Dragon Curves

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 09/15/2000
05:12 PM ---------------------------

Ramon Rodriguez@ENRON_DEVELOPMENT
09/14/2000 11:44 PM
To: Maureen Raymond@ECT
cc: James A Hughes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Vijay
Sethu/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lian
Ji/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jim
Cole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jirayut
Rungsrithong/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Vince J
Kaminski/HOU/ECT@ECT
Subject: Dragon Curves

Maureen,

We are currently in the RAC process for Dragon, and I understand RAC has
requested updated curves. We are currently using the following country
curves you provided previously:

1) Philippines: 90700

2) Thailand: 51500

3) Korea: 62300

4) China: 50900

5) Taiwan: 20800

6) US: 81700

I agree in principal with the methodology and understand the approach, given
the info you have. However, you have just provided a new curve for Thailand,
which, was just provided to us in May. Given the methodolgy you explained
earlier, I find it hard to believe we would see such a huge impact (35%
decrease on a 25 year PV basis) on our COCO valuation (Thai project).

It appears that this Thai curve is not using PPP, and I'm not saying your
analysis has to be PPP, but most would expect that given the varying economic
environments and market places we deal with, PPP is a widely accepted
practice/method, as we cannot predict the future. Please provide us a
detailed reconcilation among the two curves and the Country rational in
coming up with the revised curves from 4 months ago.

Please contact me if you have any questions at 011-852-2588-1234.

Regards,

Ramon