Enron & The Dabhol Power Company

Essay specific features

 

Issue:

Business

 

Written by:

Jarrod W

 

Date added:

February 3, 2016

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 681

 

Was viewed:

3122 times

 

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Essay content:

Given the size and the "foreign" nature of the investment, Enron will constantly stir political unrest unless it gives in to the terms of the party in power. o Difficulty in predicting and understanding local political conditions and coping with the constant threat of forced re-negotiation o The agreement (PPA) was flawed from the beginning and unless the company sees the error of its ways, reviews from the World Bank and other committees would always reflect that there was a one-sided deal and would lead to a protracted debate of who owes who...
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Though the Indian government has a guarantee, paying DPC will likely bankrupt MSEB and will lead to a threatening major dispute between MSEB and DPC. If Enron had wanted to cut its losses, it should have let the project end in Phase 1. It need not have negotiated for Phase 2 financing after barely getting Phase 1 operational...
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