Page 37 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 262m–2

directly affected population groups and communities;

(4) developing country governments sometimes do not ensure that appropriate policies

and procedures are in place to use natural resources sustainably or consult with affected

population groups and communities, where

costs could be reduced or benefits made more

enduring; and

(5) in general, the multilateral development

banks do not yet provide systematic and adequate assistance to their borrowers to encourage sustainable resource use and consultation

with affected communities, where costs could

be reduced or benefits made more enduring.

(Pub. L. 95–118, title XIII, §1301, as added Pub. L.

100–202, §101(e) [title I], Dec. 22, 1987, 101 Stat.

1329–131, 1329–134.)

CODIFICATION

Section 1301 of Pub. L. 95–118 is based on section 701

of title VII of H.R. 3750, One Hundredth Congress, as introduced Dec. 11, 1987, and enacted into law by Pub. L.

100–202.

§ 262m–1. Environmental performance of banks;

mechanisms for improvement

The Secretary of the Treasury and the Secretary of State, in cooperation with the Administrator of the Agency for International Development, shall vigorously promote mechanisms

to strengthen the environmental performance of

these banks. These mechanisms shall include

strengthening organizational, administrative,

and procedural arrangements within the banks

which will substantially improve management

of assistance programs necessary to ensure the

sustainable use of natural resources and the protection of indigenous peoples.

(Pub. L. 95–118, title XIII, §1302, as added Pub. L.

100–202, §101(e) [title I], Dec. 22, 1987, 101 Stat.

1329–131, 1329–134.)

CODIFICATION

Section 1302 of Pub. L. 95–118 is based on section 701

of title VII of H.R. 3750, One Hundredth Congress, as introduced Dec. 11, 1987, and enacted into law by Pub. L.

100–202.

DEFINITIONS

The definition in section 262p of this title applies to

this section.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 262p of this title.

§ 262m–2. Environmental impact of assistance

proposals

(a) Analysis by agencies, United States embassies

and overseas missions of Agency for International Development; factors considered; affirmative investigation of adverse impacts;

availability of information to public

(1) In the course of reviewing assistance proposals of the multilateral development banks,

the Administrator of the Agency for International Development, in consultation with the

Secretary of the Treasury and the Secretary of

State, shall ensure that other agencies and appropriate United States embassies and overseas

missions of the Agency for International Development are instructed to analyze, where feasible, the environmental impacts of multilateral

development loans well in advance of such loans’

approval by the relevant institutions to determine whether the proposals will contribute to

the sustainable development of the borrowing

country.

(2) To the extent possible, such reviews shall

address the economic viability of the project,

adverse impacts on the environment, natural resources, public health, and indigenous peoples,

and recommendations as to measures, including

alternatives, that could eliminate or mitigate

adverse impacts.

(3) If there is reason to believe that any such

loan is particularly likely to have substantial

adverse impacts, the Administrator of the Agency for International Development, in consultation with the Secretary of the Treasury and the

Secretary of State, shall ensure that an affirmative investigation of such impacts is undertaken

in consultation with relevant Federal agencies.

If not classified under the national security system of classification, the information collected

pursuant to this paragraph shall be made available to the public.

(b) Evaluation by major shareholder governments prior to bank action on assistance proposals

The Secretary of the Treasury shall instruct

the Executive Directors representing the United

States at the International Bank for Reconstruction and Development, the Inter-American

Development Bank, the Asian Development

Bank, and the African Development Bank to

urge the management and other directors of

each such bank, to provide sufficient time between the circulation of assistance proposals

and bank action on those proposals, in order to

permit their evaluation by major shareholder

governments.

(c) Identification of proposals likely to have adverse impact; transmittal to Congress

Based on the information obtained during the

evaluation referred to in subsection (a) of this

section and other available information, the Administrator of the Agency for International Development, in consultation with the Secretary

of the Treasury and the Secretary of State, shall

identify those assistance proposals likely to

have adverse impacts on the environment, natural resources, public health, or indigenous peoples. The proposals so identified shall be transmitted to the Committee on Appropriations and

the Committee on Banking, Finance and Urban

Affairs of the House of Representatives and the

Committee on Appropriations and the Committee on Foreign Relations of the Senate, not later

than June 30 and December 31 of each year following December 22, 1987.

(d) Reports to Executive Directors; elimination

or mitigation of adverse impacts

The Secretary of the Treasury shall forward

reports concerning information received under

subsection (a) of this section to the Executive

Director representing the United States in the

appropriate bank with instructions to seek to

eliminate or mitigate adverse impacts which

may result from the proposal.