Annex C

BY THE BOARD OF DIRECTORS OF THE OVERSEAS PRIVATE
INVESTMENT CORPORATION

BE IT RESOLVED, that the Board hereby approves
financing under Section 234 of the Foreign Assistance Act
of 1961, as amended, of up to $50 million as part of the
financing of a power project in Gaza sponsored by the Enron
Corporation.

Approved by Notational Vote of
the Board of Directors on March 9, 2000

Connie M. Downs
Corporate Secretary

00100000000331


62. 1/26-27/99. Meeting~Workshop in Centro Multifuncional Kolping of Santa Cruz. with
participation of representatives of VAIPO (Bolivian Government Indigenous People
Bureau), UMA/VMEH (Viceministry of Energy), OICH, CICH-TURUBO, CANOB.
CIRPAS, CPESC and ENTRIX-PCA, the objective of the workshop was to discuss the
agreement process of the IPDP.

February of 1999

63. 2/2/99. Interview in Santa Cruz, among Enzo Conti of ENTRIX-PCA and timberman
Hugo Rodas Daza. The objective was to obtain information on water resources and
forest exploitation in the area of the ROW.

64. 2/3/99. First Draft Agreement from Indacochea and Associated (GOB lawyers) to the
indigenous organizations.

65. 2/5/99, Interview in Santa Cruz between timber company Manager Mr. Antonio
Ferrufino Maida and Mr. Enzo Conti of ENTRIX-PCA, the meeting was to obtain
information on forest exploitation in Santa Cruz.

66. 2/8/99. ENTRIX-PCA sent to DINAAR’s Director (National Bureau of Anthropology
and Archaeology) the report “Archaeological Assessment of the Right of Way of the
Gasoducto Rio San Miguel-San Matias”.

67. 2/8/99. ENTRIX-PCA sent to the Mayor of San José de Chiquitos the report
“Archaeological Assessment of the Right of Way of the Gasoducto Rio San Migue]-
San Matias”.

68. 2/8/99. . ENTRIX-PCA sent to the Mayor of San Matias the report “Archaeological
Assessment of the Right of Way of the Gasoducto Rio San Miguel-San Matias”.

69. 2/10-12/99. CICH-TURUBO-CIRPAS-CANOB Workshop in San Ignacio of Velasco,
with the objective of socializing the IPDI, revision of the draft agreement, identification
of the communities located in the area of influence and to designate delegates to a
Technical Committee.

70. 2/18/99. CIDOB sent to Indacochea and Associates (legal representatives of GOB)
Observations to the Draft of Agreement for the Execution of the IPDI.

71, 2/25/99. San José de Chiquitos Mayor sent ENTRIX-PCA a counterproposal for the.
CRP budget and a draft agreement.

72. 2/26/99. GOB answers observations to the Draft Agreement presented by CIDOB.

73. 2/26-27/99. Technical Workshop in Centro Multifuncional Kolping of Santa Cruz to set
bases for the Agreement that will give place to the implementation of the IPDP.

March of 1999

74. 3/2/99. Mr. Enzo Conti of ENTRIX PCA met with Mr. Guillermo Roig, manager of a
timber company close to the pipeline ROW to obtain information on water resources
and forest exploitation. .

75. 3/8/99. GOB sends to the indigenous representatives a reformulated IPDP that includes
contributions from different indigenous organizations.

76. 3/10/99. GOB sends Second Draft Agreement to the indigenous organizations.

77. 3/11/99. The Government of San Matias sent GOB/ENTRIX-PCA a Counterproposal
for the Provincia Angel Sandoval CRP.

App-c-3 C-3, page 6

00500000000163


11. 9/23/97. Meeting sustained in Entre Rios, Provincia Chiquitos, between representatives
and neighbors of the community and the consultants of ENTRIX-PCA. The purpose
was to inform and to obtain local expectations of the project.

12. 9/26/97. Meeting in San Matias, Provincia Angel Sandéval, between representatives of
CIRPAS and consultants of ENTRIX-PCA. The purpose was to inform about the
project and to obtain their opinions and recommendations about the project.

13. 9/26/97. Meeting in San Matias, Provincia Angel Sandoval, between 22 authorities and
representatives of the municipality with and consultants of ENTRIX-PCA. The purpose

was to inform about the project and to obtain their opinions and recommendations about

fhe ial

14. 9/28/97. Meeting in Candelaria, Provincia Angel Sandoval, between representatives
and neighbors of the community and consultants of ENTRIX-PCA. The purpose was to
inform about the project and to obtain their opinions and recommendations about the
project.

October 1997

15. 10/16/97. Meeting in La Paz between representatives of Direccién General de
Biodiversidad (DGB) and ENTRIX-PCA. The objective was to inform about the project
and the EIA process. Further coordination between ENTRIX-PCA and DGB was
discussed as well as possible option for supporting a Conservation Plan for the
protected area.

16. 10/31/97. Meeting between representatives of Prefectura del Departmento de Santa
Cruz, TRANSREDES and ENTRIX-PCA. The objective of was to request information
from the project and specifically on the Community Relation Plan (CRP) for San
Matias.

November 1997

17, 11/4/97, Meeting sustained in Santa Cruz, among Mr. Manuel Vaca, Mayor of San
Matias and representatives of ENTRIX-PCA. The objective of the meeting was to
discuss the evolution of the CRP San Matias. It was established that on the 11 “The
identification of necessities guide” would be presented.

18. 11/11/97, CICH-TURUBO presented to ENTRIX-PCA a “Identification of Necessities
Form”, main input for the IPDP.

19. 11/11/97. Municipality of San Matias submitted an “Identification of Necessities
Guide”, main input for preparation of CRP San Matias.

20. 11/15/97. CIRPAS submitted a “Identification of Necessities Form”, main input for
preparation of the IPDP.

21. 11/21/97, Meeting in Santa Cruz between representatives of the Prefectura del
Departmento de Santa Cruz and consultants of ENTRIX-PCA, to present to local
authorities the report on “Identification of Necessities”.

22. 11/26/97. Meeting in Santa Cruz between the General Manager of FAN (local NGO)
and the consultants of ENTRIX-PCA to inform about the project and of the realization
of the EIA.

App-c-3 C-3, page 2

00500000000159


{(b)(5)]

B. Economic Environment

{(b)(5)]

00100000000301


OVERSEAS PRIVATE INVESTMENT CORPORATION
1100 NEW YORK AVENUE, N.W.
Washington, D.C. 20527-0001

ORIC SQ) CIN _ Washington, D.C. D.C. 20527

Overseas Private Investment Ci
1100 New York Ave., N.W.

.
TO: The Honorable Stuart E. Eizenstat
Deputy SEcretary of the Treasury
U.S. Department of the Treasury
15th & Pennsylvania Ave., N.W., 51
Room 3326
Washington, D.C. 20220

Tel: 202-622-1080

00100000000343


78. 3/9-12/99. Consultation Workshop with bottom organizations carried out by CICH-
TURUBO in San José Chiquitos to inform about agreements reached in the Technical
Committee meeting celebrated form February 26 and 27, 1999.

79. 3/9-12/99. Consultation Workshop with bottom organizations carried out by CIRPAS
in San Matias to inform about agreements reached in the Technical Committee meeting
celebrated form February 26 and 27, 1999. -

80. 3/9-12/99. Consultation Workshop with bottom organizations carried out by CANOB
in Tobité to inform about agreements reached in the Technical Committee meeting
celebrated form February 26 and 27, 1999.

81. 3/15/99. CIDOB, CPESC, OICH, CICH-TURUBO, CIRPAS and CANOB submitted
an answer to the third Draft Agreement presented by the legal representatives of GOB.

82. 3/16/99. IPDP’s Technical Commission (OICH-CEADES) submitted to ENTRIX-PCA
two amended budgets for the IPDP.

83. 3/16-23/99. Meeting-Workshop en Centro Multifuncional Kolping-Santa Cruz with
representatives of CIDOB, CPESC, OICH, CICH-TURUBO, CIRPAS, CANOB, GOB
and ENTRIX-PCA. The objective was to reach agreement on IPDP’s budget and sign
agreement.

84, 3/30/99. GOB supports CIRPAS in the preparation of a report on UTM coordinates and
economic information on 19 communities in the San Matias area.

85. 3/31/99. GOB hired a consultant in agricultural economy with the objective of
evaluating sustainability and rationality in the IPDP budget elaborated by the OICH-
CEADES.

April of 1999

86. 4/13/99. GOB, CPESC, and ENTRIX~PCA met in CPESC office to analyze the
agreement process and schedule signing of agreement.

87. 4/14/99. Meeting between ENTRIX with representatives of WWF, Museo Noe!
Kempff, National Museum of Natural History of La Paz, WCS, FAN and independent
consultants to discuss work plan of the SEA.

88. 4/15-25/99. SEA's field works with WWF, Museo Noel Kempff, National Museum of
Natural History of La Paz, WCS, FAN, independent consultants and ENTRIX.

89. 4/15/99. ENTRIX and CCICH-TURUBO met in TURUBO’s offices to inform about
the realization of a Supplementary Environmental Assessment.

90. 4/15/99. ENTRIX met with authorities of San Matias, to inform about the realization of
a Supplementary.Environmental Assessment.

91. 4/15/99. ENTRIX met with authorities of San José de Chiquitos, to inform about the
realization of a Supplementary Environmental Assessment.

92. 4/15/99. ENTRIX met with CIRPAS in the offices of CIRPAS, to inform about the
realization of a Supplementary Environmental Assessment. P

93. 4/16/99. Letter sent by Mr. José Castro of ENTRIX to CIRPAS Mr. Prosperous
responding to their participation demand in SEA.

94. 4/27/99. Workshop among ENTRIX, Museo Noel Kempff, National Museum of
Natural History of La Paz and independent consultants to discuss results and
coordination of future work for the SEA.

App-c-3 C-3, page 7

00500000000164


March 2, 2000
MEMORANDUM FOR THE BOARD OF DIRECTORS

FROM: Connie M. Downs GAQ_
Corporate Secretary

SUBJECT: —_Notational Vote to provide a Loan Guaranty of up to $50 million for Gaza Power
Generating Private Limited Company (Enron Corporation) (Gaza)

Board action in accordance with the notational voting procedures as set out in OPIC's corporate By-Jaws
is requested to approve a Loan Guaranty of up to $50 million to partially finance the development,
construction, operation, and ownership of a [(b)(4)] power plant in Gaza
sponsored by Enron Corporation.

Article III, Section 3 of the Bylaws of the Board of Directors of the Overseas Private Investment
Corporation, as adopted on March 22, 1994, provides as follows:

Written approval of a resolution by at least two-thirds of the Directors then serving shall
constitute action of the Board of Directors; provided, that such action shall be effective
only upon expiration of five days after delivery of the proposed resolution to all
Directors.

If, not later than five days after confirmation by the Corporate Secretary of effective delivery of
the proposed resolution to each Director, three or more Directors make written objection to the
use of such procedure, the action shall not be effective and such resolution shall be considered at
the next meeting of the Board of Directors.

Board members are asked to indicate their approval of the referenced proposal by executing and faxing
the enclosed ballot to me at (202) 218-0136 no later than close of business, Thursday, March 9, 2000,
in accordance with these procedures. Please forward the original ballot to me in the enclosed, self-
addressed envelope. .

Attachments

Project paper
Ballot

Stamped, self-addressed envelope

00100000000292


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BALLOT

BY THE BOARD OF DIRECTORS OF THE OVERSEAS PRIVATE
INVESTMENT CORPORATION

BE IT RESOLVED, that the Board hereby approves
financing under Section 234 of the Foreign Assistance Act
of 1961, as amended, of up to $50 million as part of the
financing of a power project in Gaza sponsored by the Enron
Corporation.

Approved: Date: |

Disapproved: Date:

00100000000332


~

OVERSEAS PRIVATE INVESTMENT CORPORATION

WASHINGTON, D.C. 20527, USA.

& OFFICE OF THE
PRESIDENT
October 28, 1999

The Honorable Al Gore
The Vice President of the
United States

Washington, D.C. 20501
Dear Mr. Vice President:

lam writing in reference to a September 24, 1999 “Open Letter” to you from the environmental
community regarding OPIC’s support of a pipeline project in Bolivia. We share, as we know
you do, the sponsors’ interest in protecting environmentally sensitive areas in developing
countries.

I am pleased to report to you that in fulfillment of this Administration's commitment to
strengthening international environmental standards as President Clinton announced at the
United Nations in June 1997, the OPIC Board of Directors approved the Cuiaba project in
Bolivia and Brazil in full compliance with OPIC’s strenghtened environmental guidelines.
Throughout our involvement with this project, and continuing today, we have had useful
consultations with many of the government agencies represented on the OPIC Board as well as
with interested parties in the environmental community. You will be interested to learn that the
OPIC Board approved the Cuiaba project with the addition of stringent new requirements and
unprecedented environmental safeguards to protect the local environment and to provide a long-
term conservation plan for affected areas.

Enclosed for your inforntation is OPIC’s detailed point-by-point response to the September 24,
1999 letter. As you can see, we have given very careful consideration to each of the points
raised in the letter. At the same time, in recognition of the importance and visibility of this
project, OPIC has undertaken a full-time, on-site monitoring effort. .

We are confident that working closely with the project sponsors as well as the environmental
community, OPIC’s unprecedented level of environmental oversight will bring much needed
clean energy to South America in an environmentally responsible manner. At the same time, we
will set new standards for consultation and cooperation. It will also help OPIC and NGOs in our
mutual effort to use OPIC’s environmental emphasis as a model for encouraging our
international counterparts to likewise adopt strong environmental standards.

1100 NEW YORK AVE., N. W. » WASHINGTON, D. C, 20527 « FAX (202) 408-9859 « (202) 336-8400

00500000000149


2000-SE-009813

OVERSEAS PRIVATE INVESTMENT CORPORATION

WASHINGTON, D.C. 20527, U.S.A.

@ OFFICE OF THE
PRESIDENT
October 4, 2000

The Honorable Stuart E. Eizenstat

Deputy Secretary of the Treasury

U.S. Department of the Treasury

15" & Pennsylvania Avenue, NW., 5100 MT
Room 3326

Washington, D.C. 20220

Dear Stu:
[OUTSIDE SCOPE]

{(b)(5)]

If you have any questions on these or any other maters, please call me.

Sincerely,

Zoe

George Mufioz
President and
Chief Executive Officer

Enclosures

1100 NEW YORK AVE., N. W. - WASHINGTON, D. C. 20527 « FAX (202) 408-9859 « (202) 336-8400

00100000000338


CUIABA PIPELINE PROYECT
PARTICIPATION AND CONSULTATION RECORD

August 1997

1. 8/97: Contacted personnel of the Universidad Autonoma Gabriel Rene Moreno
(UAGRM) for their participation in the ELA. The project is described and the
following staff form the Museo and UAGRM decided to participate in the EIA: Teresa
Centurién, botanist of the Carrera de Biologia, Luzmila Arroyo, botanist of the Museo
Noel Kempff (from the group of students of Tim Killeen), Roxana Coca, ichthyologist
of the Museo Noel Kempff, Lila Sainz, mammals expert from the Carrera de Biologia,
and Nelson Vaca, herpetologist of the Carrera de Biologia.

September 1997

2. 9/97. Meeting in ENTRIX’s offices with representatives of Transredes, USAID, Parque
Nacional Gran Chaco and CIDOB. The objective of the meeting was to inform USAID
about the project. Work Pian and maps were distributed to the participants.

3. 9/15/97. Meeting in CIDOB-Santa Cruz offices between consultants of ENTRIX-PCA
and a representative of CIDOB to inform the beginning of the EEIA Gasoducto Rio
San Migue!-San Matias

4. 9/20/97. Meeting in San José de Chiquitos, Provincia Chiquitos, between 24 authorities
and representatives of the municipality and consultants of ENTRIX-PCA. The purpose
of the meeting was to inform about the project.

5. 9/21/97. Meeting in CICH-TURUBO offices in San José de Chiquitos between
representatives of this organization and consultants of ENTRIX-PCA. The purpose was
to inform about the project and to obtain their opinions and recommendations about the
project.

6. 9/21/97. Meeting in San José de Chiquitos between representatives of the Asociacién de
Ganaderos de San José (cattlemen association) and consultants of ENTRIX-PCA to
analyze the EEIA process and to analyze economic impacts of the project.

7. 9/22/97. Meeting in Buena Vista, Provincia Chiquitos, between representatives and
neighbors of the community and the consultants of ENTRIX-PCA. The purpose was to
inform and to obtain local expectations of the project.

8. 9/22/97. Meeting sustained in San José de Chiquitos, Provincia Chiquitos, between
representatives and neighbors of the community and the consultants of ENTRIX-PCA.
The purpose was to inform and to obtain local expectations of the project.

9. 9/23/97. Meeting in Ipias, Provincia Chiquitos, between representatives and neighbors
of the community and the consultants of ENTRIX-PCA. The purpose was to inform
and to obtain local expectations of the project.

10. 9/23/97. Meeting in Ramada, Provincia Chiquitos, between representatives and
neighbors of the community and the consultants of ENTRIX-PCA. The purpose was to
inform and to obtain local expectations of the project.

App-c-3 C-3, page |

00500000000158


8. Worker Rights

[(b)(5)]

12

00100000000309


Worker Rights: [(b)(5)]

00100000000297


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00500000000155


Page 2

Further, OPIC has been advised by local counsel in Bolivia that the CFCC in no way violates any
intemational convention, law, or regulation of the Government of Bolivia, and by international
counsel familiar with the implementation of the ILO conventions that the creation of a fund to
protect the environment is not contrary to any of those conventions. The CFCC provides for
regular consultation with all stakeholders, including indigenous and municipal communities, and,
of course, actual programs undertaken by the CFCC will be subject to all Bolivian laws.

Third, OPIC has confirmed that all necessary permits and government authorizations required for
construction of the project pipeline in Bolivia have been obtained, and conditions thereto are
being met as required to go forward with construction. In August 1999, the Bolivian Ministry of
Sustainable Development provided final authorization for construction works in the San Matias
protected area, well before construction began in that area. In addition, the same Ministry has
confirmed that the project is in full compliance with Bolivian environmental regulatory
requirements.

Please see the attached matrix for our response to the other issues raised in the attachment to the
Open Letter.

We would be pleased to respond to any other questions or concerns you may have as
construction continues on this project.

Sincerely yours,

Bie ae bay

Harvey Himberg
Director, Investment Policy and
Environmental Affairs

Enclosures

00500000000152


Annex A

RESTRICTED DISTRIBUTION
PRIVILEGED BUSINESS INFORMATION

OVERSEAS PRIVATE INVESTMENT CORPORATION

Loan Guaranty

Discussion and Recommendation
for

Approval by the Board of Directors

March 9, 2000

Territory: Gaza
Foreign

Enterprise: Gaza Power Generating Private Limited Company
U.S. Sponsor: Enron Corporation

RESTRICTED DISTRIBUTION
PRIVILEGED BUSINESS INFORMATION

00100000000294


MEMORANDUM FOR THE BOARD OF DIRECTORS

SUBJECT: Gaza Power Generating Private Limited Company
Gaza

Reason for Board Action

Board action is required for approval of a Loan Guaranty of up to
$50 million for Gaza Power Generating Private Limited Company by
virtue of Board of Directors Resolution BDR (94)20 which requires
that the Board approve financings in excess of $30 million.

Recommendation
That the Board adopt the attached Resolution.

Attachments

Annex A: Board Paper
Annex B: Under Secretary of State Alan Larson's Memo
Annex C: Resolution

00100000000293


{(b)(5)]

9. Environmental Effects

[(b)(5)]

13

00100000000310


SUMMARY

Host Territory: Gaza

Foreign Enterprise: Gaza Power Generating Private Limited
Company

U.S. Sponsor: Enron Corporation

Project Description: The development, construction,

operation and ownership of a [(b)(4)]

power plant that will sell all of its
capacity to the Palestinian Energy

Authority.
Loan Amount: Up to $50 million
Loan Type: Loan Guaranty
Loan Term: [(b)(4)]
U.S. Effects: [(b)(5)]

Host Country Benefits: — [(b)(5)]

Environmental Effects: — [(b)(5)]

00100000000296


The Criteria entered:
Listing of Selected TADS Records

Tuesday, January 15, 2002

Classified: N

and (2) the status of the Enron

ARCHIVE

Profile: 2000-SE-009813 Priority: N
From Name: Munoz, George
Title: Overseas Private Investment Corporation (OPIC)
Constituent:
To: Stuart E. Eizenstat
Title: Deputy Secretary
Document Source: Departments/Agencies
Document Type: Letter
Required Action: No Reply Necessary
Doc Date: 10/04/2000
Scan Date: 10/05/2000
Due Date: 10/05/2000
Closure Type: No Reply Necessary
Closure Date: 10/05/2000
DMS Comments:
Subject: Reports: [OUTSIDE SCOPE]
(2) Status Of Enron Power Project In Gaza
Abstract: Encloses a copy of their report on (1)[OUTSIDE SCOPE]
Power Project in Gaza.

Task Language:
Referred By:
Other Reference No:
FOIA Release:
FOIA Exempt:
FOIA Date:
Owner Office: SE
Indexed By: HARDESTYJ
Paper Location:
Multiple Authors:
Cross Reference No:
Routing:

*CMS_OUT ARCHIVE
Distribution:

AS, INTERNATIONAL AFFAIRS

DEPUTY SECRETARY

EXECUTIVE SECRETARIAT

00100000000362 —


2000-SE-009813

OVERSEAS PRIVATE INVESTMENT CORPORATION

WASHINGTON, D.C. 20527, U.S.A.

OFFICE OF THE
& PRESIDENT
October 4, 2000

The Honorable Stuart E. Eizenstat

Deputy Secretary of the Treasury

U.S. Department of the Treasury

15" & Pennsylvania Avenue, NW., 5100 MT
Room 3326

Washington, D.C. 20220

Dear Stu:
[OUTSIDE SCOPE , (b)(5)]

{(b)(5)]

If you have any questions on these or any other maters, please call me.

Sincerely,

George Mujfioz
President and
Chief Executive Officer

Enclosures

100 NEW YORK AVE., N. W. - WASHINGTON, D. C. 20527 * FAX (202) 408-9859 - (202) 336-8400

00100000000236


{(b)(4)]

Proposed OPIC Participation

[(b)(4)]

00100000000299


REPORT FROM OPIC MANAGEMENT TO THE BOARD OF DIRECTORS

TERRITORY: Gaza

PROJECT COMPANY: Gaza Power Generating Private Limited
Company

U.S. SPONSOR: Enron Corporation

1. Introduction

OPIC Management proposes to provide a loan guaranty in an
amount up to $50 million (the “Loan”) to partially finance
the development, construction, operation, and ownership of
a [(b)(4)] power plant
in Gaza (the “Project”). [(b)(5)]

This report, along with a memo from Under Secretary of
State Alan Larson (Annex B), summarizes the issues
identified and addressed to date in connection with OPIC’s
proposed support of this Project.

[(b)(4)]

With the
implementation of the Project, PEA is expected to be able
to satisfy all of the current electricity requirements of
Gaza. Currently all of PEA’s power is supplied by the
Israel Electric Corporation.

2. The Project

[(b)(4)]

00100000000298


WWF, and WCS (Wildlife Conservation Society). Permitting process of the project and
Conservation Plan were discussed in this meeting.

108. 7/12/99. Meeting in Comité Civico Pro Santa Cruz among AMDECRUZ
(Asociacion de Munucipios del Departamento de Santa Cruz), Mancomunidad
(Mancomunnidad de Municipios de la Gran Chiquitania), GOB, PROBIOMA,
ENTRIX, Museo, FAN, WWF, and WCS (Wildlife Conservation Society) and Vice
Minister of the Environment Sra Neiza Roca. Permitting process of the project and
Conservation Plan were discussed in this meeting. Sra Neiza Roca gave her opinion
about the permitting process of this project and about the Conservation Plan that will be
implemented by the NGOs (Museo, FAN, WWF, and WCS)

App-c-3 C-3, page 9

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00500000000153


LOAN GUARANTY
GAZA

GAZA POWER GENERATING PRIVATE LIMITED COMPANY

PROJECT TEAM:

Manager for Project Finance
[(b)(6)] Investment Officer
Assistant General Counsel

ABBREVIATION AND ACRONYM KEY:

DFLP: Democratic Front for the Liberation of Palestine
Engineering, Procurement and Construction
Environmental Impact As: ent Brief

Gross Domestic Product

Gaza Power Generating Private Limited Company
Initial Public Offering

Megawatt

Pa. inian Interim Self-Government Authority
Palestine Energy Authority

Popular Front for the Liberation of Palestine
PPA: Power Purchase Agreement

Resolution: See Annex B

00100000000295


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00100000000333


34. 6/9/98. Meeting in San José de Chiquitos between the municipality and representatives
of GOB and ENTRIX-PCA. The objective was to sign an agreement on the objectives
and extent of the CRP San José.

35. 6/10/98. Meeting in CICH-TURUBO-San José de Chiquitos, among representatives of
CIDOB, OICH, CPTI, CICH-TURUBO, GOB and ENTRIX-PCA. The purpose of the
meeting was advancing in the consultation process and validation of the IPDP.

36. 6/12/98. Meeting in San Matias, between 16 authorities and representatives of the
municipality of San Matias and consultants of ENTRIX-PCA. The objective was to
sign an agreement on the objectives and extent of the CRP San Matias.

37. 6/13-15/98. Seminar-Workshop in San José de Chiquitos organized by CICH-
TURUBO with 78 indigenous delegates, the objective was validation of the IPDP.

38. 6/15/98. Indigenous organizations issued preliminary observations from the IPDP to
consultants of ENTRIX-PCA.

39. 6/19-21/98. Seminar - Workshop in San Matias, organized by CIRPAS with 89
indigenous delegates, the objective was validation of the IPDP.

40. 6/20/98. Meeting in Santa Cruz, among Mr. Santos Saucedo, Priest of Santa Teresita
and a consultant of ENTRIX-PCA. IPDP information related to Ayoreas communities
of Tobité and Santa Teresita was exchange.

41. 6/25/98. A copy of the EIA is presented to CIDOB.

42. 6/25/98. A copy of the EIA is presented to the Alcaldia of San José de Chiquitos.

43. 6/25/98. A copy of the EIA is presented to the Alcaldia de San Matias, Provincia Angel
Sandoval.

44. 6/27/98. Proposal from the Indigenous Organizations of the Indigenous People
Development Plan was submitted to ENTRIX-PCA.

Julio 1998

45. 7/7/98. Meeting in IPE among representatives of the CIDOB, CPTI, IPE, and
ENTRIX-PCA and Indacochea to analyze compensations from damages caused by the
surveyor crew and some contracts of servitude in Angel Sandoval's community lands.

46. 7/20/98. Delivery of EIA to World Wildlife Fund Bolivia (WWF Bolivia) for their
revision.

August 1998

47, 8/3/98. GOB submitted a “frame agreement” among GOB and Direccién Nacional de
Antropologia y Arqueologia (National Bureau of Anthropology and Archaeology,
DINAAR) in order to coordinate protection of archaeological resources in the study
area.

48. 8/3/98. GOB submitted to DGB a Conservation Plan for sensitive areas including the
Area Natural de Manejo Integrado San Matias (ANMI San Matias).

September 1998

49. 9/98. Delivery of EIA thé Lic Montafio of the Museo Noel Kempff of the UAGRM for
their revision.

App-c-3 C-3, page 4

00500000000161


50. 9/98. Delivery of EIA to Mike Smith of Transredes.

51. 9/10/98. Meeting in La Paz between INRA's Sr. Jaime Soriano and representatives of
GOB, IPE, and ENTRIX-PCA.

52. 9/18/98. Meeting in La Paz between representatives of DGB, Viceministerio de Energia
¢ Hidrocarburos (VMEH), ENTRIX-PCA, and GOB. A Conservation Plan for the
protected area and the consultation process between ENTRIX-PCA and DGB was
discussed.

53, 9/18/98. Meeting in La Paz between representatives of the Vicemininsterio de Asuntos
Indigenas y Pueblos Originarios (Bolivian Government Indigenous Peoples Bureau,
VAIPO), GOB, VMEH, y ENTRIX-PCA. In the meeting the consultation process with
the indigenous people and compensation of damages caused by surveyor crew was
explained to the authorities.

November of 1998

54, 11/16/98, Letter to the Director of DINAAR to request authorization for the realization
of the study “Archaeological Assessment of the Right of Way of the Gasoducto Rio
San Miguel-San Matias.”

55. 11/16/98. Letter to the Mayor of San José de Chiquitos to inform the realization of the
study “Archaeological Assessment of the Right of Way of the Gasoducto Rio San
Miguel~San Matias”. :

56. 11/16/98. Letter to the Mayor of San Matias to inform the realization of the study
“Archaeological Assessment of the Right of Way of the Gasoducto Rio San Miguel-
San Matias”.

January of 1999

57. 1/5/99. Meeting in Santa Cruz between representatives of OPIC, CIDOB, CPESC, and
ENTRIX — PCA, discussed advances in the agreement process and validation of the
IPDP,

58. 1/7/99. Meeting with Lic Miriam Melgar Paz of NGO Asociacién Hombre and
Naturaleza-Bolivia. She knew about the project and explained the interest of
Asociacién Hombre and Naturaleza~Bolivia in being able to participate in any eco-
tourism programs.

59. 1/7/99. Meeting in Santa Cruz with the participation of the Mr. Scott Jackson of the
timber company Berna, OPIC’s Angel Miller, Nancy Dean, and Mary Mervenne,
ENRON's Abe Moreno and Dirk Peterson and ENTRIX’s Enzo Conti. The objective
was to provide information on the timber concessions and the forest exploitation in the
department of Santa Cruz.

60. 1/15/99. Meeting in CIDOB's offices in Santa Cruz with participation of
representatives from CIDOB, CPESC and ENTRIX-PCA. The objective was to inform
CIDOB new authorities about the consultation process and agreement related to IPDP.
Indigenous Representatives asked about the project and issues that were still pending in
the IPDP.

- 1/21/99, Answer to a letter sent by CIDOB to the Mrs. Nancy Dean of OPIC, titled:
“Observations to the Environmental Impact Study —Cuiabd Pipeline, Bolivian Portion.”

6

App-c-3 C-3, page 5

00500000000162


The Honorable Al Gore
October 28, 1999
Page Two

1 appreciate and commend the leadership you are providing in strengthening worldwide
environmental standards. If you or your staff have any questions or would like a more detailed
briefing about OPIC’s environmental program or on this project specifically, please do not
hesitate to let me know.

Sincerely,

£z ;
ge Mufioz

President and
Chief Executive Officer

Enclosures

ee: The Honorable Brady Anderson, U.S.A.I.D.
The Honorable Stuart Eizenstat, U.S. Department of Treasury
The Honorable Robert Mallett, U.S. Department of Commerce
The Honorable Alan Larson, U.S. Department of State
The Honorable Harvey Sigelbaum, OPIC Board of Directors
The Honorable Barbara Boxer
The Honorable Nancy Pelosi
The Honorable George Miller
Mr. Ian Bowles, Council on Environmental Quality
Mr. David Sandalow, Council on Environmental Quality
Mr. Ken Lay, Enron
Mr. Murray Jones, Shell International

00500000000150


2000-SE-002413

OVERSEAS PRIVATE INVESTMENT CORPORATION

WASHINGTON, D.C. 20527, U.S.A.

OFFICE OF THE
PRESIDENT

March 2, 2000

The Honorable Stuart E. Eizenstat

Deputy Secretary of the Treasury

U.S. Department of the Treasury

15" & Pennsylvania Avenue, NW., 5100 MT
Room 3326

Washington, D.C. 20220

Dear Stu:
1 am writing to ask you to vote by the notational procedure in advance of our next Board

meeting on a proposal to provide an Investment Guaranty of up to $50 million to Enron
Corporation to partially finance the development, construction, operation, and ownership

of a [(b)(4)] power plant in Gaza. This project was
presented as a Major Pending Project at the December 14, 1999 Board meeting.
{(b)(5)]

If you have any questions with regard to this project, feel free to call me at (202) 336-
8401. If you are in agreement with our request, please sign the ballot where indicated
and fax it back to my office at (202) 218-0136 no later than COB March 9, 2000.
Sincerely,

oy

George Mujioz
President and
Chief Executive Officer

Enclosures

1100 NEW YORK AVE., N. W. * WASHINGTON, D. C. 20527 * FAX (202) 408-9859 * (202) 336-8400

00100000000291


OVERSEAS PRIVATE INVESTMENT CORPORATION
1100 NEW YORK AVENUE, N.W.
Washington, D.C. 20527-0001

Overseas Private Investment Corporation
1100 New York Ave., N.W.
‘ORI Washington, D.C. 20527

St

TO:

The Honorable Stuart E. Eizenstat

Deputy Secretary of the Treasury

U.S. Department of the Treasury

15th & Pennsylvania Avenue, N.W., 5100 MT
Room 3326

Washington, D.C. 20220

00500000000167


{(b)(5)]

Cc. OPIC Exposure

[(b)(5)]

00100000000302


{(b)(5)]

6. U.S. Foreign Policy Context

[(b)(5)]

7. Host Country Effects

[(b)(5)]

11

00100000000308 —


The Criteria entered:
Listing of Selected TADS Records

Tuesday, January 15, 2002

Profile: 2000-SE-002413 Classified: N

From Name: Munoz, George

Title: Overseas Private Investment Corporation (OPIC)

Constituent:

To: Stuart E. Eizenstat

Title: Deputy Secretary

Document Source: Departments/Agencies

Document Type: Letter

Required Action: Appropriate Action

Doc Date: 03/02/2000

Scan Date: 03/06/2000

Due Date: 03/15/2000

Closure Type: Other

Closure Date: 03/14/2000

DMS Comments:

Subject: Notational Vote To Provide An Investment Guaranty To Enron Corporation For Power Plant In Gaza

Abstract: Request for a notational vote on a proposal to provide an Investment Guaranty of up to $50 million to
Enron Corporation to partially finance the development, construction, operation and ownership of a [(b)(4)]

power plant in Gaza.

Task Language:

Referred By:

Other Reference No:

FOIA Release:

FOIA Exempt:

FOIA Date:

Owner Office: SE

Indexed By: HUFFMANJH

Paper Location:
Multiple Authors:
Cross Reference No:

Routing:
AS, INTERNATIONAL AFFAIRS
INTERNATIONAL INVESTMENT
COOKIE GLASGOW
*CMS_OUT ARCHIVE

Distribution:

GENERAL COUNSEL
DEPUTY SECRETARY
EXECUTIVE SECRETARIAT

PREPARER
PREPARER
REVIEWER
ARCHIVE

00100000000290


December 1997

23. 12/4/97. Meeting in Santa Cruz between representatives of CIDOB, TRANREDES, and
ENTRIX-PCA, in order to explain concerns of the indigenous leaders in relationship to
the possible initiation of project works.

24, 12/24/97, Meeting in Santa Cruz with representatives of CICH-TURUBO. They
requested a fiduciary fund for the operation of this organization.

January 1998

25. 1/9/98. Meeting in Santa Cruz, among a representative of CPTI-CIDOB and a
consultant of ENTRIX-PCA. The objective of the meeting was to request information
regarding the state of the land titling process for the communities located in the area of
influence and to define the procedure for the analysis and discussion of the IPDP.

March 1998

26. 3/17/98, Meeting in La Paz between representatives of DGB, ENTRIX-PCA, ENRON
and Gas Transboliviano. The objective was to discuss the Handling Plan and Fiduciary
Fund for the Protected Area. DGB stated they were interested in the direct
administration of the area.

27. 3/23/98. WWF Bolivian Pantanal Workshop in Santa Cruz A consultant from
ENTRIX-PCA assisted the workshop but was informed there was not enough room in
the workshop for more participants. He was also told this workshop was not meant for
consultants. Transredes attended the workshop.

May 1998

28. 5/6/98. Correspondence from OICH to Edgar Uribe of ENTRIX in order to present
OICH as the representative organization of the Chiquitano people. :

29. 5/14/98. Submission of the Environmental Management Plan (Plan de Aplicacién y
Seguimiento Ambiental) to CIDOB.

30. 5/14/98. Submission of the Environmental Management Plan (Plan de Aplicacién y
Seguimiento Ambiental) to the Government of San Matias.

31. 5/14/98. Submission of the Environmental Management Plan (Plan de Aplicacién y
Seguimiento Ambiental) to the Government of San José.

June 1998

32. 6/3-4/98. Internal workshop of OICH, CICH-TURUBO and CIRPAS. in CIDOB’s
office. The objective was to perform the first revision of the IPDP and to define steps
for future validation process.

33. 6/8/98, Meeting in CIDOB among representatives of CIDOB, OICH, CPTI, GOB and
ENTRIX-PCA to prepare a chronogram of activities for the validation and approval of
the IPDP.

App-c-3 C-3, page 3

00500000000160


1999-SE-011930 (COPY)

OVERSEAS PRIVATE INVESTMENT CORPORATION

WASHINGTON, D.C. 20527-0001, U.S.A.

OFFICE OF THE
wB PRESIDENT

October 28, 1999
Memorandum

TO: The Honorable J. Brady Anderson
The Honorable Stuart E. Eizenstat
The Honorable Robert L. Mallett
The Honorable Alan P. Larson
The Honorable Harvey C. Sigelbaum

FROM: George Mufioz, President and Chief Executive Offi
SUBJECT: Cuiabé Pipeline Project

OPIC Response to “Open Letter” to Vice President Gore from the
Environmental NGOs

You may have received a copy of the September 24, 1999 “Open Letter” to Vice
President Al Gore from the environmental community regarding OPIC’s support of the
Cuiabé pipeline in Bolivia.

Enclosed is OPIC’s response to Vice President Gore and a detailed response to the NGO
community. As you can see, we have given very careful consideration to each of the
points raised in the NGO letter. In recognition of the importance and visibility of this
project, OPIC has undertaken a full-time, on-site monitoring effort. We are confident
that by working closely with the project sponsors as well as the environmental
community, OPIC’s unprecedented level of environmental oversight will bring much
needed clean energy to South America in an environmentally responsible manner.

If you have any questions or would like further information, please do not hesitate to let
me know.

Enclosures

1100 NEW YORK AVENUE, N.W. WASHINGTON, D.C. 20527-0001 * FAX (202) 408-9859 * (202) 336-8400

00500000000148


a enn rar rt re tl A A A A IRE RA RY RL RETR

OVERSEAS PRIVATE INVESTMENT CORPORATION

1100 NEW YORK AVENUE, N.W.
Washington, D.C. 20527-0001

Overseas Private Investment C:
ORIG 1100 Now York Ave, NW.
Washington, D.C. 20527
, 4
D

.
TO: The Honorable Stuart E. Eizenstat
Deputy SEcretary of the Treasury
U.S. Department of the Treasury
15th & Pennsylvania Ave., N.W., 51
Room 3326
Washington, D.C. 20220

Tel: 202-622-1080

00100000000241


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00500000000156


95. 4/30/99. ENTRIX-PCA Mr. Enzo Conti met Mr. Hugo Rodas Daza, to obtain
information of the SEA project area and some details on timber exploitation in the
pipeline area of influence.

May of 1999

96. 5/12/99. Meeting in Santa Cruz, among representatives of the community of Taperas,
the NGO PROBIOMA and ENTRIX-PCA to receive concerns of the town in
connection with the pipe storage area in Taperas.

97. 5/10-13/99. Meeting in Santa Cruz, to sign the agreement with the indigenous

98. 5/14/99. Informative meeting in San José de Chiquitos, with representatives of
TURUBO and other communities affected by the pipeline project regarding the signed
agreement.

99. 5/17/99. Letter sent to the community of Taperas by GOB and ENTRIX-PCA, to
request a meeting for May 19 1999.

100. 5/19/99. Meeting held in the Community of Taperas between representatives of the
community and members of GOB, BOLINTER, GTB and ENTRIX-PCA, to discuss
the conflict due to the presence of pipe storage area in town. Measures to mitigate
impacts were also analyzed.

101. 5/26/99, Meeting in San Matias, between authorities, GOB and ENTRIX-PCA to
reach and agreement on the CRP budget.

102, 5/24-30/99. Workshop in Santa Cruz, among representatives of the indigenous
organizations, consultants of CEADES, GOB and ENTRIX-PCA, to revise and
approve the IPDP. :

June 1999

103. 6/6/99. Interview between Mr. Enzo Conti of ENTRIX-PCA and Mr. Hugo Rodas
Daza, to obtain information on the forest exploitation in the area of influence of the
pipeline.

104. 6/9/99. Phone interview between Mr. Enzo Conti and Mr. Guillermo Roig, manager
of a timber company, to obtain more information on this activity in the area.

105. 6/9-12/99. Workshop in Santa Cruz with participation of representatives of
ENRON, FAN, Museo Noel Kempff, WWF and ENTRIX to agree on a conservation
plan for ecosystems in the area of the pipeline.

106. 6/22/99. Meeting in Bolinter’s office with participation of pipeline construction
companies (Bolinter, Conduto, Preussag), Museo, FAN, Indigenous Representatives,
ENRON, GOB, and ENTRIX. Primary and secondary impacts, construction of the
pipeline, and other items were discussed.

July 1999
107. 7/7/99. Meeting in Comité Civico Pro Santa Cruz among AMDECRUZ (Asociacion

de Munucipios del Departamento de Santa Cruz), Mancomunidad (Mancomunnidad de
Municipios de la Gran Chiquitania), GOB, PROBIOMA, ENTRIX, Museo, FAN,

App-c-3 C-3, page 8

00500000000165


t
‘
Prvare
Iewoatrannt
Coperenon
Ae 1100 New York Avenue, N.W.
Washington, 0.C, 20527-0001
.§ a (202) 336-8400
* FAX (202) 408-0859
7

October 22, 1999

‘To Whom It May Concer:

I am writing to respond to your “Open Letter” of September 24, 1999, and attachment
concerning the compliance of the Cuiaba project with the conditions contained in OPIC’s Board
of Directors’ approval of support for the project on June 15, 1999. The issues highlighted in the
letter are considered below, while the issues raised in the attachment are responded to in the
attached matrix.

OPIC is fully satisfied that the pipeline right-of-way (ROW) does not intersect tropical forest
subject to OPIC's categorical prohibition. As required by the Board, OPIC conducted an
independent review that corroborated a.previous finding that, with specified route alterations, the
ROW would not intersect such forest as it is defined by OPIC and international financial
institutions such as the World Bank. In addition, a subsequent, detailed on-the-ground biological
survey of the route provided irrefutable evidence that the forest in or adjacent to the ROW has
been impacted by commercial and agricultural activity.

OPIC recognizes that, beyond the scope of the Cuiaba project, there is no consensus among
scientists concerning an appropriate operational definition of primary tropical forest. To address
this situation, OPIC is taking the lead, in collaboration with environmental organizations and
other stakeholders, to convene a workshop to advise OPIC on how to better operationalize its
definition of primary tropical forest in connection with future projects.

As you know, OPIC is not a party to the Chiquitano Forest Conservation Consortium (CFCC)
protocol and is providing no funding for it. OPIC's Board did take note of the protocol
establishing the CFCC and required that the program it envisioned begin to be implemented prior
to OPIC’s supporting the project.

OPIC regrets that the World Wildlife Fund (WWF) has chosen not to participate in the steering
committee for the CFCC, but is pleased that WWF has agreed to maintain a supportive
relationship with the conservation program. OPIC's Board did not specify that all organizations
that signed the Protocol ultimately participate in the CFCC and WWF's decision does not impair *
the validity of the steering committee and the CFCC. This has been recognized by WWF.

Although a division of the Bolivian Ministry of Sustainable Development did express some
initial concerns about the organization of the CFCC, the Minister of Sustainable Development
has since endorsed the environmental efforts undertaken in connection with the project.

00500000000151


((b)(4)]

3. U.S. Economic Effects

{(b)(5)]

4. Gaza Political and Economic Framework
A. Political Environment

In 1993, the Palestine Liberation Organization and Israel
signed the Declaration of Principles establishing a
framework for an interim period of limited self rule in
Gaza and Jericho, a city located in the West Bank.
Subsequently, in 1995 an interim agreement was executed
that extended Palestinian self rule to parts of the rest of
the West Bank and also provided for Palestinian elections.
The Palestinian Council and the Chairman of the Executive
Authority of the Council constitute the PA.

Elections to the PA were held in 1996 and resulted in
Yasser Arafat being elected Chairman for a five-year term.

{(b)(5)]

00100000000300


[(b)(5)]

5. Risk Analysis

{((b)(5)]

00100000000303