Quote:
Originally Posted by I B Hankering
You dare to mention ties with Brown & Root and don't mention LBJ and his Vietnam profiteering? You're indeed a mealymouthed lib-retard, CBJ7.
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He dares to even post anything. He's the Abyss of Non-Information.
"Jan. 1995 Commerce Secretary Brown visits India, accompanied by Ken Lay, and oversees signing of loan agreements by the Dabhol Power Company with the U.S. Export-Import Bank and OPIC." http://finance-mba.com/Dabhol_fact_sheet.pdf
"In addition, numerous Clinton Administration officials supported the project. For example, Commerce Secretary Brown wrote to India’s minister of Commerce before a January 1995 trip to India, asking the minister to facilitate “financial closing” of the Dabhol project “in time to be celebrated during my visit.”91 Once in India, and accompanied by Ken Lay, Secretary Brown oversaw the signature of loan agreements by Dabhol Power Company with U.S. Export-Import Bank and OPIC.92 In visits to India, Treasury Secretary Robert E. Rubin and Energy Secretary Hazel O’Leary expressed Washington’s concern that India stand by commitments to investors.93 For example, Secretary O’Leary warned India that it was hurting its reputation with foreign investors.94
After the project was cancelled, in late 1995 and 1996, Mack McLarty, a White House counselor, closely monitored the Dabhol project with the U.S. ambassador to India, keeping Ken Lay informed of the administration’s efforts.
95 In addition, according to press reports, President Clinton’s ambassador to India, Frank Wisner, “was among the plant’s most influential advocates.”96 Mr. Wisner joined the board of an Enron-controlled company after he left the Foreign Service in 1997.97"
CJ, the wonderful thing about your ignorance: It's a curable condition.
As for your stupidity ... that requires much more "work."
"As of 2000, Enron was developing a natural gas pipeline project to carry the regasified liquid natural gas to Dabhol and customers north of Dabhol.19 In addition, in January 1999, Enron had entered a joint venture to construct, own, and operate a large liquified natural gas carrier dedicated to bringing liquified natural gas from the Middle East to the Dabhol terminal."
BTW: That "natural gas pipeline" is the one projected across Afghanistan.
And continuing the effort to eradicate your ignorance, CJ:
"The Dabhol power project in India, which completed its financing in 1995, is a good example of how a project financing works in practice.
26 Three sponsors, Enron Corporation, General Electric Capital Corporation and Bechtel Enterprises, invested funds into the project by creating a project company called Dabhol Power Company.
27 This project corporation then independently borrowed funds for the project from multilateral lending agencies, local lenders and a syndicate of investment banks.
28 The security these lenders sought for providing these funds were the assets and cash flow of the project entity, the Dabhol Power Company.
29
"Sponsors obtain several commercial advantages by financing a project in this manner.
30 First, if the project fails to fulfill its loan obligations to the lenders, the only recourse the lenders have is to the assets of the project corporation itself.
31 They have no recourse to any of the assets on the parent corporation’s balance sheet.
32 Second, since the project corporation is acting as the borrower of funds, the parent corporation’s credit rating is unaffected even though the corporation is investing in a long-term project that is borrowing millions of dollars in the frequently unstable environment of developing countries.
33
"Furthermore, financing a project through project financing can be a vehicle for social and economic development for developing countries because it is a relatively economically efficient way to finance public works projects that affect the lives of millions of people in the country.
34 It is also an important channel for developed and developing countries to become more economically integrated be[*PG360]cause some of the projects funded through project finance involve the exploration of commodities that are primarily exported to developed countries.
35"However, project finance also presents significant risks to sponsors and lenders.
36 Risk factors in a project financing come in a variety of strains, including currency-related risks, risks of government default on payment guarantees, and risks of civil unrest in the country.
37 Arguably, the most important risks may be those associated with the political and legal instability of the host nation.
38"The Dabhol power project provides an excellent illustration of the political risks involved in project finance.
39 When the project completed its financing, the local state of Maharashtra was run by the Congress Party, which was very amenable to increasing the participation of foreign investors in infrastructure projects in India.
40 However, in March of 1995, the right-wing nationalist opposition Bharatiya Janata Party (BJP) gained control of Maharashtra and its opposition to the Dabhol power project was a linchpin of its campaign platform.
41"
