English
I have been overseeing the Cancun Metro Rail Project for our firm for the last six months, and wish to update you on the progress made so far. I am happy to state that we have procured the necessary land and electricity for the project, and have begun work on the project. However, we have met a roadblock regarding the supply of steel. I will appraise you on all these aspects in this mail.
We approached the Mayor for land clearances for the project. 60% of the proposed land for the project was readily available, being government land. For the balance, we had to negotiate with the owners, and have been successful in arriving at mutually beneficial packages enabling the owners to hand over the land to us for the project. Our financial liabilities on account of procurement of private land are in line with our original projections.
We have received our required power supply for the project from the Cancun hydel project. We have negotiated for 100% backup power, given the time critical nature of our work. Cancun hydel project has assured us of foolproof power supply, albeit at 5% additional cess than anticipated. We will be able to cater for this additional amount out of the contingency funds we have earmarked.
Our biggest hurdle at this stage is regarding the supply of steel. We had negotiated with Essex Steel for the supply of 1 million tons of steel for this year. However, a recent labor dispute at Essex Steel has resulted in a countrywide lockdown of the firm. They have reserve stocks to provide us with only 50,000 tons of steel. At this stage, we do not have time to negotiate with alternate suppliers. Resorting to punitive damages from Essex Steel might shore up our finances, but will not help us to complete the project. The only way out is to impress upon the Labor Minister to negotiate with the Steel Union to allow Essex Steel to produce the steel required for our project, as it is a project of national importance.
May I will request you to kindly apprise our Board of Directors of our progress, and also arrange for our CEO to meet the Labor Minister to intervene with the labor unions to resolve the supply of steel from Essex Steel. If you have any questions prior to the Board Meeting, please let me know.
Respectfully,
Tim Doherty
Senior Executive
Metro Project
(713) 1234-5567
