----- Forwarded by Larry L Izzo/ENRON_DEVELOPMENT on 12/28/2000 12:16 PM -----

	Dan Shultz
	12/27/2000 02:31 PM
		 
		 To: Keith Dodson/NA/Enron@ENRON, Larry L 
Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: 
		 Subject: Gaza Weekly.....Delivery of Plant Goods to Gaza

Update from Ed.
---------------------- Forwarded by Dan Shultz/ENRON_DEVELOPMENT on 
12/27/2000 02:30 PM ---------------------------


Ed Husami
12/24/2000 06:28 PM
To: Hani Ali <HAli@ccc.gr>, Wkhoury@ccc.gr, pecgaza@palnet.com, Andrew 
Makk/ENRON_DEVELOPMENT, "Rizik Abu Middian" <Rizik@hally.net> @ ENRON, Omar 
Aboudaher/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David 
Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rick 
Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dan 
Shultz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  
Subject: Delivery of Plant Goods to Gaza

Regarding Wail's message on this subject, here's some background info.on the 
status of shipments to the site. These shipments are of 2 categories:  
in-gauge cargo and out-of-gauge cargo, as explained below.

1. It will be recalled that upon the intervention of US Ambassador Indyk, PM 
Barak gave us permission to transport plant goods to Gaza last October, and 4 
trailers made it to the site. But fighting at the Karni crossing which 
involved 10 Israeli tanks and the first reported use by the Palestinians of 
anti-tank weapons put an end to these shipments. 

2. For a second time, Ambassador Indyk obtained approval to transport plant 
cargo to Gaza last week from PM Barak upon the recommendation of Israel's 
Deputy Defense Minister, Ephraim Sneh. This initially applies to in-gauge 
equipment that can be transported on a back- to- back basis; i.e., at the 
border crossing a Palestinian truck replaces the Israeli truck and the 
license plates are also changed, but the cargo stays on the same trailer. 
Then the cargo gets hauled to the project site.

3. On Monday, Dec 25, 00 tralires of in-gauge imports from Ashdod, and from 
IK Metal industry in Israel, will go to the site. (See the message from the 
freight forwarder, below.) The 3-day Muslim holiday of Id al-Fitr will cause 
these transports to be interrupted next week, after which they will resume.
 
4. The out-of-gauge equipment (e.g., gas turbines) cannot be transported in 
this manner due to the lack of the necessary equipment on the Palestinian 
side. Such equipment must go into Gaza in Israeli convoys with Israeli 
heavy-lift equipment and Israeli operators. Before the disturbances that 
started around the end of September, the Israelis and Palestinians worked out 
a deal wherein the Israeli Army escorted the convoys to Netsarim Road (an 
Israeli settlement in Gaza) and the Palestinian forces guarded the convoy 
from that point until it was unloaded at the site. That is how the first 2 
gas turbines were transported to the site. 

In the present circumstances, two hurdles must be overcome; a) Israeli 
transportation subcontractors are apparently unwilling to entrust the safety 
of their equipment and personnel to Palestinian forces, b) the Israeli and 
Palestinian forces have to work out a suitable arrangement for escorting the 
Israeli convoys in Gaza. I had asked Samir Shawa to bring the latter issue to 
the attention of the Palestinian authorities and he did. Last week, however, 
Samir informed me that the Palestinian officer who was working on this matter 
got killed accidentally. Samir was hopeful that the 2 sides will work it out. 
Until this issue is resolved, it will be difficult to bring out -of- gauge 
cargo into Gaza.

5. We will continue to work with the US Embassy, the Palestinian authorities, 
and PEC  to get all plant cargo to the site. We hope that the political and 
security situation will make this feasible. 

I share Wail's concern and we are trying to use the present window of 
opportunity to get plant goods to the site ASAP. We are pressuring AP and its 
freight forwarder to get going.

6. Today, I received an e-mail from First Secretary of the US Embassy, John 
Lister, regarding a follow-up meeting between Indyk and Sneh last Friday.  At 
this meeting, Sneh reconfirmed the support of the GOI for this project. I 
shall forward that e-mail to you.

Ed Husami


------------------- Forwarded by Ed Husami/ENRON_DEVELOPMENT on 12/24/2000 
04:03 PM ---------------------------


"Josh Podell" <jpodell@attglobal.net> on 12/24/2000 08:01:26 AM
To: <ehusami@enron.com>
cc: "Shoham Taller" <Shohamt@mls-pls.co.il>, "Alstom Power, Carl Erik 
Andersson" <carl-erik.andersson@power.alstom.com>, 
<hakan.ericsson@schenker.com> 

Subject: delivery to Gaza



Dear Collegues
We have received final approval to move equipment  and are planning to move 2 
trucks on Monday. THe Eid festival is tuesday thru  THursday and Friday the 
crossing is closed. 
THus the return of the chasis will only be done on  next sunday and there 
will be demaurrage charges acordingly.
We will keep you posted as to delivery  schedule.
Regards
Josh
PLEASE NOTE MY NEW EMAIL IS JPODELL@ATTGLOBAL.NET