Subject: fw : eletrobolt
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from : wiggs , brett
sent : sunday , october 28 , 2001 8 : 17 am
to : lavorato , john
cc : gonzalez , orlando ; dutt , ranabir ; joseph m deffner @ ect
subject : re : eletrobolt
john :
we still do not have a deal with the government . they have delayed giving us a written proposal over the last two weeks . the latest is that they have said that they will give us something on tuesday of next week .
with respect to the burn rate , we are projecting about $ 20 million in expenditures over the next month . our current investment is about $ 220 million .
i think you should also have a rough idea of how we are funding this and what the plan is over the next couple of months . the investment is currently funded through an off - balance sheet / on - credit vehicle with westlb . the westlb vehicle is structured to fund the plant through commercial operations . the plan is to have the opic financing in place to take out the westlb vehicle . this would infer an approximate $ 95 million equity investment upon the take - out of the westlb vehicle . we are currently in the process of syndicating the equity . we have one indicative proposal for 50 % of the equity . we hope to have another next week .
there are some specific timing issues that you need to be aware of . westlb did not want to take operating risk in the financing . our position with westlb is that we do not reach commercial operations until we reach the start date of the petrobras contract . we are currently producing energy into the grid . at some point , westlb could try to force us to take out the entire vehicle prior to the opic funding . depending upon the timing , this could represent a cash flow of up to $ 280 million for a short period of time .
please let me know what other questions you have .
brett
from : john j lavorato / enron @ enronxgate on 10 / 26 / 2001 02 : 10 pm cdt
to : brett r wiggs / sa / enron @ enron
cc :
subject :
did we sell the power to the government ?
what is our cash burn on the project right now and over the next month ?