re : just for information i expect to have an agreement with abb by then end of the week providing primarily for :
1 . increasing contract price of no more than $ 6 . 2 mm , from $ 46 . 5 mm to $ 52 . 7 mm ( note however that this increase is spread over the construction schedule - no cash out until ntp is given ) .
2 . lowering the specific performance targets for line losses on the asset from 5 . 9 % to 4 . 3 % . the npv associated with the lower line losses offsets the increase in contract price .
3 . ena option to give ntp any time between june and december 31 . after ntp is given , abb will have 15 . 5 months to deliver the asset .
we sent a proposal to abb ( providing for a contract increase of only $ 3 . 0 mm even though $ 6 . 2 works economically ) last week ( attached ) . on the customer side , enron de mexico is still working with deacero and the cfe . the current agreement with deacero expires a the end of june .
we are also pitching the deal to gm and ford in the u . s . , as well as kimberly clark in mexico . i am trying to get to detroit within the next couple of weeks ( we are exchanging ca ' s with gm ) . we have filed the presidential permit application - it should be public in a week or so . i am hoping this will help stir demand in the u . s .
there should be no change in valuation . we have run the abb proposal by rac and they approved it , subject of course to management approval .
dtt
- - - - - original message - - - - -
from : kitchen , louise
sent : tuesday , may 29 , 2001 9 : 20 am
to : tingleaf , drew
subject : just for information
can you let me have a further update on this revised pricing and where the eal is .
thanks
louise
re : just for information
i expect to have an agreement with abb by then end of the week providing primarily for :
1 . increasing contract price of no more than $ 6 . 2 mm , from $ 46 . 5 mm to $ 52 . 7 mm ( note however that this increase is spread over the construction schedule - no cash out until ntp is given ) .
2 . lowering the specific performance targets for line losses on the asset from 5 . 9 % to 4 . 3 % . the npv associated with the lower line losses offsets the increase in contract price .
3 . ena option to give ntp any time between june and december 31 . after ntp is given , abb will have 15 . 5 months to deliver the asset .
we sent a proposal to abb ( providing for a contract increase of only $ 3 . 0 mm even though $ 6 . 2 works economically ) last week ( attached ) . on the customer side , enron de mexico is still working with deacero and the cfe . the current agreement with deacero expires a the end of june .
we are also pitching the deal to gm and ford in the u . s . , as well as kimberly clark in mexico . i am trying to get to detroit within the next couple of weeks ( we are exchanging ca ' s with gm ) . we have filed the presidential permit application - it should be public in a week or so . i am hoping this will help stir demand in the u . s .
there should be no change in valuation . we have run the abb proposal by rac and they approved it , subject of course to management approval .
dtt
- - - - - original message - - - - -
from : kitchen , louise
sent : tuesday , may 29 , 2001 9 : 20 am
to : tingleaf , drew
subject : just for information
can you let me have a further update on this revised pricing and where the eal is .
thanks
louise
