MAY=32-28208 18:38 TREAS ASST SEC INTL 242 622 3417 26/08
o2-

Memorandum parece imponer sobre la Republica de Bolivia condiciones para el
desarrollo de los proyectos sefialados, en detrimento de las inversiones existentes
y comprometidas en Bolivia, pasando por alto cl marco regulatorio vigente y
negando a los inversionistas privados la oportunidad de acogerse a los derechos
previstos en sus normas.

En efecto, el Memorandum crea las bases para la
construccién de un gasoducto én Bolivia para el transporte de gas al Brasil y
establece el acuerdo para apoyar el proyecto de la termoeléctrica de Puerto
Suarez, pero condicionada a la participacién accionaria de PETROBRAS en la
misma, y con el aporte de gas proveniente de PETROBRAS - Bolivia S.A...
‘Asimismo, establece el acuerdo para que PETROBRAS participe en una tarifa
estampilla de transporte de gas natural para ¢| mercado interme y de exportacién a
ser establecida y defina con la misién técnica destacada por el Ministerio de
Desarrollo Econémico, los aspectos operacionales en relacién a dicha tarifa y 3
los demas puntos sefialados en el Memorandum, en las ceumones que s¢
desarrollarin en Rio de Janeiro.

Los aspectos contcmplados en el Memorandum han
sido motivo de larga discusién y anilisis hasta la fecha. Con ese objetivo, y
dentro del marco de las normas y regulacionss existentes en la Republica de
Bolivia, se han ilevado a cabo negociaciones con diversos representantes de la
industria, estableciéndose, entre otros aspectos, que la estrategia de PETROBRAS
— Bolivia S.A. para construr cl ducto derivado al YABOG (“bypass”) es
inconsistente, tanto desde el punto de vista econdmico como regulatorio.

En el plano econémico, el proyecto bypass de
PETROBRAS se encuentra en desventaja con Transredes S.A., al no hallarse en
condiciones de responder a tiempo los requerimientos de la demanda brasilera
(v.gr. el tempo de construccién del ducto) ai poder competir econémicamence,
salvo que eluda la responsabilidad de pagar la cuenta diferida. En esa
perspectiva, el incremento del costo del scrviclo consecuencia del bypass,
responderia al exclusivo objetivo de contol del mercado por parte de
PETROBRAS.

En el plano regulatorio, la empresa de cuya
capitalizacién emerge Transredes S.A., fue capitalizada con la obligacién de
cobrar una tarifa inferior a la necesaria , subsidiando temporanamente al mercado
intemo, subsidio que debe ser recuperado en base a la nueva tarifa y al volumen
de gas transportado. En auscncia de enmiendas a las reguiaciones existentes, la
constuccién de un nuevo gasoducto para la exportacion de gas al Brasil,
impondra la recuperacién de la cuenta diferida sobre un volumen menor de gas,
con el consecuente impacto econémico negativo sobre el mercado intemo
boliviano y sobre otros productores que utilizan el sistema de transporte existente.

Endless Possibilities

00500000000132


To: David Wilcox

From: Ray Squitieri

Subject; Paul Krugman’s claims about the California power market
{(b)(5)]

00300000000105


California Electricity Meeting
Department of the Treasury
Tuesday, January 9, 2001, 5:00 PM

Lawrence Summers
Secretary of the Treasury

Bill Richardson

Secretary of Energy

Gene Sperling

Director, National Economic Council
Martin Baily

Chairman, Council of Economic Advisers

James Hoecker
Chairman, Federal Energy Regulatory Commission

Gray Davis
Governor of California

Loretta Lynch

President, California Public Utilities Commission
Robert Hertzberg

Speaker, California State Assembly

John Burton
President Pro Tem, California State Senate

James Brulte

Minority Leader, California State Senate
William Campbell

Minority Leader, California State Assembly

Terry M, Winter
President and Chief Executive Officer
California Independent System Operator

John E. Bryson
Chairman, President and CEO of Edison International

Robert D. Glynn, Jr.
Chairman, CEO and President, PG&E Corporation

00300000000025


Ta-22-2008 16: :
ss INN 202 622 1432 P.aS/10

Likewise, through the preement = ne ap PETROBRAS .
i) and respect 2 postage stamp tariff to be establi r transporau ‘on 0!

pee for the domestic and export markets, the Ministy of Economic Development
arrogates itself the ‘attributions acknowledged by he SIRESE Law to the Hydrocarbons
Superintendency, in adherence to the procedures established in said norm and its
regulations, Under said norms, the Supreme Government is neither entitled to dispose of
the proprietorship of the thetmolectns plant to be built in Puerto Sudrez nor designate
the supplier of natural gas for the sane.

In its condition as investor in Bolivia, ENRON abides suictly by Ge
existing norms. Under the terms of the Memorandum, Bolivia's Supreme Government
sends a highly negative message to private investment, when it chooses to resolve
PETROBRAS’ commercial and regulatory difficulties through bilateral governmental
negotiations. requiring at the same time that private investors abide by existing norms
and regulations in similar situations. Ip this sense. ENRON must insist on the need that
the Supreme Government of Bolivia carries on with the process subject to current norms
and mechanisms in effect in the country, ensuring at the same Gme that the Supreme
Government of Brazil guarantees equal conditons a5 well as the issuance of the
necessary authorizations sné licenses, under the principles of non-discrimination end
free access acknowledged in the Economic Complementation Agreements, the Trade
Promotion Agreements and the Energetic Integration Agreements subscribed between
Bolivia and Brazil.

Apparently, PETROBRAS and the Brazilien Ministry of Mines and
Energy are tying to establish that the only way to enter the Brazilian energetic market is
through agreements between Governments, and using PETROBRAS as a vehicle, If this
were a reality, it would contravene the agreements assumed to attain regional
integration, based on the concepts of free compeuuen and open access.

To sum up, ENRON believes that the decision adopted by the
Supreme Gavernment of Bolivia to intervene on behalf of PETROBRAS, which would
otherwise be considered a private commercial negotiation or 2 matter to be resolved in
acherence to sxisting regulatory proceedings, consdtutes an obstacle for the
development of the private sector iz Bolivia. ENRON ratifies its will to support the
Bolivian Government's efforts to create equitable and non-discriminatery conditions
aimed at fostering ané enhancing compettion. requiring that all participants witha the
industry compiy with the same regulatory mechanisms Soreseer: by law to advance their
commercial interests. In any case, ENRON expects that the rights conferrec by law both

to it and its affiliates ure respected

We reiterate our highest considerations.

Jose Bestard
Vice President
Enran South Americs LLC

00500000000141


From: Jill Cetina

To: CHRISTOPULOS, CLAPPG, HOARG, SARGERS, SEMANST, SEV...
Date: 3/22/99 1:37pm
Subject: Enron Indonesia IPP & MIGA

Susan heard that Enron notified MIGA by phone on Friday of intent to file a
claim for the Indonesian IPP. Enron and MIGA are to meet on Wednesday
afternoon to discuss.

Susan is in the process of getting a copy of the original MIGA guarantee
proposal for the project so we know precisely what the scope of MIGA's
guarantee is,

Susan is meeting with MIGA staff now and will inquire where things stand.
More news to follow..,.
will

>>> Lyla Kuriyan 03/22/99 11:38am >>>

Just received a call from Enron. They did file a claim with MIGA last Priday
(supposedly the last day of their 19 month trigger to file a claim with MIGA).
They indicated that this was a very big deal for MIGA as a claim has never
been filed before, The Enron folks said that they have been trying to work
out something with GOI since the Presidential decree (39?) which put power
projects on hold. They weren't sure what the process would be going forward,
but will be in discussions with MIGA all week (big meeting tomorrow morning)
and said they would keep us updated. Also asked that we keep this very close
hold, as the GOI doesn't know about this yet (they have also told State,
Commerce and the Embassy). Supposedly they are sending a letter to us, which
T will fax to all of you when I receive it.

>>> Jill Cetina 03/19/99 05:34pm >>>
Haven't heard anything about Enron filling a claim with MIGA -- would be a
very big deal -- first call on a MIGA guarantee. Let me discuss with OUSED

[(b)(5)]

>>> Greg Christopulos 03/19/99 0S:0Spm >>>

I just heard from the State Indon desk (Virginia Murray) that Enron is filing
a claim with MIGA to get compensation for an IPP project which the Gor
canceled last year.

Enron has told Virginia they have been trying to work out a deal with the Gor
for the last 18 mos or so with no success. She thinks this claim will probably
come as a surprige to GOI at the same time they get a letter from US senators
complaining about the treatment of IPPs and the US abstains on an ADB elec
sector loan.

T don't have any further details on this project or the claim yet. {(b)(5)}

00500000001035


Huffman, Lucy

From: Huffman, Lucy

Sent: Friday, January 11, 2002 5:29 PM
To: Worth, John

Subject: enron.

we both understand that this is preliminary and we will add or subtract as the issues become clearer. aas you will see, i
included a sentence to this effect. if you prefer, strike there and include in cover.

wv’)
Coon ae

Tracking: Recipient Road
Wort, John Read: 01/11/2002 $32 PM

00300000000086


From: Joe Bichenberger

Tor DOM13 .DOPOS (CETINAJ, KURIYANL, SEMANST, SBVERENSA) . ..
Date: 3/22/99 5:25pm
Subject: Re: Enron Indonesia IPP & MIGA -Reply

On one of Charley's last points: to my knowledge, MIGA has never had a
substantial claim filed.

>>> EX.MAIL. “Sdriano@worldbank.org" 03/22/99 03:09pm >>>

Not sure it matters, but Enron told Charley, (the Commerce liaison here) that
it
notified of intent via e-mail.

Charley's read-out of the conversation follows:

Enron confirms that on Friday March 19, 1999 they filed a claim (actually
notified MIGA by email of intent to...) againat MIGA for $15 million, for
cancellation of Enron's Bast Java IPP in Indonesia. The reason this claim was
filed now is there was an 18 month expiration date against claims and their
original cancellation notice was the Indonesian Presidential Decree (KEPRES
39)

in Septesber 1997 cancelling a number of IPPs which had been in various stages
of development, Enron had to file by Friday or lose their right to claim for
political risk insurance.

Enron will be meeting with MIGA on Tuesday March 23 at MIGA offices to discuss
details of the next steps (Enron advised that their impression is MIGA has
little experience in such claims actually being filed and followed-up).

Enron advised that they had last wek informed State Dept. and Commerce Dept.
about this situation. I strongly urged Enron to immediately call the
appropriate officials at Treasury to brief them of the situation as they had
done for State and Commerce. Enron agreed they would right away do 80.

Charley

*CRTINAJ¥DOM13 .DOPOB" <JILL.CETINAStreas.sprint.com> on 03/22/99 12:50:33 od

‘To: *ChristopulostDoml3 .Dopo#* <Greg.Christopulos@Ms01.Do.Treas.Sprint.Com>,
“ClappgtDom13 . Dopos* <Gene.Clapp@Ms01 .Do.Treas.Sprint .Com>,
*"Bichenbergerj*Dom13.Dopo8" <Joe. Eichenberger@Treas.Sprint.Com>,
"HoargtDoml3.Dopob" <Gay.Hoar@Ms01.Do.Treas.Sprint .Com>,

00500000001030


Page 2 of 2

cread@steptoe.com
tamoreland@ewidaw.com

Jule greenisenitroutmansanders. com
wax guider g@wliwrs. com

{(b)(6)]

Barbour, Gaylen

Curt Wagner
Latest version of Long-Term Contracts Group report.

Road: 01/12/2008 2:15 PM

01/15/2002

00300000000113


{(b)(5)]

00500000001205


Christopulos, Greg

Sent. Tucsday, January 23, 2001 9:37 AM

To: Grewe, iaureen’ Mills, Marshall; Sampliner, Gary; Christopulos, Greg; Clapp, Gene
Ce: Radelet, Steve

‘Subject: RE: india/Dabhol Meeting

((b)(5)]

Cable #029799 Dec 08
Cable #032693 Dec 13
Cable #034319 Dec 15

Cable #044561 Jan 09

——Onginal Message—-~

From: Grewe, Maureen

Sent: Tuesday, January 23, 2001 8:55 AM

Tos Rao, Geetha; Mils, Marshall; Sampliner, Gary; Christopuics, Greg; Capp, Gene
Ce: Radelet, Steve

Subject: RE: India/Dabho! Meeting
Please note the following article from this morning's press summary:
US Envoy: India’s Enron Project Key To Foreign Investment

1

00500000000042


TiN-@2-2802 «13:39 INN 202 622 1432 P.O1718

DEPARTMENT OF THE TREASURY
OFFICE OF AFRICAN NATIONS
FAX: (202) 622-1432

DATE:

PAGES JUDING COVER SHEET
Ona stesies
TO: FAX NO.

OFFICE/PHONE:
rrom: <M Durwlan

EDWIN L. BARBER III, SENIOR ADVISOR

BONNIE M. BARNES, SECRETARY

MICHELE BUDINGTON, ACTING DIRECTOR
GEOFFREY GOTTLIEB - 622-0455

ELIZABETH URBANAS - 622-0182

TROY WRAY - 622-9807

IF YOU HAVE ANY QUESTIONS, PLEASE CALL ON (202) 622-1730
MESSAGE:

Gain \glly 2s Os Suisse} —

00500000000137


[(b)(4)]

2

00500000000038


qr = te: *
June22-2088 «19:35 INN 222 622 1432 P.24718

agreement allowing PETROBRAS tc participate in a postage stamp tariff to be
established for the transportaticn of natural gas for the domestic and export marker, and
defines in canjunction with the technical mission appainted by the Minisy of Economic
Development the operational aspects related to said tariff as well as the other points
detailed in the Memorandum, at the mectings to be held in Rio de Janeiro.

The aspects foreseen mm the Memorandum have given rise to lengthy
discussions and analysis to date. Bearing tis in mind, and within the framework of
existing noms and regulations in the Republic of Bolivia, negetiations were undertaken
with several representatives of the oil industry, establishing, among other aspects, that
the strategy of PETROBRAS - Bolivia S.A. to construct the bypass along the YABOG
is incansistent, both fom an economic as well as z regulatory standpoint

‘At the economic level, PETROBRAS’ bypass project is at 3
disadvantage in relationship te Transredes S.A., because it is not capable of meeting ia
nme the Brazilian demand requirements (i.e. the Ume required to build the pipeline) nor
competing from an economic standpoint, unless it cludes the cbligafion to pay the
deferred actount, Within this perspective, the increased service costs resulting fom the
bypass shall respond to PETROBRAS’ exclusive market control objective.

Within the regulatory framework, the company that was capitalized
and gave rise to Transredes SA., was capitalized subject to the obligation to charge 2
lower tariff, temporarily subsidizing the domestic market, 2 subsidy that must be
recovered based on the new tariff and the volume of gas transported Upon the absence
of amendments to existing regulations, the construction of 1 new gas pipeline to export
gas to Brazil, will impose the recovery of te deferred account based on lower gas
volumes, with the ensuing negative econemic impact on the Bolivian domestic market as
well as on other producers that ust the existing transportation system.

Under said circumstances, the Hydrocarbons Superintendency,
applying the dispositions of Article 10 of the SIRESE Law No. 1600 dated October 28,
1994, may not grant the concession for the new pipeline due to the negative impact on
the market or because it considers it contrary to public interests. Within this context,
PETROBRAS chose to involve the Brazilian Government in the negotiations, thus
avoiding a dircet negotiation with Enron and other industry parucipants.

Conceming the agreement to support the implementation of the
thermoslectric plant in Puerto Swirez, conditioned to PETROBRAS participation
interests in the tame, ane the gas to be supplied by PETROBRAS- Bolima S.A, this
constitutes an wanecessary meddling of the Governments of Bolivia and Brazil in the
market and See competition. The wording of the second item in the Memorandum
seems to indicate that both governments prioritize < project led by PETROBRAS against
the efforts of all other pavate participants, forcing them to accept PETROBRAS 25 2
partmer and to use the gas produced by PETROBRAS ~ Bolivia S.A. in the project

00500000000140


From: Elizabeth K. Stewart

To: Domt3,00PO8(BLOOMGARDEND, CHRISTOPULOS, CLAPPG, MC...

Subject: OR Meeting -Reply -Reply

Enron DC reports that the $130m in arrears has arisen because in June, as part of the privatization process, the Government
‘stopped it's long-standing subsidy to CDE - which amounted to about $5m a week. CDE thus had no money to pay the IPPs.
Enron reports that all IPPs were treated the same and views the issue as one of “transitional privatization”.

Enron comments that going forward, budget allocation needs to be made to pay privatized distribution companies for GoDR power
consumption (Enron estimates to be about 25 percent, for which reportedly GoDR did not pay in the past),

{(b)(5)]

>>> Meg Donovan 11/22/99 11:38am >>>
Greg Christopulos asked me to phone the Embassy for a read out on Friday's meeting with the IPPs at the Presidential Palace.

{(b)(5)]

>>> Gene Clapp 11/19/99 05:59pm >>>
FYI; Briefing memo attached

00500000001206


oe we ewe oe wet ee eres vearee

£. Joseph Hillings
Vier President and General Manager
\ || Fakerst Comer ment Aine
Up \ | Enron Corp,
2, ae 775 Eye Srect, NW, Suite 400
Ar Dc 20006-4607
(200) 66-9105
Fax (202) E9972
\ jhiha@enran.com
VIA FAX i
202-622 5304 (fax)
June 1, 2000

Ms. Meg Lundsager

Deputy Assistant Secretary for Trade & investments
Department of Treasury

1500 Pennsylvania Avenue, NW

Room 3208

Washington, OC 20220

Dear Meg:

We have been advised the Brazilian Minister of Energy and Mines, Roberto
Tourinho will be in Washington, DC next week to meet with the InterAmerican

Bank and the World Bank.

Petrobras has not lived up to the conditions of their loan to seil their controlling
interest in the Bolivia-Brazil Pipeline. They were to have submitted a plan to do
so in November 1998, but neither of those institutions has taken action to require
compliance. Petrobras continues to restrict capacity on the pipeline which allows
them, despite privatization, to exercise control over the natural gas supply which
they are now extending into power generation.

| hope you can usé the opportunity of the Minister's visit to advise the
Government of Brazil that this conduct has put a strangle-hold on market access.

The principals had|agreed in the Summit of the Americas agreement and
subsequent agreements to the principle of market access.

singbrey,

Ke

ae: Auto

|
Natural gas. Electricity. Endless possibilities.TM

Gite" TUS Se5 Sse it pised pS:2t Seee-te-1E

00500000000118


From: Meg Donovan

To: StewatEK
Date: 4127100 6:09pm
‘Subject: DR Power Sector ~ barge

Elizabeth: | remember you asked me to keep you posted on the barge in the DR!

Cheers,
Meg

105 power generator installed in Boca Chica

The government received yesterday the 105 megawatt power barge that
will be provisionally installed in Andrés, Boca Chica. RadhamEs Segura
‘said that the plant will soon be connected to the system and will
provide relief from power outages. An extraordinarily increase in

power demand, due to the booming economy, and the aging of power
plants have resulted in power deficits which translate into blackouts
nationwide.

[(b)(5)]

00500000001169


{(b)(5)]

00300000000035


Window

Door

Door

00300000000028


From: Ch Gi

Sent: Thursday, January 10, 2002 11:42 AM

To: Hargraves, Dianita

Subject: FW: Bidg Clearance Data for Gerrison and Miceli
Importance: High

je get them cleared in.

Original Message-----~-

Prom: Miceli, Keith [mailto:Xeith.Miceligenron.com]
Sent: Thursday, January 10, 2002 11:26 aM

To: greg.christepulos@do.treas.gov

Subject: Bldg Clearance Data for Garrison and Miceli

Greg: Following is the information you requested for the meeting with DAS Englehard on
Tuesday, January 15 at 9:30 am at Main Treasury:

Keith L. Miceli

John Garrison {(b)(6)]

President and CEO, Azurix Corp.

If you have any questions, I can be reached at (713) 345-5956.

Regards, Keith

Stee w ewer eee eeeteeeeneeeaee

This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain
confidential and privileged material for the sole use of the intended recipient (s). Any
review, use, distribution or disclosure by others is strictly prohibited. If you are not
the intended recipient (or authorized to receive for the recipient), please contact the
sender or reply to Enron Corp. at enron.messaging.administrationgenron. and delere all
copies of the message. This e-mail (and any attachments hereto) are not intended to be an
offer (or an acceptance) and do not create or evidence a binding and enforceable contract
between Enron Corp. (or any of its affilia ) and the intended recipient or any other
party, and may not be relied on by anyone as the basis of a contract by estoppel or
otherwia: Thank you.

ATTEN RR TERE EERE EE HOHE TEE E EEE EE SHEE EOE EEeHee EEE EERE EE Een eeneeneee

00500000000095


7

Apsrentemente, PETROBRAS y Ministerio
Minas y Enecgia de Brasil estin watando de establecer que el dinico camino Pil
entrar en el mercado encr} éco brasilere es aves de acuerdos entre Gobiernos y
utlizande a PETROBRAS como vehiculs. Si esto fuers realidad, contravendria
todos los compramises asumides para alcanzar \2 iniegracion regional, basada a
los conceptos de libre competencia y acceso abierto.

En suma, ENRON cree que ta decisién del Supreme
Gobierno Boliviano de intervenir en favor de PETROBAS en lo que seria de otro
mode censiderade como una negociacién privada comercia] ¢ un tema 2 Ser
teeuelto de acuerda a los procedinientos regulaterios existentes, constituye un
obsticulo para el desarrollo del secter privado en Bolivia ENRON retifica su
voluntad de apoyar al Gobiemo de Bolivia en los esfuerzos que realizara para
crear condiciones d= equidad y no discriminacién para una mayor campetencia,
requiriende de todos los participantes er Js industria et cumplimiento d= los
muismos mecanismos regulatorios previstos por ley pare el desarrollo de sus
intereses comerciales. En cualquier caso, ENRON espera que los derechos que le
asigna Is Ley, 2.clla y a sus empresas afiliadas, sean respetades.

Con este motivo, reiteramos a ustedes, Sefores
Ministros, tas seguricades de nuestra distinguida considsracién.

José Bestard
Vicepresidente
Enron South America LLC

ce: Sefior Ministo de Relaciones Exteriores y Culto.
Sefiora Exnbajadora de Bolivia en los EP.UU de NA
Sefiora Embajadora de los EE.UU. de N.A. en Bolivia

Endless Possibilities

Tu-a2-2000 18:
sa INN 202 622 1432 P1018

TOT. P.Se

TOTAL P18

00500000000146


Prom: Margaret Kuhlow

To: CLAPPG

Date: 9/25/98 2:11pm

Subject: IDB Loan to Gas Company in Argentina -Reply
[(b)(5)]

>>> Gene Clapp 09/25/98 01:32pm >>>
Sara asked me to give you a heads up on a loan that is coming up in the IDB
Board next week.

It is a $75m A loan/$300m 8 loan for an Argentine gas transmission company
(TGS). The company has half of the transmission facilities in the country as
a result of the privatization of the SOE that formerly controlled the whole
system. TGS is controlled by a partnership arrangement that is owned by Enron
and the 3rd largest company in Argentina on a 50/50 basis. The loan is to
help finance a portion of a $1.4 bn investment program that will take place
over 1998-2002.

The funds are not linked to any specific project, since the details of the
investment program have not been worked out as yet. Rather, it is billed by
the IDB as a “corporate finance transaction". The main objective is to lower
the cost of funds to TGS. This will result from the bonds that are to be
placed privately receiving a higher, investment-qrade rating by virtue of the
IDB's involvement.

{(b)(5)]

[(b)(5)] , but will get back to
In the meantime, if you ave any views, please let us know.

cc: hurleyj, paulsons, semanst, stewartek, walshh

00500000001049


Statement of the PartiesFollowing the Meetings on California's Electricity Situation Page | of 2

a

TM TREASURY NEWS

FROM THE OFFICE OF PUBLIC AFFAIRS

FOR IMMEDIATE RELEASE

Wednesday, January 10, 2000
LS-1118

Statement of the Parties
Following the Meetings on California's Electricity Situation

The Governor of California and the bipartisan leadership of the State legislature met with major
generators (including qualifying facilities), marketers, utilities, regulators, and Federal officials, to
discuss the electricity situation in California.

Recognizing the importance of the issue, as laid out in the Governor's State of the State speech last
evening, the participants agreed on the need for cooperation to maintain stability and avoid
bankruptcy of California utilities, and assure the long-term regularity of market conditions.

Crucial clements of a solution include:

« The development of approaches to promote long-term purchases of electricity, possible by the
State, from generators at an attractive fixed rate.

« The willingness of generators, qualifying facilities, and marketers to provide on a short-term
basis forbearance of amounts owed by Pacific Gas and Electric and Southem California Edison
in the context of the framework of a comprehensive long-term solution,

* The need to find satisfactory approaches with respect to the obligation accumulation of the
utilities for the purchase of power, consistent with contractual obligations, and which are in the
public interest.

« Cooperation to better match supply and demand in the short and long term.

« Review of the existing qualifying facilities payment structures.

The parties acknowledge that the problem must be addressed while taking into account the regional
nature of the market.

To advance the process further, working groups will be convened Wednesday to address addition
technical details. The principals will reconvene this weekend.

Search | Email | Treasury Home Page | Sitemap

http://www.treas. gov/press/releases/ps1118,htm 01/30/2001

00300000000024


Office of Economic Policy Department of the Treasury

Washington, D.C. 20220

FAX Date: _l-G-0f

Number of pages including cover sheet:__

YSbe AGTY
<. 3 z “aq
‘ £¥h- O14!
Sint 222 - Ra~ ot

Erom:

Remarks: ‘oroeir __For your review _ Reply ASAP __ Please comment

hakst Vsesron

00300000000027


ENRON ema

Re vad, Z Te CC ENON Cow.

elect. Baden Centon. ow

00300000000111


From: Meg Donovan

To: Ex.Mall("TCrawtord@WorldBank org”), CHRISTOPULOS:
Date: 3/13/00 5:31pm
‘Subject: DR privaization prower project. -Reply -Reply -Reply

Just fo close the loop, | thought I'd update everyone on Todd's conversation with Orsalia’s staff (WB)-

{(b(5)]

>>> Greg Christopulos 03/13/00 05: >>>
Todd- We have no issue with the GON, but these are the points we want to raise with the OR.

((b)(5)]

cc: DOM13. DOPOS(CLAPPG, StewartEK), DOM3, OOPO6(SAMPLIN...

00500000001171


((b)(5)}

00500000001051


MEMORANDUM FOR THE SECRETARY

From: David Wilcox

Subject: Conversation with Steven Kean (Executive Vice President, ChieFot-Stafi,
ENRON Regarding the

Subjeet: California Electricity Market

Friday December+5,time?

You have been asked to ere-seheduled+te-speak by phone with Mr. Kean, who is concerned about

recent turmoil in the California electricity market. _Mr. Kean may raise the following issues:

((b)(5)]

00300000000039


mey-2a-2000 18:
18:37 TREAS ASST SEC INTL 2e2 622 8417
P.21728

£ Joseph Hillings
View Presiden and Generel Mamager
Fedes\ Covereoment Affe?

%, Enron
Wabingioe OC
(2G) AEBS
ream — Lg SAG

VIA FAX

202-622-0417 (Fax) tery

May 20. 2000 Mcevud
Tha Manorabie Edwin N. Truman Gu

Asssiant Secrawy. internetional Affairs

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Natural gas, Electricity. Endless possibilities.TM

a

00500000000127


((b)(5)]

00500000001191


"KuriyanltDoml3.Dopos" <Lyla.Kuriyan@Treas.Sprint.Com>,
“SaegerstDoml3 .Dopos* <Steven.Saeger@Ms0) .Do.Treas.Sprint.Com>,
*SemansttDom13.Dopo8* <"/G=Truman/S«Semans/Ou=M901/"@Treas.Sprint .Com>,
"SeverensatDom13 . Dopos* <Alex. Severens$Treas .Sprint .Com>,
"StewartektDom13.Dopos" <Elizabeth.K. Stewart@Ms01.Do,Treas.Sprint.Com>,
Susan Driano

cc:

Subject: Enron Indonesia IPP & MIGA

Date: 03/22/1999 01:37 pm (Monday)

From; Jill Cetina

To: CHRISTOPULOS, CLAPPG, HOARG, SABGERS, SEMANST, SEVERENSA,
StewartEK, KURIYANL, EX.MAIL. *sdriano@worldbank.org",
EICHENBERGERT

Subject: Enron Indonesia IPP & MIGA

Susan heard that Enron notified MIGA by phone on Friday of intent to file
a claim for the Indonesian IPP. Enron and MIGA are to meet on
Wednesday afternoon to discuss.

Susan is in the process of getting a copy of the original MIGA guarantee
proposal for the project s0 we know precisely what the scope of MIGA's
guarantee is.

Susan is meeting with MIGA staff now and will inquire where things
stand.

More news to follow....
vill

>>> Lyla Kuriyan 03/22/99 11:38am >>>

Just received a call from Enron. They did file a claim with MIGA last
Friday (supposedly the last day of their 18 month trigger to file a claim
with MIGA). They indicated that this was a very big deal for MIGA as a
claim has never been filed before, The Enron folks said that they have
been trying to work out something with GoI since the Presidential decree
(39?) which put power projects on hold, They weren't sure what the
process would be going forward, but will be in discussions with MIGA all
week (big meeting tomorrow morning) and said they would keep us

updated. Also asked that we keep this very close hold, as the GOI
doesn't know about this yet (they have also told State, Commerce and
the Embassy). Supposedly they are sending a letter to us, which I will
fax to all of you when I receive it.

>>> Jill Cetina 03/19/99 05:34pm >>>
Haven't heard anything about Enron filling a claim with MIGA -- would be
a very big deal -- first call on a MIGA guarantee. Let me discuss with

ouseD [(b)(5)]

00500000001031


((b)(4)]

3

00500000000039


8

eee reer

Likewise, through the agreement that allows PETROBRAS to
participate and respect a postage stamp tariff to be established for the transportation of
natural gas for the domestic and export markets, the Ministry of Economic Development
arrogates itsclf the amtributions acknowledged by the SIRESE Law to the Hydrocarbons
Superintendency, in adherence to the procedures established in said norm and its
regulations. Under said norms, the Supreme Government is neither entitled to dispose of
the proprietorship of the thermolectric plant to be built in Puerto Sudrez nor designate
the supplier of natural gas for the same.

{a its condition as investor in Bolivia, ENRON abides strictly by the
existing norms. Under the terms of the Memorandum, Bolivia's Supreme Government
sends a highly negative message to private investment, when it chooses to resolve
PETROBRAS’ commercial and regulatory difficulties through bilateral governmental
negotiations, requiring at the same time that private investors abide by existing norms
and regulations in: similar situations. In this sense, ENRON must insist on the need that
the Supreme Government of Bolivia carries on with the process subject to current norms
and mechanisms in effect in the country, ensuring at the same time that the Supreme
Government of Brazil guarantees equal conditions as well as the issuance of the
necessary authorizations and licenses, under the principles of non-discrimination and
free access acknowledged in the Economic Complementation Agreements, the Trade
Promotion Agreements and the Energetic Integration Agreements subscribed between
Bolivia and Brazil,

Apparently, PETROBRAS and the Brazilian Ministry of Mines and
Energy are trying to establish that the only way to enter the Brazilian energetic market is
through agreements between Governments, and using PETROBRAS as a vehicle. If this
were a reality, it would contravene the agreements assumed to aftain regional
integration, based an the concepts of free competition and open access.

To sum up, ENRON believes that the decision adopted by the
Supreme Government of Bolivia to intervene on behalf of PETROBRAS, which would
otherwise be considered a private commercial negotiation or a matter to be resolved in

adherence to existing regulatory proceedings, constitutes an obstacle for the
development of the private sector in Bolivia. ENRON ratifies its will to support the

Bolivian Government's efforts to create equitable and non-discriminatory conditions
aimed at fostering and enhancing competition, requiring that all participants within the
industry comply with the same regulatory mechanisms foreseen by law to advance their
commercial interests, In any case, ENRON expects that the rights conferred by law both
to it and its affiliates are respected.

We reiterate our highest considerations.

José Bestard
Vice President
Enron South America LLC

i

SQts Ee3 Foz 21 yISvO SSict eoge-Te-0

00500000000121


Bt’ Wid
-4-

Aparentemente, PETROBRAS y ¢l Ministerio
Minas y Energia de Brasil estan tratando de establecer que el dnico camino para
entrar en el mercado energético brasilero es través de acuerdos entre Gobiemos y
utilizando a PETROBRAS como vehiculo. Si esto fuera realidad, contravendria
todos los compromisos asumidos para alcanzar Ja integracién regional, basada en
los canceptos de libre competencia y acceso abierto,

En suma, ENRON cree que la decision del Supremo
Gobierno Boliviano de intervenir en favor de PETROBAS en Jo que seria de otro
modo considerado como una negociacién privada comercial o un tema a ser
resuelto de acuerdo a los procedimicntos regulatorios existentes, constituye un
obstaculo para ¢! desarrollo del sector privado en Bolivia. ENRON ratifica su
voluntad de apoyar al Gobierno de Bolivia en los esfuerzos que realizara para
crear condiciones de equidad y no diseriminacién para una mayor competencia,
requiriendo d= todos los participantes en la industria el cumplimiento de los
mismos mecazismos regulatorios previstos por ley para el desarrollo de sus
intereses comerciales. En cualquier caso, ENRON espera que los derechos que le
asigna la Ley, a ella y a sus empresas aSiliadas, scan respetados.

Con este motivo, reiteramos a ustedes, Seviores
Ministros, las seguridades de nuestra distinguida consideracién.

José Bestard

Vicepresidente
Enron South ‘Aaleriea LLC
'

cc:  Seor Ministro de Relaciones Exteriores y Culto.
SeSora Embajadora de Bolivia en los PE.UU de N.A.
Seora Embajadora de los EE.UU. de N.A. en Bolivia

: Endless Possibilities

BiOi'd Pets feo 202 13 y1S0 SS:2t_ 2edz-te-EF

00500000000126


ce: Minister of Forcign Affairs and Cult
Madame Ambassador of Bolivia in the United States of America
Madame Ambassador of the United States of America in Bolivia

Qi ees 275 Zoe dL 150. SS int Soest eine

00500000000122


Haven't heard anything about Enron filling a claim with MIGA -- would be a
very big deal -- first call on a MIGA guarantee. Let me discuss with OUSED

{(b)(5)]

>>> Greg Christopuloa 03/19/99 05:05pm >>>

= just heard from the State Indon desk (Virginia Murray) that Enron is filing
a claim with MIGA to get compensation for an IPP project which the Gor
canceled last year,

Enron has told Virginia they have been trying to work out a deal with the Gor
for the last 18 mos or so with no success. She thinks this claim will probably
come a% @ surprise to GOI at the same time they get a letter from US senators
complaining about the treatment of IPPs and the US abstains on an ADB elec
sector loan.

T don't have any further details on this project or the claim yet. {(b)(5)]

00500000001034


From: Meg Donovan

To: StewartEK
Date: 3/18/00 1:04pm
Subject: Barge
Enzabeth:

re: the barge, evidently it is supposed to arrive by April (see text which follows) and be operational “shortly thereafter.” Wisee
etse I'l make sure | forward A.

00500000001170


Ch los, G

Christopulos, Greg

Wednesday, December 12, 2001 4:18 PM

“Thompsonsh@State.gov’

Neil Efied (E-mail)

FW: Request for Meeting re. Azurix Corp Dispute with the Province of BA in Argentina

Ane ntratgacete
eestor! Steve, this is che background paper on the Azurix/Enron dispute in
Argentina.

Neil -- I don't remember if I sent you a copy of this before I left. DAS Strubel met with
Azurix on this yesterday.

mailto:Keith.Miceligenron.com)

Sent: Friday, November 30, 2001 12:02 PM

To: greg.christopulos@do.treas.cov

Subject: Request for Meeting re. Azurix Corp Dispute with the Province
of BA in Argentina

November 30, 2001

Greg Christopolus
International Economist
International Affairs
Treasury Department
Washington, D.C,

Dear Greg:

Thanks for offering to arrange a meeting with John Garrison, President
and CEO of the Azurix Corp. and myself. The purpose of the meeting to
provide a briefing on the status of a half a billion dollar investment
dispute that the Azurix Corp. has with the Province of Suenos Aires.
Attached is a confidential briefing paper that provides a history of the
dispute; our efforts to resolve it amicably; the lack of good will on
the part of the Provincial authorities to find a resolution, and some
suggestions to break the impasse to the benefit of all parties
concerned.

T understand that you will be on travel for those dates, and that you
will speak with Bonnie Resnick about meeting with us. I can be
contacted at (713) 345-5956 or keith.miceli@enron.com to finalize
arrangements. Many thanks,

Sincerely,
Keith L. Miceli
Senior Director

International Public Relations

«<<AzurixBriefingPaperRevisedNovi9.doc>>

00500000000099


Stephen L, Baum
Chairman, President and CEO, Sempra Energy

Peter Cartwright
President, CEO, and Chairman, Calpine

Harvey J. Padewer
Group President Energy Services, Duke Energy Corporation

Steve Bergstrom
President, Dynegy, Inc.

Joe Bob Perkins
President and COO, Reliant Energy Wholesale Group

Marce Fuller
President and CEO, Southem Energy, Inc.

Jan Smutny-Jones
Exccutive Director, Independent Energy Producers Association

Alan Richardson
CEO, Pacificorp

Ken Lay

Chairman, ENRON

Keith Bailcy

Chairman, President and CEO, The Williams Companies

Lynn Schenk
Chief of Staff to Governor Davis

00300000000026


{(b)(5)]

ce: Dom13.00PO8(DONOVANM, SILLSG), DOM3. DOPOG(SAMPLINE....

00500000001208


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Matural gas. Electricity. Endless possibilities."

We TOTAL PRGE.@.

00500000000139


«$-

En dichas circunstancias, la Superintendencia de
Hidrocarburos, en aplicacién de lo dispuesto por ei articulo 10 de la Ley No. 1600
de! SIRESE de 28 de octubre de 1994, pudicra negar cl otorgamiento de la
concesién para el nuevo ducto por el impacto negativo en el mercado o por
considerarla contraria al interés pUblico. En este contexto, PETROBRAS ha
optado por invdlucrar al Gobierno Brasilero en las negociaciones, evitando asi
llevarlas 2 cabo directamente con Enron y los demas participantes de la industria.

En cuanto al acuerdo para apoyar la
implementacién de la termocléctrica de Puerto Sudrez, condicionado a la
Participacién accionan'a de PETROBRAS tn la misma, y al aporte del gas
proveniente de PETROBRAS - Bolivia S.A., e! mismo constituye una innecesaria
intromisién de los Gobiemes de Bolivia y Brasil en el mercado y la libre
competencia, El texto del segundo punto del Memorandum parece reflejar que
los dos Gobiernes dan prioridad a un proyecto liderado por PETROBRAS contra
los esfuerzos de los diversos participantes privados, forzindolos a aceptar a
PETROBRAS como socie y a utilizar el gas de PETROBRAS - Bolivia S.A. en

el proyecto.

Asimismo, mediante el acuerdo para que
PETROBRAS participe y respete una tarifa estampilla de transporte de gas
nafural para el mercado interno y de exportacién a ser establecida, el Ministerio
de Desarrollo Econdmico se arroga las atribuctones reconocidas a la
Superintendencia de Hidrocarburos por la Ley SIRESE. de acuerdo a los
procedimientos establecidos en dicha norma y sus reglamentaciones. Bajo dichas
normas, el Suprerno Gobierno tampoco se halla facultado para disponer acerca de
la propiedad de la planta termoeléctrica a ser construida en Puerto Suarez o acerca

de] proveedor de' gas natural para la misma.

En su condicién de inversionista en Bolivia,
ENRON se sujeta estrictamente a las normas existentes. En los términos del
Memorandum, e] Supremo Gobierno de Bolivia envia un mensaje altamente
negativo a la inversion privada, al elegir resolver Jas dificultades comerciales y
regulatorias de PETROBRAS a través de negociaciones gubemamentales
bilaterales, al mismo tiempo que requiere de los inversionistas privados la
sujecion a las normas y regulaciones existentes en aspectos similares. En este
sentido, ENRON debe insistiz en ta necesidad de que el Supremo Gobierno de
Belivia conduzca el proceso dentro de los mecanismos y normas vigentes er, el
pais, asegurando al mismo siempo, que el Supremo Godiemo de! Brasil garantice
condiciones igualitarias y la emisién de las licencias y autorizaciones necesarias,
bajo los prinsipios de no discriminacién y libre acceso reconocides en los
Acuerdos de Complementacién Econdémica, los Acuerdos de Promocidn del
Comercio y de Integracién Energética suscritos por Bolivia con dicha Republica.

Endless Possibilities

POEs FES FE ii 3is0 SS:47%_ 2Oge-To-Ne

00500000000125


MEMORANDUM FOR DEPUTY ASSISTANT SECRETARY SCHUERCH

FROM:

SUBJECT:
Date and Time:
PARTICIPANTS:

Treasury:

Cogentrix:

BACKGROUND:
{(b)(5)}

November 19, 1999

Sara Paulson
Acting Director
Office of Multilateral Development Banks

Briefing for Your Meeting with Cogentrix
Monday, November 22, 1999, at 2:00 pm

DAS Schuerch

Gene Clapp, IDB
Elizabeth Stewart, IDB
Greg Christopulos, ITI
Mcg Donovan, INL
Wes McGrew, INL
Gary Sampliner, GC

Mark Miller, President & COO
Yamin Afshar

Bill Boardman, Sen. Advisor to CEO
Steven Doyon, VP for Business Dev.
Jef Freeman. VP for Corp Communications

00500000001203


{(b)(5)}

00300000000106


{(b)(5)]

00300000000102


From: Greg Christoputos

To: Dom13.00P06(CLAPPG), MCGREWW
Date: 11/19/99 11:33am
Subject: Update on IPP disputes in the DR -Reply -Reply -Reply -Reply

Mog sent the post a copy of our e-mails and | sent State a copy of the letter. They are following up.
>>> Wes McGrew 11/19/89 11:30am >>>

{(b)(5)]

should greg or meg check with state on what the GODR's position is?

>>> Grag Christopulos 11/19/99 10:04am >>>
The projected [ADB Board date is Dec 5.

((b)(5)]

>>> Wes McGrew 11/18/99 06:31pm >>>
thanks, greg. a few questions

((b)(5)]

00500000001207


January 10, 2001
Events
[(b)(4)]

1

00500000000037


Mry-T2-2008 «16:18 TREAS ASST SEC INTL 282 622 G417 P.e5/08

Enron América do Sul
Avenida das Nacoes Unidas, 1/451
ty, Brooklin Novo 5* Andar
%, Sao Paulo~ SP. Brasil

Séo Paulo, Mayo 26, 2000

Sefior Licenciado

Don Ronald MacLean Abaroa
Ministro de Hacienda

La Paz, Bolivia

Sefior Licenciado

Don José Luis Lupo Flores
Ministro de Desarrollo Econémico
La Paz, Bolivia

Excelentisimos Sefiores Ministros:

Por la presente, en representacién de Enron
South America LLC (*ENRON"), deseo expresar nuestra mayor preocupacién por
fos términos y los alcances del Memorandum de Entendimiento suscrito entre el
Ministerio de Desarrollo Econémico de la Repblica de Bolivia y el Ministerio de
Minas y Energia de la Republics Fedesativa de! Brasil, de fecha veintitrés de
mayo de dos mil aftos (“el Memorandum”).

El interés de ENRON sobre este importante
aspecto, obedece tanto a su condicién de accionista en un 25% (veinticinco por
ciento) de Transredes S.A., como a su calidad ds potencial inversionista en
nuevos proyectos destinados a desarrollar nuevas opciones de mercado para e] gas
natural boliviano y a fortalecer la integracién energética regional, en base a la
libre competencia.

Como es de su conocimiento, nuesta
empresa se halla desde hace mucho tiempo atrés comprometida con el Supremo
Gobierno de Bolivia en dar respuesta a los requerimientos de gas natural de la
Republica Federativa del Brasil dentro del denominade programa de emergencia
de las termoeléctricas, y en Ja construccién de la termoeléctrica de Puerto Suirez,
destinada a la exportacién de energia eléctrica al mercado brasilero. Empero, el

00500000000131


>>> Greg Christopulos 03/19/99 05:05pm >>>

I just heard from the State Indon desk (Virginia Murray) that Enron is filing
a claim with MIGA to get compensation for an IPP project which the GOT
canceled last year.

Enron has told Virginia they have been trying to work out a deal with the
GOI for the last 18 mos or so with no success. She thinks this claim will
probably come as a surprise to GOI at the same time they get a letter

from US senators complaining about the treatment of IPPs and the US
abstains on an ADB elec sector loan.

i don't have any further details on this project or the claim yet. ((b)(5)]

cc: DOMI3.DOPOS (CHRISTOPULOS, CLAPPG, HOARG, SAEGERS, ...

00500000001032


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00300000000108


From: Greg Christopulos:

To: BLOOMGARDEND, CLAPPG, DONOVANM, LUNDSAGERM, Schuer...
Date: 11/23/99 10:51am
Subject: RE: DR Power Project -Reply -Reply

{(b)(5)]

>>> ex.mail "BRUCE J@iadb org” 11/23/89 08:43am >>>
{(b)(5)}

william. schuerch@do.treas. gov
Subject; Re: DR Power Project -Reply

Date: 11/22/1999 05:48 pm (Monday)

00500000001189


{(b)(5)}

00300000000036


From: Lyla Kuriyan

Tor CHRISTOPULOS, CLAPPG, BICHENBERGERT, HOARG, SEMANS...
Date: 3/22/99 4:16pm
Subject: Enron Indonesia IPP & MIGA -Reply

more about Enron...again, very close hold:

Enron's Country Manager for Indonesia, Brian Corbin, called the Embassy to
discuss the claim process. According to Corbin, Enron took out $15m in MIGA
political risk insurance coverage to protect its equity contribution in the
Pasuruan Power Project. Anthony Salim and Suharto's son Bambang Trihatmodjo
are Enron's partners in the gas-fired plant located in Rast Java. Corbin
believes that Enron has a strong case and interprets the presidential decision
that postponed the Pasuruan Project as 100% political. Corbin sid that Enron
has put in far more equity than its claim and will claim the full amount from
MIGA.

Corbin said that Enron and MIGA will meet tomorrow to talk about the process
going forward. MIGA will then open discussions with the GOI. MIGA has a
xeinsurance agreement with the GOI and it will try to recover the $15m from
them. Corbin believed that MIGA will use the full six months allotted to
investigate Enron's claim. Corbin also predicted that MIGA will unsuccessfully
seek to reach a compromise. The only compromise acceptable to Enron is to
reinstate the project, which is unacceptable to GOI.

>>> Jill Cetina 03/22/99 01:37pm >>>

Susan heard that Enron notified MIGA by phone on Friday of intent to file a
claim for the Indonesian IPP. Enron and MIGA are to meet on Wednesday
afternoon to discuss.

Susan is in the process of getting a copy of the original MIGA quarantee
proposal for the project so we know precisely what the scope of MIGA's
guarantee is.

Susan is meeting with MIGA staff now and will inquire where things stand.
More news to follow....
will

>>> Lyla Kuriyan 03/22/99 11:36am >>>

Just received a call from Enron. They did file a claim with MIGA last Priday
(supposedly the last day of their 18 month trigger to file a claim with MIGA).
They indicated that this was a very big deal for MIGA as a claim has never
been filed before. The Enron folks said that they have been trying to work
out something with GOI since the Presidential decree (397) which put power
projects on hold. They weren't sure what the process would be going forward,
but will be in discussions with MIGA all week (big meeting tomorrow morning)
and said they would keep us updated. Also asked that we keep this very close
hold, as the GOI doesn't know about this yet (they have also told State,
Commerce and the Embassy). Supposedly they are sending a letter to us, which
I will fax to all of you when I receive it.

>>> Jill Cetina 03/19/99 05:34pm >>>

00500000001033


"4
yy" &y

MEMORANDUM FOR DEPUTY ASSISTANT SECRETARY SCHUERCH
FROM: Joseph B. Eichenberger

Director

Office of Multilateral Development Banks

SUBJECT: Argentina: IDB financing for Transportadora de Gas del Sur S.A.
{(b)(5)]

00500000001050


California Electricity Meeting
Department of the Treasury
Tuesday, January 9, 2001, 5:00 PM

Lawrence Summers
Secretary of the Treasury

Bill Richardson
Secretary of Energy

Gene Sperling
Director, National Economic Council

James Hoecker
Chairman, Federal Energy Regulatory Commission

Gray Davis
Governor of California

Loretta Lynch
President, California Public Utilities Commission

Robert Hertzberg
Speaker, California State Assembly

John Burton
President Pro Tem, California State Senate

Terry M. Winter
President and Chief Executive Officer
California Independent System Operator

John E. Bryson
Chairman, President and CEO of Edison International

Robert D. Glynn, Jr.
Chairman, CEO and President, PG&E Corporation

Stephen L. Baum
Chairman, President and CEO, Sempra Energy

Peter Cartwright
President, CEO, and Chairman, Calpine

Harvey J, Padewer
Group President Energy Services, Duke Energy Corporation

00300000000032


From: Jill Cetina

Tor CHRISTOPULOS, CLAPPG, HOARG, SABGERS, SEMANST, SEV...
Date: 3/22/99 1:37pm

Subject: Enron Indonesia IPP & MIGA

Susan heard that Enron notified MIGA by phone on Priday of intent to file a
claim for the Indonesian IpP. Enron and MIGA are to meet on Wednesday
afternoon to discuss.

Susan is in the process of getting a copy of the original MIGA quarantee
Proposal for the project so we know precisely what the scope of MIGA's
guarantee is.

Susan is meeting with MIGA staff now and will inquire where things stand,
More news to follow...,
vill

>>> Lyla Kuriyan 03/22/99 11:38am >>>

Just received a call from Enron. They did file a claim with MIGA last Friday
(supposedly the last day of their 18 month trigger to file a claim with MIGA).
They indicated that this was a very big deal for MIGA as a claim has never
been filed before. The Enron folks said that they have been trying to work
out something with GOI since the Presidential decree (397) which put power
projects on hold. They weren't sure what the process would be going forward,
but will be in discussions with MIGA all week (big meeting tomorrow morning)
and said they would keep us updated. Also asked that we keep this very close
hold, as the GOI doesn't know about this yet (they have also told State,
Commerce and the Embassy). Supposedly they are sending a letter to us, which
I will fax to all of you when I receive it.

>>> Jill Cetina 03/19/99 05:34pm >>>
Haven't heard anything about Enron filling a claim with MIGA -- would be a
very big deal -- first call on a MIGA guarantee. Let me discuss with OUSED

{(b)(5)]

>>> Greg Christopulos 03/19/99 0$:05pm >>>

I just heard from the State Indon desk (Virginia Murray) that Enron is filing
a claim with MIGA to get compensation for an IPP project which the GOI
canceled last year.

Enron has told Virginia they have been trying to work out a deal with the Gor
for the last 18 mos or so with no success. She thinks this claim will probably
come as a surprise to GOI at the same time they get a letter from US senators
complaining about the treatment of IPPs and the US abstains on an ADB elec
sector loan.

i don't have any further details on this project or the claim yet. [(b)(5)]

00500000001037


From: Meg Donovan

To: CLAPPG, CHRISTOPULOS, StewarlEK, DOM3.00P06,SAMPLI...
Date: 2/1800 4:36pm

Subject: DR Power Sector

to 5) Enron said this moming that the only thing that got the govemment’s attention was the ability to
eR GoUh pote (0.5)

Local Media

‘A 105 megawatt generator barge will dock in the port of Boca Chica in the beginning of April. The plant is expected to go on line
shortly after, contributing to reduce blackouts in the DR. The announcement was made in Singapore by Temostocies Montis,
Technical Secretary of the Presidency, who is accompanying President Leonel Fernindez on his Asian tour. He explained that
the barge, property of Western Energy, has a cost of US$60 million, Its installation will not cost the Dominican state, as it will
derive its profits from sale of energy to whoever will purchase this. The owner of Western Energy, Mr, Oato Joseph Chong, a
Malaysian businessman, had visited President Fem@ndez in Santo Domingo. Montis announced in Singapore, that the barge is
‘one of two that will come, Another is expected to arrive in July,

00500000001175


mAy=32-2008 18:28 TREAS ASST SEC INTL 202 622 2417 P.27/¢8
#3

En dichas circunstancias, la Superintendencia de
Hidrocarburos, en aplicacién de lo dispuesto por el articula 10 de la Ley No. 1600
del SIRESE de 28 de octubre de 1994, pudiera negar el otorgamiento de la
concesién para el nuevo ducto por el impacto negativo en el mercado o por
considerarla contraria al interés publico, En este contexto, PETROBRAS ba
optado por involucrar al Gobiemo Brasilero en Jas negociaciones, evitando asi
levarlas a cabo directamente con Enron y los dems participantes de Ia industria.

En cuanto al acuerdo para apoyar la
implementaciéa de Ja termoeléctrica de Puerto Suarez, condicionado a la
participacién accionaria de PETROBRAS en la misma, y al aporte del gas
proveniente de PETROBRAS - Bolivia S.A., el mismo constituye una innecesaria
intromision de los Gobiernos de Bolivia y Brasil en ¢l mercado y la libre
competencia. El texto del segundo punto del Memorandum parece reflejar que
los des Gobiernos dan pricridad a un proyecte liderado por PETROBRAS contra
los esfuerzos de los diversos participantes privados, forzindolos 2 aceptar a
PETROBRAS como socio y a utilizar el gas de PETROBRAS — Bolivia S.A. en

¢l proyecto.

Asimismo, mediante ¢] acuerdo para que
PETROBRAS participe y respete una terifa estampilla de transporte de gas
natural para el mercado inteme y de exportacion a ser estadlecida, el Ministerio
de Desarrollo Econémice se arroga las atribuciones reconocidas a la
Superintendencia de Hidrocarburos por la Ley SLRESE, de acuerdo a los
procedimientos establecidos en dicha norma y sus reglamentaciones. Bajo dichas
normas, el Supremo Gobjerno tampoco se halla facultado para disponer acerca de
la propiedad de la planta termoeléctrica a ser construida.en Puerto Suarez 0 acerca
del proveedor de gas natural para la misma.

En su condicién de inversionista en Bolivia,
ENRON sc sujeta estrictamente a las normas existentes. En los términos del
* Memorandum, ¢l Supremo Gobiemo de Bolivia envia un mensaje altemente
negativo a la inversion privada, al elegir resolver las dificultades comerciales y
tegulatarias de PETROBRAS a ‘raves de negociaciones gubernamentales
dilaterales, al mismo ‘tiempo que requiere de los inversionistos privacos la
Sujecion a las normas y regulaciones existentes en aspectos similares. En este
sentido, ENRON debe insistir en la necesidad de que el Supremo Gobierno de
Bolivia conduzca el proceso dentro de los mecanismos y normas vigentes en el
pais, asegurando al mismo tiempo, que ¢l Supremo Gobierno del Brasil garantice
condiciones igualitarias y lz emision de Jas licencias y autorizaciones necesarias,
bajo los principios de no discriminacién y libre acceso reconocidos en los
Acuerdos de Complementacién Econémica, los Acuerdos de Promocién del
Comercio y de Integracidén Energética suscritos por Bolivia con dicha Repiiblica.

Endless Possibilities

00500000000133


MAY-32-2082 «16:37 TREAS ASST SEC INTL 202 $22 04:7 P.a3/038

Likewise, through the agreement that allows PETROBRAS to
participate and respect a postage stamp tariff to be established for the transportation of
natural gas for the domestic and export markets, the Ministry of Economic Development
arrogates itself the attributions acknowledged by the SIRESE Law to the Hydrocarbons
Superintendency, in adherence to the procedures established in said norm and its
regulations, Under said norms, the Supreme Government is neither entitled to dispose of
the proprietorship of the thermolectric plant to be built in Puerto Suarez nor designate
the supplier of natural gas for the same.

In its condition as investor in Bolivia, ENRON abides strictly by the
existing norms, Under the terms of the Memorandum, Bolivia's Supreme Government
sends a highly negative message to private investment, when it chooses to resolve
PETROBRAS’ commercial and regulatory difficulties through bilateral governmental
negotiations, requiring at the same time that private investors abide by existing norms
and regulations in similar situations. In this sense, ENRON must insist on the need that
the Supreme Government of Bolivia carries an with the process subject to current norms
and mechanisms in effect in the country, ensuring at the same time that the Supreme
Government of Brazil guarantees cqual conditions as well as the issuance of the
necessary authorizations and licenses, under the principles of non-discrimination and
free access acknowledged in the Economic Complementation Agreements, the Trade
Promotion Agreements and the Energetic Integration Agreements subscribed between
Bolivia and Brazil.

Apparently, PETROBRAS and the Brazilian Ministry of Mines and
Energy are trying to establish that the only way to enter the Brazilian energetic market is
through agreements between Governments, and using PETROBRAS as 2 vehicle, If this
were a reality, it would contravene the agreements assumed, to attain regional
integration, based on the concepts of free competition and open access.

To sum up, ENRON believes that the decision adopted by the
Supreme Government of Bolivia to intervene on behalf of PETROBRAS, which would
otherwise be considered a private commercial negotiation or a matter to be resolved in
adherence to existing regulatory proceedings, constitutes an obstacle for the
development of the private sector in Bolivia. ENRON ranfies its will to support the
Bolivian Government's @fforts to create equitable and non-discriminatery conditions
aimed at fostering and enhancing competition, requiring that all participants within the
industry comply with the same regulatory mechanisms foreseen by law to advance their
commercial interests. In any case, ENRON expects that the nights conferred by law both
to it and its affiliates are respected,

We reiterate our highest considerations.

José Bestard
Vice President
Enron South America LLC

00500000000129


Hambor, John

nS

From: Huffman, Lucy

Sent: Thursday, February 15, 2001 2:36 PM

To: Hambor, John

Subject: FW: Proposed Changes to Netting Bill -- Comments

FY|--working with Norman on netting provisions of the bankruptcy bil,

-----Original Message-----

From: Huffman, Lucy

Sent: Wednesday, February 14, 2001 5:24 PM
To: Carleton, Norman

Subject: RE: Proposed Changes to Netting Bill - Comments

Thanks for forwarding. I've read the proposals and Krimminger’s comments, and, as you know, unencumbered by more
than a little experience in this area, would like to ask you the following questions, (see between dotted lines under

Krimminger’s comments)

From. Carleton, Norman

Sent; Tuesday, February 13, 2001 5:10 PM
To: Huffman, Lucy
Subject: FW: Proposed Changes to Netting Bill - Comments

-----Original Message----~

From: Krimminger, Michael H. [mailto:MKrimminger@FDIC.gov]
Sent: Tuesday, February 13, 2001 4:47 PM

To: ‘norman.carleton@do.treas. gov’, "stephanie.martin@trb.gov',
‘Tom.McGivern@do.treas.gov’; 'MooneyJ@sec.gov’

Ce: DeLoose, Michael; Ivie, Stanley R.; Tishuk, Barbara Starke
Subject: Proposed Changes to Netting Bill -- Comments.

{(b)(5)]

00300000000097


agreement allowing PETROBRAS to participate in a postage stamp tariff to be
established for the transportation of natural gas for the damestic and export market, and
defines in conjunetion with the technical mission appointed by the Ministry of Economic
Development the' operational aspects related to said tariff as well as the other points
detailed in the Memorandum, at the meetings to be held in Rio de Janeiro.

The aspects foreseen in the Memorandum have given rise to lengthy
discussions and analysis to date. Bearing this in mind, and within the framework of
existing norms and regulations in the Republic of Bolivia, negotiations were undertaken
with several representatives of the oi! industry, establishing, among other aspects, that
the strategy of PETROBRAS - Bolivia S.A. to construct the bypass along the YABOG
is inconsistent, both from an economic as well as a reguiatory standpoint.

Ar the economic level, PETROBRAS" bypass project is at a
disadvantage in relationship to Transredes S.A., because it is not capable of meeting in
time the Brazilian demand requirements (i.e. the time required to build the pipeline) nor
competing from an economic standpoint, unless it eludes the obligation to pay the
deferred account. |Within this perspective, the increased service costs resulting from the
bypass shall respond to PETROBRAS" exclusive market control objective.

Within the regulatory framework, the company that was capitalized
and gave rise to Transredes S.A., was capitalized subject to the obligation to charge a
lower tariff, temporarily subsidizing the domestic market, a subsidy that must be
recovered based op the new tariff and the volume of gas transported. Upon the absence
of amendments to existing regulations, the construction of a new gas pipeline to export
gas to Brazil, will impose the recovery of the deferred account based on lower gas
volumes, with the ensuing negative economic impact on the Bolivian domestic market as
well as on other producers that use the existing transportation system.

Under said circumstances, the Hydrocarbons Superintendency,
applying the dispositions of Article 10 of the SIRESE Law No. 1600 dated October 28,
1994, may not grant the concession for the new pipclinc due to the negative impact on
the market or because it considers it contrary to public interests. Within this context,
PETROBRAS chose to involve the Brazilian Government in the negotiations, thus
avoiding a direct negotiation with Enron and other industry participants.

Concerning the agreement to support the implementation of the
thermoelectric plant in Puerto Sudrez, conditioned to PETROBRAS participation
interests in the same, and the gas to be supplied by PETROBRAS: Bolivia S.A., this
constitutes an unnecessary meddling of the Governments of Bolivia and Brazil in the
market and free competition. The wording of the second item in the Memorandum
seems to indicate that both governments prioritize a project led by PETROBRAS against
the efforts of all other private participants, forcing them to accept PETROBRAS as 3
parmer and to use the gas produced by PETROBRAS — Bolivia S.A. in the project,

aL visvo Sait coger

Dire pees 23 cee
00500000000120


-2-

Memorandum parece imponer sobre la Reptblica de Bolivia condiciones para el
desarrollo de los proyectos sefialados, cn detrimento de las inversiones existentes
y comprometidas en Bolivia, pasando por alto el marco regulatotio vigente y
negando a los inversionistas privados 1a oportunidad de acogerse a los derechos
previstos en sus normas.

En efecto, cl Memorandum crea las bases para la
construccion de un gasoducto en Bolivia para el transporte de gas aj Brasil y
establece e] acuerdo para apoyar el proyecto de Io termoeléctrica de Puerto
Suarez, pero condicionada a 12 participacién accionaria de PETROBRAS en la
misma, y con el aporte de gas proveniente de PETROBRAS - Bolivia S.A.
Asimismo, establece ¢] acucrde para que PETROBRAS participe en una tania
estampilla de trinsporte de gas natural para el mercado intemo y de exportacidn a
ser establecida y defina con ia misién técnica destacada por el Ministerio de
Desarrollo Econismica, los aspectos operacionales en relacién a dicha tarifa y a
les demas puntos sefialados en el Memorandum, en las reuniones que se
desarrollaran en Rio de Janeiro.

Los aspectos contemplados en ¢] Memorandum han
sido motivo de larga discusién y anilisis hasta la fecha. Con ese objetivo, y
dentro del marco de as normas y regulaciones existentes cn la Repiblica de
Bolivia, se han [evade a cabo negociacioncs con diversos representantes de la
industria, estableciéndose, entre otros aspectos, que la estrategia de PETROBRAS
- Bolivia S.A. para construir el ducto derivado al YABOG (“bypass”) es
inconsistente, tanto desde el punto de vista econdmico como reguiatorio.

En el plano economico, el proyecto bypass de
PETROBRAS se encuentra en desventaja con Transredes S.A. al no hallarse en
condiciones de responder a tiempo los requerimientos de la demanda brasilera
(v.gr. el tiempo de construccién del ducto) ni poder competir cconémicamente,
salvo -que eluda la responsabilidad de pagar la cuenta diferida. En esa
perspectiva, el incremento del costo del servicio consecuencia dei bypass,
responderia al exclusive objetivo de control del mercado por parte de
PETROBRAS.

En el piano regulatorio, la empresa de cuya
Capitalizacién emerge Transredes S.A, fue capitalizada con la obligacién de
cobras una tarifs inferior a la necesaria , subsidiando temporariamente al mercado
internc, subsidio que debe ser recuperado en base a La nueva tarifa y al volumen
de gas transportado. En ausencia de enmiendas a las regulaciones existentes, la
construccién de ‘un nuevo gasoducto para la exporacién de gas al Brasil,
impondrd la recuperacién de la cuenta diferida sobre un volumen menor de gas,
con ¢] consecuente impacto econdmico negativo sobre el mercado interno
baliviano y sobre‘otros productores que utilizan el sistema de transporte existente.

Endless Possibilities

Ores Pers 229 fae ii siseo SS:4t SSee-te-U

00500000000124


From: Lyla Kuriyan

To: Doml3.DOPOB(CHRISTOPULOS, CLAPPG, HOARG, SEMANST, ...
Date: 3/22/99 11:38am

Subject: Enron Indon IPP & MIGA -Reply -Reply

Just received a call from Enron. They did file a claim with MIGA last Friday
(supposedly the last day of their 18 month trigger to file a claim with MIGA).
They indicated that this wan a very biq deal for MIGA as a claim has never
been filed before. The Enron folks said that they have been trying to work
cut something with GOI since the Presidential decree (35?) which put power
projects on hold. They weren't sure what the process would be going forward,
but will be in discussions with MIGA all week (big meeting tomorrow morning)
and said they would keep us updated. Also asked that we keep this very close
hold, as the GOI doesn't know about this yet (they have also told State,
Commerce and the Embassy). Supposedly they are sending a letter to us, which
I will fax to all of you when I receive it.

>>> Jill Cetina 03/19/99 05:34pm >>>
Haven't heard anything about Enron filling a claim with MIGA -- would be a
very big deal -- first call on a MIGA guarantee, Let me discuss with OUSED

{(b)(5)]

>>> Greg Christopulos 03/19/99 05:05pm >>>

I just heard from the State Indon desk (Virginia Murray) that Enron is filing
@ claim with MIGA to get compensation for an IPP project which the GOT
canceled last year.

Enron has told Virginia they have been trying to work out a deal with the Gor
for the last 18 mos or so with no success. She thinks this claim will probably
come as a surprise to GOI at the same time they get a letter from US senators
complaining about the treatment of IPPsz and the US abstains on an ADB elec
sector loan.

I don't have any further details on this project or the claim yet. {(b)(5)]

00500000001036


{((b)(5)]

00300000000040


MAY-32-2028 19:37 TRERS ASST SEC INTL 222 622 8417 P.a2/e8

agreement allowing PETROBRAS to participate in a postage stamp tariff to be
established for the transportation of natural gas for the domestic and export market, and
defines in conjunction with the technical mission appointed by the Ministry of Economic
Development the operational aspects related to said tariff as well as the other points
detailed in the Memorandum, at the meetings to be held in Rio de Janeiro.

The aspects foreseen in the Memorandum have given rise to lengthy
discussions and analysis to date. Bearing this in mind, and within the framework of
existing norms and regulations in the Republic of Bolivia, negotiations were undertaken
with several representatives of the oil industry, establishing, among other aspects, that
the strategy of PETROBRAS — Bolivia S.A. to construct the bypass along the YABOG
is inconsistent, both from an economic as well as a regulatory standpoint,

At the economic level, PETROBRAS' bypass project is at a
disadvantage in relationship te Transredes S.A., because it is not capable of meeting in
time the Brazilian demand requirements (i.e. the time required to build the pipeline) nor
competing from an economic standpoint, unless it eludes the obligation to pay the
deferred account. Within this perspective, the increased service costs resulting from the
bypass shall respond to PETROBRAS' exclusive market control objective.

Within the regulatory framework, the company that was capitalized
and gave rise to Transredes S.A., was capitalized subject to the obligation to charge a
lower tariff, temporarily subsidizing the domestic market, a subsidy that must be
recovered based on the new tariff and the volume of gas transported. Upon the absence
of amendments to existing regulations, the construction of a new gas pipeline to export
gas to Brazil, will impose the recovery of the deferred account based on lower gas
volumes, with the ensuing negative economic impact on the Bolivian domestic market as
well as on other producers that use the existing transportation system.

Under said circumstances, the Hydrocarbons Superintendency,
applying the dispositions of Article 10 of the SIRESE Law No. 1600 dated October 28.
1994, may not grant the concession for the new pipeline due to the negative impact on
the market or because it considers it contrary to public interests. Within this context,
PETROBRAS chose to -involve the Brazilian Government in the negotiations, thus
avoiding a direct negotiation with Enron and other industry participants.

Concerning the agreement ‘o support the implementation of the
thermoelectric plant in Puerto Suarez, conditioned to PETROBRAS participation
interests in the same, and the gas to be supplied by PETROBRAS- Bolivia S.A., this
constitutes an unnecessary meddling of the Governments of Bolivia and Brazil in the
market and free competition. The wording of the second item in the Memorandum
seems to indicate that both governments prioritize a project led by PETROBRAS against
the efforts of all other private participants, forcing them to accept PETROBRAS as a
partner and lo use the gas produced by PETROBRAS - Bolivia S.A. in the project.

00500000000128


Invitees to California Electricity Mecting
Department of the Treasury
‘Tuesday, January 9, 2001, 5:00 PM
Is Secretary Richardson (202-586-6210)
2. Secretary Summers (202-622-1100)
3. Gene Sperling (202-456-2807)

Chairman Hoecker (202-208-0000)

rs 5. Governor Davis th & el ‘
4
i CPUC Chair Loretta Lyneh ps
t

UC”
CA Assembly Speaker Hertzberg
CA Senate President Burton y
: 7 Tine ms 7
Terry Winter: ISO Director (916-351-2366) Wee, @

mts ie a tn

10. John Bryson: Southern California Edison (626-302-2265)
Robert Glynn: Pacific Gas and Electric (415-267-7110) esvr ahd TZ on
Pee Pere iat
2 >> Stephen Baum: Sempra Energy (619-696-4635)
Ceo +/
or 13, Peter Cartwright: Calpine (408-995-5115) Gy echors; ;
: haat { 14. Jim Donnell: Duke Energy North America (713-627-6512) Ren bee & hack
: =s Ul - %Fo
15. Ghtek-Watson: 713-507-6816) -
ome Steve Beagernonk ae SEIS) HS 456-2899 ?

| 16, Joe Bob Perkins: Reliant Wholesale Group (713-207-5670)
147, TM\rarce Fuller: Southern Energy (678-579-7647)
i 18. jan Smutney-Jones; QF Representative (916-448-9499)

Wi sy
\ 19. Alan Richardson: Pacificorp (503-813-5279 ( Ken— hagned. Rhehenic sete}

ww Engen —

ya) isthams Co
21? Se, Geulte

. 22139)
Gadi eek te YE teay

00300000000029


TUN-22-2282 (18:
18:48 INN ; 202 622 1432 P2918

En dichas circunstancias, 2 Superintendencia de
Hidrocarburos, en aplicacién de lo dispueste por el articule 10 de la Ley No. 1600

del SIRESE de 28 de octubre de 1994, pudiera negar el otorgamicnto de la

concesién para ej nnevo ducto por el impacto negativo en ¢] metcado o por
: este contexto, PETROBRAS be

consideraria contaria al interés pudlico. Ea 2, E
optade por iavolucrar al Gobierno Brasilaro en las negociaciones, evitando ast
llevarlas a cabo directamente con Enron y los demas participantes de la industria

En cuanto ai acuerdo para apoyer Is
implementacién ¢e [a termoelécwica de Puerto Suirez, condicionado a la
pariccpacién accionaria de PETROBRAS en !2 misma, y al spore del gas
proveniente de PETROBRAS - Bolivia $.A, el mismo constifuye una innecesaxia
intromision de los Gobiernos de Bolivia y Brasil en el mercado y la Ubre
competencia. Pl texto de} segunde punto del Memorandum parece reflajar que
los des Gobiernos dan priaridad a uc proyecto liderado por PETROBRAS contra
tos estuerzos de los diversos participantes privades, forzindolos a aceptar a
PETROBRAS coma socio y a utilizar el gas de PETROBRAS - Bolivia SA.

el proyecto.

Asimismo, mediante ¢«) acuerdo para quc
PETROBRAS participe y respete uns tails estampilla de wansporte de gas
natural para el mercado interno y de eaportacion a ser estzblecids, e| Ministerio
de Desarrollo Econsmico s# arroga las stibuciones reconocidas a la
Superintendencia ¢e Hi¢rocarburos por lz Ley SIRESE, de acuerdo a los
procedimientos establecidos en dicha rooms y Sus reglamenucianes. Bajo dichas
normas, el Suprema Goblerne tampoco se balla facultado para dispener acerca de
ta propiedad de fa planta termoeléctrica a ser construida.en Pucrta Suarez o acerca
de! proveedor de gas natural paza la misma

En su condicién de inversionista en Bolivia,
ENRON se sujeta ectrictamente a las normas existentes. En los témminos del
Memorandure, el Supreme Gobiemo de Bolivia envia un mensaje altamente
negative a la inversion privada, al elegir resolver las dificultades comerciales y
regulararias de PETROBRAS a waves de negociaciones gubernamentales
dilaterales, al mismo tempo que requiere de los inversionistes pnvados 1a
sujecion 3 las normas y regulaciones existentes en aspecios timilares. En este
sentido, ENRON debe insistir en la necesidad de que el Supremo Gobierno de
Bolivia conduzca el proceso dentro de los mecanismos y normas vigentes en el
pais, ‘Aseguranco 2} mismo tiempo, que el Supremo Gobierno del Brasil garantice
condiciones igualitarias y la emision de las Heencias y autorizaciones necesariss,
bajo los principios de no discriminacién y libre acceso reconecides en los
Acuerdos de Complementacién Economica, los Acuerdes de Promocién del
Comercio y de Integracion Energética suscritos por Bolivia can dicha Republica.

Endless Possibilities

00500000000145


{(b)(5)]

[(b(5)]

00300000000107


JUN-22-2822 18:39 282 622 1432 P.87718
Enron Amarica do Sul
avenida das Nacwes Unidas, | 1.451
Brooklin Nevo 5* Ander
ez, Sao Paulo — SP. Brasil

Séo Paulc, Mayo 26, 2000

Sefior Licenciado

Don Ronald MacLean Abaroa
Ministre de Hacienda

La Paz, Bolivia

Sefior Licensiade

Den José Luis Lupo Flores
Ministro de Desarrojlo Econémico
La Paz, Bolivia

Excelentiiimos Sefores Ministros:

Por la presente, ex representacion de Enron
. South America LLC CENRON’), deseo expresar nuestra mayor preocupacion por
Jos émninos y les alcances del Memorandum de Entendimiento suserito entre el
Ministerio de Desarrollo Econdmice de la Republica ¢= Bolivia y e] Ministerio dc
Minas y Energia de la Republica Pederativa del Brasil, de fecha veintités de
mayo de dos mil aos (““s] Memorandum").

El interés de ENRON sobre este importante
aspecta, obedece tanto a su condicién de accionista en un 25% (veinticince por
ciento) de Transredes S.A., como 2 su calidad de potencial inversions <
nuevos proyectos destinados a desarrollar nuevas opciones de mercado parael gas
natural boliviano y a fortalecer la integracién energécica regional, en base a la
libre competencia.

Come es de su conccimiento, auesva
empresa se halla desde hace mucho tempo atris commprametida con el Supremo
Gobierne de Bolivia en dar respuesta a los requerimientos de gas natural de la
Republica Federativa del Brasil dento del denominade programa de exnergenca
de las termoeléctricas, y en la construccién de la termoelécuica de Puerto Sudrez,
destinada 4 la exportacién de energia el¢ewica al mercado brasilero. Empero, el

00500000000143


LePa a SAEs 279 Zaz ait \--8

1 eee r.aroo

ENRON, WASHINGTON
1775 EYE STREET, NW
Suite 800
Washington, OC 20006

202-468.9145 .
202-828-3372 (fax) C.

FAX COVER SHEET

DATE: 8/1/00 3:05 PM

NAME: fax number:
To:
Ms, Meg Lundsager

Deputy Assistant Secretary for Trade & Investments
Department of Treasury

1500 Pennsylvania Avenue, NW

Room 3208

Washington, DC 20220

202-622-0168

202-622 5304 (fax)

FROM: Joe Hillings
Lora Sullivan PHONE: 202-466-9142
FAX: 202-628-3372

cc Chris Long
Steve Burns

Number of pages: 9
RE: Bolivia/Brazil MOU
PLEASE SEE ENCLOSED.

Joe Hillings
Encl.

ec: Auta)

at 2-t9-ne

00500000000136



{(b)(5)]

Please review and let me know your thoughts.
Thanks,
Mike

00300000000099


exxeeeemmomeens -COM, JOURNAL - sxesamessesessmesee DATE IQN-21-2081 emma TIME 10:29 semmeeee

MODE = MEMORY TRANGHISSION START oIe+23 10:27 Boe ee-23 10:25
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they an in Se uhroes of a dancing
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develed.
coming RESEAmoceARS.
| deckded that the “British” was 2 burden-
Enron in India

Generation gaps

Enron's Maharashtra power project continues to park comtroverty

harashers 2f re piartan a
y incanne
ford, cr the damage that would be done =
lies veppannan an a deviation for fee~
gh evevment wen (he fig 1 detest,

proved

‘The Weed Sank sehoed wo finance it,
saying Gat Mabanabers could net bear's
the additional power at the price which

Dabhal would Yer in 19g the new,
operably se: feverment ap-
1d 3 T40 megawet plant comng 3S)

that want ine Qperasce in May 99
(Phase One") ands cond \490-negew er
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(CPiage Teo) “india had no experience

* mays 3 we fadisn gowernment

men has sei up » Commines io cevsew Got

sass franca) plight met endiely
Dabhof feud Asin oes vente, Manarnan-

00500000000040


MAY=22-2202 «18:35 TREAS ASST SEC INTL 202 622 0417 P.04/88

cc. Minister of Forzign Affairs and Cult
Madame Ambassador of Bolivia in the United States of America
Madame Ambassador of the United States of America in Bolivia

00500000000130


{(b)(5)]

00300000000103


From: Meg Donovan 0) (
To: DRPower, DONOVANM \
Date: 3/10/00 3:43pm

Subject: OR Electricity ee
OR1

fepor...
Elizabeth — | actually had Bstewart on there instead of you (must have been surprised to learn so much about the DRI)

Eneray from Garbage

Lurgi Lejes Bischoff of Germany and Acres Intemational and Interteck Consulting. of Canada. will work together to install a
generator that uses garbage as fuel, as reported in El Caribe newspaper, During a press conference in Santo Domingo, engineer
Pedro Robicu, serving as spokesman for the companies and Roberto Castillo Ti_, technical secretary of the Municipality of Santo
Domingo, announced that USS200 million will be invested in the 102-megawatt power plant. The plant will be fed garbage
selected from the Duquesa landfill, where most of the garbage generated by Santo Domingo residents is dumped. The plant
should be ready for operation in two months.

00500000001172


This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain
confidential and privileged material for the sole use of the intended recipient (s). Any
review, use, distribution or disclosure by others is strictly prohibited. If you are not
the intended recipient (or authorized to receive for the recipient), ple contact the
sender or reply to Enron Corp. at enron.messaging.administration@enron.c and delete all
copies of the mes: je. This e-mail (and any attachments hereto) are not intended to be an
offer (or an acceptance) and do not create or evidence a binding and enforceable contract
between Enron Corp. (or any of its affiliates) and the intended recipient or any other
party, and may not be relied on by anyone as the basis of a contract by estoppel or
otherwise, Thank you.

ENR R eRe eee eR REE Ee Ee EEE EEE REET ERSTE EEE EEE E EE EEE EEE EET EET EEE EES

eeeeweeree

00500000000100


((b)(5))

00500000001052


eeemmeeeeeeeees —COT, JOURNAL - «rereeseeeseneceees DATE JLUN-O5-200R? eweee TIME 5) 55) coneeeee

MOOE = MEMORY TReecinissiay STORT#TN-OS 1:27 EXeF-SS 119
FILE 50,9838
STM NO. COM. ABBR NO. STATION NeFE-TEL NO. PROCES = LRATION
ee: x CH SOO. B STAT etm? eeiesse2
SIA [Tt -
eremencooreconemonmmecnnee =202 G22 279i 0 - meeee = 202 G22 CII1- eee
t= 8 eee ee es eee oe eee seer

Few Shere Loud bara -

>? ;

4, 02 you Suow any The
; About T's? whctnn bat TQ
H egal Sresy ?

We have been acvised the Brazilian Minister of Energy and Mines, Roberto
‘Tourinho will be in Washington, OC next week to meet with the InterAmerican
Bank and the Works Bank.

Petrobras has not lived up to the conditions of tneir loan to sell their controlling
interest in the Boilvia-Brazil Pipeline. They were to have submitted 8 plan to do
20 in November 1958, but neaher of those institutions has taken action to require
compliance. Petrotiras conSnves to restrict capacity on the pipeline which aliows
them, despite privatization, to exercise contre! over the natural gas supply which

they ate now exteriding inte power generation.

| hope you can usé the opportunity of the Minister's visit to advise the
Government of that this conduct has put a strangle-hold on market access.
‘The principats had ‘agreed in the Summit of the Americas agreement and
Subsequent agreements to the principle of market access.

ee: Auto

ural gas. Dectricity, Endless possibilities, TM

At a

00500000000135


Stewart, Elizabeth K. ee
From: Paulson, Sara By
Sent: Tuesday, September 25, 2001 12:24 PM

To: corey. Rabe Stewart, Elizabeth K

Subject: Fw: mig today at 1:30 pm

Importance: High

Just found this.

——Original Message———-

From: Kosmides, Ivy

Sent: ‘Tuesday, September 25, 2001 12:08 PM

To: Schwerch, Witham; Paulson, Sara; Demopulos, Abigail

Ce: Backes, Steven

Subject: Eneon mtg today at 1:30 pen

Importance: High
| just spoke to Mr. Hardy of ENRON regarding the meeting agenda for today.

Issue
Hardy would like Treasury assistance to IFC to defend inthe DR
. Cs eee aided (100% SOE) CDE ts running arrears to IPPS including ENRON (total DR

arrears close to $140 mn)
© Bond issue backed by U: guarantee wil be called in December if action not taken

Background
{(b)(5))

00500000001156


Page | of 2

Soares, Chris
From: Soares, Chris
Sent: Friday, January 12, 2001 1:24 PM

To:

Ce:

Tracking:

"Martha Altamar’; alexm@calpine.com; jmacias@calpine com; jason_s,_seligman@cea eop.
gov; Soares, Chris; Wilcox, David; Sachs, Lee; Greene, Michelle; Squities, Ray. Stokes,

shgG@icpuc.ca,
Veronica; eisenstatig@DSMO.com; sbvanleer@duke-energy. COM,
bart sabe dna fons ari coe eppe Linda Lee, ‘ins don pot Q0d.us.trens.gov:

mtierney@sempra.com; sonnet.ecmonds@southernenergy.com, cread@steptoe.com;
lemoreland@swkttew com; jue. greenisen@troutm: fversenere.00 com, Son potcberptpetilams.com,

{(b)(6)]
Barbour, Gaylen; Curtis Wagner
RE: California Energy Group e-mail

Raciplent Read

‘Mactha Altamer!

aermeaipine com

fmacascaipine com

Jasor_s_seligman@ces.cop.gov

sgequc.a.90v

Soares, Ores React: 01/12/2001 7:31 PM
Wileax, Oavic Read: 01/15/2001 12:07 AM
Sachs, Lee Rinad: 01/12/2001 1:59 PM
Greene, Michelle Road: 01/12/2001 1:55 PM
‘Squieri, Ray Rasad: 01/22/2001 10:49 AM
‘Stokes, Veronica Read: O1/32/2008 1248 PM

01/15/2002

0300000000112


DEPARTMENT OF THE TREASURY

WASHINGTON, D.C BRIEFING

ASSISTANT SECRETARY December 15, 2000

MEMORANDUM FOR THE SECRETARY

From: David Wilcox pw
Subject: Conversation with Steven Kean (Executive Vice President, ENRON Regarding
the California Electricity Market

You have been asked to speak by phone with Mr. Kean, who is concerned about recent turmoil
in the Califomia electricity market. Mr. Kean may raise the following issucs:

{((b)(5))

00300000000034


were ower ee

Sao Paolo, May 26, 2000

Mr. Ronald MacLean Abaroa
Minister of Finance
La Paz, Bolivia

Mr. José Luis Lupo Flores
Minister of Economic Development
La Paz, Bolivia

Dear Messrs. Ministers of Finance and Economic Development:

On behalf of Enron South Amenca LLC ('ENRON"), I would
hereby like to express our deep concem regarding the Memorandum of Understanding
subscribed between the Ministry of Economic Development of the Republic of Bolivia
and the Ministry of Mines and Energy of the Federative Republic of Brazil, dated May
twenty three of the year two thousand (the “Memorandum”).

ENRON '’s interest in this important matter obeys both its condition
as a holder of a 25% (twenty five percent) equity interest in Transredes S.A., as well as
to its quality as a potential investor in projects destined to develop new market options
for the Bolivian natural gas and to strengthen regional energetic integration. based on the
principle of free campetition, 5

As you are well aware of, for quite 2 long period of time our
company assumed an obligation with the Supreme Government of Bolivia to meet the
natura] gas requirements of the Federative Republic of Brazil within the so-called
emergency thermoelectric program, as well as to undertake the construction of the
Puerto Suarez thermoelectric plant destined to export electric energy to the Brazilian
masket. However, the Memorandum seems to impose certain conditions upon the
Republic of Bolivia for the development of the aforesaid projects, to the detriment of
existing as well as pledged investments in Bolivia, disregarding the current regulatory
framework and depriving pnvate investors from the opportunity to exercise the rights
foreseen in the norms.

As a matter of facet, the Memorandum creates the basis for the
construction of a gas pipeline in Bolivia to transport gas to Brazil and establishes the
agreement to support the Puerto Suarez thermoelectric plant project, but conditioned to
PETROBRAS participation as a shareholder in said plant, and stating that the required
gas is to be supplied by PETROBRAS - Bolivia S.A. Likewise, it establishes an

Luise rSiLi poer-te-ne

oa

=

pers 279 spr

00500000000119


Steve Bergstrom
President, Dynegy, Inc.

Joe Bob Perkins
President and COO, Reliant Energy Wholesale Group

Marce Fuller
President and CEO, Southem Energy, Inc,

Jan Smutny-Jones
Executive Director, Independent Energy Producers Association

Alan Richardson
CEO, Pacificorp

James Brulte
, Califormia State Senate

Ya tinog bay Legdt/, poet Ue

ee ‘Caloele State Assembly ‘ unseat be.
Warner Ry Leader \\ oi bus

poral ENRON Le . mt

Keith Bailey

Chairman, President and CEO, The Williams Companies

jartin Baily
Chairman, Council of Economic Advisers

wa YY

ee ve 7

Lynn Schenk
Chielol Stall + Govee noe Dauis

00300000000033


BOMBAY (AP)-U.S. Ambessador 10 india Richerd Celeste waned Monday that
foreign investment in India would faiter because of
threatened to derail the $3 billion Enron Corp. (ENE) power project.

Collars,” Celeste told an audience of business leaders, politicians and
hongovernment agencies in Bombay, India’s financial hub.

India’s largest-ever investment has been in trouble since
after the oavernment of Mahareshiva st

sro revew a power @ power-purchase ae ae ita creel cist erson Corp.
Asanarsentra conataers the power rales Delng cherged are are exorbitant,

The agreement bn 1008. coteis Ina rate at we Enronss Incten
subsidiary, the Baar will seil electricity to the

The project's first phase, a 3 power pient of 740 megawatts. already hes been
commissioned, while the second phase of 1,444 megawatts is scheduled for
completion by end 2001.

of the Indian rupee and high cost of naphtha used to generate
stectreiey ceulsed Sie newer ganerated by the ivan Digest b toven 7 noes
ert RaLINRT agreed on when the deal was signed six years ago
a

Flore hee sald R sey Hn caxraes need to canegacene los Si Weed Rierewrtny Cn Sterns see een
liquefied natural gas would reduce the

both sides would find a solution in discussions, but cauboned
Seicaprane aenans and In investors will be affected by the
challenge to and how it is resolved.”

He said in software and Us.
investors were wary of india because of political pressures at the and
state level the i

Stressing the need to business ties India, Celeste focused on
the Enron project and asked that "The Dabhol remain @ symbol of

successful American

Still hinder even greater foreign direct investment.”

Gopyright (c) 2001 Dee ens an oe . Inc.
it NewsEDG: 23 PM

E/LAN: 1/22/0'
From oo, Gese
22, 2001 3:01 PM
$6 ete oe is, Marshall; Sampliner, Gary; Christopulos,

Attached is background material for the Enron meeting on Wednesday. Pls. note Mr. John Hardy will also be
attending.

Fone tenor ATOR com [rm praitc:Tom-Briopstenron COM]
Sent Monday, ery 2 1:54 PM I

22, 200
Lk as Canta re or meag

Geetha,

aby mpeicicies for ie ela in senting Oe melanie. Os Lee 106k DOM try
regular assistant and my temp so | am a bit overwhelmed.

stot Hera Wil be sttencing Se musing earns st: byS)}
id the

If you could rem!
eg ene ot ee rrioeiing | ould appratials Ke | managed to lose that as

2

00500000000043


{(b)(5)]

00300000000098


{(b)(5)]

00300000000041


b= F00- Uilhene

Se Willicae ~ Correury Tulsa, OK
Kut. €. Baile
En Ren Bay
Ker Lech }IF- SS3-C7?
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cee asthe

00300000000030



JuN-O2-2088 16:39 INN as eon 3a
ia P2618

Minister of Foreign Affairs and Cult
Madame Ambassador of Bolivia in the United States of America

Madame Ambassador of the United States of America in Bolivia

00500000000142


Hambor, John

From: Wilcox, David
Sent: Thursday, December 14, 2000 2:53 PM
To: ‘Squilieri, Ray
Ce: Chryst, Nancy; Vandivier, David; Rao, Geetha; Flanagan, Rosemary; Cononi, Rachet; Flynn,
Timothy; Murphy, Edward; Hambor, John
Subject; RE: Krugman on Calif power market
importance: High
cE)
cat oe

Ray: This is a very interesting piece. Please address the questions in the attached to the best o f your
ability, then forward the result to Rosemary for processing to the Secretary tonight if at all possible

Rosemary: Please use the following as transmittal note from me to Larry:

The attached note, prepared by Ray Squitieri, analyzes statements made by Paul Krugman recently about the California
market for electricity. it will be particularly relevant background for a call from the CEO of Enron. should that occur.

From: Squitieri, Ray

Sent: Thursday, December 14, 2000 2:12 PM.

To: Wilcox, David

Cc: Chryst, Nancy; Vandivier, David; Rao, Geetha; Flanagan, Rosemary;
Cononi, Rachel; Flynn, Timothy; Murphy, Edward; Hambor, John
Subject: Krugman on Calif power market

00300000000104


THE NEW YORK TIMES, THURSDAY, DECEMBER 14, 2000

Enron Rewards President With Promotion to Chief Executive

year as its energy-trading strategies

i
A

00300000000037


py + nee tn Lo 1

— Sovnet, edaronds @ covthernenegy . Corr gue 1

- T Ht
Tahayes @ seiworlduide.com pai "
Sicapoma @ secworldustde-com dow!
~ | #
renarris@® setwor (duwiida .com .

smiley @ sei worldwide com,
—— duller @ seiworldwide com
—~= jwhotden @ setwor dude -cot_,
julie .greenisen @ toutmans anders OM

key:
[Peojose een
Wee: Groeqy ee?
wen qhue® wee
ir
al
sas p* $39 wh

00300000000110


[(b)(5)]

Hope this helps. | understand that Freeman will be meeting
Treasury
folks at 2 pm on Monday. | think I've been invited, but am not
‘sure | can
atiend as | have an Audit Comenitiee meeting here on the Bank's

internal
controts at the same time.
Todd
From: Gruce Juba/IDB-HO/IDBQ@IADB on 11/17/99 01:29
PM ;
To: William

SchuerchQqvatiem. Sctwerch@0o Trees. Gov@smipGiew,

Bloomgarden@@Oavid. Bloomgarden@Oo. Treas. Gov@Smtp@ladb, Greg
. Gov@Smip@lad
oc Lawrence Harringtorvidb-Ha/idb@ladb, Todd W,

Subject OR Power Project
{(b)(5)]

00500000001193


From: Meg Donovan

To: DRPower
Date: 3/2/00 2:00pm
Subject Sector Update
More bad news for Enron?

DRI

Union Fenosa announces 190 megawatts ready for May

Union Fenosa, the Spanish mother company of Edenorte and Edesur, two power distributors, announced that its Patamara and La
‘Vega diesel-powered thermal central units would enter into operation in May. The company said that it has invested US$120
million in the construction of the power generators and that its entire production will be sold to its affiliates. The Palamara unit is
located in the South and will have capacity to produce 102.5 megawatts, serving an estimated 242,000 clients. The La Vega
central will have capacity for 87.5 megawatts, and wil supply power to 296,000 clients.

00500000001174


Ee WALL STREET JOURNAL THURSDAY, DECEMBER (14, 2000

ECONOMY

State’s Electricity Deregulation Is in Chaos

California Generators Seek
Credit Guarantees to Sell
Power as US. Steps In

By Rewmoca Surrit

Staff Reporter of Tae Wabi. Stuer Jounecas,

California's four-year-old experiment
in electricity: lurched from eri-
sis to chacs as a group of generators de-
manded credit guarantees
in order to comtinue selling power and the
‘state's No. 2 utility demanded an immedi-
we return to traditional

stay in the market. “Our objective is to
keep the lights on,” he said, adding that he
would “not allow generators to unjustly
profit from the unstable situation.”

Mr. Richardson's intervention comes
&5 wholesale electricity prices in the West-
ern U.S. have soared to record levels as a
result of booming demand, chronic suppty
‘shortages and a spike in the price of natu:
Fal gas, used by mast generators to power

Electric Shock

Percent change since Dec. 26, 1997,

1 weelty closes of the Dow Jones U.S.
Uliities Index and Edison international
and PG&E.

Sercee Tindetne com, Dow ines lnceees

‘The troubling state of affairs in Califor-
nin, and the clear difficulty regulators and
lawmakers are facing in coming up with a
politically palatable solution to the crisis,
is likely to cast @ pall on electricity deregu-

during a Washington meeting attended
Cabra Gon Gray Das, US. Sen: De
anne Feinstein, Pederal Energy Regula-

Commission =

Edison and Pacific Gas & Electric Co., the

are threatening the solvency of Call, state's other big utility, have been cut.
fornia utilities that mast buy most of their  !s4on initiatives across the U.S. Currently, Yesterday, Standard & Poor's joined in the
power from outside and cur- 4 states have either deregulated their chorus, putting the two utilities on nega-
Tently aren't allowed to pass along higher TMarkets or are in the process of doing 50. tyye credit watch,

‘The governor even went so far as to

TD keep the situation from getting Securing 4 $1 biltion credit line from a release a list of 13 generating companies,
further out of control, Mr. Davis amd Me consortium bed by Chase Manhattan Bank inchuding Dynegy and power giant Enron
impose’ esterday called on the FERC to owing to fears that it will never get paid. Corp., that “are unwilling to sell power
impose a how, form price eap on what “There's no question we need this money,” into the California markets.” Mr. Davis

Mr. Bryson said. “It is a serious eredit added that he hoped Mr. Richardson's

contracts with the state's utilities at res ried that the financial drain on the util. =
Sonable price levels. ties ts nudging them toward default. One

John Brysos, chairman of Eiiisoa Inter- of them, though, says that as a group
national, parent of California's second. they have never threatened to oft

vat ST ae California's electrical That's clearly the rub. Mr. Davis and
rs Ms, Feinstein, neither of them eager to
foist the enormous cost of the troubled |
deregulation policy om consumers, yester-
bd accused the generators of price goug-
ie.

In an interview, Mr. Bryson said Edi.
Son has in recent days faced difficulty in
Please Ture to Page AG, Column 4

00300000000038


{((b)(5)]

00500000001 192


((b)(5)}

00500000001204


TUN-@2-2000 «18:25 INN 202 622 1432 P.22718

FAX TRANSMISSION

DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE
WASHINGTON, D.C, 20220
TEL: (202) 622-1279
FAX: (202) 622-1273

To: MM CO oart_5/3//00
rnon, DA LYSETT sia’ includ

SUBJECT:

00500000000138


—

JUN-22-2008 «18:35 INN 282 622 1432
P.e8/10

“ae

y comprometidas en Bolivia, pasando por alto cl marco regulaterio vigente y
negando a los inversicnistas privedos \2 opomunidad de acogerse a los derechos

previstos en sus hormas.

Ep efecto, cl Memorandum crea las bases para Ja
construccién de un gasoducto en Bolivia para e) transporte de gas al Brasil ¥
establece el acuerdo para apoyar el proyecto de la termoeléciica de Puerto
Suirez, pero condicionada 3 la participacién accionariz Ce PETROBRAS en la
misma, y con el aporte de gas proveniente de PETROBRAS — Bolivia S.A-
Asimismo, establece el acuerdo para quc PETROBRAS participe en una tarifa
estampilla de transporte de ges natural para ¢| metcado inteme y de exportacion 2
sex establecida y defina con la misién tecnica destacada por el Ministerio de
Desarrollo Zcondmico, les aspectas operacionales 27 relacién a dicha tarifa y 2
los demas puntos sefialados en et Memorandum, ca las reuniones que sc
desarrollarin em Rio de Janeiro.

Les aspectes contemplades en ¢l Memorandum han
sido motivo de larga discusién y analisis hasta Ja fecha. Con ese objetivo, y
dentro del marco ce las normas y cegulaciones existenies en la Republica de
Bolivia s¢ han Ilevado a cabo negociaciones con diversos representantes ce la
industria, estableciéndose, entre otros aspectos, Que la estrategia de PETROBRAS
~ Bolivia S.A, para construr cl ducto denvado a YABOG (“bypass”)
inconsistente, tanto desde 2! punte de vista econémice como regulaterio.

’ En el piano economico, el proyecto bypass de
PETROBRAS se encuentra en desventaja con Tranaredes S_A, al no hallarse en
condiciones de responder a tiempo los requerimientos de la demanda brasilera
(v.gr. el tiempo de conseuccian de! ducto) ni poder competir econémicamente,
salvo que eluda la responsabilidad de pagar Ja cumta diferida En es
perspectiva, el incremento del costo del servicio consecuencia del bypass,
responderia al exclusivo odjeavo de control ce! mercado por parte de
PETROBRAS.

. En el plano regularorio, la emprest de cuya
capitalizacién emerge Transtedes S.A. fue capitalizada con la obligacién de
cobrar una tarifa inferior a la necesaria , subsidiande temporariamente al mercado
interno, subsidio que debe ser recuperado en base a Ia nveva Grifa y al volumen
de gas wansportads, En ausanca ée enmiendas a Las regulaciones existentes, la
constmuccién de un nueve gasoducto para ls exportacién de gas al Brasil,
impondrd la recuperacion de La cuenta Giferida sobre un Volumen menor de g35,
con ¢] consecucnte impacto ecanémico negative sobre ¢! mercado interno
beliviane y sobre otros preductores que utilizan el sistem de transporte exjstente.

Endless Possibilities

00500000000144


Hambor, John

——

From: Hambor, John

Sent: Monday, January 14, 2002 11:08 AM

To: Murphy, Edward

Subject: FW: proposed outline for the terrorism insurance project
FYI

From: ‘Warshawsky, Mark

Sent: Friday, January 11, 2002 12:25 PM

Tor Huffman, Lucy; Hambor, John

Subject: Plt: proposed cuttine for the terronsm insurance project

FY, | like the outline, Thanks, Mark

‘rom: Warshawsky, Mark

Sent: Fricay, Jawary 11, 2002 12:23 PM

To: Carida, Richard

Subject: proposed outline for the terrorism insurance project
Rich,

The outline, which Lucy, John, and | have put together, is atlached,

{(b)(5)]

See you on Monday.

wr)

TerrortnaseCusine cox:
Mark

00300000000090


((b)(5)]

Mr. Toyoda now advises me that the Board date has slipped
to
December 13, This office has had no role in the slippage.

cc: ox, mail,"olizabeth.k, stewart", ex.mail.“gay.sills”...

00500000001194


MEMORANDUM FOR THE SECRETARY

From: David Wilcox

Subject: Conversation with Steven Kean, Chief of Staff, ENRON
Subject: California Electricity Market
Friday December 15, time?

You are scheduled to speak by phone with Mr. Kean, who is concemed about recent turmoil in
the California market. Mr, Kean may raise the following issues:

{((b)(5)]

00300000000101


Enron América do Sul
Avenida das Nacoes Unidas, 11.451
Brookiin Novo 5° Andar

Ups. Seo Paulo ~SP. Brasil

Sio Paulo, Mayo 26, 2000

Sefior Licenciado
Don Ronald MatLean Abaroa
Ministro de Hacienda

La Paz, Bolivia !

Sefior Licenciado

Don José Luis Lipo Flores

Ministro de Desarrollo Econdmico
La Paz. Bolivia

Excelentisimos Sefiores Ministros:

Por la presente, en representacién de Enron
South America LLC (“ENRON”), deseo expresar nuestra mayor preocupaciéa por
los términos y los aleances del Memorandum de Entendimiento suscrito entre el
Ministerio de Desarrollo Econémico de la Repiblica de Bolivia y el Ministerio de
Minas y Energia de la Republica Federativa del Brasil, de fecha veintitrés de
mayo de dos mil afios (“el Memorandum”).

El interés de ENRON sobre este importante
aspecto, obedece tanto 2 su condicién de accionista en un 25% (veinticinco por
ciento) de Transtedes S.A.. como a su calidad de potencial inversionista en
huevos proyectos destinedes a desarrollar nuevas opciones de mercade para el gas
natural boliviano  y @ fortalecer la integracién energética regional, en base 2 Ja
libre competencia.

Come es de su conocimiento, nuestra
empresa se halla desde hace mucho tiempo atras comprometida con el Supremo
Gobierno de Bolivia en dar respuesta a los requerimientos de gas natural de la
Republica Federativa del Brasi! dentro del denominado programa de emergencia
de las termoelécticas, y en la construccién de Ia termoeléctrica de Puerto Sudrez,
destinada a la exportacién de energia eléctrica al mercado brasilero. Empero, el

ot28'd recs 229 Zee it 81SkO SS:4t @aaz-Te-ne

00500000000123


From: David Bloomgarden
To: Dom13.D0PO8(CHRISTOPULOS, preter

{(b)(5)}

>>> ex.mail, WB-tcrawlor@iadb org" 11/19/99 10:51am >>>
Kristin Madison, Senate Foreign Relations Committee staff,

called me

a few days back to ask why the World Bank was opposing the

Cogentrix project

(sort of, "where does the World Bank get off telling the IDB what

to do").

Ive explained to her that the World Bank believes that the project

's
inconsistent with needed reforms in the power sector and that it

00500000001190


ee Serer pile Lnhia
Christopulos, Greg = —EE —_——

From: Reo, Geetha

Sent: Monday, January 22, 2001 3:01 PM
To: Grewe, Maureen; Miis, Marshall; Sarnpliner, Gary; Christopulos, Greg; Clapp, Gene
Ce: Radelet, Steve
Subject: FW; India/Dabhol Meeting
Dame: PRA OS

Tang Pores Attached is background material for the Enron meeting on Wednesday. Pls.
mote Mr. John Hardy will also be attending.

semen Original Message-----

From: Tom.Briggs@enron.com {mailto:Tom.Briggs@enron.com]
Sent: Monday, January 22, 2001 1:54 PM

To: ceetha.raoc@do.treas.gov

Subject: India/Dabhol Meeting

Geetha,

My apologies for the delay in sending this material. I have lost both my
regular assistant and my temp so I am a bit overwhelmed.

John Hardy will be attending the meeting tomorrow at 3. [(b)(6)]

If you could remind me of the
address of the meeting I would appreciate it. I managed to lose that as
well.

John and I have a brief agenda: 1) we want to update you on Dabhol and 2)
we want to discuss way in which the USG may become involved in encouraging
market reform necessary to extract value out of our generating asset.
Specifically, we want to focus on refgorm at the Indian feceral level that
will be necessary to deliver power to customers other than MSEB.

We look forward to meeting you tomorrow.
(See attached file: Dabhol PPA - DC Talking Points.doc)

00500000000036


Hambor, John
SS

From: Clarida, Richard
Sent: Friday, January 11, 2002 1:41 PM.
To: Wershawsky, Mark
Ce: Hambor, John
Subject: RE: proposed outline for the terrorism insurance project
Mark
[(b)(5)]
~Orignal Message--——

From: Warshawsky, Mark

Sents Friday, January 11, 2002 12:23 PM

To: Garda, Richard

Subject: = proposed outline for the terrortsm insurance project

Rich,
The outline, which Lucy, John, and I have put together, is attached,
[(b)(5)]

See you on Monday,
Mark << File: TerrorinsureQutline.doc >>

00300000000093


May-22-2008 «18:78 TREAS ASST SEC [NTL 222 622 8417 P.28/e8
«4.

Apsreatemente, PETROBRAS y el Ministerio
Minas y Energia de Brasil estin tratando de establecer que el unico camino pare
entrar en el mercado energético brasilero es través de acuerdos entre Gobiernos y
utilizando a PETROBRAS como vehiculo. Si esto fuera realidad, contravendria
todos les compromises asumidos para alcanzar la integracién regional, basada en
los conceptos de libre competencia y acceso abierto.

En suma, ENRON cree que la decisién del Supremo
Gobierno Boliviano de intervenir en favor de PETROBAS en lo que seria de otro
modo considerado como una negociacién privada comercial o un tema 2 ser
resuelto de acuerdo a los procedimientos regulatorios existentes, constituye un
obsticulo para el desarrollo del sector privado en Bolivia. ENRON ratifica su
voluntad de apoyar al Gobierno de Bolivia en los esfuerzos que realizara pare
crear condiciones de equidad y no discriminacién para una mayor competencia,
requiriendo de todos los participantes en la industria cl cumplimiento de los
mismos mecanismos regulatorios previstos por ley para el desarrollo de sus
intereses comerciales. En cualquier caso, ENRON espera que los derechos que le

asigna la Ley, a ella y a sus empresas afiliadas, sean respetados,

Con este motivo, reiteramos a ustedes, Sefores
Ministwos, las seguridades de nuestra distinguida consideracién.

José Bestard
Vicepresidente
Enron Seuth America LLC

ce:  SeRor Ministro de Relaciones Exteriores y Culto.
Sefiora Embajadora de Bolivia en los EE.UU de NA.
Sefiora Embajadora de los EE.UU. de N.A. en Bolivia

Endless Possibilities

TOTAL P.28

00500000000134


14).

15).

16).

17).

18).

19).

20).

al,

22,

23

Harvey J. Padewer
Group President, Energy Services of Duke Energy Corporation

James M. Donnell
President and CEO of Duke Energy North America

Steve Bergstrom (Chuck eden mak etenking
President, Dynegy, Inc. )

Joe Bob Perkins
President and COO, Reliant Energy Wholesale Group

Winn Fuller

President and CEO, Southern Energy, Inc.

Jan Smutny-Jones
Executive Director, Independent Energy Producers Association

Alan Richardson
CEO, Pacificorp

Waiting ty Riis

ENRON

vWithhame Company

Sense “Bex Ite

00300000000031


From: Meg Donovan

To: ex.mail."clementsga2@state.gov", ex.mail.“windserr...
Date: 2/1800 12:25pm

Subject: Read out from Enron Meeting (2/18)

A preliminary read-out from this moming's meeting with David Shields of Enron (IPP Disputes in the OR) is attached. Please note,
this has not cleared intemally yet — Treasury recipients please revise/correct as necessary — but it should give you a bit of context
for this afternoon's State meeting with Enron.

‘We'd appreciate any clarification you might be able to provide us, or your thoughts as to the Enron case.

Thanks,
Meg

cc: CHRISTOPULOS, DOM3.DOPO6.SAMPLINERG, CLAPPG, Stews...

00500000001176


Sent: Monday’ roe Reon 2001 1:54 PM
pes pote eeonal the | Mestng

Geetha,
‘apologies for the in sending this material. | have lost both my
poly spe ahah bel $0 1 am a bit overwhelmed.

ana eeny ne ana ee i Leer: {()(8)) ne
adress ofthe meting | would aporec Orie dia loos ek es

Jonn and | have a brief agenda: d) oreseanitto odes you on Debel ane =)
gpd

ine warn fo cence se Cay viene oe Uiey baer
See eremeal toa pemera a
Speciicaly, wa wart ‘on refgorm at the Indian federal evel tat
wil be necessary to deliver power to customers other than MSEB.

We look forward to meeting you tomorrow.

(See attached file: Dabno! PPA - DC Talking Points.doc) << File; Dabhol PPA - DC Talking Points.doc >>

00500000000041


From: Blisabeth K. Stewart

Tor Domi .DOPOS(BLOOMGARDEND, CKRISTOPULOS, CLAPIG, MC...
ater 11/22/99 12;44pe
Subjects DR Meeting -Reply -Reply

Enron DC reports that the $130m in arrears has arisen because in June, as part of the privatization process, the
Government stopped it's long-standing subsidy to CDE - which amounted to about $Sm a week. CDE thus had no money to pay
the IPPs. &nron reports that all IPPs were treated the same and views the issue as one of "transitional privatization’.
Enron comments that going forward, budget allocation needs to be sade to pay privatized distribution companies for Goor
power consumption (Enron estimates to be about 2% percent, for which reportedly GoDR did not pay in the past).

{(b)(5)]

»>> Meg Donovan 11/22/99 11:38am >>>
Greg Christopulos asked me to phone the Bebassy for a read out on Friday's meeting with the IPPs at the Presidential
Palace.

{(b)(5)]

>>> Gene Clapp 11/19/99 05:59pm >>>
FYI; Briefing meno attached

00500000001202


ue
THE

I

3
2

(See attached file: Dabhol PPA - DC Talking Points.doc) << File: Dabhol PPA - DC Talking Points.doc >>

00500000000044