FYI
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on 
28/02/2000 08:16 AM ---------------------------


Alexandre Bueno
25/02/2000 08:47 PM
To: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Pablo 
Acevedo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bernardo 
Andrews/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Diego 
Hollweck/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John J 
Shoobridge/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela 
Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rodolfo 
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian 
Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cristian 
Folgar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent 
Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea 
Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marta 
Ortiz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Luis 
Juarros/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Guillermo 
Canovas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  
Subject: Clipping 02/25/2000

BRAZIL: ENRON AGAINST THERMAL STATIONS PROGRAM
O Estado de S.Paulo, 25 Feb 2000, p. b-2:-
 There has been some conflicts between the Brazilian Ministry of Mining and 
Energy and the US energy company Enron, which was against the Brazilian 
thermal power stations program.


BRAZIL: EUR 175MN ORDER FOR ABB ALSTOM POWER
La Tribune, 25-26 Feb 2000, p.15:-
 The European energy group, ABB Alstom Power, is to receive a EUR 175mn share 
as part of a group contract to provide the Brazilian hydraulic power station, 
in Tucurui, with a 3,670 mW section. The site in Tucurui, managed by the 
Brazilian energy company, Eletronorte, is the fourth hydraulic power station 
in the world. ABB represents a consortium of energy groups in this contract, 
representing a total order of EUR 325mn, with the groups, Odebrecht, 
Inepar-Fem and GE Hydro Inepar. This 3,670 mW section will be added to an 
existing 4,250 mW section.


BRAZIL: SUIT TO PAWN STATE'S SHARES OF CELESC
Gazeta Mercantil, 25 Feb 2000, p. a-14:-
 The specific purpose company Invesc, which was created to get funds for the 
government of the Brazilian state of Santa Catarina in 1995, had issued R$ 
100mn debentures using shares of the Brazilian electricity company Celesc as 
guarantee.
But Invesc paid interest of the debentures only in 1997 and so debentures 
holders filed a lawsuit in March 1999 to be paid.
A legal decision was taken on February 22nd 2000 about the matter and then a 
debt of approximately R$ 274mn must be paid to the debentures holders of 
Invesc or 29.32% of the common shares of Celesc owned by the state will be 
pawned (market value of the shares was equal to R$ 171.7mn on February 24th 
2000).
If the shares are transferred to creditors, the state will still own 50.18% 
of the common shares of Celesc and Previ (pension fund of employees of the 
Brazilian bank BB - Banco do Brasil) will increase its participation in 
Celesc from 12.54% to approximately 33%.


BRAZIL: ALCOHOL TENDER HELD ON FEBRUARY 24TH
Gazeta Mercantil, 25 Feb 2000, p. B-24:-
 The volume of 58.65mn of litres of alcohol was acquired in a tender held on 
February 24th 2000 by the Brazilian government.
The total volume offered in this fifth tender was of 60mn of litres. The 
average price paid for the product was of R$ 0.4089 per litre, decreasing by 
0.3% compared to the last tender. The total revenue of the volume sold was of 
R$ 24.098mn.
According to a source of the Ministry of Agriculture, a meeting will be held 
in the last week of February in order to define if more alcohol tenders will 
be held or not.


BRAZIL: FUEL DISTRIBUTION MARKET - PERFORMANCE
O Estado de S.Paulo, 24 Feb 2000, p. b-8:-
 According to a survey carried out by the Brazilian National Trade 
Association of Fuel Distribution Companies (Sindicom), the largest fuel 
distribution companies in Brazil, BR Distribuidora, Shell, Esso, Ipiranga and 
Texaco, registered sales of 2.551mn m3 in January 2000, a fall by 22% 
compared to the 3.276mn m3 sold in January 1999.
Meanwhile, sales registered by smaller companies grew by 34.1% in the same 
comparison basis.
According to Luiz Antonio Viana, president of BR Distribuidora, this was due 
to an unfair competition caused by these smaller companies, which have for 
instance appealed to tax evasion.


BRAZIL: OIL ACCOUNT SURPLUS' GOAL STILL R$ 3.6BN
O Estado de S.Paulo, 25 Feb 2000, p. b-4:-
 The Brazilian government still has as goal to reach a surplus of R$ 3.6bn in 
the Brazilian oil account (difference between imports costs and consumer 
prices)  in 2000 even with the higher oil prices in the last weeks.
The chief of the Economic Advisory of the Ministry of Planning and Budget, 
Jose Guilherme Reis, said that it is still possible to reach that goal and so 
the government is not analysing alternatives.