What makes Enron stand out is the barrage of similar-sounding criticism it has drawn in so many places. Economists and opposition politicians have complained of secretive negotiations, bullying tactics, unfair financial terms, and dubious economic benefits from Enron deals. When talks grew difficult, say officials from India, Argentina, and Mozambique, Enron staff was quick to bring in the U.S. embassy or enlist intervention from high officials in Washington, which rankled in countries still sensitive about Western colonialism. The Dabhol plant is a reminder of Enron's old ways. The price of power has been 10 cents to 14 cents per unit.
Indian critics blame a flawed contract.
Enron may be legally right. But again, its image is in for a beating, especially given the billions that cash-strapped New Delhi must now spend to cope with a devastating earthquake. Enron does concede that it has learned from its Third World embarrassments. Near Dabhol, for example, it has built a hospital, a school, and a vocational training center, though Indians say those projects came after protests and litigation. By Mark L. Clifford and Pete Engardio Clifford and Engardio cover Asian business and international trade.