I will be happy to talk to Keith about this, but I am not ready to put Enron 
employees in harm's way in Gaza.  The situation is still very unstable and 
until there is a clear sign that the Palestineans and Israelis are willing 
and able to control the violence, as evidenced by clear government statements 
and a reasonable period of time with zero violent incidents, we are not going 
back.

I am advising Mike McConnell of my position on this via voicemail and via 
copy of this email.  I will let you know if he wants to do anything different 
from what I have outlined above.

Thanks

Rick




Richard Leibert@EES
01/23/2001 06:57 PM
To: Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Dan Leff/HOU/EES@EES 

Subject: Update on Gaza Project Developments

Rick,

I'm sure that you are aware that Larry Izzo announced his retirement 
effective 1 Feb.  As a result EE&CC and NEPCO now report directly to Dan Leff 
in Global Energy Services, EES.  I am working with Dan  and Keith Dodson to 
move all of the construction actions forward.

Gaza Project:  My contacts in DC indicate that the situation in Gaza will 
probably remain much the same for the next 12 months.  As such it would 
appear that we have two general options: 1.)  Do nothing and maintain 
care-taker status of the construction site; or 2.)  Conduct a partial 
mobilization as discussed below in paragraphs 3 & 4 and move the project 
forward.  Have asked Keith to give you a call to discuss same.  

L
---------------------- Forwarded by Richard Leibert/HOU/EES on 01/23/2001 
06:49 PM ---------------------------


Ed Husami@ENRON_DEVELOPMENT
01/23/2001 06:34 PM
To: Dan Shultz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Keith Dodson/NA/Enron@ENRON, Richard Leibert@EES, Omar 
Aboudaher/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Update on Gaza Project Developments

Dear Dan,

1. Following the intervention of the US Ambassador with Gov't of Israel 
(GOI)  which we requested on behalf of the Owner,  we were able to lift the 
Israeli embargo on sending plant goods to the site in Gaza.  We have brought 
to the site 30 trailers this month. All in-gauge equipment in now onsite.

2. We got the restrictions on the import of aggregate to Gaza lifted,  and we 
can now stockpile it to finish civil works.

3. I am heading back to TA to work on getting approvals to bring the out -of- 
gauge equipment (GTs, STs, Transformers, condensers,etc.) to the site. This 
requires the use of Israeli convoys, cranes, and personnel (truck drivers, 
operators)  which is very difficult  because the Israelis would not want to 
entrust the safety of their citizens to  Palestinian forces. We'll suggest as 
an alternative the use of Jordanian and /or Egyptian trucks, cranes, and 
personnel and see if the Israelis will go for it. (Jordan and Egypt are the 
only Arab countries that have signed peace with Israel.) Or, the use of 
Israeli equipment and Israeli Arab personnel.

3. We directed AP today at the London mtg to submit a partial resumption of 
work program to a) finish civil works, b) do as much electromechanical work 
as possible with the recently arrived materials, and c) achieve mechanical 
completion of GT 1 and 2. We also told them that in restaffing they should 
assume that the current situation of intermittent violence will continue for 
perhaps one year, and to send construction and startup personnel willing to 
work in such circumstances.

4. We recommended to Enron Middle East (EME) obtaining corporate approval ( 
from Enron Global Markets and Enron Corp) to send the OE Arabic speaking 
engineers (Egyptian and Palestinian engineers) back to Gaza once AP is ready 
to return. If Enron does not approve the return of the 2 expats (site mgr and 
startup mgr), then we may have to a) transfer them to the payroll of the 
Palestinian partners at PEC, or b) replace them with Arabic speaking mgrs to 
be hired and placed on our payroll. Omar Aboudaher of EME will be briefing 
Bergsieker in Dubai.

I presented this info at the project review teleconference today, and I am 
copying some of the attendees for ease of access to these details.

Best regards,

Ed Husami

5.