Mike / Jeff - As a follow-up to our meeting last week, here's a summary of 
our political risk insurance on the Gaza Project:

 Insurer: OPIC

 Insured: Enron Corp & Affiliates

 Amount: Aggregate of $60M may be claimed, sub-limited for separate coverages 
as follows:

  (A) $22.5M - Expropriation (equal to the "Book Value" of Enron's investment)

  (B) $60M - Political Violence / War (excluding violence from labor strikes 
or student unrest)

  (C) $10M - Currency Inconvertibilty / Non-transferability

 Term: 20 years from July 2000; policy is non-cancellable

 Rate on Line: 100 bps pa for coverage (A); 90 bps pa for (B); 36 bps pa for 
(C)

 Certain deductibles, exclusions and waiting periods apply, according to 
industry norms; in addition, if we were to   make any expropriation claim, or 
a political violence claim where we were not going  to re-build the facility 
with the   proceeds, we would have to deliver shares representing all or a 
portion of our interest in the project to OPIC in order 
 to receive  the claim payment.  This is a problem, because the project 
shares have been pledged to the lender(s)   as part of the project financing 
security package.

As to the status at the site, the immediate crisis seems to have abated.  No 
expats are on site, but various sub-contractors are available to do work.  
The problems is transporting material and equipment to the location.  We are 
about two months behind schedule.

Cliff