1. Why do you think the results of the first negotiation were so biased in favor of...
Question:
1. Why do you think the results of the first negotiation were so biased in favor of Enron?
2. In the second round, Enron appears to have traded equity ownership for greater capacity. Its rate reduction of 1 cent per KwH appears to have been absorbed by higher production quotas and the use of lower-priced naphtha fuel. Why was Enron willing to make this trade? Why did the state of Maharashtra get more for its willingness to allow Enron to restart the project?
3. What can be learned from the first two rounds of Dabhol power project negotiations about participation in large foreign direct investment projects that are highly visible on the global economic scene?
4. How did GE and Bechtel's request for arbitration prompt the dispute?
5. What is the difference between the GE deal and the Bechtel deal? They both had the same amount of equity in the DPP, so why was Bechtel able to get $15 million more?