[Federal Register Volume 62, Number 25 (Thursday, February 6, 1997)]
[Notices]
[Pages 5645-5653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2874]


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INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

Overseas Private Investment Corporation


Notice of Publication and Request for Comments

AGENCY: Overseas Private Investment Corporation, IDCA.

ACTION: Notice of Publication and Request for Comments.

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SUMMARY: The Overseas Private Investment Corporation (OPIC) has 
published an ``Environmental Handbook'' which represents the current 
environmental policies and procedures in use at the Agency. Section 
231(n) of the Foreign Assistance Act of 1961 (Title 22 U.S.C. 2191 
(k)(2)), as amended, requires OPIC to: ``Refuse to insure, reinsure, 
guarantee, or finance any investment in connection with a project which 
the Corporation determines will pose an unreasonable or major 
environmental, health, or safety hazard, or will result in the 
significant degradation of national parks or similar protected areas.''
    The Handbook was published to consolidate a number of sources of 
information into a single, easy-to-review and easily accessible 
document. This Handbook is also available on OPIC's Internet web site 
at www.OPIC.gov. Comments on the Handbook and its content are being 
invited for Agency consideration. OPIC intends to consider revising the 
Handbook based upon the comments received. OPIC encourages all 
interested parties to respond within 120 calendar days of publication 
of this Notice. The entire text of the Handbook appears below.

DATES: Comments must be received on or before June 6, 1997.

ADDRESSES: Comments should be submitted to Mr. Harvey Himberg, 
Environmental Affairs, Overseas Private Investment Corporation, 1100 
New York Ave., NW., Washington, DC 20527 USA.

FOR FURTHER INFORMATION CONTACT: Contact Mr. Himberg by phone at 202/
336-8414, by fax at 202/218-0177 or via Internet e-mail at /S=himberg/
G[email protected].

TEXT OF HANDBOOK:

OPIC ENVIRONMENTAL HANDBOOK

December 1996

INTRODUCTION: STATEMENT OF PURPOSE AND OBJECTIVES

    This Handbook is intended to provide guidance to OPIC's clients, 
as well as the interested public, with respect to the environmental 
standards, assessment and monitoring procedures that OPIC applies to 
prospective and ongoing investment projects. The standards and 
procedures described in this Handbook generally reflect existing 
practice at OPIC as it has evolved since the enactment in 1985 of 
statutory environmental provisions applicable to OPIC. (The 
environmental provisions contained in OPIC's statute are reprinted 
in Appendix A.) (OPIC is also subject to Executive Order 12114, 
``Environmental Effects Abroad of Major Federal Actions.'' 
Environmental Assessment Procedures for EO 12114 are included in 
Appendix A.)
    Since 1985, OPIC has been required by statute to assess the 
environmental impacts of projects under consideration for political 
risk insurance and financing. OPIC's authorizing statute was amended 
at that time with the congressional intent of ensuring that ``great 
care * * * be paid to assuring the environmental soundness of U.S. 
Government supported foreign assistance projects.'' This is 
particularly important given OPIC's self-sustaining mandate. OPIC 
strongly supports these principles on their own merits.
    In addition, it is increasingly evident that responsible and 
proactive environmental assessment and management enhance the 
competitiveness of U.S. investors, as well as project developers, 
suppliers and contractors associated with overseas investment 
projects.
    Whereas public policy considerations have spurred multilateral 
and bilateral financial institutions such as OPIC to take the lead 
in addressing environmental issues in project finance and political 
risk insurance, private financial institutions both in the U.S. and 
overseas also have recently begun to integrate environmental 
concerns into their lending and insurance criteria.
    Corporations themselves, through such initiatives as the ISO 
14000 process, have undertaken to standardize environmental 
management, auditing and labeling on an international basis. (ISO is 
the International Standards Organization, a voluntary membership 
body composed of private sector companies.)
    Over the years OPIC has worked with counterpart organizations 
providing similar services to investors in the U.S., overseas and on 
a multilateral basis as environmental procedures were developed. 
Many of the OPIC standards and procedures described in this Handbook 
are also applied by organizations such as the International Finance 
Corporation (IFC) and the Multilateral Investment Guarantee Agency 
(MIGA), both affiliates of the World Bank; the European Bank for 
Reconstruction and Development (EBRD); and the U.S. Export-Import 
Bank (US Exim). In OPIC's experience, the application of standards 
and procedures similar to those used by these organizations has 
facilitated co-financing and co-insurance arrangements and made it 
simpler for clients to address environmental requirements.

[[Page 5646]]

    The Handbook is not designed to be a static document but rather 
an evolving process. OPIC welcomes comments from business and public 
interest organizations seeking to enhance OPIC's environmental 
assessment and management process.

Environmental Assessment (EA)

    By statute, OPIC is precluded from assisting any project that it 
determines will pose an ``unreasonable or major environmental health 
or safety hazard.'' (See Appendix A.)
    Environmental assessment (EA) is the tool used by OPIC to make 
this determination. The state-of-art of EA is steadily evolving 
through experience with actual projects over time. EA is a 
continuing activity through the life of a project, not a one-time 
exercise. Effectively applied, it is integrated into the design and 
operations of a project, rather than undertaken as an ``add-on'' to 
satisfy a requirement external to the project. EA consists of 
several stages of analysis--descriptive, prospective and 
retrospective.
    By statute, OPIC is required to provide some degree of EA to 
every project considered for insurance or finance in determining 
whether to provide support for the project. This requirement extends 
to subprojects undertaken by OPIC-supported investment funds and on-
lending facilities. (See the discussion of financial intermediaries, 
below.) OPIC cannot provide a final commitment to a project (i.e., 
issue an insurance contract, disburse a loan, or approve a 
transaction by a financial intermediary) until its environmental 
assessment is complete and a determination is made by OPIC that the 
environmental, health and safety impacts of the project are 
acceptable.
    Different types of EAs are conducted by the applicant depending 
on the nature of the project. The actual work may be conducted by 
the applicant/sponsor or by a third party, such as an environmental 
consultant. On the basis of its considerable experience in reviewing 
such materials, OPIC can advise applicants regarding many aspects of 
EA preparation.
    EAs and other environmental reports should be provided to OPIC 
as early as possible in the application process. This enables OPIC 
to identify environmental issues that may require additional 
attention before the EA can be considered to be complete. 
Collaboration between OPIC and other official and private lenders 
and insurers in reviewing environmental information is in the 
interest of the applicant as it expedites the review process and 
avoids delays and needless duplication with the requirements of 
other lenders and insurers.
    Once the EA is complete, OPIC will make every effort to review 
the material within a two to four week time frame. In circumstances 
where OPIC confronts a particularly full project pipeline, OPIC may 
contract for outside expertise to enable it to complete the review 
process in a timely manner.
    In all cases, the cost of preparing the original EA is borne by 
the applicant, sponsor or foreign enterprise. When OPIC engages 
independent consultants to review all or part of the EA materials 
submitted by the investor, to undertake an original assessment of 
the project and/or to undertake a site visit as part of the 
environmental review process, it requires the applicant to reimburse 
the associated costs.
    OPIC may require one or more of the following documents to 
satisfy a project's EA requirements:
    Environmental Impact Statement (EIS). By statute and Executive 
Order (EO) 12114 (See Appendix A), OPIC is required to prepare, and 
to take fully into account, an EIS for any project ``significantly 
affecting the environment of the global commons outside the 
jurisdiction of any nation (e.g., the oceans or Antarctica).'' Given 
the discrete nature of projects assisted by OPIC, it is considered 
unlikely that any single project assisted by OPIC would have a 
sufficiently large impact on the global commons to warrant an EIS. 
However, the cumulative impacts of several large projects could 
conceivably have an impact on extraterritorial waters or the 
atmosphere sufficient to trigger the requirement.
    As prescribed by EO 12114, such an EIS should be concise and no 
longer than necessary to permit an informed consideration of the 
environmental effects of the proposed project and the reasonable 
alternatives. It should include the following sections: (1) Purpose 
and need for the proposed project; (2) a sufficient description of 
the environment of the global commons affected by the proposed 
action; (3) an analysis, in comparative form, of the environmental 
consequences on the global commons of the proposed action; and (4) 
reasonable alternative means of structuring the project.
    In lieu of preparing a new EIS, the Executive Order permits OPIC 
to rely on one of the following: A pre-existing EIS for the same 
project; a project involving similar environmental issues; a generic 
EIS covering a number of similar projects; or an EIS obtained by 
other agencies.
    Environmental Impact Assessment (EIA). An EIA is a comprehensive 
assessment of the diverse impacts of a project on the natural and 
human environment. It includes a detailed description of pre-
existing conditions (``baseline assessment''), all project 
activities having a potential environmental impact (from pre-
construction through decommissioning and site reclamation), and the 
net impacts of the project, taking into account alternative 
mitigative measures. It also considers the relationship of the 
project to the natural and human environment in the affected area 
and the cumulative impacts of those activities. The content and 
format for an EIA will vary depending on industry sector, the site 
and other project-specific factors. (A generic format for an EIA is 
provided in Appendix B.)
    Environmental Management and Monitoring Plan (EMMP). An EMMP is 
designed to specify in detail the actions--both technical and 
managerial--that the applicant or sponsor will undertake in order to 
mitigate anticipated adverse impacts of the project on the 
environment, health and safety. It also describes the technology and 
methodology used to monitor the actual impacts of the project on the 
environment and the standards and procedures to be used for 
adjusting mitigative measures as necessary to maintain impacts 
within an acceptable range. (A generic format for an EMMP is 
suggested in Appendix C.) While ISO 14000 Environmental Management 
Systems implementation is not a substitute for a project-specific 
EMMP, a project sponsor's adherence to the ISO criteria can 
facilitate the process of developing an acceptable EMMP.
    Major Hazard Assessment (MHA). An MHA is a specialized form of 
EA designed to identify and assess the risks of catastrophic events 
resulting from the operation of an industrial facility. For projects 
requiring an MHA, OPIC requires completion of the MHA, preferably as 
part of the EIA process, but no later than the commencement of 
project operations. The categories of facilities subject to an MHA 
as well as the content and format of an MHA are outlined in the 
``World Bank Guidelines for the Identification, Analysis and Control 
of Major Hazard Installations in Developing Countries,'' a copy of 
which is available from OPIC.
    Environmental Audit (EAU). If the investment involves the 
acquisition of a pre-existing facility or a site on which industrial 
activity previously occurred, the project may also be subject to an 
EAU. An EAU is designed to identify pre-existing adverse 
environmental, health or safety conditions that could affect future 
impacts from the facility or site. (A generic format for an EAU is 
suggested in Appendix D.) ISO Environmental Auditing criteria are a 
useful adjunct to, although not a substitute for, performance-based 
auditing that is required to meet OPIC EAU requirements.
    Environmental Remediation Plan (ENR). The project may involve 
the remediation of environmentally adverse conditions at a site. In 
this case the applicant will be required to provide OPIC with an 
ENR, similar in format to an EMMP, and designed to address the 
issues raised in the audit.
    An EMMP, EAU or ENR may be included as part of an EIA. Other 
documents prepared to satisfy the requirements of other lenders may 
be submitted to OPIC so long as the documentation addresses the 
substantive issues needed for OPIC to complete its review of the 
project.

Screening

    The type of EA required for a particular project, including the 
timing and the level of effort involved, depends upon the nature of 
the project. Therefore, the first step in OPIC's EA is screening, in 
which OPIC's Environmental Unit assigns each project to one of the 
following categories:
    Category A: Projects in this category can be expected to have 
potentially significant, diverse and irreversible environmental 
impacts. Such projects can be readily identified on the basis of 
industry sector or site sensitivity. They require a full-scale EIA, 
as well as an EMMP. A fairly comprehensive

[[Page 5647]]

list of industries and sites within this category is provided in 
Appendix E. Category B: Projects in this category may result in 
specific environmental impacts and require adherence to certain 
predetermined performance standards, guidelines, or design criteria 
to avoid or mitigate impacts. Due to their nature, size or location, 
such projects can be readily assessed in terms of their 
environmental impacts and mitigation measures can be readily 
identified. Projects not included in Categories A, C, or D (as 
defined above and below) can be expected to belong to Category B. 
Examples of such project categories include: Agriculture, electrical 
distribution, electronics, food processing, light manufacturing, 
telecommunications, textiles and tourism. Information required from 
the applicant typically includes the following: Site description; 
processes involved; materials used and stored on site; air, liquid, 
and solid wastes generated in relation to applicable standards; and 
occupational health and safety measures.
    Category C: This category includes projects that are normally 
exempt from all environmental assessment, analysis or review because 
they do not normally result in any environmental impact. Examples of 
such projects include branch banking and computer software 
development.
    Category D: This category includes financial intermediaries 
(FIs) that make investments in or provide financing (loans, leases, 
etc.) to multiple projects or enterprises (``subprojects'') engaged 
in activities within categories A and B. OPIC screens these 
subprojects to determine the type of environmental review required. 
Also taken into account is the nature and size of the FI's 
involvement in the subproject. Expedited reviews are conducted for 
Category B subprojects involving less than $5.0 million in 
investment, subject to further review if the FI proceeds with 
additional investments in the same subproject.

Environmental Standards

    All projects must comply with host country environmental 
regulations. In addition, for most categories of activities, OPIC 
requires that projects meet World Bank environmental, health and 
safety guidelines. Therefore, whenever possible, applicants should 
provide OPIC with summaries or copies of applicable host country 
regulations as part of their EIA (for Category A projects) or as 
information provided in support of their application (for Category B 
projects). Government permits and certifications of compliance are 
necessary in this regard, although not always sufficient to 
establish compliance.
    World Bank guidelines were most recently officially issued in 
1988 and many of the guidelines themselves date from the early 
1980s. For that reason, OPIC has opted to use the draft guidelines 
prepared by the World Bank in May 1994 for the majority of 
industrial categories. (Use of the 1994 draft guidelines is 
consistent with the current practice of the International Finance 
Corporation pending the issuance of revised World Bank guidelines.) 
(For certain industries not included in the 1994 draft, OPIC may 
consider compliance with the 1988 guidelines acceptable.) As the 
Bank continues to update its guidelines, OPIC will substitute more 
current versions of particular guidelines on a case-by-case basis by 
industry. (A comprehensive list of official and draft World Bank and 
U.S. Exim guidelines for industry sectors as well as ecologically 
sensitive sites is contained in Appendix F. All are available from 
OPIC on request).
    For certain environmentally sensitive industries or 
circumstances, OPIC may require a project to meet a more restrictive 
standard than the World Bank guidelines, including, in some cases, 
emissions, effluent, ambient air and water quality limitations set 
by the U.S. Environmental Protection Agency, the World Health 
Organization or a similar authority.
    OPIC does not attempt to prescribe to its potential clients the 
choice of technologies or processes they must use to meet the 
applicable guidelines. However, standards of best practice developed 
by governments, industry and non-governmental organizations can be 
useful in providing guidance to OPIC and its clients in assessing 
alternatives and their feasibility. For this purpose OPIC is 
developing, in consultation with experts, international best 
practice guidelines for three sectors of particular importance to 
OPIC's mandate with respect to environmental impact: power 
generation; metals mining; and forestry (both tropical and 
temperate/boreal). Copies of these best practice guidelines will be 
available from OPIC on request.

Eligibility Determinations

    The primary purpose of OPIC's environmental review is to 
determine the eligibility of the project based on OPIC's statutory 
obligation to decline support for projects posing ``unreasonable or 
major environmental, health or safety hazards''. OPIC interprets 
``health or safety'' to apply both to project employees and to the 
affected public living or working in the vicinity of the project.
    In addition, OPIC is also required by statute to operate its 
programs in a manner consistent with sections 117, 118 and 119 of 
the Foreign Assistance Act (FAA). These provisions pertain to 
environmental assessment, and the protection of tropical forests and 
endangered species, respectively.
    Grounds for Declining Assistance to Projects. There are several 
circumstances under which OPIC will decline support for a project on 
environmental grounds:
     The applicant fails to provide OPIC with an EIA for a 
Category A project or with adequate information about a Category B 
project to conduct a review sufficient to determine project 
eligibility on environmental grounds.
     The project will, in OPIC's determination, result in

--Significant degradation of a national park, similar protected area 
or tropical rainforest;
--The destruction of or significant degradation in the habitat of an 
endangered species; and/or
--Other ``unreasonable or major environmental, health or safety 
hazards.''

    OPIC provides applicants with the opportunity to demonstrate 
that the proposed project does not pose an ``unreasonable or major 
environmental or safety hazard'' and is otherwise consistent with 
the letter and intent of the FAA provisions. However, at one time or 
another, OPIC has declined to support projects on one or more of the 
above grounds.
    Conditionality. In many cases, determinations of eligibility 
rely on critical representations made by the client with respect to 
baseline environmental conditions, mitigative measures and net 
impacts of proposed projects. In addition to the EMMP or ENR 
submitted by the applicant, OPIC may require the application of 
additional mitigative measures in order to ensure that a project 
will not pose an unreasonable or major environmental, health or 
safety hazard. These critical representations and those undertakings 
agreed to by the applicant or sponsor may be included in project 
documentation as preconditions to contract execution, conditions of 
disbursement and/or ongoing covenants, depending on the type of 
agreement entered into between OPIC and the applicant. Where OPIC 
insures an institutional lender, contract conditions are 
incorporated into the loan documentation.
    Environmental conditions and covenants are developed in close 
consultation with the client to minimize the cost to the project and 
to ensure that they are consistent with the host country's legal 
framework, objectively measurable and verifiable, and allow for 
sufficient flexibility to address issues if circumstances change.

Monitoring and Compliance

    OPIC's environmental assessment process is an ongoing one and 
continues through the full term of OPIC's relationship with the 
project sponsor.
    Monitoring. OPIC reserves the right to monitor projects' 
compliance with environmental representations and undertakings 
throughout the term of its insurance or financing. Monitoring may 
take the form of self-reporting by the investor of summaries and, in 
specified cases, raw data obtained from monitoring a project's 
environmental performance (emissions, effluents or other waste 
discharges) as well as its environmental impacts (e.g., on ambient 
conditions and biological resources). Monitoring may also take the 
form of third party evaluation, including compliance information 
developed by host government authorities, co-lenders/co-insurers and 
independent auditors.
    OPIC routinely conducts on-site monitoring of projects, using 
OPIC staff and/or consultants, for environmental as well as U.S. 
economic and host country development effects. OPIC endeavors to 
monitor all Category A projects on-site at least once during the 
first three years of project commitment, and more frequently 
depending on the environmental sensitivity of the project. Category 
B and D projects are also subject to monitoring on a random and 
selective basis.
    Non-compliance, Remediation and Termination. Material non-
compliance with environmental representations and

[[Page 5648]]

undertakings may constitute an event of default under the terms of 
OPIC insurance contracts and loan agreements. Depending on the 
severity and reversibility of the environmental impact and the 
investor's responsibility and due diligence in attempting to prevent 
the default and in curing the problem, OPIC may treat the default as 
curable or incurable. In the case of a curable default, OPIC works 
cooperatively with the investor to develop a feasible timetable for 
remediation. In the case of an incurable default, OPIC may require 
contract termination in the case of insurance, or acceleration of 
repayment or other available lenders' remedies, in the case of a 
loan. If an equity investment on the part of an FI is involved, 
divestiture by the FI may be required. In all cases, OPIC seeks to 
work cooperatively with investors and lenders to arrive at an 
equitable resolution of the situation, subject, of course, to the 
requirements of other lenders and insurers.

Public Consultation and Disclosure

    The environmental assessment process has become an increasingly 
public and transparent process among environmental regulatory 
agencies in the United States and in some, although not all, foreign 
countries. Likewise, multilateral development agencies that provide 
assistance to governments and other public sector clients have also 
made their activities more transparent to the public in both donor 
and host countries.
    OPIC recognizes the added value that interested and well-
informed members of the public can bring to the environmental 
assessment process undertaken by its clients as well as by OPIC 
itself. Grass roots as well as international non-governmental 
organizations (NGOs) often have access to information and 
perceptions about potential environmental impacts and resulting 
social, economic and cultural impacts that need to be carefully 
considered as early as possible in the assessment process.
    At the same time, the plans and proposals of private sector 
investors are often business confidential, and, in such cases, must 
be strictly protected from disclosure. While OPIC is subject to the 
disclosure requirements of the Freedom of Information Act, those 
requirements contain an exemption for business confidential 
information that is protected from disclosure under the Trade 
Secrets Act.
    In submitting project-specific information to OPIC, including 
Environmental Impact Assessments, audits, management and remediation 
plans as well as monitoring reports, applicants must specify which 
information has been or will be made public in any format, including 
in the host country. Because OPIC's goal is to provide the public 
with a level of comfort about its environmental process, applicants 
are strongly encouraged to submit environmental information in a 
form that can be shared with the public without compromising 
business confidentiality. Any information that is identified as a 
public document will be treated as such by OPIC in a response to a 
specific request for such information. Business confidential 
information will be accorded confidential treatment to the full 
extent permitted by law.
    When OPIC receives an application for insurance or financing for 
an environmentally sensitive project or subproject (coinciding with 
all projects within Category A, as defined above) OPIC will list the 
nature of the project and its location on OPIC's Home Page on the 
World Wide Web (http://www.opic.gov). No business confidential 
information will be disclosed. This list will be updated monthly, 
and any comments received will be considered in OPIC's processing of 
the application. Additional information about projects may be 
provided to OPIC at any time throughout the term of the project.
    Questions about this Environmental Handbook should be addressed 
to the Director, Environmental Affairs, Overseas Private Investment 
Corporation, 1100 New York Avenue, NW, Washington, DC 20527; Phone 
(202) 336-8614; Fax (202) 218-0177.

Appendix A--OPIC Statute (Environmental Provisions)

    All references are to the Foreign Assistance Act of 1961 (FAA), 
as amended, most recently by the Jobs Through Exports Act of 1992.
    Section 231 * * *. The Corporation, in determining whether to 
provide insurance, financing or reinsurance for a project, shall 
especially--
    (3) ensure that the project is consistent with the provisions of 
section 117, (as so redesignated by the Special Foreign Assistance 
Act of 1986), section 118, and section 119 of this Act relating to 
the environment and natural resources of, and tropical forests and 
endangered species in, developing countries, and consistent with the 
intent of regulations issued pursuant to sections 118 and 119 of 
this Act.
    In carrying out its purpose, the Corporation, utilizing broad 
criteria, shall undertake--
    (n) to refuse to ensure, reinsure, guarantee or finance any 
investment in connection with a project which the Corporation 
determines will pose a major or unreasonable environmental, health 
or safety hazard, or will result in the significant degradation of 
national parks or similar protected areas.

Section 237. General Provisions Relating to Insurance, Guaranty and 
Financing Programs

    (m)(1) Before finally issuing insurance, reinsurance, 
guarantees, or financing under this title for any environmentally 
sensitive investment in connection with a project in a country, the 
Corporation shall notify appropriate government officials of that 
country of--
    (A) All guidelines and other standards adopted by the 
International Bank for Reconstruction and Development and any other 
international organization relating to the public health and safety 
or the environment which are applicable to the project; and
    (B) To the maximum extent practicable, any restriction under any 
law of the United States relating to public health or safety or the 
environment that would apply to the project if the project were 
undertaken in the United States.
    The notification under the preceding sentence shall include a 
summary of the guidelines, standards and restrictions referred to in 
subparagraphs (A) and (B), and may include any environmental impact 
statement, assessment, review or study prepared with respect to the 
investment pursuant to section 239(g).

Section 239. General Provisions and Powers

    (g) The requirements of section 117(c) of this Act relating to 
environmental impact statements and environmental assessments shall 
apply to any investment which the Corporation insures, reinsures, 
guarantees, or finances under this title in connection with a 
project in a country.

Environmental Assessment Procedures for Executive Order 12114

    On January 4, 1979 the President issued Executive Order 12114 
(44 FR 1957) entitled ``Environmental Effects Abroad of Major 
Federal Actions''. The Executive Order requires federal agencies 
taking action encompassed by the Order, and not exempted from it, to 
effectuate procedures to implement the Order. The Overseas Private 
Investment Corporation (OPIC) is implementing the Executive Order by 
the adoption of the following procedures to take effect on September 
4, 1979.

Section 1. Purpose

    As required by Executive Order 12114, issued January 4, 1979, 
which is incorporated herein by reference, the following procedures 
shall be used by OPIC to ensure that all significant environmental 
effects of its actions outside the United States are considered by 
OPIC in its review of proposed insurance and finance projects. These 
procedures shall supplement OPIC's existing environmental procedures 
and guidelines required by the Foreign Assistance Act as amended 
(the ``Act''), as set forth in OPIC Board of Directors Resolution 
(74) 16 * * * and the ``OPIC Environmental Handbook''.

Section 2. Definition

    A. Application. The term ``application'' means a formal request 
to OPIC in the manner specified by OPIC for assistance under an OPIC 
program from an eligible private party interested in investing in a 
project in a foreign nation.
    B. Environment. The term ``environment'' means the natural and 
physical environment and excludes social, economic, and other 
environments.
    C. Global Commons. The term ``global commons'' means areas 
outside the exercise of any national jurisdiction.
    D. Host Country. The term ``host country'' means the foreign 
country in which a project for which OPIC assistance is sought is or 
will be located.
    E. Major Action. The term ``major action'' means a contractual 
commitment by OPIC to provide assistance under an OPIC program 
involving at least $1 million of insured investment, loan guaranties 
or direct loans, if the applicant therefor has or will have 
sufficient control over the design and/or operation of the project 
to mitigate environmental concerns raised by OPIC.
    F. OPIC Programs. The term ``OPIC programs'' includes OPIC's 
insurance, direct loan and loan guaranty programs as authorized by 
the Act.

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    G. Significant Effects. With respect to effects on the 
environment outside the United States, a proposed action has a 
significant effect on the environment if it does significant harm to 
the environment even though on balance the action is believed to 
result in beneficial effects on the environment.

Section 3. Applicability of Procedures

    A. Scope. Except as provided in Subsections B, C, and D below, 
these procedures shall apply with respect to OPIC's review of each 
new application for assistance under an OPIC program, whether for 
new projects or expansions of existing projects, if a favorable 
decision on such application will result in a major action by OPIC.
    B. Exemptions. If upon the initial review of an application the 
OPIC insurance or finance officer making such review determines that 
the project for which OPIC assistance is sought has no significant 
effects upon the environment outside the United States, these 
procedures shall not apply. If upon further review of the 
application, and prior to taking action, it is determined that the 
project may have a significant effect upon the environment, this 
exemption shall no longer apply. Also exempt from these procedures 
are actions falling within the categories listed in Section 2-5(ii) 
through (vii) of the Executive Order, as limited by Section 2-5(d). 
A concise administrative record will be prepared to document these 
determinations.
    C. Categorical Exclusions. These procedures shall not apply to 
the review of an application for any project falling within the 
scope of any category of projects which are determined to involve no 
significant effects on the environment. OPIC's Investment Committee 
shall have the authority to establish such categorical exclusions.
    D. Special Exemptions. These procedures shall not apply to the 
review of any application for which the General Counsel determines 
that an exemption is necessary as a result of emergency 
circumstances, situations involving exceptional foreign policy or 
national security sensitivity or other special circumstances (except 
as limited by Section 2-5(d) of the Executive Order). In utilizing 
any such special exemption, OPIC, through its designated 
Environmental Officer, shall consult as soon as feasible with the 
Department of State and the Council on Environmental Quality.

Section 4. Initial Determinations

    A. With respect to any application for OPIC assistance falling 
within the scope of Section 3(A) above, the OPIC officer reviewing 
such application shall make the following determinations which shall 
be documented by a concise administrative record:
    1. Whether the proposed project is likely to have a significant 
effect on the environment of the global commons;
    2. Whether the proposed project is likely to have a significant 
effect on the environment of a foreign country other than the host 
country; and
    3. Whether the proposed project is likely to have a significant 
effect on the environment of a foreign country because it would 
provide to that country.
    (a) A product, or physical project producing a principal product 
or an emission or effluent, which is prohibited or strictly 
regulated by Federal law in the United States because its toxic 
effects on the environment create a serious public health risk, such 
as asbestos, vinyl chloride, acrylonitrile, isocyanates, 
polychlorinated biphenyls, mercury, beryllium, arsenic, cadmium, and 
benzene; or
    (b) A physical project which in the United States is prohibited 
or strictly regulated by Federal law to protect the environment 
against radioactive substances.
    4. Whether the proposed project is likely to have a significant 
effect on natural or ecological resources of global importance 
hereafter designated for protection by the President or, in the case 
of such a resource protected by international agreement binding on 
the United States, by the Secretary of State.
    B. The determination required in Subsection A above shall be 
based upon the information contained in the application, information 
reasonably available to OPIC and such additional information from 
the applicant as deemed necessary by the reviewing officer.
    C. In the event that the reviewing officer makes a positive 
determination with respect to any of the categories specified in 
Subsection A above (i.e. that a significant effect is likely to 
result), and such determination is not reversed upon review by a 
supervisory officer or by the Investment Committee, the finance or 
insurance department, as the case may be, in consultation with 
OPIC's Environmental Officer, shall take the following actions, as 
appropriate, prior to acting on the application:
    1. If the harmful effect is of the type described in Subsection 
A(1) above, an environmental impact statement shall be obtained in 
the manner specified in Section 5 below. Such an environmental 
impact statement shall consider only the effects described in 
Subsection A(1), regardless of whether the project would result in 
other kinds of environmental effects.
    2. If the harmful effect is of the type described in Subsection 
A(2), A(3) or A(4) above, an environmental study or an environmental 
review shall be prepared in the manner specified in Section 6 below.

Section 5. Environmental Impact Statement

    A. If a department within OPIC is required by Section 4(C)(1) to 
cause the preparation of an environmental impact statement for a 
particular project, it shall do so in accordance with Subsection B 
below. If an environmental impact statement for the proposed 
project, a project involving similar environmental issues or a 
generic statement covering a host of similar projects already 
exists, no new environmental impact statement shall be required. 
When one or more other agencies are also involved in a particular 
project requiring an environmental impact statement OPIC may rely 
upon an environmental impact statement obtained by one or more of 
the other agencies.
    B. Environmental impact statements shall be concise and no 
longer than necessary to permit an informed consideration of the 
environmental effects of the proposed project and the reasonable 
alternatives. The statement shall include a section on the 
consideration of the purpose of and need for the proposed project; a 
section that provides a succinct description of the environment of 
the global commons affected by the proposed action; and a section 
that analyzes, in comparative form, the environmental consequences 
on the global commons of the proposed action and of reasonable 
alternative means of structuring the project.

Section 6. Environmental Studies and Reviews

    A. If a department is required under Section 4(C)(2) to produce 
an environmental study or review, it shall, in consultation with the 
Environmental Officer, determine whether an environmental study as 
described in Subsection B below which deals with the environmental 
aspects of the proposed project is available or will be undertaken 
elsewhere. If no relevant environmental study is or will be 
available, the OPIC department, in consultation with the 
Environmental Officer, shall undertake the preparation of an 
environmental review as described in Subsection C below with, as 
appropriate, the assistance of the applicant and of other federal 
agencies having jurisdiction by law or special expertise. If an 
environmental review for the proposed project or a project involving 
similar environmental issues or a generic review covering a class of 
similar projects already exists, no new environmental review shall 
be required hereunder. When one or more agencies are involved with 
OPIC on a particular project, a lead agency may be designated to 
prepare the environmental review.
    B. An environmental study shall consist of a bilateral or 
multilateral study by the United States and one or more foreign 
nations or by an international body or organization in which the 
United States is a member or participant.
    C. An environmental review shall consist of a concise analysis 
of important environmental issues relating to a proposed project, 
including identification of such issues and of the significant 
effects to the environment. The department involved in the 
preparation of an environmental review shall consider the following 
factors in deciding the scope, substance, and timing of review and 
the availability of the review to other agencies:
    1. The need to avoid infringement or the appearance of 
infringement on the sovereign responsibilities and internal affairs 
of another government;
    2. The availability of meaningful information on the environment 
of a foreign nation;
    3. The need to protect confidential business information and 
trade secrets of the applicant;
    4. The desirability of acting promptly upon applications under 
OPIC programs;
    5. The desirability of the project in terms of its export 
promotion and developmental effects;

[[Page 5650]]

    6. OPIC's ability to influence the design and/or implementation 
of the proposed project; and
    7. The need to protect sensitive foreign affairs information and 
information received from another government with the understanding 
that it will be protected from disclosure.

Section 7. Decision

    The required environmental documents developed in accordance 
with these Procedures shall accompany the application through the 
review process to enable officers responsible for approving an 
application and, if necessary, the Board of Directors, to be 
informed and to take account of the environmental considerations 
covered by such documents.

Section 8. Availability

    Subject to the consideration of Section 6(C), environmental 
documents developed under these procedures shall be available to the 
Department of State, Council on Environmental Quality and other 
federal agencies and shall be included in the public information 
files for the pertinent applications. Foreign governments affected 
thereby may also be informed of such documents after coordinating 
with the Department of State regarding such communication with the 
foreign government.
    Effective Date. These procedures become effective on September 
4, 1979.
    Dated: August 27, 1979, J. Bryce Llewellyn, President.

Appendix B--Recommended Content and Format for Environmental Impact 
Assessment (Category A Projects)

I. Executive Summary
    A. Concise project description
    B. Identification of project sponsors, operators and contractors
    C. Baseline environmental conditions
    D. Applicable environmental standards
    E. Proposed mitigation measures
    F. Net environmental impacts
II. Policy, Legal and Administrative Framework
    A. Applicable host country environmental and occupational safety 
and health laws and regulations
    B. Relevant international agreements
    C. Requirements of potential investors, lenders and insurers
III. Baseline Conditions in Area Potentially Affected by Project 
(``Project Area'')
    A. Designation of project area perimeters
    B. Physical geography (climate, geology, topography)
    C. Natural events history (earthquakes, floods, fires, storms, 
volcanic eruptions, etc.)
    D. Biological environment
    1. Proximity to national parks and other protected areas
    2. Identification of unique or sensitive natural habitats of 
internationally or locally recognized rare, threatened or endangered 
species
    3. Renewable and non-renewable natural resources
    E. Human environment
    1. Distribution of residential and occupational population in 
project area
    2. Description of previous, current and planned land use 
activities in or near project area
    3. Habitation or use of project area by indigenous peoples
    F. Environmental quality of project area
    1. Ambient air conditions (including seasonal variations)
    (a) Sulfur dioxide
    (b) Particulates
    (c) Nitrogen oxides
    (d) Carbon monoxides
    (e) Airborne toxics
    2. Water supply, quality and end use (human consumption, 
agriculture, plant and animal habitat)
    (a) Marine waters, including estuaries
    (b) Surface waters (rivers, streams, lakes)
    (c) Groundwater
    3. Noise levels
    4. Soil conditions, including contamination from previous or 
current activities
    G. Archeological, historical or cultural resources
IV. Potential (Unmitigated) Environmental, Health and Safety Impacts
    A. Sources and volumes of untreated airborne, liquid, and solid 
waste and potential impacts of unmitigated discharge on the 
environment
    B. Potential impacts on natural and biological resources
    C. Potential human impacts:
    1. Positive: Employment, services, economic opportunities
    2. Negative: Resettlement and economic displacement
    D. Potential occupational health and safety hazards
    E. Potential for major safety and health hazards beyond the 
workplace
V. Proposed Environmental Prevention and Mitigation Measures 
(including a thorough discussion of alternatives and justifications 
for measures selected)
    A. Waste minimization measures
    B. Waste treatment and disposal measures
    C. Natural resource management (e.g. sustainable management of 
biological resources and protection of endangered species and their 
habitats)
    D. Mitigation of human impacts: compensation, training, etc.
    E. Occupational safety and health measures
    F. Major hazard prevention and emergency response
VI. Projected Net Environmental Impacts (post-mitigation)
    A. Physical impacts (e.g., topography, ground and surface water 
supply, soil conservation)
    B. Biological impacts (flora, fauna and related habitat with 
particular attention to threatened and endangered species; natural 
resources, e.g. primary forests, coral reefs, mangroves, etc.)
    C. Net discharges of airborne, liquid and solid wastes and 
resulting ambient impacts as compared to applicable host country, 
World Bank and other relevant regulatory standards and guidelines
    D. Net exposures by workers to safety and health hazards
    E. Net potential for major hazards
    F. Consistency with applicable international agreements
VII. Appendices
    A. Permits issued and pending from environmental authorities
    B. Author information
    1. Names, affiliations and qualifications of project team
    2. Relationship of authors to project sponsors
    C. Record of meetings held as part of EIA, including public 
hearings and consultations with government and non-governmental 
organizations
    D. Reference bibliography
    E. Technical data not included in text

Appendix C--Recommended Content and Format for Environmental Management 
and Monitoring Plan

I. Applicable Regulatory Standards and Guidelines
    A. Host country laws and regulations
    B. Sponsor, investor, lender and insurance requirements
    C. International agreements
II. Environmental Management Measures
    A. Potential impacts and corresponding preventive and mitigative 
measures
    B. Equipment specifications for preventive and mitigative 
measures
    C. Operational and maintenance procedures
III. Organizational Responsibilities and Management Issues
    A. Operations
    B. Supervision
    C. Internal enforcement
    D. Monitoring
    E. Remedial actions
IV. Training Requirements
V. Monitoring and Reporting Procedures
    A. Parameters to be monitored
    1. airborne emissions and corresponding ambient air impacts
    2. liquid effluents and corresponding ambient impacts on 
receiving waters
    3. Physical impacts
    4. Natural resource and biological impacts
    5. Human impacts
    6. Workplace conditions
    (a) Accident frequency and severity
    (b) Worker exposures to hazardous substances
    7. Impacts of dedicated offsite infrastructure and facilities
    B. Frequency of monitoring
    C. Monitoring techniques and procedures
    1. Equipment and instrumentation
    2. Quality assurance/quality control (QA/QC) procedures
    3. Personnel and training requirements
    D. Reporting procedures
    1. Internal
    2. External (e.g. to local authorities)

Appendix D--Recommended Content and Format For Environmental Audit

I. Executive Summary
    A. Environmental, safety and health areas of concern
    B. Recommended mitigation measures/enhancement opportunities: 
priorities
    C. Implementation schedule
II. Project Description
    A. Location

[[Page 5651]]

    B. Past operations history
    C. Current operations
III. Applicable Regulations and Guidelines
IV. Audit Procedure (protocol)
    A. Historical research
    B. Records review
    C. Interviews
    D. Site inspections
    E. Sampling and analysis (quality assurance and control) 
procedures
V. Review of Environmental Management
    A. Environmental management structure
    B. Emergency, security and safety plans
    C. Company-community interaction program
    D. Handling of complaints and media coverage
VI. Environmental Impacts
    A. Air emissions
    B. Liquid effluents
    C. Solid (non-hazardous) waste treatment
    D. Hazardous materials and management
    E. Noise and vibration
    F. Groundwater and soil contamination
VII. Occupational Safety and Health
    A. Summary of accident reporting, recording and investigation
    B. Health and safety management
    C. Site safety procedures
    D. Medical monitoring program
    E. Air quality
    F. Noise level exposure
    G. Chemical/material handling
    H. Temperature exposure
    I. Personal protective equipment
    J. Emergency response capability
    K. Fire protection
    L. Training programs
VIII. Conclusions
IX. Mitigation Recommendations
    A. Identify appropriate measures
    B. Priorities
    C. Implementation schedule
X. Environmental Enhancement Opportunities
    A. Energy and energy conservation
    B. Waste minimization
    C. Cleaner technology initiatives
    D. Training programs
XI. Annexes
    A. Names of those responsible for preparing audit
    B. Written material references used
    C. Records of consultations
    D. Other data

    Audit checklists for specific industry sectors are available 
from OPIC.

Appendix E-- Category A: Projects Requiring Environmental Impact 
Assessment

I. Industrial Categories
    A. Large-scale industrial plants
    B. Industrial estates
    C. Crude oil refineries
    D. Large thermal power projects (200 megawatts or more)
    E. Major installations for initial smelting of cast iron and 
steel and production of non-ferrous metals
    F. Chemicals
    1. Manufacture and transportation of pesticides
    2. Manufacture and transportation of hazardous or toxic 
chemicals or other materials
    G. All projects which pose potential serious occupational or 
health risks
    H. Transportation infrastructure
    1. Roadways
    2. Railroads
    3. Airports (runway length of 2,100 meters or more)
    4. Large port and harbor developments
    5. Inland waterways and ports that permit passage of vessels of 
over 1,350 tons
    I. Major oil and gas developments
    J. Oil and gas pipelines
    K. Disposal of toxic or dangerous wastes
    1. Incineration
    2. Chemical treatment
    L. Landfills
    M. Large dams and reservoirs
    N. Pulp and paper manufacturing
    O. Mining
    P. Offshore hydrocarbon production
    Q. Major storage of petroleum, petrochemical and chemical 
products
    R. Forestry/large-scale logging
    S. Large-scale wastewater treatment
    T. Domestic solid waste processing facilities
    U. Large-scale tourism development
    V. Large-scale power transmission
    W. Large-scale reclamation
    X. Large-scale agriculture involving the intensification or 
development of previously undisturbed land
    Y. All projects with potentially major impacts on people or 
serious socioeconomic concerns
II. Projects in, or Sufficiently Near Sensitive Locations of 
National or Regional Importance, to Have Perceptible Environmental 
Effects on:
    A. National parks
    B. Wetlands
    C. Areas of archeological significance
    D. Areas prone to erosion and/or desertification
    E. Areas of importance to ethnic groups/indigenous peoples
    F. Natural forests
    G. Protected wildlands
    H. Nationally designated refuges
    I. Coral reefs
    J. Mangrove swamps
    K. Nationally designated seashore areas
    L. Endangered species habitat
    M. Properties on the World Heritage List

Appendix F--Index of World Bank and U.S. Export-Import Bank 
Environmental, Health and Safety Guidelines

I. Guidelines: Impacts
    A. Air quality (Exim, WB 94, WB pending)
    1. Sulfur dioxide
    (a) Ambient levels (WB 88)
    (b) Emissions standards (WB 88)
    (c) Sampling and analysis (WB 88)
    (d) Sulfur oxides (WB 95)
    2. Airborne particulates (WB 95)
    (a) Dust emissions (WB 88)
    (b) Electrostatic precipitators (WB 88)
    3. Nitrogen oxides (WB 95)
    (a) Emissions (WB 88)
    (b) Sampling and analysis (WB 88)
    4. Transboundary pollution (WB 91)
    (a) Acid rain (WB pending)
    5. Airshed modeling (WB pending)
    6. Emissions monitoring (WB pending)
    7. Elimination of ozone-depleting substances (WB 3/96)
    B. Water use and quality (Exim)
    1. Irrigation and drainage (WB 88*, 91)
    2. Water supply (WB 91)
    C. Wastewater treatment (WB pending)
    1. Effluents, disposal of industrial wastes (WB 88)
    2. Wastewater collection, treatment, reuse and disposal (WB 91)
    (a) Reuse (WB 94)
    3. Liquid effluents: land disposal and treatment (WB 88)
    4. Sludge treatment (WB pending)
    D. Solid waste collection and disposal
    E. Management of hazardous and toxic materials and waste (Exim, 
WB pending)
    F. Occupational health
    1. General guidelines (WB 88)
    2. Safety (WB 88)
    G. Sludge treatment (WB pending)
    H. Site planning and management (WB 91, WB pending)
    I. Hazardous materials management (WB 91)
    1. In small and medium scale industries (WB 85)
    2. Polychlorinated biphenyls (PCBs) (WB 94)
    3. Asbestos
    (a) Sampling and analysis of airborne asbestos (WB 88)
    (a) Use in manufacturing industries (WB 88)
    J. Natural hazards (Exim, WB 91)
    1. Earthquake protection (WB 88, 93)
    K. Major industrial hazards (WB 85, 91)
    L. Socioeconomic and sociocultural effects (Exim)
    1. Core issues (WB 91)
    2. Induced development (WB 91)
    3. Ecologically sensitive areas (WB 91)
    4. Indigenous peoples (WB 91)
    5. Cultural property (WB 91)
    6. Cultural heritage in environmental assessment (WB 9/94)
    M. Resettlement (WB 91, 94)
    N. Wildland management (WB 91, 94)
    O. Wetlands (WB 91)
    P. Tropical forests (WB 91)
    Q. Arid and semi-arid lands (WB 91)
    R. Coastal zone management (WB 91)
    S. Land and water resource management (WB 91)
    T. Noise (Exim, WB 88)
    U. International treaties and agreements (WB 91)
    V. International waterways (WB 91)
    W. Biological diversity (WB 91)
    X. Secondary environmental effects (WB 88)
    Y. Privatization (WB 4/94)
II. Guidelines: Industries
    A. General industry and energy (Exim, WB 94)
    1. Small and medium scale industries (WB 91)
    B. Heavy machinery (WB pending)
    C. Cleaner production (WB pending)
    D. Rehabilitation of old plants (WB pending)
    E. Aluminum (WB 88, 88, WB pending)
    F. Iron and steel (Exim, WB 88, 91, 94, 95)
    1. General considerations (WB 88)
    2. Blast furnaces (WB 88)
    3. Coke ovens (WB 88, 88)
    4. Ore preparation, sintering and pelletizing (WB 88)

[[Page 5652]]

    5. Rolling and finishing operations (WB 88)
    6. Steel making process (WB 88, 88)
    7. Foundries (WB pending)
    (a) Iron and steel (WB 88)
    (b) Non-ferrous (WB 88)
    (c) Mini-steel mills (WB 95)
    G. Mining and milling (Exim, WB 91)
    1. Strip/surface: sediment and erosion control, land reclamation 
(WB 88)
    2. Open pit (WB 88, 94)
    3. Underground (WB 88, 94)
    4. Base metal and iron ore (WB 95)
    5. Non-ferrous (WB 88, 91)
    6. Coal mining (WB 88, 88, 95)
    7. Asbestos mining and milling (WB 88)
    H. Mineral processing
    1. Copper and nickel (WB 88, 94, WB pending)
    2. Lead and zinc (WB 88, 88 (lead))
    3. Silver, tungsten, columbium and tantalum (WB 88)
    4. Metal fabrication (WB pending)
    5. Sulfuric acid plants (WB 88)
    I. Oil and gas development (Exim, WB pending)
    1. Onshore (WB 94)
    2. Offshore (WB 88)
    J. Pipelines: Oil and gas (WB 91)
    1. Oil pipelines (WB 88)
    2. Oil and gas pipelines onshore (WB 91)
    3. Oil and gas pipelines offshore(WB 91)
    K. Geothermal energy (WB 88, WB pending)
    L. Hydroelectric projects (WB 91)
    M. Power plants: General (Exim)
    1. Thermoelectric projects: general (WB 88, 91)
    2. Rehabilitation (WB pending)
    3. Emissions: General (WB 94)
    4. Thermal (WB 94, 95)
    5. Gas turbine (Exim 94)
    6. Engine driven (WB 94)
    7. Small scale boilers (WB pending)
    N. Electric power transmission and distribution (WB 91, 94)
    O. Battery manufacturing (WB 88)
    P. Forestry
    1. Natural forest management (WB 91)
    2. Logging (Exim, WB 94)
    Q. Plantations/reforestation (WB 91, 94)
    R. Palm oil industry (WB 88)
    S. Sawmills (WB 88, 94)
    T. Wood products industries (WB 94)
    1. Plywood (WB 88, 88) and furniture (WB pending)
    2. Wood preserving (WB pending)
    U. Pulp and paper (Exim, WB 88, 88, 91, 94, WB pending)
    V. Petroleum refineries (Exim, WB 88, 91, 94, 95)
    W. Rubber (WB 88) and plastics (WB pending)
    X. Chemicals and petrochemicals (WB 91)
    1. Organic chemicals (WB pending)
    2. Inorganic chemicals (WB pending)
    3. Nitric acid plants (WB 88)
    4. Petrochemical facilities (Exim, WB pending)
    5. Polyvinyl chloride processing (WB 88)
    Y. Ethanol production (WB 88)
    Z. Printing (WB pending)
    AA. Pharmaceuticals (WB pending)
    BB. Cement (WB 88, 88, 91, 94, 95)
    CC. Chlor-alkali (WB 88, 95)
    DD. Coke manufacturing (WB 95)
    EE. Fertilizer (WB 91, 94)
    1. Fertilizer manufacturing wastes (WB 88)
    2. Mixed fertilizer (WB 95)
    3. Nitrogenous fertilizer (WB 95)
    4. Phosphate fertilizer (WB 95)
    FF. Pesticides
    1. Pesticides manufacturing (WB 88, WB pending)
    2. Pesticides formulation (WB pending)
    3. Packaging and labeling (WB 88)
    4. Transportation and distribution (WB 88)
    5. Handling and application (WB 88, 88, 91, 94)
    6. Rodenticides (WB 88, 88)
    GG. Fishing and shipbuilding (WB 88, 91)
    HH. Watershed development (WB 91)
    II. Dams and reservoirs (WB 91)
    JJ. Flood protection (WB 91)
    KK. Agriculture
    1. Production management (WB 91)
    2. Integrated pest management (WB 91)
    LL. Livestock and rangeland management (WB 91)
    MM. Food and beverage processing (WB 91, 94)
    1. Agroindustry (WB 91)
    2. Dairy (WB 88, 88, 94, 95)
    3. Fruit and vegetable processing (WB 88, 88, 95)
    4. Vegetable oils (WB pending)
    5. Tea and coffee (WB 88, WB pending)
    (a) Coffee (WB 88)
    (b) Tea (WB 88)
    6. Breweries (WB pending)
    7. Poultry processing (WB 88)
    8. Fish processing (WB 88, 88, 94, WB pending)
    9. Meat processing (WB 88, 88, 94, 95)
    (a) Slaughterhouses: industrial waste disposal (WB 88)
    (b) Slaughterhouses: design (WB 88)
    (c) Slaughterhouses: occupational safety (WB 88)
    10. Cane sugar (WB 88, WB pending)
    (a) Agricultural operations (WB 88)
    (b) Mill and refinery operations (WB 88)
    11. Grain handling and storage (WB 88)
    NN. Gas terminals (WB 94)
    OO. Glass manufacturing (WB 88, WB pending)
    1. Flat glass manufacturing (WB 94)
    PP. Electronics (WB pending)
    QQ. Instruments (WB pending)
    RR. Plating and electroplating (WB 88, 88, 95)
    SS. Dye manufacturing (WB pending)
    TT. Coatings manufacturing (WB pending)
    UU. Hospitals (WB 94)
    VV. Tourism and hospitality (WB pending)
    1. Hotels and resorts (WB 94)
    WW. Rail transit systems (WB 94)
    XX. Roads and highways (WB 91)
    1. Rural roads (WB 91)
    YY. Ports and harbor facilities (WB 91)
    ZZ. Inland navigation (WB 91)
    AAA. Large-scale housing projects (WB 91)
    BBB. Telecommunications (WB 94)
    CCC. Textiles (WB 88, 88, 94, 95)
    1. Wool scouring (WB 88)
    2. Cotton ginning (WB 88)
    DDD. Tanning (WB 88, 88, 95)

References. (Appendix F)

WB 88--The World Bank, Environmental Guidelines, September 1988
WB 88--The World Bank, Occupational Health and Safety Guidelines, 
September 1988
WB 91--The World Bank, Environmental Assessment Sourcebook, (3 
volumes) 1991
WB 94--``World Bank Environment, Health and Safety Guidelines,'' 
Draft 1994
WB 95--The World Bank, Industrial Pollution Prevention and Abatement 
Handbook, Preliminary Version (June 1995)
WB pending--World Bank guidelines under development
Exim--Export-Import Bank of the United States, ``Environmental 
Procedures and Guidelines,'' April 2, 1996

Appendix G--Format for Host Government Notification Letter

[date]

Minister of State for Environment

Republic of------------------------------------------------------------

    Dear Mr./Madam Minister: The Overseas Private Investment 
Corporation (OPIC) is proposing to issue financing/insurance for an 
investment in [name of host country] by a U.S. company. OPIC is an 
agency of the United States Government, with the mandate of 
facilitating economically productive and environmentally sound U.S. 
private investments in developing countries and emerging economies.
    OPIC is required by U.S. law to notify appropriate host 
government authorities of investments under consideration for OPIC 
assistance, which have the potential to pose significant 
consequences for the environment. The project that is the subject of 
this notification involves an investment by [name of applicant] in 
the construction and operation of [concise description of project].
    The potential environmental hazards associated with [industry 
sector] includes [air, water, solid/hazardous waste, etc.].
    Based on information provided to us by the investor, the project 
does not appear to pose significant hazards to the environment, 
public health, or safety resulting from the diverse impacts of 
[industry sector].
    OPIC is also required to provide your government with 
information about standards and guidelines applicable to such 
investments that have been developed by international organizations 
or by federal environmental regulatory authorities of the United 
States. The relevant World Bank and U.S. Environmental Protection 
Agency guidelines are attached for your information.
    We understand, of course, that the project will be subject to 
the laws of [name of host country] with respect to the protection of 
the environment as well as occupational health and safety.
    If you have any questions about OPIC's environmental assessment 
of this project, you may contact OPIC's Director of Environmental 
Affairs at the above address or [phone/fax].
        Sincerely yours,

[Name]-----------------------------------------------------------------
President and Chief Executive Officer

Enclosures

Appendix H--Glossary

    Environmental Assessment (EA)--analytical tool used to 
anticipate potential impacts of particular activities on the natural

[[Page 5653]]

environment and on humans dependent on that environment.
    Environmental Audit (EAU)--assessment of environmental and 
related human impacts of pre-existing or ongoing activities.
    Environmental Impact Assessment (EIA)--comprehensive analytical 
effort designed to anticipate environmental impacts of major 
projects having the potential to have significant, diverse and 
irreversible impacts on the natural environment and on humans 
dependent on that environment.
    Environmental Impact Statement (EIS)--comprehensive analytical 
effort designed to anticipate environmental impacts of major federal 
actions affecting the global commons outside of the jurisdiction of 
any nation.
    Environmental Management and Monitoring Plan (EMMP)--systematic 
program designed to prevent, mitigate and monitor anticipated 
environmental and related human impacts of prospective and ongoing 
activities.
    Environmental Remediation Plan (ENR)--systematic program 
designed to reverse adverse environmental impacts of previous 
activities at a site.
    European Bank for Reconstruction and Development (EBRD)--
multilateral development bank established in 1990 to assist in the 
economic, social and political development of Central and Eastern 
Europe and the New Independent States of the former Soviet Union. 
Other members include the European Community and the United States.
    Export-Import Bank of the United States (Exim)--independent U.S. 
government agency that helps finance the overseas sales of U.S. 
goods and services.
    Financial Intermediary (FI)--investment fund, bank, or other 
financial institution that lends directly to projects or investment 
funds guaranteed or insured by OPIC that invest in projects 
(``subprojects'') subject to OPIC approval on policy grounds.
    Foreign Assistance Act (FAA)--Foreign Assistance Act of the 
United States International Finance Corporation (IFC)--affiliate of 
the World Bank group that makes loans to and investments in private 
sector projects in developing countries and emerging markets.
    ISO 14000--basic elements of an effective environmental 
management system as developed by the Technical Committee of the 
International Standards Organization to provide organizations 
worldwide with a common approach to environmental management.
    Major Hazard Assessment (MHA)--analytical tool used for 
identifying, analyzing and controlling potential major hazards to 
human health and safety resulting from storage and processing of 
toxic and hazardous substances.
    World Bank (WB)--International Bank for Reconstruction and 
Development.

    Dated: March 31, 1997.
James Offutt,
Assistant General Counsel, Administrative Affairs.
[FR Doc. 97-2874 Filed 2-5-97; 8:45 am]
BILLING CODE 3210-01-P