Ann: Project Financing with DBP Philippines , page-21

Shamish

I doubt the ewc and enron situation are in anyway comparable - EWC gives pretty good disclosure and look through the various entities. Enron didn't (btw I cleaned up a lot of the enron fraud at middlesborough in the UK).

The numbers I gave only back out the potential ebitda impact of getting the gas and LNG turned on. They are material because they attempt to quantify the upside to the investment. To say they are a waste of time pretty much undermines the reason why people are investing in it (if people don't invest for the upside, what are they investing for).

The local issues in Sengkang are well documented - the locals want a domestic offtake - this appears to be stirred by the local regency and the perhaps bumi who want to be involved (check out the bumi board).

Whether the "state of completion" at sengkang is evidence of serious political issues at sengkang I don't know. But the state of completion and politics appear to have delinked several years back and the construction seems to be tearing ahead albeit slower than EWCs projection.

My suspicion is that the delays over the past 5 years have more to do the events and actions at BP Migas, which is now tearing SK Migas apart). I have not seen additional issues reported - I doubt that EWC could have ever aired publically the issues it was having with BP migas.

The other possibility is that the gas has not been proved to a sufficiently high proved reserve - thus limiting gas available for the LNG and perhaps delaying the project finance.


Anyway I just wanted to air some other possibilities aside from your political problem scenario.