[Senate Report 108-194]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 386
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-194

======================================================================



 
     OVERSEAS PRIVATE INVESTMENT CORPORATION AMENDMENTS ACT OF 2003

                                _______
                                

               November 11, 2003.--Ordered to be printed

                                _______
                                

          Mr. Lugar, from the Committee on Foreign Relations,
                        submitted the following

                              R E P O R T

                         [To accompany S. 1824]

    The Committee on Foreign Relations, having had under 
consideration the bill S. 1824 to amend the Foreign Assistance 
Act of 1961 to reauthorize the Overseas Private Investment 
Corporation, and for other purposes, reports favorably thereon 
and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Committee Action.................................................4
 IV. Cost Estimate....................................................4
  V. Evaluation of Regulatory Impact..................................6
 VI. Changes in Existing Law..........................................6

                         I. Purpose and Summary

    The bill reauthorizes the Overseas Private Investment 
Corporation through September 30, 2007, makes several technical 
and perfecting amendments to its underlying statute, provides 
the Corporation with modest enhancements in its investment 
insurance and local currency guaranty programs and directs the 
Corporation to collect data on the amount of insurance and 
financing provided to minority and women-owned businesses. 
OPIC's authorization expired on September 30, 2003, and has 
been extended through November 21, 2003 by continuing 
resolution.
    OPIC is a self-sustaining, independent government agency 
providing political risk insurance and project finance to U.S. 
businesses in over 150 emerging markets and developing 
countries. Its operations and activities have supported over 
250,000 U.S. jobs and produced $64 billion of U.S. exports 
while generating $4.4 billion in reserves. Over the past 30 
years, it has created close to 670,000 host country jobs and 
supported $145 billion of investments overseas. Nearly 70 
percent of suppliers to OPIC-backed projects are U.S. small 
businesses.

              II. Background and Need for the Legislation

    In 1971, OPIC was established as an independent government 
corporation by Congress to help American businesses compete 
overseas and to promote economic development in host countries.
    OPIC Chairman and CEO Peter Watson is to be commended for 
his efforts to refocus OPIC on the administration's overall 
development priorities, particularly in sub-Saharan Africa, 
where new project approvals over the past two years now amount 
to $750 million. It is focused on the housing and health 
sectors, promoting projects and activities in South Africa that 
meet the challenges of HIV/AIDS, and providing clean drinking 
water to countries in West and East Africa.

OPIC and Its Outreach Efforts

    The committee commends the recent efforts of OPIC to reach 
out to nongovernmental organizations (NGOs) and the labor 
community on issues relating to accountability, transparency, 
environmental and labor standards, human rights and corruption. 
The committee expects OPIC to continue a regular dialogue with 
all stakeholders and the goal of making reforms and process 
improvements with respect to issues such as accountability, 
transparency, environmental, social/labor and worker rights 
protections.

OPIC and An Accountability Mechanism and A Transparency Initiative

    The committee is aware of the establishment in recent years 
of various mechanisms within multilateral and bilateral 
financial and export-promotion institutions to increase 
accountability and transparency of those institutions. These 
institutions include: the World Bank, the International Finance 
Corporation, the Asian Development Bank, the Inter-American 
Development Bank, the Multilateral Investment Guarantee Agency, 
the European Bank for Reconstruction and Development, the 
International Monetary Fund, the Export Development Corporation 
of Canada, and the Japan Bank for International Cooperation. 
The committee encourages OPIC to follow the example of the best 
practices of these institutions and work with all stakeholders 
to establish an ``accountability mechanism'' and continue its 
``transparency initiative.''
    An accountability mechanism should: evaluate and report on 
OPIC compliance with environmental, social, labor, human 
rights, and transparency standards consistent with OPIC 
statutory mandates; provide a forum for resolving concerns 
regarding the impacts of specific OPIC-supported projects with 
respect to such issues; and provide advice regarding OPIC 
projects, policies and practices. Such a mechanism should also: 
be transparent in its operations and outputs, and be responsive 
to stakeholders' considerations on environmental and social 
concerns, including labor, human rights and corruption 
concerns; be accessible to project-affected parties; and insure 
the independence and integrity of the evaluations and advice 
provided by the accountability mechanism. With respect to the 
independence of the accountability mechanism, the committee 
urges the Corporation to follow the model of several 
international financial institutions by providing the mechanism 
the ability to report directly to the Corporation's Board of 
Directors.
    The committee commends OPIC's efforts to convene a dialogue 
with stakeholders on a transparency initiative and encourages 
OPIC to continue this dialogue. The committee believes a 
transparency initiative should heighten transparency and 
information disclosure concerning OPIC's projects and internal 
mechanisms, consistent with existing statutes and laws. 
Interested stakeholders, including NGOs, environmental and 
labor organizations, and the business/investor community, 
should play an active role in this process and provide 
recommendations on how it should be used to strengthen OPIC's 
programs and policies.
    The committee will use its oversight function to monitor 
OPIC's performance and progress toward achieving these goals, 
and expects a fulsome briefing by OPIC on such progress and 
performance six months after enactment of this Act, and 
annually thereafter for the duration of the authorization 
contained in this bill.

OPIC and Labor Issues

    The committee recognizes that OPIC has statutory 
obligations with regard to worker rights which must be fully 
implemented.
    The committee also commends the efforts of OPIC in guarding 
against an erosion of U.S. jobs as a result of OPIC-supported 
projects. OPIC should continue to work, in consultation with 
all its stakeholders, to ensure that: OPIC-supported projects 
do not result in significant job loss or substantially reduce 
positive trade benefits for the U.S.; investors provide 
detailed information on jobs created or supported by an OPIC-
supported project; due diligence, reporting, and monitoring 
procedures provide detailed, accurate and timely information on 
U.S. effects; and enforcement procedures are comprehensive, 
effective, and transparent.
    The committee will use its oversight function to monitor 
OPIC's performance and progress toward achieving these goals 
and expects a fulsome briefing by OPIC on such progress and 
performance six months after enactment of this Act, and 
annually thereafter for the duration of the authorization 
contained in this bill.

OPIC and Minority-Business Outreach

    The committee commends OPIC for its minority-owned business 
outreach efforts and encourages the Corporation to continue its 
activities and to work with other U.S. Government trade, 
development and finance agencies in promoting economic 
opportunities for small and minority-owned businesses in 
developing countries.

OPIC and Small Business

    The committee commends OPIC's efforts in support of U.S 
Small- and Medium-sized Enterprises (SMEs). The committee notes 
that many of these firms, particularly those with annual 
revenues of less than $35 million, could substantially increase 
their exports to the extent that they secure access to OPIC 
financing and investment support. The committee supports recent 
efforts by the Corporation to establish a Small Business 
Center, to create a Small Business Initiative in coordination 
with the Small Business Administration, to launch a SME shared-
risk loan guaranty program in partnership with the private 
sector, and to create a new Small and Medium Enterprise 
Department to implement and oversee SME activities.

                         III. Committee Action

    On November 6, 2003, the Committee on Foreign Relations 
considered the bill, pursuant to notice, in open session. The 
committee agreed to a motion by Chairman Lugar to favorably 
report the bill to the Senate, by voice vote, a quorum being 
present.

                           IV. Cost Estimate

    In accordance with rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the committee provides the 
following estimate of the cost of this legislation prepared by 
the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 10, 2003.

Honorable Richard G. Lugar, Chairman
Committee on Foreign Relations,
United States Senate,
Washington, DC.

    Dear Mr. Chairman:

    The Congressional Budget Office has prepared the enclosed 
cost estimate for S. 1824, the Overseas Private Investment 
Corporation Amendments Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Joseph C. 
Whitehill.
            Sincerely,
                             Douglas Holtz-Eakin, Director.

    Enclosure.

S. 1824--Overseas Private Investment Corporation Amendments Act of 2003


                                SUMMARY

    S. 1824 would extend through 2007 the authority of the 
Overseas Private Investment Corporation (OPIC) to issue 
political risk insurance and to finance investments in 
developing countries and emerging market economies. The bill 
would clarify that the term ``expropriation'' would include 
actions by political subdivisions or a foreign government or 
corporations owned by or controlled by foreign governments. It 
also would authorize OPIC to issue guarantees in local 
currencies, and it would require OPIC to report to the Congress 
on the effectiveness of its activities to reach businesses 
owned by women and minorities. OPIC's authority would be 
limited to such amounts as may be provided in advance in 
appropriations acts. CBO estimates that implementing the bill 
would cost $146 million over the 2004-2008 period, assuming the 
appropriation of the necessary funds. The bill would not affect 
direct spending or receipts.
    OPIC is a government corporation authorized to encourage 
private-sector investment in developing countries and emerging 
market economies. It insures investments against the risk of 
losses due to expropriation, inconvertablity of currencies, and 
war or political violence. In addition, OPIC finances 
investments through guaranteed and direct loans. OPIC is 
largely self-financing. Its noncredit program earns income from 
investments in government securities and insurance operations.
    S. 1824 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of State, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of S. 1824 is shown in the 
following table. The estimate assumes that the bill will be 
enacted before the end of calendar year 2003, that funds and 
authority will be provided in annual appropriation acts near 
the start of each fiscal year, and that outlays will follow 
historical spending patterns. The costs of this legislation 
fall within budget function 150 (international affairs).


----------------------------------------------------------------------------------------------------------------
                                                                By Fiscal Year, in Millions of Dollars
                                                     -----------------------------------------------------------
                                                        2003      2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------

                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for OPIC:
  Estimated Authorization Level \1\.................      -209      -233      -245      -266      -282      -297
  Estimated Outlays.................................      -213      -218      -232      -257      -277      -294

Proposed Changes:
  Estimated Authorization Level \2\.................         0        27        35        47        58        36
  Estimated Outlays.................................         0         3        14        31        46        53

Spending Under S. 1824 for OPIC:
  Estimated Authorization Level \1\.................      -209      -206      -210      -219      -224      -261
  Estimated Outlays.................................      -213      -215      -218      -226      -231      -241

----------------------------------------------------------------------------------------------------------------
Note: OPIC = Overseas Private Investment Corporation.

\1\ The 2003 level is the amount appropriated for that year plus the estimated amount of offsetting collections
  in OPIC's noncredit account. A full-year appropriation for fiscal year 2004 has not been enacted for OPIC; the
  amounts shown here assume limited funding to permit OPIC to continue servicing its outstanding insurance and
  credits and to receive offsetting collections.
\2\ The estimated authorization level assumes the 2003 funding level adjusted for inflation through 2007.
  Funding at the 2003 level over that period would lower outlays by $21 million over the 2004-2008 period.


                           BASIS OF ESTIMATE

    In 2003, OPIC received appropriations of $40 million for 
administrative expenses and $24 million for the cost of credit 
as defined by the Federal Credit Reform Act. Funding for 2004 
has not been enacted. The estimated spending under current law 
assumes that OPIC continues to service its outstanding 
insurance and credits and to receive collections on its 
investments in U.S. securities, but that it issues no new 
insurance or finances no new investments after September 30, 
2003. (Interest on existing securities brings in collections of 
more than $230 million a year to the OPIC account; but those 
collections are offset by interest paid elsewhere in the 
federal budget.) CBO assumes that administrative expenses under 
current law would be gradually reduced to a minimum rate 
necessary to service outstanding insurance and credits.
    CBO assumes that under S. 1824 OPIC would continue to issue 
insurance over the 2004-2007 period and that funding for 
administrative expenses and the cost of credit would be 
provided in annual appropriations acts at the 2003 level 
adjusted for inflation through 2007 since a full-year 
appropriation has not been enacted. Based on information from 
OPIC, CBO estimates that the new reporting requirement and 
local-currency guarantees would not significantly affect the 
costs of OPIC's operations. Thus, enacting the bill would 
continue the policies that are assumed in CBO's baseline 
through 2007. Because the bill would extend OPIC's authorities 
through 2007 only, we estimate that funding in 2008 would only 
be needed for the administrative expenses of servicing 
outstanding insurance and credits.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    S. 1824 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would not affect the budgets of 
State, local, or tribal governments.

                         PREVIOUS CBO ESTIMATE

    On September 30, 2003, the CBO transmitted an estimate for 
H.R. 3145, the Overseas Private Investment Corporation 
Amendments Act of 2003, as ordered reported by the House 
Committee on International Relations on September 25, 2003. The 
two bills are identical, as are their estimated costs.
    Estimate prepared by: Federal Costs--Joseph C. Whitehill. 
Impact on State, Local, and Tribal Governments--Melissa 
Merrell. Impact on the Private Sector--Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   V. Evaluation of Regulatory Impact

    In accordance with rule XXVI, paragraph 11(b) of the 
Standing Rules of the Senate, the committee has concluded that 
there is no regulatory impact from this legislation.

                      VI. Changes in Existing Law

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman).

                     Foreign Assistance Act of 1961

Part I

           *       *       *       *       *       *       *



Chapter 2--Other Programs

           *       *       *       *       *       *       *



TITLE IV--OVERSEAS PRIVATE INVESTMENT CORPORATION

           *       *       *       *       *       *       *


    Sec. 233. Organization and Management.--(a) Structure of 
the Corporation.--The Corporation shall have a Board of 
Directors, a President, an Executive Vice President, and such 
other officers and staff as the Board of Directors may 
determine.
    (b) Board of Directors.--All powers of the Corporation 
shall vest in and be exercised by or under the authority of its 
Board of Directors (``the Board'') which shall consist of 
fifteen Directors, including the Chairman, with eight Directors 
constituting a quorum for the transaction of business. Eight 
Directors shall be appointed by the President of the United 
States, by and with the advice and consent of the Senate, and 
shall not be officials or employees of the Government of the 
United States. At least two of the eight Directors appointed 
under the preceding sentence shall be experienced in small 
business, one in organized labor, and one in cooperatives. Each 
such Director shall be appointed for a term of no more than 
three years. The terms of no more than three such Directors 
shall expire in any one year. Such Directors shall serve until 
their successors are appointed and qualified and may be 
reappointed.
    The other Directors shall be [officials] principal officers 
of the Government of the United States whose duties relate to 
the programs of the Corporation, including the President of the 
Corporation, the Administrator of the Agency for International 
Development, the United States Trade Representative, and [an 
official] one such officer of the Department of Labor, 
designated by and serving at the pleasure of the President of 
the United States. The United States Trade Representative may 
designate a Deputy United States Trade Representative to serve 
on the Board in place of the United States Trade 
Representative.

           *       *       *       *       *       *       *

    Sec. 234. Investment Insurance and Other Programs.--The 
Corporation is hereby authorized to do the following:
    (a) Investment Insurance.--(1) To issue insurance, upon 
such terms and conditions as the Corporation may determine, to 
eligible investors assuring protection in whole or in part 
against any or all of the following risks with respect to 
projects which the Corporation has approved--
          (A) inability to convert into United States dollars 
        other currencies, or credits in such currencies, 
        received as earnings or profits from the approved 
        project, as repayment or return of the investment 
        therein, in whole or in part, or as compensation for 
        the sale or disposition of all or any part thereof;
          (B) loss of investment, in whole or in part, in the 
        approved project due to expropriation or confiscation 
        by action of a foreign government or any political 
        subdivision thereof;

           *       *       *       *       *       *       *

    (g) Pilot Equity Finance Program.--

           *       *       *       *       *       *       *

    (h) Local Currency Guaranties for Eligible Investors.--To 
issue to--
          (1) eligible investors, or
          (2) local financial institutions, guaranties, 
        denominated in currencies other than United States 
        dollars, of loans and other investments made to 
        projects sponsored by or significantly involving 
        eligible investors, assuring against loss due to such 
        risks and upon such terms and conditions as the 
        Corporation may determine, for projects that the 
        Corporation determines to have significant 
        developmental effects or as the Corporation determines 
        to be necessary or appropriate to carry out the 
        purposes of this title.

           *       *       *       *       *       *       *

    Sec. 235. Issuing Authority, Direct Investment Authority 
and Reserves.--
    (a)  Issuing Authority.--
          (1) Insurance and financing.--(A) The maximum 
        contingent liability outstanding at any one time 
        pursuant to insurance issued under section 234(a), and 
        the amount of financing issued under sections 234 (b) 
        and (c), shall not exceed in the aggregate 
        $29,000,000,000.
          (B) Subject to spending authority provided in 
        appropriations Acts pursuant to section 504(b) of the 
        Federal Credit Reform Act of 1990, the Corporation is 
        authorized to transfer such sums as are necessary from 
        its noncredit activities to pay for the [subsidy cost] 
        subsidy and administrative costs of the investment 
        guaranties and direct loan programs under subsections 
        (b) and (c) of section 234.
          (2) Termination of authority.--The authority of 
        subsections (a), (b), and (c) of section 234 shall 
        continue until [November 1, 2000] September 30, 2007.
    (b) * * * [Repealed--1992]
    (c) There shall be established in the Treasury of the 
United States [an insurance and guaranty fund, which shall have 
separate accounts to be known as the Insurance Reserve and the 
Guaranty Reserve, which reserves] a noncredit account revolving 
fund, which shall be available for discharge of liabilities, as 
provided in subsection (d) of this section until such time as 
all such liabilities have been discharged or have expired or 
until all [such reserves have] of the fund has been expended in 
accordance with the provisions of this section. Such fund shall 
be funded by: (1) the funds heretofore available to discharge 
liabilities under predecessor guaranty authority (including 
housing guaranty authorities), less both the amount made 
available for housing guaranty programs pursuant to section 
223(b) and the amount made available to the Corporation 
pursuant to subsection (e) of this section and (2) such sums as 
shall be appropriated pursuant to subsection (f) of this 
section for such purposes. [The allocation of such funds to 
each such reserve shall be determined by the Board after 
consultation with the Secretary of the Treasury.] Additional 
amounts may thereafter be transferred to such [reserves] fund 
pursuant to section 236.
    (d) Any payment made to discharge liabilities under 
investment insurance or reinsurance issued under section 234 
under similar predecessor guaranty authority or under section 
234A, shall be paid first out of the [Insurance Reserve, as 
long as such reserve] noncredit account revolving fund, as long 
as such fund remains available, and thereafter out of funds 
made available pursuant to subsection (f) of this section. Any 
payments made to discharge liabilities under guaranties issued 
under section 234(b) [or under similar predecessor guaranty 
authority shall be paid first out of the Guaranty Reserve as 
long as such reserve remains available, and thereafter out of 
funds made available pursuant to subsection (f) of this 
section] or 234(c) shall be paid in accordance with the Federal 
Credit Reform Act of 1990.
    (e) There is hereby authorized to be transferred to the 
Corporation at its call, for the purposes specified in section 
236, all fees and other revenues collected under predecessor 
guaranty authority from December 31, 1968, available as of the 
date of such transfer.
    (f) There are authorized to be appropriated to the 
Corporation, to remain available until expended, such amounts 
as may be necessary from time to time to replenish or increase 
the [insurance and guaranty fund] noncredit account revolving 
fund, to discharge the liabilities under insurance, 
reinsurance, or guaranties issued by the Corporation or issued 
under predecessor guaranty authority, or to discharge 
obligations of the Corporation purchased by the Secretary of 
the Treasury pursuant to this subsection. However, no 
appropriations shall be made to augment the [Insurance Reserve] 
noncredit account revolving fund until the amount of funds in 
the [Insurance Reserve] noncredit account revolving fund is 
less than $25,000,000. Any appropriations to augment the 
[Insurance Reserve] noncredit account revolving fund shall then 
only be made either pursuant to specific authorization enacted 
after the date of enactment of the Overseas Private Investment 
Corporation Amendments Act of 1974, or to satisfy the full 
faith and credit provision of section 237(c). In order to 
discharge liabilities under investment insurance or 
reinsurance, the Corporation is authorized to issue from time 
to time for purchase by the Secretary of the Treasury its 
notes, debentures, bonds, or other obligations; but the 
aggregate amount of such obligations outstanding at any one 
time shall not exceed $100,000,000. Any such obligation shall 
be repaid to the Treasury within one year after the date of 
issue of such obligation. Any such obligation shall bear 
interest at a rate determined by the Secretary of the Treasury, 
taking into consideration the current average market yield on 
outstanding marketable obligations of the United States of 
comparable maturities during the month preceding the issuance 
of any obligation authorized by this subsection. The Secretary 
of the Treasury shall purchase any obligation of the 
Corporation issued under this subsection, and for such purchase 
he may use as a public debt transaction the proceeds of the 
sale of any securities issued under the Second Liberty Bond Act 
after the date of enactment of the Overseas Private Investment 
Corporation Amendments Act of 1974. The purpose for which 
securities may be issued under such Bond Act shall include any 
such purchase.
    Sec. 236. Income and Revenues.-- * * *

           *       *       *       *       *       *       *

    Sec. 237. General Provisions Relating to Insurance 
Guaranty, and Financing Program.-- * * *

           *       *       *       *       *       *       *

    Sec. 238. Definitions.--As used in this title--
  (a) the term ``investment'' includes any contribution or 
commitment of funds, commodities, services, patents, processes, 
or techniques, in the form of (1) a loan or loans to an 
approved project, (2) the purchase of a share of ownership in 
any such project, (3) participation in royalties, earnings, or 
profits of any such project, and (4) the furnishing of 
commodities or services pursuant to a lease or other contract;
  (b) the term ``expropriation'' includes, but is not limited 
to, any abrogation, repudiation, or impairment by a foreign 
government, a political subdivision of a foreign government, or 
a corporation owned or controlled by a foreign government, of 
its own contract with an investor with respect to a project, 
where such abrogation, repudiation, or impairment is not caused 
by the investor's own fault or misconduct, and materially 
adversely affects the continued operation of the project;
  (c) the term ``eligible investor'' means: (1) United States 
citizens; (2) corporations, partnerships, or other associations 
including nonprofit associations, created under the laws of the 
United States any State or territory thereof, or the District 
of Columbia, and substantially beneficially owned by United 
States citizens; and (3) foreign corporations, partnerships, or 
other associations wholly owned by one or more such United 
States citizens, corporations, partnerships, or other 
associations: Provided however, That the eligibility of such 
foreign corporation shall be determined without regard to any 
shares, in aggregate less than 5 per centum of the total issued 
and subscribed share capital, held by other than the United 
States owners: Provided further, That in the case of any loan 
investment a final determination of eligibility may be made at 
the time the insurance or guaranty is issued; in all other 
cases, the investor must be eligible at the time a claim arises 
as well as the time the insurance or guaranty is issued;
  (d) the term ``noncredit account revolving fund'' means the 
account in which funds under section 236 and all funds from 
noncredit activities are held; [and]
  (e) the term ``noncredit activities'' means all activities of 
the Corporation other than its loan guarantee program under 
section 234(b) and its direct loan program under section 
234(c);
  (f) the term ``predecessor guaranty authority'' means prior 
guaranty authorities (other than housing guaranty authorities) 
repealed by the Foreign Assistance Act of 1969, section 202(b) 
and 413(b) of the Mutual Security Act of 1954, as amended, and 
section 111(b)(3) of the Economic Cooperation Act of 1948, as 
amended (exclusive of authority relating to informational media 
guaranties)[.]; and
    (g) the term ``local financial institution''--
          (1) means any bank or financial institution that is 
        organized under the laws of any country or area in 
        which the Corporation operates; but
          (2) does not include a branch, however organized, of 
        a bank or other financial institution that is organized 
        under the laws of a country in which the Corporation 
        does not operate.

           *       *       *       *       *       *       *

    Sec. 240. Small Business Development.--[The Corporation] 
(a) In General._The Corporation shall undertake, in cooperation 
with appropriate departments, agencies, and instrumentalities 
of the United States as well as private entities and others, to 
broaden the participation of United States small business, 
cooperatives, and other small United States investors in the 
development of small private enterprise in less developed 
friendly countries or areas. The Corporation shall allocate up 
to 50 percent of its annual net income, after making suitable 
provision for transfers and additions to reserves, to assist 
and facilitate the development of projects consistent with the 
provisions of this section. Such funds may be expended, 
notwithstanding the requirements of section 231(a), on such 
terms and conditions as the Corporation may determine, through 
loans, grants, or other programs authorized by section 234 and 
section 234(A).
    (b) Outreach to Minority-Owned and Women-Owned 
Businesses.--The Corporation shall collect data on the 
involvement of minority- and women-owned businesses in projects 
supported by the Corporation, including--
          (1) the amount of insurance and financing provided by 
        the Corporation to such businesses in connection with 
        projects supported by the Corporation; and
          (2) to the extent such information is available, the 
        involvement of such businesses in procurement 
        activities conducted or supported by the Corporation.

The Corporation shall include, it its annual report submitted 
to the Congress under section 240(A), the aggregate data 
collected under this paragraph, in such form as to quantify the 
effectiveness of the Corporation's outreach activities to 
minority- and women-owned businesses.

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