The IPP in Gaza is progressing albeit somewhat behind schedule.  This 
combined cycle power plant is the first infrastructure development project in 
Gaza and the first by a major Western company anywhere in "Palestine."  There 
are several issues which should be addressed and may be raised during the 
Secretary's visit.

1.  All equipment for the plant must transit Israel.  We have been assured by 
the Israelis that movement of the equipment will not be impeded as long as it 
is on the list of equipment we provide them.  That said, there are countless 
opportunities for equipment to be delayed in Israel awaiting clearance, 
whether on the list or not.  First power could be delayed indefinitely if the 
Israelis choose to do so for political, security, or other reasons.

2.  Fuel for the plant, once operational, will also transit Israel.  Again, 
disruption of the fuel supply for any length of time will in effect pull the 
plug on power in Gaza.  Gas from Egypt has been discussed; it remains to be 
seen if that will be a reality anytime soon.

3.  Although not officially from the Israeli government, we have been told 
that as soon as the first watt of power from the plant is produced, the 
Israelis will turn off supply of electricity to Gaza.  The current 
consumption is about 110MW.  The first phase of the plant will produce 40MW.  
This appears to be the beginning of a power supply arrangement whereby Israel 
sells Gaza electricity to make up the difference.  That electricity is likely 
to be more expensive than that which the plant will supply; Enron could well 
end up being blamed for the higher cost.

4.  Water is another critical issue.  The Palestinians want their own supply 
of fresh water which must necessarily be desalinated.  Israel is currently 
selling water to Gaza; it is not in Israel's best interest to lose this 
customer, therefore she may attempt to delay a desalination project.

5.  OPIC project funding is problematical.  Since they originally invited 
Enron to take on this project, they should necessarily also be involved.  
Lack of OPIC support could jeopardize other project financing and drive up 
costs.

6.  The Israelis must also "approve" the environmental impact of the plant.  
The plant will meet or exceed World Bank guidelines, more so when operating 
on gas.  While not a probem at this point, the Israelis could delay 
construction/operation over environmental "concerns."

Andrew is the lead developer for this project and may have other issues for 
consideration.  Thanks.  Mac
---------------------- Forwarded by Mac McClelland/ENRON_DEVELOPMENT on 
02/09/2000 08:28 PM ---------------------------
To: Mark Schroeder/LON/ECT@ECT
cc: Joe Hillings/Corp/Enron@ENRON, Steven J Kean/HOU/EES@EES@ECT, Mac 
McClelland/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ECT, Scott 
Reblitz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lora Sullivan/Corp/Enron@ENRON 

Subject: Re: Department of Energy Pre-departure Briefing w/ Asst. Secy. 
Goldwyn  

Mark - 

Good suggestion.  I spoke to Scott Rebltiz who told me that important 
decisions are to made this week at OPIC concering the Gaza project.  I will 
work with Scott and John Hardy to make sure that our message is consistent 
and helpful.  I will also work with Mac for a comprehensive update and 
strategy.

-Chris 





Mark Schroeder@ECT
02/09/2000 06:35 AM
To: Joe Hillings/Corp/Enron@ENRON, Chris Long/Corp/Enron@ENRON
cc: Steven J Kean/HOU/EES@EES, Mac 
McClelland/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Department of Energy Pre-departure Briefing w/ Asst. Secy. Goldwyn

Joe?Chris - this covers some of my new turf.  We have, I am told, a power 
project in Gaza that we are working on.  It is probably early days, but 
perhpas Mac mcClelland in Dubai can shed some light on whether we would want 
to get that project on the Secretary of Energy's radar screen.   mcs 
---------------------- Forwarded by Mark Schroeder/LON/ECT on 09/02/2000 
11:33 ---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  Scott <s-mccarthy@bciu.org>                           08/02/2000 22:00
	

To: mahn@usccmail.bms.com, calbee@dfintl.com, dean.allen@pareuro.com, 
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bill_sullivan@anadarko.com, mark.f.supko@lmco.com, sally.susman@aexp.com, 
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jacktymann@aol.com, jtymann@worldspace.com, elizabeth.a.tyson@sb.com, 
ulrich@pbworld.com, urbans@eu1.bp.com, munnj1@bp.com, 
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andy_veje@parsons.com, frank.verrastro@dvn.com, aracelia.vila@spcorp.com, 
judith.a.vincent@usa.conoco.com, evis65677@aol.com, 
vlachpa@mail.northgrum.com, chaim.wachsberger@chadbourne.com, 
jwalden@vancoenergy.com, peter_walters@guardian.com, 
averhulst@worldnet.att.net, eward@skadden.com, 
kenneth.j.warnock@bellatlantic.com, c-watson@bciu.org, 
mweaver@fortworthchamber.com, paul.weber@chadbourne.com, 
thomas_h_weese@ccgate.ueci.com, jwei@haythecurley.com, v-weil@bciu.org, 
joel.a.weiss@lmco.com, dwestfa@enron.com, john_m_white@eo.raytheon.com, 
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ron.will@nrgenergy.com, elizabeth.f.williamson@usa.conoco.com, 
dwillkens@dfintl.com, scarbroughs_plum@usa.net, 
Debra_Winchester@res.raytheon.com, cwindels@pfizer.com, frank.wisner@aig.com, 
wisnoskik@epenergy.com, dwolff@louisberger.com, ctompkins@louisberger.com, 
kwoodcock@aesc.com, sross@aesc.com, WoodsHR@bp.com, 
ewright@west.raytheon.com, wrightp12@bp.com, fouquepa@bp.com, 
oyandle@itsa.org, yannif@labs.wyeth.com, cordelia_m._yoon@newyorklife.com, 
lzak@mintz.com, ezsol@aol.com, lawrence.ziman@chadbourne.com, 
czimmerman@dfintl.com, dzsebik_sikorsky@compuserve.com
cc:  

Subject: Department of Energy Pre-departure Briefing w/ Asst. Secy. Goldwyn


TO:  BCIU Members
FROM: Scott McCarthy
  Director of Programs
  Ph: 212-490-0460, ext. 224
  Fx: 212-697-8526

PRE-DEPARTURE BRIEFING

BCIU and the U.S. Department of Energy are pleased to announce an industry
briefing with:

ASSISTANT SECRETARY OF ENERGY DAVID GOLDWYN
IN PREPARATION FOR ENERGY SECRETARY BILL RICHARDSON'S
MIDDLE EAST TRIP
(EGYPT, ISRAEL, PALESTINIAN AUTHORITY,
 KUWAIT, AND SAUDI ARABIA)


DATE: Thursday, February 17, 2000
TIME: 10:30 a.m. - 11:30 a.m.
PLACE: Department of Energy
  Room 7C016
  1000 Independence Avenue, S.W.
  Washington, DC 20036


Secretary of Energy Bill Richardson is visiting the Middle East February
19-26 where he will meet with officials in Egypt, Israel, the Palestinian
Authority, Kuwait and Saudi Arabia.  He is expected to sign bilateral
Science and Technology Agreements (or annexes to existing agreements)
focused on solar and renewable energy, advanced power systems, and/or
electric vehicle programs with Egypt and Israel, as well as an Energy
Cooperation Agreement with the Palestinian Authority.  He will meet the
leaderships of Kuwait and Saudi Arabia on international oil company
involvement in the upstream oil sector and other issues important to U.S.
industry.

BCIU invites you to join Department of Energy Assistant Secretary for
International Affairs David Goldwyn, Deputy Assistant Secretary Theresa
Fariello, Special Assistant to Secretary Richardson for Policy Rachel King,
and Director for NIS, Russia and Middle East Affairs Len Coburn for an
industry roundtable in preparation for this visit.  Companies are
encouraged to bring background material for the Secretary's use during the
trip to this meeting if they have not been provided to the Department of
Energy previously.

If you have any questions regarding this program, please contact Jeffrey
Donald at tel. (202) 775-6074, fax: (202) 775-6025; E-MAIL j-donald@bciu.org.
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If you would like to attend, please complete the form below and respond via
reply e-mail OR fax your reservation to (202) 775-6025.

Name:____________________ Title:__________________________

Social Security Number (for clearance into
 the Department of Energy):______________________

Company:__________________________________________________

Address:__________________________________________________

Phone:__________________   Fax:______________________

Email:___________________________________

Program number: 3750JD