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I will be happy to talk to Keith about this, but I am not ready to put Enron
employees in harm's way in Gaza. The situation is still very unstable and until there is a clear sign that the Palestineans and Israelis are willing and able to control the violence, as evidenced by clear government statements and a reasonable period of time with zero violent incidents, we are not going back. I am advising Mike McConnell of my position on this via voicemail and via copy of this email. I will let you know if he wants to do anything different from what I have outlined above. Thanks Rick Richard Leibert@EES 01/23/2001 06:57 PM To: Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Dan Leff/HOU/EES@EES Subject: Update on Gaza Project Developments Rick, I'm sure that you are aware that Larry Izzo announced his retirement effective 1 Feb. As a result EE&CC and NEPCO now report directly to Dan Leff in Global Energy Services, EES. I am working with Dan and Keith Dodson to move all of the construction actions forward. Gaza Project: My contacts in DC indicate that the situation in Gaza will probably remain much the same for the next 12 months. As such it would appear that we have two general options: 1.) Do nothing and maintain care-taker status of the construction site; or 2.) Conduct a partial mobilization as discussed below in paragraphs 3 & 4 and move the project forward. Have asked Keith to give you a call to discuss same. L ---------------------- Forwarded by Richard Leibert/HOU/EES on 01/23/2001 06:49 PM --------------------------- Ed Husami@ENRON_DEVELOPMENT 01/23/2001 06:34 PM To: Dan Shultz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Keith Dodson/NA/Enron@ENRON, Richard Leibert@EES, Omar Aboudaher/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Update on Gaza Project Developments Dear Dan, 1. Following the intervention of the US Ambassador with Gov't of Israel (GOI) which we requested on behalf of the Owner, we were able to lift the Israeli embargo on sending plant goods to the site in Gaza. We have brought to the site 30 trailers this month. All in-gauge equipment in now onsite. 2. We got the restrictions on the import of aggregate to Gaza lifted, and we can now stockpile it to finish civil works. 3. I am heading back to TA to work on getting approvals to bring the out -of- gauge equipment (GTs, STs, Transformers, condensers,etc.) to the site. This requires the use of Israeli convoys, cranes, and personnel (truck drivers, operators) which is very difficult because the Israelis would not want to entrust the safety of their citizens to Palestinian forces. We'll suggest as an alternative the use of Jordanian and /or Egyptian trucks, cranes, and personnel and see if the Israelis will go for it. (Jordan and Egypt are the only Arab countries that have signed peace with Israel.) Or, the use of Israeli equipment and Israeli Arab personnel. 3. We directed AP today at the London mtg to submit a partial resumption of work program to a) finish civil works, b) do as much electromechanical work as possible with the recently arrived materials, and c) achieve mechanical completion of GT 1 and 2. We also told them that in restaffing they should assume that the current situation of intermittent violence will continue for perhaps one year, and to send construction and startup personnel willing to work in such circumstances. 4. We recommended to Enron Middle East (EME) obtaining corporate approval ( from Enron Global Markets and Enron Corp) to send the OE Arabic speaking engineers (Egyptian and Palestinian engineers) back to Gaza once AP is ready to return. If Enron does not approve the return of the 2 expats (site mgr and startup mgr), then we may have to a) transfer them to the payroll of the Palestinian partners at PEC, or b) replace them with Arabic speaking mgrs to be hired and placed on our payroll. Omar Aboudaher of EME will be briefing Bergsieker in Dubai. I presented this info at the project review teleconference today, and I am copying some of the attendees for ease of access to these details. Best regards, Ed Husami 5.
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