[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2604 Reported in House (RH)]






                                                 Union Calendar No. 177
107th CONGRESS
  1st Session
                                H. R. 2604

                          [Report No. 107-291]

To authorize the United States to participate in and contribute to the 
 seventh replenishment of the resources of the Asian Development Fund 
and the fifth replenishment of the resources of the International Fund 
 for Agricultural Development, and to set forth additional policies of 
  the United States towards the African Development Bank, the African 
   Development Fund, the Asian Development Bank, the Inter-American 
    Development Bank, and the European Bank for Reconstruction and 
                              Development.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2001

 Mr. Bereuter (for himself, Mr. Sanders, Mrs. Roukema, Mr. Baker, Mr. 
   Shays, Mrs. Maloney of New York, and Mr. LaFalce) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

                           November 15, 2001

                     Additional sponsor: Mr. Frank

                           November 15, 2001

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on July 
                               24, 2001]

_______________________________________________________________________

                                 A BILL


 
To authorize the United States to participate in and contribute to the 
 seventh replenishment of the resources of the Asian Development Fund 
and the fifth replenishment of the resources of the International Fund 
 for Agricultural Development, and to set forth additional policies of 
  the United States towards the African Development Bank, the African 
   Development Fund, the Asian Development Bank, the Inter-American 
    Development Bank, and the European Bank for Reconstruction and 
                              Development.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. UNITED STATES CONTRIBUTION TO THE SEVENTH REPLENISHMENT OF 
              THE RESOURCES OF THE ASIAN DEVELOPMENT FUND.

    The Asian Development Bank Act (22 U.S.C. 285-285aa) is amended by 
adding at the end the following:

``SEC. 31. SEVENTH REPLENISHMENT.

    ``(a) Contribution Authority.--
            ``(1) In general.--The United States Governor of the Bank 
        may contribute on behalf of the United States $412,000,000 to 
        the Asian Development Fund, a special fund of the Bank.
            ``(2) Subject to appropriations.--The authority provided by 
        paragraph (1) shall be effective only to such extent or in such 
        amounts as are provided in advance in appropriations Acts.
    ``(b) Limitations on Authorization of Appropriations.--For 
contribution authorized by subsection (a), there are authorized to be 
appropriated to the Secretary of the Treasury not more than 
$412,000,000, without fiscal year limitation.''.

SEC. 2. UNITED STATES CONTRIBUTION TO THE FIFTH REPLENISHMENT OF THE 
              RESOURCES OF THE INTERNATIONAL FUND FOR AGRICULTURAL 
              DEVELOPMENT.

    (a) Contribution Authority.--
            (1) In general.--The United States Governor of the 
        International Fund for Agricultural Development may contribute 
        on behalf of the United States $30,000,000 to the International 
        Fund for Agricultural Development.
            (2) Subject to appropriations.--The authority provided by 
        paragraph (1) shall be effective only to such extent or in such 
        amounts as are provided in advance in appropriations Acts.
    (b) Limitations on Authorization of Appropriations.--For 
contribution authorized by subsection (a), there are authorized to be 
appropriated to the Secretary of the Treasury not more than 
$30,000,000, without fiscal year limitation.
    (c) Report on Participation of the IFAD in the Enhanced HIPC 
Initiative.--Within 3 months after the date of the enactment of this 
Act, the Secretary of the Treasury shall submit to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Foreign Relations of the Senate a report on the participation of the 
International Fund for Agricultural Development in the Enhanced HIPC 
Initiative. The report shall include a statement of the cost to the 
International Fund for Agricultural Development of participating in the 
Enhanced HIPC Initiative, the effects of such participation (if not 
reimbursed) on current and future programs of the International Fund 
for Agricultural Development, the feasibility of allowing the World 
Bank HIPC Trust Fund to reimburse the International Fund for 
Agricultural Development for the costs of such participation, and the 
amount of additional appropriations from the United States to the World 
Bank HIPC Trust Fund that would be necessary to allow such 
participation.

SEC. 3. HIV/AIDS STRATEGIC PLAN.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is amended by adding at the end the following:

``SEC. 1625. HIV/AIDS STRATEGIC PLAN.

    ``The Secretary of the Treasury shall instruct the United States 
Executive Directors at the African Development Bank, the African 
Development Fund, the Asian Development Bank, the Asian Development 
Fund, a special fund of the Asian Development Bank, and the Inter-
American Development Bank, and the United States Governor of the 
International Fund for Agricultural Development to support continued 
efforts by such institutions as appropriate in regard to HIV/AIDS, 
tuberculosis, malaria, and other infectious diseases, including--
            ``(1) development and implementation of a strategic plan to 
        fight against the spread of HIV/AIDS, tuberculosis, malaria, 
        and other infectious diseases;
            ``(2) integration of HIV/AIDS, tuberculosis, malaria, and 
        other infectious diseases activities in ongoing projects as 
        appropriate, development of new dedicated HIV/AIDS, 
        tuberculosis, malaria, and other infectious diseases, projects 
        as appropriate that take into consideration the institution's 
        mandate and core strengths, and the building of AIDS-mitigation 
        measures into other projects;
            ``(3) design and implementation of HIV/AIDS, tuberculosis, 
        malaria, and other infectious diseases impact assessment 
        criteria into environmental and social assessment processes 
        that the institution considers when designing and evaluating 
        new project proposals;
            ``(4) work on disseminating information on best practices 
        and project design for HIV/AIDS, tuberculosis, malaria, and 
        other infectious diseases projects; and
            ``(5) support training for professional staff on HIV/AIDS, 
        tuberculosis, malaria, and other infectious disease prevention 
        issues to ensure that these health-related concerns are 
        integrated into all aspects of the work of the institution.''.

SEC. 4. USER FEES.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is further amended by adding at the end the 
following:

``SEC. 1626. USER FEES.

    ``The Secretary of the Treasury shall instruct the United States 
Executive Director at the African Development Bank, the African 
Development Fund, the Asian Development Bank, the Asian Development 
Fund, a special fund of the Asian Development Bank, and the Inter-
American Development Bank, and the United States Governor of the 
International Fund for Agricultural Development to oppose any loan, 
grant, document, or strategy that is subject to endorsement or approval 
by the board of directors of any such institution, which includes user 
fees or service charges in impoverished countries directly or under the 
guise of community financing, cost-sharing, or cost recovery 
mechanisms, for primary education or primary health care, including 
prevention and treatment efforts for HIV/AIDS, malaria, tuberculosis, 
and infant, child, and maternal well-being.''.

SEC. 5. TRANSPARENCY.

    (a) United States Policy in Regional Mulitlateral Development 
Institutions.--Title XV of the International Financial Institutions Act 
(22 U.S.C. 262o--262o-2) is further amended by adding at the end the 
following:

``SEC. 1504. TRANSPARENCY.

    ``(a) In General.--The Secretary of the Treasury shall instruct the 
United States Executive Director at the African Development Bank, the 
African Development Fund, the Asian Development Bank, the Asian 
Development Fund, a special fund of the Asian Development Bank, the 
Inter-American Development Bank, and the European Bank for 
Reconstruction and Development, and the United States Governor of the 
International Fund for Agricultural Development to--
            ``(1) continue to make efforts to promote greater 
        transparency regarding the activities of such institutions, 
        including project design, project monitoring and evaluation, 
        project implementation, resource allocation, and 
        decisionmaking;
            ``(2) support continued efforts to allow informed 
        participation and input by affected communities, including 
        translation of information on proposed projects, providing 
        information through information technology applications, oral 
        briefings, and outreach to and dialogue with community 
        organizations and institutions in affected areas; and
            ``(3) work toward ensuring that--
                    ``(A) meetings of the Boards of Directors (or, in 
                the case of the International Fund for Agricultural 
                Development, the Board of Governors) of their 
                respective institutions are open to the public and the 
                media, except for discussion of sensitive matters such 
                as individual personnel matters;
                    ``(B) transcripts of such meetings are available to 
                the public no later than 60 calendar days after the 
                meetings, except for discussion of sensitive matters 
                such as individual personnel matters; and
                    ``(C) all key documents that are presented for 
                endorsement or approval by the Board of Directors (or, 
                in the case of the International Fund for Agricultural 
                Development, the Board of Governors) of their 
                respective institutions will be made available to the 
public at least 15 days before consideration by the Board.
    ``(b) Statement of Goals.--The Secretary of the Treasury shall 
instruct the United States Executive Director at the African 
Development Bank, the African Development Fund, the Asian Development 
Bank, the Asian Development Fund, a special fund of the Asian 
Development Bank, the Inter-American Development Bank, and the European 
Bank for Reconstruction and Development, and the United States Governor 
of the International Fund for Agricultural Development to inform their 
respective institutions of the goals enumerated in subsection (a), in a 
manner that the Secretary of the Treasury deems appropriate.''.
    (b) Congressional Testimony Required.--The United States Executive 
Directors at the African Development Bank, the African Development 
Fund, the Asian Development Bank, the Asian Development Fund, a special 
fund of the Asian Development Bank, the Inter-American Development 
Bank, and the European Bank for Reconstruction and Development, and the 
United States Governor of the International Fund for Agricultural 
Development shall, at the request of the Committee on Financial 
Services of the House of Representatives or of the Committee on Foreign 
Relations of the Senate appear before the committee making the request, 
on an annual basis, and testify on the efforts undertaken pursuant to 
section 1504 of the International Financial Institutions Act and on 
other matters relating to any such institution.
    (c) Grants.--
            (1) In general.--The Secretary of the Treasury may make 
        grants in such amounts as the Secretary deems appropriate to 
        any institution specified in paragraph (2) which--
                    (A) has implemented the measures described in 
                section 1504 of the International Financial 
                Institutions Act; and
                    (B) provides assurances to the Secretary that the 
                institution will use the grant solely for transparency 
                activities.
            (2) Institutions.--The institutions specified in this 
        paragraph are the African Development Bank, the African 
        Development Fund, the Asian Development Bank, the Asian 
        Development Fund, a special fund of the Asian Development Bank, 
        the Inter-American Development Bank, the European Bank for 
        Reconstruction and Development, and the International Fund for 
        Agricultural Development.
            (3) Limitations on authorization of appropriations.--For 
        grants under this subsection, there are authorized to be 
        appropriated to the Secretary of the Treasury not more than 
        $10,000,000 for fiscal year 2002.
    (d) Congressional Pursuit of Transparency Goals in 
Interparliamentary Dialogues and Meetings.--The Congress shall pursue 
the transparency goals described in section 1504 of the International 
Financial Institutions Act, in all official interparliamentary 
dialogues and meetings as appropriate.
    (e) Pursuit of Transparency Goals by the Secretary of the 
Treasury.--The Secretary of the Treasury shall submit annually to the 
Committee on Financial Services of the House of Representatives and the 
Committee on Foreign Relations of the Senate a written report detailing 
the steps that have been taken by the United States Executive Directors 
at the institutions, by the finance ministers, and by the institutions, 
referred to in paragraph (1) to implement the measures described in 
such section 1504.

SEC. 6. GENERAL OBJECTIVES.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is further amended by adding at the end the 
following:

``SEC. 1627. GENERAL OBJECTIVES.

    ``The Secretary of the Treasury shall instruct the United States 
Executive Director at the African Development Bank, the African 
Development Fund, the Asian Development Bank, the Asian Development 
Fund, a special fund of the Asian Development Bank, and the Inter-
American Development Bank, and the United States Governor of the 
International Fund for Agricultural Development to focus on poverty 
alleviation, economic growth, increased productivity, sustainable 
development, environmental protection, labor rights, and an increased 
focus on education.''.

SEC. 7. REQUIREMENTS FOR FINANCIAL SUPPORT FOR DAMS.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is further amended by adding at the end the 
following:

``SEC. 1628. REQUIREMENTS FOR FINANCIAL SUPPORT FOR DAMS.

    ``The Secretary of the Treasury shall instruct the United States 
Executive Directors at the African Development Bank, the African 
Development Fund, the Asian Development Bank, the Asian Development 
Fund, a special fund of the Asian Development Bank, and the Inter-
American Development Bank, and the United States Governor of the 
International Fund for Agricultural Development to oppose any loan 
which provides support for any project that includes a dam unless the 
project conforms to all of the following terms:
            ``(1) Comprehensive and participatory assessments of the 
        energy, water, and flood management needs to be met and 
        different options for meeting these needs are developed before 
        detailed studies are done on any specific project.
            ``(2) Priority is given to demand side management measures 
        and optimizing the performance of existing infrastructure 
        before building any new projects.
            ``(3) No dam is built without full consultation with 
        affected people.
            ``(4) Periodic participatory reviews are done for existing 
        dams to assess issues including dam safety, and the possibility 
        of dam decommissioning.
            ``(5) Mechanisms are developed to provide social 
        compensation for those who are suffering the impacts of dams, 
        and to restore damaged ecosystems.''.

SEC. 8. STUDY BY THE GENERAL ACCOUNTING OFFICE.

    Within 1 year after the date of the enactment of this Act, the 
Comptroller General of the United States shall prepare and submit to 
the Committee on Financial Services of the House of Representatives and 
the Committee on Foreign Relations of the Senate a report on the 
benefits and costs of the African Development Fund, the Asian 
Development Fund, a special fund of the Asian Development Bank, the 
International Fund for Agricultural Development, and the Fund for 
Special Operations of the Inter-American Development Bank, providing 
grants instead of loans.

SEC. 9. COMMENDATION.

    (a) Findings.--The Congress finds that--
            (1) the African Development Bank and Fund elected Omar 
        Kabbaj, an official of the Ministry of Finance of Morocco, as 
        the new President in 1995;
            (2) President Kabbaj implemented successful fiscal and 
        managerial reforms, including refocusing the activity of the 
        African Development Fund on poverty alleviation;
            (3) under the leadership of President Kabbaj, the African 
        Development Bank began to issue yearly portfolio status reports 
        reflecting improved project monitoring and supervision;
            (4) President Kabbaj successfully emphasized the importance 
        of project post-evaluation in helping the Bank avoid problems 
        identified with earlier funded projects;
            (5) President Kabbaj has taken a program approach where all 
        stakeholders, including the beneficiaries of the borrower 
        countries, are involved in program design and implementation;
            (6) President Kabbaj was unanimously appointed to a second 
        5-year term in May 2000; and
            (7) under the leadership of President Kabbaj, on June 6, 
        2001, Standard & Poor's revised the outlook on its AA+ long 
        term issuer ratings of the African Development Bank to stable 
        from negative.
    (b) Commendation.--The Congress, on behalf of the people of the 
United States, commends President Omar Kabbaj for his successful reform 
efforts as President of the African Development Bank and Fund, and 
encourages his continued efforts at reform.

SEC. 10. ACTION BY THE PRESIDENT.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is further amended by adding at the end the 
following:

``SEC. 1629. ACTION BY THE PRESIDENT.

    ``If the President determines that a foreign country has taken or 
has committed to take actions that either contribute or do not 
contribute to efforts of the United States to respond to, deter, or 
prevent acts of international terrorism, the Secretary of the Treasury 
may, consistent with other applicable law, instruct the United States 
Executive Director at, or the United States Governor of, the regional 
multilateral devlopment bank to take the determination into account in 
considering whether to approve an application of the country for 
assistance from the institution.''.

SEC. 11. SENSE OF THE CONGRESS REGARDING PRIVATIZATION PROJECTS.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is further amended by adding at the end the 
following:

``SEC. 1630. SENSE OF THE CONGRESS REGARDING PRIVATIZATION PROJECTS.

    ``The Secretary of the Treasury should instruct the United States 
Executive Director at the Asian Development Bank, the African 
Development Bank, the African Development Fund, the International Fund 
for Agricultural Development, the Inter-American Development Bank, and 
the European Bank for Reconstruction and Development, and the United 
States Governor of the International Fund for Agricultural Development 
to use the voice and vote of the United States to oppose the provision 
by the respective institution of assistance for a project that involves 
privatization of a government-held industry or sector if--
            ``(1) the privatization transaction is not implemented in a 
        transparent manner;
            ``(2) the privatization transaction is not implemented in a 
        manner that adequately protects the interests of workers, small 
        investors, and vulnerable groups in society to the extent that 
        they are affected by the privatization transaction; or
            ``(3) appropriate regulatory regimes have not been 
        established to ensure the proper function of competitive 
        markets in the industry or sector.''.

SEC. 12. OPPOSITION OF UNITED STATES TO REDUCTION OF MINIMUM WAGE BELOW 
              INTERNATIONALLY RECOGNIZED LEVEL OF POVERTY.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is further amended by adding at the end the 
following:

``SEC. 1631. OPPOSITION OF UNITED STATES TO REDUCTION OF MINIMUM WAGE 
              BELOW INTERNATIONALLY RECOGNIZED LEVEL OF POVERTY.

    ``The Secretary of the Treasury shall instruct the United States 
Executive Director at the African Development Bank, the African 
Development Fund, the Asian Development Bank, the Asian Development 
Fund, a special fund of the Asian Development Bank, the Inter-American 
Development Bank, and the European Bank for Reconstruction and 
Development, and the United States Governor of the International Fund 
for Agricultural Development to oppose any loan, grant, document, or 
strategy that is subject to endorsement or approval by the board of 
directors of any such institution, which includes any provision that 
would recommend or encourage the reduction of a country's minimum wage 
to a level of less than $2.00 per day.''.

SEC. 13. SUPPORT FOR ASIAN DEVELOPMENT FUND ASSISTANCE FOR PROJECTS 
              THAT ARE DIRECTED AT ADDRESSING ARSENIC CONTAMINATION IN 
              DRINKING WATER IN SOUTH ASIA.

    Title XVI of the International Financial Institutions Act (22 
U.S.C. 262p--262p-7) is further amended by adding at the end the 
following:

``SEC. 1632. SUPPORT FOR PROJECTS THAT ARE DIRECTED AT ADDRESSING 
              ARSENIC CONTAMINATION IN DRINKING WATER IN SOUTH ASIA.

    ``The Secretary of the Treasury shall instruct the United States 
Executive Director at the Asian Development Fund, a special fund of the 
Asian Development Bank, to use the voice and vote of the United States 
to support projects that are directed at addressing arsenic 
contamination in drinking water in South Asia.''.




                                                 Union Calendar No. 177

107th CONGRESS

  1st Session

                               H. R. 2604

                          [Report No. 107-291]

_______________________________________________________________________

                                 A BILL

To authorize the United States to participate in and contribute to the 
 seventh replenishment of the resources of the Asian Development Fund 
and the fifth replenishment of the resources of the International Fund 
 for Agricultural Development, and to set forth additional policies of 
  the United States towards the African Development Bank, the African 
   Development Fund, the Asian Development Bank, the Inter-American 
    Development Bank, and the European Bank for Reconstruction and 
                              Development.

_______________________________________________________________________

                           November 15, 2001

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed