Attached is the Elektro weekly report as well as a summary update of the rationing action plan and state of affairs ( although it is Portuguese it gives you an idea of the effort that is going into the detailed planning and implementation). 
 The last two weeks were continuous negotiations with the government regarding rationing implementation measures, including drafting provisory measures that have force of law as well as resolutions to implement  them. 
I have met on a daily basis with Minister Parente in Brasilia and we continue to lead the sector efforts  advocating  our rights under the concession contracts, as well as the initial contracts signed with the government owned generators.  Sergio Assad is focusing on the implementation and  legal aspects of the measures.  Jo?o Carlos is focusing on the MAE ( energy market ) intervention and energy contracts. 

On Friday I met  with Pedro Malan, Minister of Fazenda, Brasil's most powerfull minister and possible presidential candidate in the 2002 elections,  to discuss Enron's and sector positions regarding the current situation and solutions for the path forward. On Monday I am meeting with Arminio Fraga, Central Bank President and in a separate meeting with Octavio Castello Branco, BNDES, Brazilian national development bank director, who is heading the multi-ministerial task force focused on resolving  pending issues regarding the thermal expansion program.  In all these meetings we are discussing the Cuiaba situation as well as our other projects and investment possibilities, stressing the necessary solutions to our existing issues as a condition precedent to further investment.   

The government has given this agenda top priority, especially due to the political/economic implications and the presidential elections in 2002, which will be in serious jeopardy for the President's party if the power shortages extend into next year.  We are focusing on implementing measure that protect our investments and create conditions for a competitive energy market.   

I will keep updating as we progress





 - Not?cias do Racionamento 26maio01.doc 







 - Weekly Report May, 25th.ppt