[Congressional Record Volume 155, Number 51 (Wednesday, March 25, 2009)]
[Senate]
[Pages S3794-S3795]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself, Mr. Lugar, Mr. Kaufman, and Mr. 
        Menendez):
  S. 705. A bill to reauthorize the programs of the Overseas Private 
Investment Corporation, and for other purposes; to the Committee on 
Foreign Relations.
  Mr. KERRY. Mr. President, I rise to support the Overseas Private 
Investment Corporation Reauthorization Act of 2009. Along with Senators 
Lugar, Kaufman and Menendez, I ask for approval of the Overseas Private 
Investment Corporation Reauthorization Act of 2009, a bill to 
reauthorize a vital U.S. Government agency that has assisted U.S. 
businesses and promoted projects in support of our foreign policy 
interests since 1971. This legislation reauthorizes the Overseas 
Private Investment Corporation, OPIC, for 4 years.
  OPIC is an independent U.S. agency whose mission is to mobilize U.S. 
private sector investment in poorer countries to facilitate their 
economic and social development. It provides U.S. companies with 
financing--from large structured finance to small business loans, 
political risk insurance, and investment funds.
  OPIC operates at no net cost to taxpayers: OPIC charges market-based 
fees for its products and operates on a self-sustaining basis. Over its 
38-year history, OPIC projects have generated more than $72 billion in 
U.S. exports and supported more than 273,000 American jobs while 
supporting over $188 billion worth of investments that have helped 
developing countries generate almost $15 billion in host-government 
revenues leading to over 821,000 host-country jobs.
  OPIC's financing and political risk insurance help U.S. businesses, 
particularly small- and medium-sized enterprises, to compete in 
emerging markets and meet the challenges of investing overseas when 
private sector support is not available. OPIC promotes U.S. best 
practices by requiring that projects adhere to international labor 
standards.
  OPIC also engages in critical foreign policy areas. It is 
implementing major projects in the Middle East, including Jordan, the 
West Bank, and Lebanon. In Africa, OPIC has established a new 
investment fund that will mobilize $1.6 billion of private investment 
in Africa towards health care, housing, telecommunications and small 
businesses. The agency also gives preferential consideration to 
projects supported by small businesses. It has even established a 
separate department to focus on small business financing. An 
overwhelming majority of projects supported by OPIC involved small 
business--87 percent in fiscal year 2006. This is up from 24 percent in 
fiscal year 1997.
  The bill incorporates several important aspects, including: 
strengthening the rights of workers overseas, and strengthening 
transparency requirements to ensure NGOs and other interested groups 
have sufficient notice and

[[Page S3795]]

information about potential OPIC-supported projects.
  We all are aware of the unfortunate history associated with 
extractive industry projects and developing countries. Our bill ensures 
that OPIC projects will conform to principles and standards developed 
by the Extractive Industry Transparency Initiative. The transparency 
for extraction investments is a new subsection created by the bill to 
ensure that countries with extractive industry projects will put in 
place functioning systems to allow accurate accounting, regular 
independent audits and broader accountability. Ultimately, this will be 
an important tool for preventing fraud, bribery and corruption in host 
countries with extractive projects.
  This legislation will also ensure greater transparency for how the 
Corporation operates. It directs OPIC to provide more detailed 
information in advance about potential projects so NGOs and other 
groups can determine their impact. The bill ensures that NGOs and other 
interested groups will have adequate notice and information about 
potential OPIC-supported projects, prior to Board meeting votes on OPIC 
assistance.
  I would like to reiterate that OPIC is an important foreign policy 
tool that encourages U.S. private sector companies to invest in poorer 
countries and improve their economic and social development. I want to 
make sure OPIC can continue to do its good work, but I also want to 
ensure that OPIC adheres to the highest labor and environmental 
standards, incorporates stringent accountability measures towards 
extractive industry projects, and promotes a green investment agenda.
  In conclusion, I urge my colleagues to approve the Overseas Private 
Investment Corporation Reauthorization Act of 2009 and join in this 
effort.
                                 ______