
			Additional $800,000 not in the dash from true up structure and major maintenance savings.
			Currency forwards significantly down since the project was reviewed in December due to 40 Billion IMF Argentine package
			Low cost commercial platform to build from $180 per KW
			Liquid market to resell asset due to pending utility privatization in Cordoba

Please let me know if you have any questions I am in town until Thursday afternoon.

MFG

Project Overview

Original Dash  

Amended Dash

Heat Rate Curve

Upside Analysis

Currency Forwards-February 6, 2001
 
Months		Future FX	Cost p.a.
1		1.0007		0.8%
2		1.0015		0.9%
3		1.0030		1.20%
6		1.015		3.00%
9		1.025		3.35%
12		1.04		4.00%
24		1.085		4.16%
36		1.15		4.77%	

Currency Forwards-Late December 2000

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