============= Page 1 of 11 ============= C) 0 a (D D Di H (D Ol (D CD C (D (D Q w C) C tD -U C) x- (D LC I m N tJ N co EXH009-00220 CONFIDENTIAL tiZ ~ Z Joint Audit and Compliance / Finance Committee Meeting Supplemental Schedules - Investment Revaluations August 13, 2001 Distribution List Jeff Skllling Rick Buy Dave Gone GOVERNMENT EXHIBIT 2904 Crim. No. H-04-25 (S-2) ============= Page 2 of 11 ============= CC) 0 a a) _-, (D cv rn m L C ca CD n U) ca t?~ 7c- CD tp m J N N tv 0 Enron Global Assets & Services SigniliconI Exposures (In US$MM's) RAC Valuation (5131/01) Jeff (6130101) Skilling's Carrying Investment Name Country Low High Estimate Value EGAS.Inve9ImenIs: Elektro Brazil 650 1,112 800 2,026 Dabhol Power Col India 340 912 600 1,135 Cii laba Brazil 213 264 250 535 TG S Argentina 203 365 250 451 SK-Enron South Korea 131 348 260 297 CEG/CEG-R to Brazil 116 220 240 269 Gaapart Brazil 70 178 150 194 Promigas Colombia 68 90 90 158 Traneredes Bolivia 50 73 50 145 Vengas Venezuela 103 126 80 142 EcoEIocIrica Puerto RIQ o 110 214 205 145 C0 .PEL Brazil 8B 68 70 116 Bahla Lit a Minas Panama 24 31 - 110 Sm1lh/Enron Cogen Dominican Republic 65 - 102 All 0 there 330 436 350 529 Subtotal - EGAS Invoslm ents 2,504 4,512 3,385 6,351 Azurix`: W ea8ex Great Britain 1 ,716 1,987 1,900 2,999 Azurix NA Canada/US 90 130 120 194 Buenoo Aires Argentina 75 150 105 All Others 95 148 126 243 Subtotal - Azurix 1,978 2,415 2,145 31541 Former EI Headquarters Capital - - - 224 G rand Total 4,480 6,927 5,530 10,119 tncludae direct and indnucl Ddbhol evosure. IV,rh,aNons rcllect as(rssates from Azvnx; i AC bcLjvas lhesa astnnalnr to bo raa;onable, but has not por(armad arr ir0611CIJJ.,eI valuatf,na Z r=vunno_nn~I)1 ============= Page 3 of 11 ============= (-3 0 a m E b l A Gl et & S i nron a ss o s erv ces Detail of EGAS A// Others (in US$MM's) . 3 rD r. PAC Valuation (5/31/01) (6/30/01) Carrying n Investment Name Country Low High Value Gas Authorhy of India Ltd. (GAIL) India 59 59 70 (n Sichuan Jitrling Power (Eclipse) Chl+na 57 72 67 0- 8aten©eo . Phlllpptnoo 33 33 51 CD Accro VoneZuela 29 33 49 PQPL Guatamale 38 47 41 3 BBPL 8razll / Bolivia 35 40 41 CD CALIFE Venezuela e 7 37 n Son Juan Gas Puerto Rico - 8 36 C Subic Boy PhlllpRlnoe 35 37 33 CD Industrial Gases Limned Jamaica 13 21 29 Pitt Power Guam Guam 12 13 20 v Haina Dominican Republic 14 18 Humpusa Indonesia 13 16 1. ProCarlbe LPG Terminal Puerto Rico (15) ' 4 6 Caribbean Basin Power Fund Cayman Wands 6 8 6 Corlnlo Nicaragua 3 3 5 Advance Agro Thailand 4 4 Bachaquero Venezuela 2 2 2 Centrages Colombia IT 18 (2) Total All Others 330 436 529 m N r N EXH009-00222 ============= Page 4 of 11 ============= 0 0 a rn c. w H (D R 3 (D C CD /n CD a CD 7 (D n (D -D (D m India -Exposure and Latest Developments Enrtx, 6 poa... I n C..U, l In Lra W Ll'e Eg11ty In-. Im.n1 12= Rrt Ined Earnln2e 110 En-on En)Iree.ir. & Op mi.anal 9rnl^.et Profit 16 Enjon Erglner'Itg IS OpetaI4nal 9enlce-s Polenl`al Llati'111as lu SJ,,~cnitactcrs _ fE4 9uo-loUI (Inddo Indl.) _ 812 CWtr ltea Casts (Enn,nI . 141 Olh.i1 82 Sub-Total /Oulddc Indla) 222 Toul 1,135 I S k. .4A4. 1n... y..,l •. 1I U44.,.ra4 u - -.n.ul d rual W.,,.m.n G,Nre:l ,: ,J 11U4Aa1 KM... ® India's Prime Minister will be visiting the US in late September and has indicated that a resolution to the Dabhol issue before the visit is desirable Lenders are aligned with Enron interests; they do not want the Indian banks to control the project ® Current negotiation status: Enron may propose a combination of cash and Rupee denominated notes backed by the government of India ($800 to $900 MM); as a result, we would lose Enron's costs associated with Dabhol ($223 MM), but not direct costs of Dabhol Power Co. or Enron Engineering & Construction Company =XH009-00223 ============= Page 5 of 11 ============= 0 0 U rn C-. N Enron Global Assets & Services w B Detait of Azurix All Other (in. V$$MM's) rD 70 C cD nvealment Name ountry Aiurlx Valuation ~ (5/31/01) (8130/01) Carrying Low High Value Q la7 BraiJI 8r"1 _ 25 31 85 Cancun Ivlaxico 30 10 46 Modem U_S. 10 20 35 rn IASA Mexico 10 25 28 Lurgi Germany .. 0 2 23 Mendoza Argenllna 20 30 21 Swiss Combl SwItlarland 0 0 5 D ;~c Total All Others 95 14B 243 (D m N Valualions reflect estimates from Azurtx based upon their latest Informal eon; RAG has not prepared an independent valuation to dale. v w EXH009-00224 ============= Page 6 of 11 ============= n 0 a cv N v ((D C: N w K n -D to Key Value Drivers - Original Approvals ® Development of associated merchant businesses and revenues ® Neutral interaction between revenue and cash flow growth (partially through inflation) and devaluation Favorable regulatory climate ® Discount rates for international commercial projects were appropriate and unlikely to-change materially a Construction risks inherent in greenfield projects were acceptable and modeled a Exit through sale with no material liquidity discount M N N N N -A EXH009-00225 ============= Page 7 of 11 ============= n 0 3 a rI a c. a (D 3 lD N rn LA (D a In s (D n N n x (D Where were our assumptions inaccurate? ® Merchant strategy has not played out: Investments in assets were purchased at or below Enron's capital price in exchange for the opportunity to build merchant businesses in developing countries which have not materialized • Increase in market sovereign and project-specific spreads: In general, events transpiring since these assets were acquired have increased sovereign spreads for developing countries; proJject-specific spreads for commercial projects have alsoo widened ® Illiquidity of investments: Regardless of capital price, it is virtually impossible to sell an asset in a developing country at a reasonable value during certain periods (e,g., Pate 1998 and presently) a Currency Movements: Foreign exchange losses in value have been more severe than anticipated Regulation: Regulators have been less friendly than anticipated with respect to keeping foreign investors economically whole on a US dollar-basis m ri IN) N N cn ® Management: Enron developers, in at least one instance, have not aggressively managed projects through construction and long-term execution EXH009-00226 ============= Page 8 of 11 ============= C) 0 a (D (v (A N (D S] C m U) (`DD a w (D pa 0 m N N r.) 1\) rn RA C Valuation of Enron Global Assets -& Services Assets Valuation is preliminary, based on dated models. Updated, detailed operating and financial assumptions are presently being prepared by Enron Global Assets & Services A comparison of original (or oldest available) valuation and present, preliminary RAC valuation shows key areas of variance Interplay among the variance factors makes identification of the contribution of a single factor complex; the following charts should be viewed in this context - e EXH009-00227 ============= Page 9 of 11 ============= (-) 0 a ci N v 3 cp (0 C N rn 0- CD N n N CIO C7 7C' (D m IV N N 11 South America (In US$MM's) RAG Valuellon'(517110l) (6rl9 ) 0rlplnaI - DIt1.r.rlc.e Duo To' Cullenl Mid Invaelmeala Cotrnlr.l Law Hloh CcrrYingValue Valuation'' Allsurnp. FX l.rm.Value Dlec.Rote 0111cr' Valuellon ~QUBI' (3691._. -- -. (1sT) 722 880 Cllilba B1a11) 213 254 - 635 100 52 4 121) 148 233 TI:SI Alpontlna .. 2D7 JgS, _. 461 670 .._ (100).. . (Its) (1011 €D 206 Ga,pnt( Dl.al 7e 176 194 771 29 0101 151 (I32) (80) 128 P.o1rIDQA Co? 'nbla 64 00 168 17T Q . IQ . 60 (148) (70.) 19 Ti Onrl.des BOLAn. 61) 73 140 118 27 (20) 62 Venpaa d CIDdel VFneny.0 _ )D3 129 , _ _ 141 _ .7.. _.. _ ... . ?.. _ . . _ . (7O .. - _ . ( (~) 115 AGC18 - VeMOJela 29 3J 49 3B 32 - ('28) (12) 30 CoJLI 'p Veh.nlata 6 ... 1 37, ?4 O. _.. (9).._ B9PL Brat7'I3al.ia 14 19 20 55 (t5) 2 - (0) (201) 16 C(xn+ra mD CcA mbin 17 15 2 30 11 (1) (211 I (3) 17 RAC Valuallon Gubtotol 1.431 2l215 3,756 2,090 117 (24G) (372) _J718) 179 1,850 CEC1 Bred' Copol ° Braill CEO-RIo' Bras9 .._.... 84 2Q .. IG2 . 099 98 116 88 TO No RAC Valuallon Sublot2l 204 308 J85 70.001 Equ1l 1,635 2.683 4.140 Pdb/ '1 B B PL t2 b I 61 arVBa Oa 21 21 21 BachaQucro Vaoan)aia 2 2 2 To1J Debt 23 73 23 2,.b W1ls7C, m.0h C. n.Ho104 Viluldm 1"00 -t-. oior j Ca on Iw. 0.m 014++10.-mnh G:)ait'. oil,1( 1 Vdhtlo cash ILomodd(GL,n,'rh~d.llIrIS.Fr, pyv 011.. 01 cunlln:.r n~411q In 2.)IICa-r..,r.olhoda'cgy I py1 of h on,,,n Il /stir, rtnaV,dlnn) l Al, In. ? II.r.nc.....n, un ,n 0,uv..00,0 C_'1/'.. c.1:uLJ. d b., n4 a n J.I.,rruwll: 0.J, e..n ' 011111 Ind JiN drlarc.r 10.01 n,C• l'vt 001:1/0'140. 1. p,owbl4LY 01(01 fo0. 0, y10001- 061W. mnr.l ,,.nonAw,. 1,--00 or,nPP,a bo-1. II., rPUl p,00Vad t0 Erv.n 01.b.1 Ac1.t l C"-. .n hvylp rup+i, . b. 003x'30.0 ynlAla ` 111. h f, lr.6 d fn. r..OALlan rra. bu.d on lh. TG5' rloU.vca rnd m.rMI moon/I'. ' 1h. .v. of CEO 0.•4CEG.flIG to P."1- , b P.nd'ngand , o00a4 lo Cmo h 5..b,nbol:GU1. 011 V•I~ISm ~9ry pod DTlOd In, th- ronn [1,001 . G &pAI1I m.0,KMI v1)u:1Gn roan tw.W on mullpl... bmoo,. 11,. nvdL I vNdod Dy En,m GYAa1 Ar1.11! 6 Sari- p,--l. 10/.00 onnOA, alrumplcru In 1. m11 N p«~.u1 d. . Cc"111 FnClu/ -4-a-14 wlao/Io. 0 0. Cuti 0.v mad../ Fdc.. P1o .I.A. 0001 bole) odd 41 n0 mah.l ,a 1h. ,>Ig0'.Ol 100.0.+...000.4. <,m)+.10 (.u 1:`~orf b d.vla.0t:n fl-" hcn ,n ,or -q. ,.1n a.rr. 0010100x1 Cpnnlanllr hly,.n Ih.n V.. corn In I/.. 1,11,1 -Jot Any cwnparocnl d U,u c4drr,nYJ .+U, Ir., n.0 0101,4.3 µ,1111.01000I I0 dln.1 Ccr.pn,.n3:o .r anumpdon 0.,.000 w-Vld ,0001.1lwl tu, 0001 111000 .n umtU (vl rtwlun 401 IV lor>;pn 0.0100(00 p..nd Nvm'p1:r-a ..q re .9/0 lo .r,y o.6n. cl,ara...Y ca d. o) flyrt-an.on to 300;0013 v4'tr. 4, lnl,tlca.U. 10.. r>a dill.-. '. 'pl..yn°,t.aw.nfv.:pn 0010.,0?. and b0.-rr vllrs .lnO 1, n.h an umltin dnA,g 00.1,0 ,01.1.. I. 0"ill010,11101100 11 A4 0.W In11Nn..lln c-.n0 vcs'v.4 .l p. EXH009-00228 ============= Page 10 of 11 ============= C) 0 4 m Cl) 3 2J (D 0 C (D 2 CC 3 (D n c ti 0 Qo n 7C- (D I (0 Central America / Caribbean (In US$MM'9) RAC Valuation l(5i)1/01) (d-21W01) Orlglnal Dlflarnncce Due To' Cu,rent )AId nvoolmenlo counIrry Low High CarryIng Valuo ValuNlon' Aaburap. FX Term. Value Okc. Raw OTI1ar' Valubllon Equ1ry EcojEJollkaa put)ltoftlco B2 106 127 :. . .;...Li1bo) 62 (55) 10 14-4 BUA Parwma 24 31 110 57 (21) (II) 2 (I) 25 SECLP r Dorn. Rnrllbllc 28. _ 06 60 . . (24) (I) (2) (9) 14 POPC ° Gualurrwla 20 47 41 ZA 12 (2) 11 (0) 43 San Juan Gag Pvatlo f4.100 .6 _ 34 (0) 13 ,.. I (6) 3 IGL0 Jamaica 13 21 29 23 (10) 3 I (4) 6 I9 Coa)nlo Nicare ua 9 3 6 11 t 1 1 a RAC Valuation Subtotal 1TO 334 413 459 (197) ~ a!7 (47) (4) 252 No Garltw a Puerto Rbo (16) 4 8 CBJ'F t° Cayman Is)a^aia 6 8 0' No (SAC V.lua/bn Subtotal (9) 12 12 ota Equ ly 61 346 42 Dab! 11 SEC(P Not Dons. Ropuv&o ?7 31 Halve Nolu Dom, Republic 14 18 EcoElacuicn Sub Gobl Puorto Pbo 18 I8 18 lolal Debi (0 69 7) 1 Pr0batit 1 mm..1 0 rnul:rlor valuPlrn a 0a1 cn lie ar1ynaI c2LA lV1r mo48 (aolalr,mlubI 0i 11,0 Ciaorl 0Yalhpb cblh /b. nodal (0 10110014lkl h II ~a o~4na- v+~lau al ca Wla.,0 Jzn k.q In 4Q01 ('timo /v, b>r c•Jolog7 rggi;cd IA our wall r branu0 a 400000) J AD 1110 ddl n, arx.'t ar. ef. ,.lO ,oi,nrJ-alba;l,, enkv,'.a4 L- j cn d,lo-on r'tlk o.o a, hu en a Orr-a Inc1.7o, OiWrar. I I,. Cw mid pt n coltzb, duo 4a pfo0i+J4Ik ro Ja lha-0 0f VII, alryVfT/! ou a IQ .l aoba. nz otdocl aria rnn o 004TId al. lnada ovaa onod Pp'.a:J A Duo la t'i. lpincwc 0-ca a Iho P0,P 4oI rfien . a cons'bartd war sd. L)-0 mo4fal ucod lw IAaI an0I41lr Waa co^;idofod In bd III. NlQnal Ono 0 Jib or&al moFd lr avaldblo IQ CBPF II a Pa" o f"..Iy land t'ni I--lc At cNAAI to pawv rs olo-I crcjacl h Iho Cohlwan aosh II All 0obl rut,wn aN I .w,e vduod .I pu wU Iho a.z.pt Ion 01 N. Halnn I1a10. In IJCC of not ILI rru IIUal.On In SECLP, SAC ilauao7I'lL r,o dIt mey AIal pctacpabd m N N N co 10 EXH009-00229 ============= Page 11 of 11 ============= n 0 a cD Asia / Pacific D (in US$MM's) (I RAC Veluallon 'W 31101) (6/3(/01) OrlgIne( Dllforences Dua To Currant A11d Inva tmeNa Country Low High Co rrylny Vlrlua Valuation' An uump. FX Term. Value D(cc. Rata Othet Valuation Equity - 61(/Enron' liotinhKorea 131 318 297, (3). .. MT).. 173 240 C Edlpse Cnlrwa 57 72 67 88 112) (1) (131 3 65 (D LLllenga6 Phllpy.naa 30 .. 30 48 7 29 111 (5) 30 N Sublc Pnlllpplneo 26 30 29 32 2 (e( 20 a. Piu Guam 12 13 20 27 D - (2-1 (3) 13 (J HAC Veluotlon Subtotal 259 493 458 413 28 (3) (208) (22) 168 376 DaL4ol° Irtia 917 1,(35. 3 GAIL t trdla 50 59 70 (0 No RAC Valuation Subtotal 399 GT1 1,20 (~ Total Equfty 657 _ (,464 1,6Fi7 m Debt ~-j Hurnpue Indorwela .. 13 t0 Advance Agro Thyland 4' 4 n Sub(0 But) Dobl . PhiUpplnoa 4 . 4 . 4 7~ SbtiIc Bond Ph(Upplnoa 3 3 3 (>) 8.1511 an 9 119 0e b( pNr noa . 3 3 3 Tots Debt 10 27 30 tf] P NVaD /ICIR, mast: o5 0( myhthw vtrla'I O.~ t Bawd en tht orbit rot C<-11s born nodal laW+mlrrbiae) u Int coast avaho1lo coal) flow mvJal (Jale+min4;z/, II II Il,t pros.nl voluo d c.uhflows riardrO In 2001 (tom. , .ILod~lnl apps .4 In ow rr.wl Fuc lnl (crvtluallunl l NI lha FJYvarv,I ii, a on on w,'- alll b. t(I. Cok .,I]led bond on Jala,olu111C COOD to.. F ObLI frsd.0a_u Canwcaa to our rnlaa?IA vdi:0Ucn d.rt w prnbatallhtk 00011 no" a vi0,ollon .r.vlhvaao,ly t Ova to 410 corr0nl d.laulI raua11on A j orxryo- 4 nul .p,i4.byi In Uabhol ° 99JEn(an vn-uollon wo.1 bet an on dlKUVNOJ co.h Ilo.,. mulllp'mm ord awl..'. picas. FIAC L Marl:. O .v cvn oil nIodol dvollil r•L'ruw Iha vela 01Iho l,vJixuon F GAIL I° pi-Acly Ironed. ha val-rauun wal bb.eJ on rnolynl pitra ° Hr Oool m/INm9)10 v -v oa tune 11 par wrA dla ercupllcn of lh1 01' lp.w and M'rar,m A7 'o borDI I%,pi weru Fublirl toe 81 Md'/a Rrd bvlueton m N tl 1v N (D EXH009-00230