Rick,

Attached are a clean copy of suggested modification of the body of this DASH as well as a copy of the original DASH.  This should give you some sense of the Arcos project's scale and risks.  John Sherriff and Michael Brown reportedly remain confident that this can be sold at a profit in the next three to nine months; however, if it is not, our economics on this project with a current termination cost of over $200 million is a negative NPV of approximately ($150 million).  The Enron board has not seen this, largely because the turbine cost is not specifically related to this project, but no other use of the turbines has been identified, so this project represents a huge potential loss if the sale is not successful.

Please let me know if you would like to discuss further.

Regards,

Dave

   

 -----Original Message-----
From: 	Gorte, David  
Sent:	Thursday, October 04, 2001 11:46 AM
To:	Barcelo, Pedro
Cc:	Herbelot, Olivier; Schneider, Chip
Subject:	RE: Draft DASH for Arcos expenses

Pedro,

I have attached my mark-up of the body of the DASH (it is not possible to mark the entire DASH with the new template) for your review.  Many of the comments I have made were based upon input from Chip Schneider to try to promote comparability of this transaction with similar development projects undertaken in the U.S.  In general, the view from Houston is that this project represents a significant amount of capital at risk and that this fact, as well as the expected economics of the project, should be highlighted to a greater extent than in the draft of the DASH you prepared.  While not noted on the DASH, discussion of where the 9FA turbines may be redeployed if this transaction does not progress to completion should be discussed somewhere in the DASH.

Please let me know if you have any questions or comments.

Regards,

Dave

 

 -----Original Message-----
From: 	Barcelo, Pedro  
Sent:	Tuesday, October 02, 2001 7:31 AM
To:	Gorte, David
Subject:	Draft DASH for Arcos expenses



David

Find attached the new Draft DASH for Arcos expenses.

There is a section in the risk matrix (political risk) which still needs to be finalised but I send it to you for any comments you may have.

Regards

Pedro

 << File: DRAFT DASH_Pre-NTP III.doc >>