Re: Allocation question

Elizabeth
The budget allocation provided that 15% of our budget would go to Europe.
On their behalf we have been heavily engaged on Trakya where arrearages have
gotten as high as $150 million. The strategy for countering this situation
has been Washington based and two pronged - utilize the lenders, especially
OPIC and EXIM which are both USG agencies, to drive an effort to call on the
Turkish Treasury guarantee, and to mobilize the US government as a matter of
policy and in the context of the IMF funding to insist that the Turks clean
up their energy sector. Both elements of the strategy have been recently
successful with the consequence that about $60 million has been paid over the
last several weeks. I anticipate as the strategy plays out over the next
month to six weeks we should see payments of an equivalent or greater
amount. Since my office has the relationship with OPIC and EXIM we have the
lead across the government on this issue. We also anticipate that there will
be some work on the Spanish and Polish projects in the future.
In light of all of this perhaps we should increase Europe's allocation.
Just a thought! Thanks John

Elizabeth Linnell@ENRON
05/29/2001 12:28 PM

To: John Hardy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Richard Shapiro/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON
Subject: Allocation question

John - Enron Europe is taking a hard look at all the allocations they receive
from Corp. Can you send me a note providing details on your budget
allocation methodology? I've attached your spreadsheet in case you need it
for reference.

Thanks!