Paul,

As we discussed, here's some suggested language for insertion into the DPC LNG Fuel Management Team's monthly progress report to the LNG suppliers.  All of this has already been disclosed by DPC/Greenfield or is otherwise public information.  I'm copying the DPC Legal Team on this in the event they have any additional comments.

Please call if you have any questions or comments.

Kind regards,
Dan

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EPC Contracts
On June 17, 2001, Bechtel International, the contractor responsible for the construction of the Phase II Power Plant, and Lingtec Constructors, the contractor responsible for the construction of the LNG Facilities, terminated their respective construction contracts with Dabhol Power Company (DPC) due to non-payment.  Since that date, DPC has assumed control of the Phase II and LNG works and is presently undertaking pre-preservation activities.
DPC's Phase II construction permit expired as of June 30, 2001.  DPC's application for renewal is now pending with the Maharashtra Pollution Control Board (MPCB).
LNG Vessel Construction

Construction of the LAKSHMI is proceeding on schedule, with 98% completion to date.  Sea and gas trials are scheduled to occur as planned later this summer, and delivery of the vessel is expected to occur on November 15, 2001.  Greenfield Shipping Company's lenders recently suspended further  credit facility funding.  Greenfield, its sponsors and the vessel lenders are presently discussing, among other things, funding issues relating to the remaining shipbuilding contract instalment that will become due on delivery of the vessel.