FYI.  Andrea look at the clipping on CGC.
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on 
01/03/2000 07:46 AM ---------------------------


Alexandre Bueno
29/02/2000 06:00 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 02/29/2000


BRAZIL: MEETING OF MAE ON FEBRUARY 29TH
Gazeta Mercantil, 29 Feb 2000, p. A-15:-
 Companies which are part of the MAE (Electricity Wholesale Market) will hold 
a general meeting on February 29th 2000 with the intention to discuss the new 
rules for the operations of the sector.
The companies will discuss, for example, one resolution taken on February 
25th which concedes credits for the companies and other which increases the 
number of available plants to operate in peak periods.


BRAZIL: RURAL ELECTRIFICATION IN RIO DE JANEIRO
Gazeta Mercantil, 29 Feb 2000, p. a-13:-
 According to the president of the Brazilian electricity company Cerj, 
Alejandro Danus, the company has already informed the Brazilian Ministry of 
Mining and Energy that it will join the rural electrification program 'Luz no 
Campo' of the ministry, expecting to sign the contract in 15 days.
The two other electricity concessionaires which operate in the state of Rio 
de Janeiro had already agreed to join the program, but Cerj took longer to 
reach the same decision because it was analysing which technology should be 
used in its concession area. Cerj is expected to invest R$ 60mn in the area, 
mainly in the north of the state, benefiting 30,000 families which still do 
not have access to electricity.


BRAZIL ANGRA-2 TO START OPERATIONS 
Folha de S.Paulo, 27 Feb 2000, p. 1-14:-
 The Brazilian National Nuclear Energy Commission (Cnen) established the 
deadline of March 15th 2000 to release an authorisation for the operation of 
the nuclear power station Angra 2 of the Brazilian state-owned nuclear 
electricity company Eletronuclear in the Brazilian city of Angra dos Reis 
(state of Rio de Janeiro).
With the authorisation, Angra 2 can begin to charge its reactor, testing and 
inspecting safety after that. If everything is successful, the power station 
ill begin to generate electricity in the end of April 2000 and generating 
1,245 MW 3 months after that. But this time may be much longer, considering 
that the previous nuclear power station Angra 1 took more than 3 years to 
operate commercially after the charging. 


BRAZIL: ELETROSUL IN POWER TRANSMISSION LINE
Gazeta Mercantil, 29 Feb 2000, p. a-13:-
 Groups which want to compete in the tender for the construction of a power 
transmission line between the Brazilian cities of Campos Novos and Blumenau 
(state of Santa Catarina) must be qualified until March 15th 2000.
The company Eletrosul, a subsidiary of the Brazilian state-owned electricity 
company Eletrobras, will compete in the tender alone (not participating in 
any consortium).
Eletrosul signed pre-contracts with the companies ABB (Asea Brown Boveri) and 
Siemens which will conduct works and supply equipment (Eletrosul will operate 
the lines).


ARGENTINA: IMPACT OF POWERGEN'S ACQUISITION
El Cronista Comercial, 29 Feb 2000, p. 15:-
 With the acquisition of US-based LG&E Energy for US$ 5.4bn, UK-based 
PowerGen will become the owner of stakes in Argentina's gas distribution 
companies Gas Natural BAN, Distribuidora de Gas del Centro and Cuyana. LG&E 
has 1mn clients in Kentucky, Virginia, Spain and Argentina. 


BRAZIL: FREE IMPORT OF FUEL POSTPONEMENT
O Estado de S.Paulo, 26 Feb 2000, p. b-1:-
 The Brazilian executive-secretary of the Ministry of Treasury, Amaury Bier, 
declared on February 25th 2000 that the Brazilian market of oil and 
derivatives will be opened only in January 2001, and not in August 2000, as 
predicted in the Oil Law.
The federal government will propose the change of this date to the Congress 
through a draft law.
The reason for this measure, according to Bier, is that the oil sector is 
currently too confused. He also informed that the government did not create a 
substitute for the Specific Price Parcel (PPE) yet. The PPE is the part of 
the fuel price which maintains the oil account.


BRAZIL: INCREASE OF FUELS PRICES
O Estado de S.Paulo, 26 Feb 2000, p. B-1:-
 The executive-secretary of the Brazilian Ministry of Treasury, Amaury Bier, 
announced on February 25th 2000 that the following fuels will have their 
prices increased on March 1st 2000:
- gasoline and diesel oil by 7% in the refineries and
- kerosene for aircraft by 23%. 
According to government estimations, this increase of gasoline prices in 
refineries will result in an increase by 5% in gas stations, for final 
consumers. The increase of the kerosene will result in an increase by 3% in 
flights tickets prices.


BRAZIL: OIL SPILLAGE IN PARA
Folha de S.Paulo, 29 Feb 2000, p. 3-8:-
 The Brazilian subsidiary of the American oil company Texaco will keep 
cleaning the river Para probably by the first weekend of March 2000.
The company already removed 25% of the total 1.9 tonnes of fuel BPF spilled 
in the river.


ARGENTINA: LOWERING TAXES, IMPOSSIBLE FOR NOW
El Cronista Comercial, 29 Feb 2000, p.2:-
 Officials at the Argentine Revenue Service warn that it would be impossible 
to lower taxes for now. Many are requesting that fuel and value added taxes 
be lowered but this would mean US$ 2bn less in government revenues. When 
considering the government fiscal deficit, it is easy to understand why the 
government must look toward solutions that would increase tax collection and 
not reduce it.


ECUADOR: EDC PLANS TO EXPLOIT GAS
El Comercio (Ecuador), 29 Feb 2000, p. 1:-
 The firm, Energy Development Corporation (EDC) announced that it will invest 
some US$ 100mn in a project to exploit natural gas in the coastal zone of 
Ecuador. Drilling is scheduled to begin in May 2000 with production entering 
the first phase in the 3rd quarter of 2001 with 32mn cubic feet daily, enough 
to generate 204 megawatts of electrical energy.


SPAIN: REPSOL YPF'S STRATEGIC PLANS
Cinco Dias, 29 Feb 2000, p.5:-
 Spanish oil operator Respsol YPF, which has broken its agreement with 
Spanish electricity operator Iberdrola, intends to operate in the electricity 
market in countries where it is active in gas business, particularly 
Argentina, Brazil and Spain.
On the other hand, negotiations between Repsol YPF and Italian oil operator 
ENI (Ente Nazionale d'Idrocarburi) are taking place.  In any case, eventual 
agreements will be implemented when ENI's privatisation process will conclude.
Additionally, the Spanish group expects to reduce nearly Euro 520mn costs by 
2002, mainly through workforce reduction.


ARGENTINA: SALE OF CGC
La Nacion (Argentina), 29 Feb 2000, p. 2/1:-
 The investment banks Dresdner Kleinwort Benson and Dresdner Bank are close 
to a contract to take charge of the sale of a 51% stake in the Argentine oil 
company Compania General de Combustibles (CGC), owned by Sociedad Comercial 
del Plata (Soldati group).


BOLIVIA: CHACO SEEKS NEW CLIENTS
Los Tiempos (Bolivia), 29 Feb 2000, p. on line:-
 Bolivia's oil and gas firm Chaco announced it is concentrating its efforts 
on gaining new clients for the gas it plans to trade from Bolivia to Brazil. 
The firm will place in Brazil 30mn cubic metres of gas per day during a 
20-year term, according to the contract it signed with the Brazilian 
government. Early in 1999, Chaco was negotiating a contract with Pan American 
Energy which failed due to the opposition of YPF, the Argentine oil company.


BOLIVIA/BRAZIL: COMPANIES TO TRADE GAS 
El Diario (Bolivia), 29 Feb 2000, p. on line:-
 Bolivia's oil and gas company YPFB informed eight firms will export some 
9.1mn cubic metres of gas per day from Bolivia to Brazil during the year 
2000, according to the terms fixed in the contract signed between both 
countries. The amount to be traded per company is as follows:


Firm     Cubic metres per day


Andina     1.86mn

Chaco     1.52mn

Tesoro (British Gas)   1.43mn

Vintage     1.36mn

Perez Companc   1.21mn

Petrobras    0.8mn

Maxus     0.67mn

Dong Won    0.25mn

TOTAL     9.1mn