Elizabeth
 The budget allocation provided that 15% of our budget would go to Europe.  
On their behalf we have been heavily engaged on Trakya where arrearages have 
gotten as high as $150 million.  The strategy for countering this situation 
has been Washington based and two pronged - utilize the lenders, especially 
OPIC and EXIM which are both USG agencies, to drive an effort to call on the 
Turkish Treasury guarantee, and to mobilize the US government as a matter of 
policy and in the context of the IMF funding to insist that the Turks clean 
up their energy sector.  Both elements of the strategy have been recently 
successful with the consequence that about $60 million has been paid over the 
last several weeks.  I anticipate as the strategy plays out over the next 
month to six weeks we should see payments of an equivalent or greater 
amount.  Since my office has the relationship with OPIC and EXIM we have the 
lead across the government on this issue.  We also anticipate that there will 
be some work on the Spanish and Polish projects in the future. 
 In light of all of this perhaps we should increase Europe's allocation.  
Just a thought!  Thanks John  



	Elizabeth Linnell@ENRON
	05/29/2001 12:28 PM
		 
		 To: John Hardy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Richard Shapiro/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON
		 Subject: Allocation question

John - Enron Europe is taking a hard look at all the allocations they receive 
from Corp.  Can you send me a note providing details on your budget 
allocation methodology?  I've attached your spreadsheet in case you need it 
for reference.



Thanks!