59–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–241 

OVERSEAS PRIVATE INVESTMENT CORPORATION 

REAUTHORIZATION ACT OF 2007 

JULY 19, 2007.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. LANTOS, from the Committee on Foreign Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 2798] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Foreign Affairs, to whom was referred the bill 

(H.R. 2798) to reauthorize the programs of the Overseas Private Investment Corporation, and for other purposes, having considered 

the same, reports favorably thereon with an amendment and recommends that the bill as amended do pass. 

TABLE OF CONTENTS 

Page 

The Amendment ...................................................................................................... 2 

Summary .................................................................................................................. 10 

Background and Purpose for the Legislation ........................................................ 10 

Hearings ................................................................................................................... 11 

Committee Consideration ........................................................................................ 11 

Votes of the Committee ........................................................................................... 11 

Committee Oversight Findings ............................................................................... 11 

New Budget Authority and Tax Expenditures ...................................................... 12 

Congressional Budget Office Cost Estimate .......................................................... 12 

Performance Goals and Objectives ......................................................................... 14 

Constitutional Authority Statement ...................................................................... 15 

New Advisory Committees ...................................................................................... 15 

Congressional Accountability Act ........................................................................... 15 

Earmark Identification ............................................................................................ 15 

Section-by-Section Analysis and Discussion .......................................................... 15 

Changes in Existing Law Made by the Bill, as Reported ..................................... 29 


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THE AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Overseas Private Investment Corporation Reauthorization Act of 2007’’. 

SEC. 2. FINDINGS. 

The Congress finds the following: 

(1) Since its founding in 1971, the Overseas Private Investment Corporation 

(in this section referred to as ‘‘OPIC’’) has helped to mobilize and facilitate private capital by United States investors in developing and emerging market 

countries in support of United States foreign policy and development goals. 

(2) OPIC assistance should not, in any way, support projects in countries that 

reject their obligations to support international peace, security, and basic 

human rights. 

(3) OPIC assistance should not be provided to those who support enemies of 

the United States. 

(4) OPIC assistance is a privilege and should be granted to persons that, 

along with their affiliated companies, demonstrate responsible and sustainable 

business practices, particularly with regard to the environment, international 

worker rights, and efforts against genocide and nuclear proliferation. Denial of 

OPIC assistance is not a penalty or sanction. 

(5) Over OPIC’s 35-year history, OPIC has supported $177,000,000,000 in operating investments in more than 150 developing countries, helping to create 

more than 800,000 jobs and some $13,000,000,000 in host-government revenues. 

(6) OPIC projects have generated $71,000,000,000 in United States exports 

and supported more than 271,000 United States jobs. 

(7) Projects assisted by OPIC in fiscal year 2006 are projected to generate 

$1,000,000,000 in United States exports, support more than 2,700 United States 

jobs, and have a positive impact on the United States balance of payments. 

(8) In fiscal year 2006, 87 percent of all OPIC-supported projects supported 

small-and-medium-sized businesses in the United States. 

(9) In an era of limited Federal budgetary resources, OPIC has consistently 

demonstrated an ability to operate on a self-sustaining basis to support United 

States companies, all at a net cost of zero to the United States taxpayer. 

(10) OPIC has reserves totaling approximately $5,300,000,000 and will make 

an estimated net budget contribution to the international affairs account of 

$159,000,000 in fiscal year 2008. 

SEC. 3. REAUTHORIZATION OF OPIC PROGRAMS. 

Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)(2)) is 

amended by striking ‘‘September 30, 2007’’ and inserting ‘‘September 30, 2011’’ . 

SEC. 4. PREFERENTIAL CONSIDERATION OF CERTAIN INVESTMENT PROJECTS. 

Section 231(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 2191(f)) is amended to read as follows: 

‘‘(f) to give preferential consideration to investment projects in less developed 

countries the governments of which are receptive to private enterprise, domestic 

and foreign, and to projects in countries the governments of which are willing 

and able to maintain conditions that enable private enterprise to make its full 

contribution to the development process;’’. 

SEC. 5. REQUIREMENTS REGARDING INTERNATIONAL WORKER RIGHTS. 

(a) COUNTRY REQUIREMENTS.—Subsection (a) of section 231A of the Foreign Assistance Act of 1961 (22 U.S.C. 2191a(a)) is amended—

(1) by amending the subsection heading to read as follows: ‘‘INTERNATIONAL

WORKER RIGHTS’’; 

(2) in paragraph (4), by striking ‘‘(4) In’’ and inserting ‘‘(5) ADDITIONAL DETERMINATION.—In’’ ; and 

(3) by striking paragraphs (1) through (3) and inserting the following: 

‘‘(1) LIMITATION ON OPIC ACTIVITIES.—(A) The Corporation may insure, reinsure, guarantee, or finance a project only if the country in which the project is 

to be undertaken has made or is making significant progress towards the recognition, adoption, and implementation of laws that substantially provide international worker rights, including in any designated zone, or special administrative region or area, in that country. 


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‘‘(B) The Corporation shall also include the following language, in substantially the following form, in all contracts which the Corporation enters into with 

eligible investors to provide financial support under this title: 

‘‘ ‘The investor agrees not to take any actions to obstruct or prevent employees 

of the foreign enterprise from exercising their international worker rights (as 

defined in section 238(h) of the Foreign Assistance Act of 1961), and agrees to 

adhere to the obligations regarding those international worker rights.’

‘‘(2) PREFERENCE TO CERTAIN COUNTRIES.—To the degree possible and consistent with its development objectives, the Corporation shall give preferential 

consideration to projects in countries that have adopted, maintain, and enforce 

laws that substantially provide international worker rights. 

‘‘(3) USE OF ANNUAL REPORTS ON INTERNATIONAL WORKER RIGHTS.—The Corporation shall, in carrying out paragraph (1)(A), use, among other sources, the 

reports submitted to the Congress pursuant to section 504 of the Trade Act of 

1974. Such other sources include the observations, reports, and recommendations of the International Labor Organization, and other relevant organizations. 

‘‘(4) INAPPLICABILITY TO HUMANITARIAN ACTIVITIES.—Paragraph (1) shall not 

prohibit the Corporation from providing any insurance, reinsurance, guaranty, 

financing, or other assistance for the provision of humanitarian assistance in a 

country.’’. 

(b) BOARD OF DIRECTORS.—Section 233(b) of the Foreign Assistance Act of 1961 

(22 U.S.C. 2193(b)) is amended by adding at the end the following: ‘‘The selection 

of the small business, organized labor, and cooperative directors should be made, respectively, in consultation with relevant representative organizations.’’. 

(c) DEFINITIONS.—Section 238 of the Foreign Assistance Act of 1961 (22 U.S.C. 

2198) is amended—

(1) in subsection (f), by striking ‘‘and’’ after the semicolon; 

(2) in subsection (g), by striking the period at the end and inserting ‘‘; and’’; 

and 

(3) by adding at the end the following: 

‘‘(h) the term ‘international worker rights’ means—

‘‘(1) internationally recognized worker rights, as defined in section 507(4) 

of the Trade Act of 1974 (19 U.S.C. 2467(4)); and 

‘‘(2) the elimination of discrimination with respect to employment and occupation.’’. 

(d) GENERAL PROVISIONS AND POWERS.—Section 239 of the Foreign Assistance Act 

of 1961 (22 U.S.C. 2199) is amended—

(1) in subsection (h), by adding at the end the following: ‘‘In addition, the Corporation should consult with relevant stakeholders in developing such criteria.’’; 

and 

(2) in subsection (i), in the first sentence, by inserting ‘‘, including international worker rights,’’ after ‘‘fundamental freedoms’’. 

SEC. 6. ENVIRONMENTAL ASSESSMENTS. 

Section 231A(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2191a(b)) is 

amended to read as follows: 

‘‘(b) ENVIRONMENTAL IMPACT.—The Board of Directors of the Corporation shall not 

vote in favor of any action proposed to be taken by the Corporation that is likely 

to have significant adverse environmental impacts, unless for at least 60 days before 

the date of the vote—

‘‘(1) an environmental impact assessment, or initial environmental audit, analyzing the environmental impacts of the proposed action and of alternatives to 

the proposed action has been completed by the project applicant and made 

available to the Board of Directors; and 

‘‘(2) such assessment or audit has been made available to the public of the 

United States, locally affected groups in the host country, and host country nongovernmental organizations.’’. 

SEC. 7. COMMUNITY SUPPORT. 

Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 2197) is amended 

by adding at the end the following: 

‘‘(p) COMMUNITY SUPPORT.—To the maximum extent practicable, the Corporation 

shall require the applicant for a project that is subject to section 231A(b) to obtain 

broad community support for the project.’’. 

SEC. 8. CLIMATE CHANGE MITIGATION ACTION PLAN. 

Title IV of chapter 2 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 

2291 et seq.) is amended by inserting after section 234A the following new section: 


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‘‘SEC. 234B. CLIMATE CHANGE MITIGATION. 

‘‘(a) MITIGATION ACTION PLAN.—The Corporation shall, not later than 180 days 

after the date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2007, institute a climate change mitigation action plan that includes the following: 

‘‘(1) CLEAN AND EFFICIENT ENERGY TECHNOLOGY.—

‘‘(A) INCREASING ASSISTANCE.—The Corporation shall establish a goal of 

substantially increasing its support of projects that use, develop, or otherwise promote the use of clean energy technologies over the 4-year period beginning on the date of the enactment of the Overseas Private Investment 

Corporation Reauthorization Act of 2007. 

‘‘(B) PREFERENTIAL TREATMENT TO PROJECTS.—The Corporation shall give 

preferential treatment to the evaluation and awarding of assistance for and 

provide greater flexibility in supporting projects that use, develop, or otherwise promote the use of clean and efficient energy technologies. 

‘‘(2) ENVIRONMENTAL IMPACT ASSESSMENTS.—

‘‘(A) GREENHOUSE GAS EMISSIONS.—The Corporation shall, in making an 

environmental impact assessment for a project under section 231A(b), take 

into account the degree to which the project contributes to the emission of 

greenhouse gases. 

‘‘(B) OTHER DUTIES NOT AFFECTED.—The requirement under subparagraph (A) is in addition to any other requirement, obligation, or duty that 

the Corporation has. 

‘‘(3) REPORT TO CONGRESSIONAL COMMITTEES.—The Corporation shall, within 

180 days after the date of the enactment of the Overseas Private Investment 

Corporation Reauthorization Act of 2007, submit to the Committee on Foreign 

Affairs of the House of Representatives and the Committee on Foreign Relations 

of the Senate a report on the plan developed to carry out paragraph (1)(A). 

Thereafter, the Corporation shall include in its annual report under section 

240A a discussion of such plan and its implementation. 

‘‘(b) EXTRACTION INVESTMENTS.—

‘‘(1) PRIOR NOTIFICATION TO CONGRESSIONAL COMMITTEES.—The Corporation 

may not approve any contract of insurance or reinsurance, or any guaranty, or 

enter into any agreement to provide financing for any project which significantly involves an extractive industry and in which assistance by the Corporation would be valued at $10,000,000 or more (including contingent liability), 

until at least 30 days after the Corporation notifies the Committee on Foreign 

Affairs of the House of Representatives and the Committee on Foreign Relations 

of the Senate of such contract or agreement. 

‘‘(2) COMMITMENT TO EITI PRINCIPLES.—The Corporation may approve a contract of insurance or reinsurance, or any guaranty, or enter into an agreement 

to provide financing to an eligible investor for a project that significantly involves an extractive industry only if—

‘‘(A) the eligible investor has agreed to implement the Extractive Industries Transparency Initiative principles and criteria, or substantially similar principles and criteria; or 

‘‘(B) the host country where the project is to be carried out has committed 

to the Extractive Industries Transparency Initiative principles and criteria, 

or substantially similar principles and criteria. 

‘‘(3) PREFERENCE FOR CERTAIN PROJECTS.—With respect to all projects that 

significantly involve an extractive industry, the Corporation, to the degree possible and consistent with its development objectives, shall give preference to a 

project in which both the eligible investor has agreed to implement the Extractive Industries Transparency Initiative principles and criteria, or substantially 

similar principles and criteria, and the host country where the project is to be 

carried out has committed to the Extractive Industries Transparency Initiative 

principles and criteria, or substantially similar principles and criteria. 

‘‘(4) DEFINITIONS.—In this subsection: 

‘‘(A) EXTRACTIVE INDUSTRY.—The term ‘extractive industry’ refers to an 

enterprise engaged in the exploration, development, or extraction of oil and 

gas reserves, metal ores, gemstones, industrial minerals, or coal. 

‘‘(B) EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE PRINCIPLES AND

CRITERIA.—The term ‘Extractive Industries Transparency Initiative principles and criteria’ means the principles and criteria of the Extractive Industries Transparency Initiative, as set forth in Annex A to the Anti-Corruption Policies and Strategies Handbook of the Corporation, as published 

in September 2006. 


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‘‘(5) REPORTING REQUIREMENT.—The Corporation shall include in its annual 

report required under section 240A a description of its activities to carry out 

this subsection. 

‘‘(c) DEFINITIONS.—In this section: 

‘‘(1) CLEAN AND EFFICIENT ENERGY TECHNOLOGY.—The term ‘clean and efficient energy technology’ means an energy supply or end-use technology—

‘‘(A) such as—

‘‘(i) solar technology; 

‘‘(ii) wind technology; 

‘‘(iii) geothermal technology; 

‘‘(iv) hydroelectric technology; and 

‘‘(v) carbon capture technology; and 

‘‘(B) that, over its life cycle and compared to a similar technology already 

in commercial use—

‘‘(i) is reliable, affordable, economically viable, socially acceptable, 

and compatible with the needs and norms of the country involved; 

‘‘(ii) results in—

‘‘(I) reduced emissions of greenhouse gases; or 

‘‘(II) increased geological sequestration; and 

‘‘(iii) may—

‘‘(I) substantially lower emissions of air pollutants; or 

‘‘(II) generate substantially smaller and less hazardous quantities of solid or liquid waste. 

‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse gas’ means—

‘‘(A) carbon dioxide; 

‘‘(B) methane; 

‘‘(C) nitrous oxide; 

‘‘(D) hydrofluorocarbons; 

‘‘(E) perfluorocarbons; or 

‘‘(F) sulfur hexafluoride.’’. 

SEC. 9. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN RAILWAY CONNECTIONS AND RAILWAY-RELATED CONNECTIONS. 

Section 237 of the of the Foreign Assistance Act of 1961 (22 U.S.C. 2197) is further amended by adding at the end the following: 

‘‘(q) PROHIBITION ON ASSISTANCE FOR CERTAIN RAILWAY PROJECTS.—The Corporation may not provide insurance, reinsurance, a guaranty, financing, or other assistance to support the development or promotion of any railway connection or railwayrelated connection that does not traverse or connect with Armenia and does connect 

Azerbaijan and Turkey.’’. 

SEC. 10. INELIGIBILITY OF PERSONS DOING CERTAIN BUSINESS WITH STATE SPONSORS OF 

TERRORISM. 

(a) IN GENERAL.—Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 

2197) is further amended by adding at the end the following: 

‘‘(r) INELIGIBLE PROJECTS.—

‘‘(1) IN GENERAL.—A project will not be eligible to receive support provided by 

the Corporation under this title if either of the following applies: 

‘‘(A)(i) An applicant for insurance, reinsurance, financing, or other support for a project provided to the government of a state sponsor of terrorism 

a loan, or an extension of credit, that remains outstanding. 

‘‘(ii) For purposes of this subparagraph, the sale of goods, other than food 

or medicine, on any terms other than a cash basis shall be considered to 

be an extension of credit. 

‘‘(B) An applicant for insurance, reinsurance, financing, or other support 

for a project has an investment commitment valued at $20,000,000 or more 

for the energy sector in a country that is a state sponsor of terrorism. 

‘‘(2) DEFINITIONS.—In this subsection: 

‘‘(A) CASH BASIS.—The term ‘cash basis’ refers to a sale in which the purchaser of goods or services is required to make payment in full within 45 

days after receiving the goods or services. 

‘‘(B) ENERGY SECTOR.—The term ‘energy sector’ refers to activities to develop or transport petroleum or natural gas resources. 

‘‘(C) INVESTMENT COMMITMENT.—The term ‘investment commitment’

means any of the following activities if such activity is undertaken pursuant to a commitment, or pursuant to the exercise of rights under a commitment, that was entered into with the government of a state sponsor of terrorism or a nongovernmental entity in a country that is a state sponsor of 

terrorism: 


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‘‘(i) The entry into a contract that includes responsibility for the development of petroleum resources located in a country that is a state 

sponsor of terrorism, or the entry into a contract providing for the general supervision and guarantee of another person’s performance of such 

a contract. 

‘‘(ii) The purchase of a share of ownership, including an equity interest, in that development. 

‘‘(iii) The entry into a contract providing for the participation in royalties, earnings, or profits in that development, without regard to the 

form of the participation. 

‘‘(D) STATE SPONSOR OF TERRORISM.—The term ‘state sponsor of terrorism’

means a country the government of which the Secretary of State has determined, for purposes of section 6(j) of the Export Administration Act of 1979, 

section 620A of the Foreign Assistance Act of 1961, section 40 of the Arms 

Export Control Act, or any other provision of law, to be a government that 

has repeatedly provided support for acts of international terrorism. 

‘‘(3) CERTIFICATION.—

‘‘(A) BY APPLICANTS.—A person or entity applying for insurance, reinsurance, a guaranty, financing, or other assistance under this title may not receive such support unless its chief executive officer certifies to the Corporation, under penalty of perjury, that the person or entity and its majorityowned subsidiaries are not engaged in any activity described in subparagraph (A) or (B) of paragraph (1). 

‘‘(B) BY ULTIMATE PARENT ENTITIES.—In the case of an applicant that is 

a majority-owned entity of another entity, in addition to the certification 

under subparagraph (A), the chief executive officer of the ultimate parent 

entity of the applicant must certify, under penalty of perjury, that it and 

its majority-owned subsidiaries are not engaged in any activity described in 

subparagraph (A) or (B) of paragraph (1). 

‘‘(C) APPLICATION TO STRAW MAN TRANSACTIONS.—In any case in which—

‘‘(i) an applicant for insurance, reinsurance, financing, or other assistance under this title is providing goods and services to a project, 

‘‘(ii) more than 50 percent of such goods and services are acquired 

from an unaffiliated entity, and 

‘‘(iii) the unaffiliated entity is receiving $20,000,000 or more, or sums 

greater than 50 percent of the amount of the assistance provided by the 

Corporation for the project (including contingent liability), for such 

goods or services, 

then the chief executive officer of the unaffiliated entity must make a certification under subparagraph (A), and any ultimate parent entity must 

make a certification required by subparagraph (B). 

‘‘(D) DILIGENT INQUIRY.—A certification required by subparagraph (A), 

(B), or (C) may be made to the best knowledge and belief of the certifying 

officer if that officer states that he or she has made diligent inquiry into 

the matter certified. 

‘‘(E) EXCEPTION.—(i) A chief executive officer of an applicant or other entity may provide a certification required by subparagraph (A), (B), or (C) 

with respect to the activity of a majority-owned subsidiary or entity notwithstanding activity by such majority-owned subsidiary or entity that 

would cause a project to be ineligible for support under subparagraph (A) 

or (B) of paragraph (1) if such activity is carried out under a contract or 

other obligation of such majority-owned subsidiary or entity that was entered into or incurred before the acquisition of such majority-owned subsidiary or entity by the applicant or ultimate parent entity. 

‘‘(ii) Clause (i) shall not apply if the terms of such contract or other obligation are expanded or extended after such acquisition. 

‘‘(F) DEFINITION.—For purposes of this paragraph, a person is an ultimate 

parent of an entity if the person owns directly, or through majority ownership of other entities, greater than 50 percent of the equity of the entity. 

‘‘(4) EXCEPTION.—The prohibition in paragraph (1) shall not—

‘‘(A) apply to a loan, extension of credit, or investment commitment by 

an applicant, or other entity covered by a certification under subparagraph 

(A), (B), or (C) of paragraph (3), in Southern Sudan, Southern Kordofan/ 

Nuba Mountains State, Blue Nile State, or Abyei, Darfur, if the Corporation, with the concurrence of the Secretary of State, determines that such 

loan, extension of credit, or investment commitment will provide emergency 

relief, promote economic self-sufficiency, or implement a nonmilitary program in support of a viable peace agreement in Sudan, including the ComVerDate Aug 31 2005 20:36 Jul 19, 2007 Jkt 059006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6621 E:\HR\OC\HR241.XXX HR241

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prehensive Peace Agreement for Sudan and the Darfur Peace Agreement; 

or 

‘‘(B) prohibit the Corporation from providing support for projects in 

Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile 

State, and Abyei, Darfur, if the Corporation, with the concurrence of the 

Secretary of State, determines that such projects will provide emergency relief, promote economic self-sufficiency, or implement a nonmilitary program 

in support of a viable peace agreement in Sudan, including the Comprehensive Peace Agreement for Sudan and the Darfur Peace Agreement . 

‘‘(5) PROSPECTIVE APPLICATION OF SUBSECTION.—This subsection shall not be 

applied to limit support by the Corporation under this title because an applicant, or other entity covered by a certification under subparagraph (A), (B), or 

(C) of paragraph (3) engaged in commercial activity specifically licensed by the 

Office of Foreign Assets Control of the Department of the Treasury.’’. 

(b) TERMINATION.—

(1) IN GENERAL.—The amendment made by this section shall cease to be effective with respect to a country that is a state sponsor of terrorism 30 days after 

the President certifies to the appropriate congressional committees that—

(A) the country has ceased providing support for acts of international terrorism and no longer satisfies the requirements for designation as a state 

sponsor of terrorism; 

(B) the country does not possess nuclear weapons or a significant program to develop nuclear weapons; and 

(C) the country is not committing genocide or conducting a program of 

ethnic cleansing against a civilian population that approaches genocide. 

(2) DEFINITIONS.—In this subsection: 

(A) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘‘appropriate 

congressional committees’’ means the Committee on Foreign Affairs of the 

House of Representatives and the Committee on Foreign Relations of the 

Senate. 

(B) STATE SPONSOR OF TERRORISM.—The term ‘‘state sponsor of terrorism’’

has the meaning given that term in section 237(r)(2)(D) of the Foreign Assistance Act of 1961, as added by subsection (a) of this section. 

SEC. 11. INCREASED TRANSPARENCY. 

(a) IN GENERAL.—Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 

2197) is further amended by adding at the end the following new subsections: 

‘‘(s) AVAILABILITY OF PROJECT INFORMATION.—Beginning 90 days after the date of 

the enactment of the Overseas Private Investment Corporation Reauthorization Act 

of 2007, the Corporation shall make public, and post on its Internet website, summaries of all new projects supported by the Corporation, and other relevant information, except that the Corporation shall not include any confidential business information in the summaries and information made available under this subsection. 

‘‘(t) REVIEW OF METHODOLOGY.—Not later than 180 days after the date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 

2007, the Corporation shall publish in the Federal Register and periodically revise, 

subject to a period of public comment, the detailed methodology, including relevant 

regulations, used to assess and monitor the impact of projects supported by the Corporation on the development and environment of, and international worker rights 

in, host countries, and on United States employment. 

‘‘(u) PUBLIC NOTICE PRIOR TO PROJECT APPROVAL.—

‘‘(1) PUBLIC NOTICE.—The Board of Directors of the Corporation may not vote 

in favor of any action proposed to be taken by the Corporation on any Category 

A project until at least 60 days after the Corporation—

‘‘(A) makes available for public comment a summary of the project and 

relevant information about the project; and 

‘‘(B) makes the summary and information described in paragraph (1) 

available to locally affected groups in the area of impact of the proposed 

project, and to host country nongovernmental organizations. 

The Corporation shall not include any business confidential information in the 

summary and information made available under subparagraphs (A) and (B). 

‘‘(2) PUBLISHED RESPONSE.—To the extent practicable, the Corporation shall 

publish responses to the comments received under paragraph (1) with respect 

to a Category A project and submit the responses to the Board not later than 

7 days before a vote is to be taken on any action proposed by the Corporation 

on the project. 

‘‘(3) DEFINITIONS.—In this subsection, the term ‘Category A project’ means 

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surance, reinsurance, financing, or other support under this title and which is 

likely to have significant adverse environmental impacts.’’. 

(b) OFFICE OF ACCOUNTABILITY.—Section 237 of the Foreign Assistance Act of 

1961 (22 U.S.C. 2197) is further amended by adding at the end the following new 

subsection: 

‘‘(v) OFFICE OF ACCOUNTABILITY.—The Corporation shall maintain an Office of Accountability to provide problem-solving services for projects supported by the Corporation and to review the Corporation’s compliance with its environmental, social, 

worker rights, human rights, and transparency policies and procedures, to the maximum extent practicable. The Office of Accountability shall operate in a manner that 

is fair, objective and transparent.’’. 

SEC. 12. FRAUD AND OTHER BREACHES OF CONTRACT. 

Section 237(n) of the Foreign Assistance Act of 1961 (22 U.S.C. 2197(n)) is amended—

(1) by striking ‘‘Whoever’’ and inserting: 

‘‘(1) IN GENERAL.—Whoever’’; and 

(2) by adding at the end the following: 

‘‘(2) DEFERRALS TO DEPARTMENT OF JUSTICE.—(A) The President of the Corporation shall refer to the Department of Justice for appropriate action information known to the Corporation concerning any substantial evidence of—

‘‘(i) a violation of this title; 

‘‘(ii) a material breach of contract entered into with the Corporation by 

an eligible investor; or 

‘‘(iii) a material false representation made by an investor to the Corporation. 

‘‘(B) Subparagraph (A) does not apply if the President of the Corporation concludes that the matter described in clause (i), (ii), or (iii), as the case may be, 

of subparagraph (A)—

‘‘(i) is not evidence of a possible violation of criminal law; and 

‘‘(ii) is not evidence that the Federal Government is entitled to civil remedy or to impose a civil penalty.’’. 

SEC. 13. TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT FUNDS. 

(a) IN GENERAL.—Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 

2199) is amended by adding at the end the following: 

‘‘(l) TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT FUNDS.—

‘‘(1) COMPETITIVE SELECTION OF INVESTMENT FUND MANAGEMENT.—With respect to any investment fund that the Corporation creates on or after the date 

of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2007, the Corporation may select persons to manage the fund only 

by contract using full and open competitive procedures. 

‘‘(2) CRITERIA FOR SELECTION.—In assessing proposals for investment fund 

management proposals, the Corporation shall consider, in addition to other factors, the following: 

‘‘(A) The prospective fund management’s experience, depth, and cohesiveness. 

‘‘(B) The prospective fund management’s track record in investing risk 

capital in emerging markets. 

‘‘(C) The prospective fund management’s experience, management record, 

and monitoring capabilities in its target countries, including details of local 

presence (directly or through local alliances). 

‘‘(D) The prospective fund management’s experience as a fiduciary in 

managing institutional capital, meeting reporting requirements, and administration. 

‘‘(E) The prospective fund management’s record in avoiding investments 

in companies that would be disqualified under section 237(r). 

‘‘(3) ANNUAL REPORT.—The Corporation shall include in each annual report 

under section 240A an analysis of the investment fund portfolio of the Corporation, including the following: 

‘‘(A) FUND PERFORMANCE.—An analysis of the aggregate financial performance of the investment fund portfolio grouped by region and maturity. 

‘‘(B) STATUS OF LOAN GUARANTIES.—The amount of guaranties committed 

by the Corporation to support investment funds, including the percentage 

of such amount that has been disbursed to the investment funds. 

‘‘(C) RISK RATINGS.—The definition of risk ratings, and the current aggregate risk ratings for the investment fund portfolio, including the number 

of investment funds in each of the Corporation’s rating categories. 


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‘‘(D) COMPETITIVE SELECTION OF INVESTMENT FUND MANAGEMENT.—The 

number of proposals received and evaluated for each newly established investment fund.’’. (b) GAO AUDIT.—Not later than 1 year after the submission of the first report 

to Congress under section 240A of the Foreign Assistance Act of 1961 that includes 

the information required by section 239(l)(3) of that Act (as added by subsection (a) 

of this section), the Comptroller General of the United States shall prepare and submit to the Committee on Foreign Affairs of the House of Representatives and the 

Committee on Foreign Relations of the Senate an independent assessment of the investment fund portfolio of the Overseas Private Investment Corporation, covering 

the items required to be addressed under such section 239(l)(3). 

SEC. 14. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ. 

Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is amended 

by adding at the end the following: ‘‘(m) OPERATIONS IN IRAQ.—Notwithstanding subsections (a) and (b) of section 237, 

the Corporation is authorized to undertake in Iraq any program authorized by this 

title.’’. 

SEC. 15. CONSISTENCY WITH EXISTING LAW. 

Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is further 

amended by adding at the end the following: ‘‘(n) CONSISTENCY WITH OTHER LAW.—Section 620L of this Act shall apply to any 

insurance, reinsurance, guaranty, or other financing issued by the Corporation for 

projects in the West Bank and Gaza to the same extent as such section applies to 

other assistance under this Act. ‘‘(o) LIMITATION ON ASSISTANCE TO GAZA AND THE WEST BANK .—The Corporation 

may not provide insurance, reinsurance, a guaranty, financing, or other assistance 

to support a project in any part of Gaza or the West Bank unless the Secretary of 

State determines that the location for the project is not under the effective control 

of Hamas or any other foreign terrorist organization designated under section 219 

of the Immigration and Nationality Act (8 U.S.C. 1189).’’. 

SEC. 16. CONGRESSIONAL NOTIFICATION REGARDING MAXIMUM CONTINGENT LIABILITY. 

Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) is further 

amended by adding at the end the following: 

‘‘(p) CONGRESSIONAL NOTIFICATION OF INCREASE IN MAXIMUM CONTINGENT LIABILITY.—The Corporation shall notify the Committee on Foreign Affairs of the House 

of Representatives and the Committee on Foreign Relations of the Senate not later 

than 15 days after the date on which the Corporation’s 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), exceeds the previous fiscal year’s maximum contingent liability by 25 percent.’’. 

SEC. 17. ASSISTANCE FOR SMALL BUSINESSES AND ENTITIES. 

Section 240 of the Foreign Assistance Act of 1961 (22 U.S.C. 2200) is amended 

by adding at the end the following: 

‘‘(c) RESOURCES DEDICATED TO SMALL BUSINESSES, COOPERATIVES, AND OTHER

SMALL UNITED STATES INVESTORS.—The Corporation shall ensure that adequate 

personnel and resources, including senior officers, are dedicated to assist United 

States small businesses, cooperatives, and other small United States investors in obtaining insurance, reinsurance, financing, and other support under this title. The 

Corporation shall include, in each annual report under section 240A, the following 

information with respect to the period covered by the report: 

‘‘(1) A description of such personnel and resources. 

‘‘(2) The number of small businesses, cooperatives, and other small United 

States investors that received such insurance, reinsurance, financing, and other 

support, and the dollar value of such insurance, reinsurance, financing and 

other support. 

‘‘(3) A description of the projects for which such insurance, reinsurance, financing, and other support was provided.’’. 

SEC. 18. TECHNICAL CORRECTIONS. 

(a) PILOT EQUITY FINANCE PROGRAM.—Section 234 of the Foreign Assistance Act 

of 1961 (22 U.S.C. 2194) is amended—

(1) by striking subsection (g); and 

(2) by redesignating subsection (h) as subsection (g). 

(b) TRANSFER AUTHORITY.—Section 235 of the Foreign Assistance Act of 1961 (22 

U.S.C. 2195) is amended—

(1) by striking subsection (e); and 

(2) by redesignating subsection (f) as subsection (e). 


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(c) GUARANTY CONTRACT.—Section 237(j) of the Foreign Assistance Act of 1961 (22 

U.S.C. 2197(j)) is amended by inserting ‘‘insurance, reinsurance, and’’ after ‘‘Each’’. (d) TRANSFER OF PREDECESSOR PROGRAMS AND AUTHORITIES.— (1) TRANSFER.—Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 

2199), as amended by the preceding provisions of this Act, is amended— (A) by striking subsection (b); and 

(B) by redesignating the subsections (c) through (p) as subsections (b) 

through (o), respectively. 

(2) CONFORMING AMENDMENTS.—(A) Section 237(m)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2197(m)(1)) is amended by striking ‘‘239(g)’’ and inserting ‘‘239(f)’’. 

(B) Section 240A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2200A(a)) 

is amended—

(i) in paragraph (1), by striking ‘‘239(h)’’ and inserting ‘‘239(g)’’; and 

(ii) in paragraph (2)(A), by striking ‘‘239(i)’’ and inserting ‘‘239(h)’’. 

(C) Section 209(e)(16) of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (as enacted into 

law by section 1000(a)(7) of Public Law 106-113; 31 U.S.C. 1113 note) is amended by striking ‘‘239(c)’’ and ‘‘2199(c)’’ and inserting ‘‘239(b)’’ and ‘‘2199(b)’’, respectively. 

(e) ADDITIONAL CLERICAL AMENDMENTS.—Section 234(b) of the Foreign Assistance 

Act of 1961 (22 U.S.C. 2194(b)) is amended by striking ‘‘235(a)(2)’’ and inserting 

‘‘235(a)(1)’’. 

SEC. 19. EFFECTIVE DATE. 

(a) NEW APPLICATIONS.—This Act and the amendments made by this Act shall 

apply with respect to any application for insurance, reinsurance, a guaranty, financing, or other support under title IV of chapter 2 of part I of the Foreign Assistance 

Act of 1961 if the application is received by the Overseas Private Investment Corporation on or after July 1, 2007, and the application is approved by the Corporation 

on or after the date of the enactment of this Act. 

(b) EXTENSIONS AND RENEWALS.—

(1) IN GENERAL.—Subject to paragraph (2), this Act and the amendments 

made by this Act shall apply with respect to any extension or renewal of a contract or agreement for any such insurance, reinsurance, guaranty, financing, or 

support that was entered into by the Corporation before the date of the enactment of this Act if the extension or renewal is approved by the Corporation on 

or after such date of enactment. 

(2) EXCEPTION.—This Act and the amendments made by this Act shall not 

apply to any extension or renewal which is substantially identical to an extension or renewal formally requested in a detailed writing filed with the Corporation before July 1, 2007. 

SUMMARY

H.R. 2798, the Overseas Private Investment Corporation Reauthorization Act of 2007, was referred to the Committee on Foreign 

Affairs on June 20, 2007, and was subsequently referred to the 

Subcommittee on Terrorism, Nonproliferation, and Trade. On June 

21, 2007, the Subcommittee on Terrorism, Nonproliferation, and 

Trade adopted an amendment in the nature of a substitute, and 

the bill was reported favorably, as amended, to the Committee on 

Foreign Affairs by a vote of 6–2. On June 26, 2007, during the full 

committee markup, the Committee on Foreign Affairs reported the 

bill favorably, as amended, by a vote of 23–5, with one voting 

‘‘present.’’

BACKGROUND AND PURPOSE FOR THE LEGISLATION

The Overseas Private Investment Corporation (OPIC) was established as an agency of the United States in 1971. OPIC’s mandate 

is to mobilize and facilitate the participation of United States private capital and skills in the economic and social development of 

less developed countries, thereby complementing the development 

assistance objectives of the United States. OPIC provides political 


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risk insurance, project financing, and other financial assistance to 

U.S. companies in support of these objectives. Over the agency’s 35- 

year history, OPIC has supported $177,000,000,000 in assistance in 

more than 150 developing countries, helping to create more than 

800,000 jobs and some $13,000,000,000 in host-government revenues. OPIC operates on a self-sustaining basis, at a net cost of zero 

to U.S. taxpayers. 

H.R. 2798, the ‘‘Overseas Private Investment Corporation Reauthorization Act of 2007’’ reauthorizes OPIC through September 30, 

2011, while strengthening the agency’s development mandate and 

ensuring that OPIC activities are consistent with United States 

foreign policy objectives. The bill has many important aspects, including: (1) strengthening the rights of workers overseas; (2) requiring OPIC to institute a climate change mitigation action plan 

to increase the Corporation’s support of projects that use and promote the use of clean energy technology; and (3) discouraging private sector investment with enemies of the United States by prohibiting the Corporation from supporting applicants of OPIC assistance that have certain ties to state sponsors of terrorism. 

HEARINGS

The Subcommittee on Terrorism, Nonproliferation, and Trade 

held a hearing entitled ‘‘The Reauthorization of OPIC’’ on May 24, 

2007. The Subcommittee heard testimony from Robert Mosbacher, 

Jr., President and Chief Executive Officer of the Overseas Private 

Investment Corporation; Jeff Vogt of the AFL–CIO; Jonathan Sohn 

of the World Resources Institute; Frank J. Gaffney, Jr. of the Center for Security Policy; and Dr. Tim Kane of The Heritage Foundation. 

COMMITTEE CONSIDERATION

On June 26, 2007, the Committee held a markup and H.R. 2798 

was reported favorably to the House, as amended, by a vote of 23–

5, with one voting ‘‘present.’’

VOTES OF THE COMMITTEE

H.R. 2798 was reported favorably to the House, as amended, by 

a vote of 23–5, with one voting ‘‘present.’’

Voting yes: Lantos, Ackerman, Faleomavaega, Sherman, Wexler, 

Engel, Watson, Carnahan, Woolsey, Scott, Sires, Ros-Lehtinen, 

Gallegly, Manzullo, Pence, Wilson, Barrett, Fortenberry, 

McCaul, Poe, Inglis, Fortuno, and Bilirakis. 

Voting no: Burton, Royce, Chabot, Tancredo, and Flake. 

Voting ‘‘present’’: Jackson Lee. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee reports that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 


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NEW BUDGET AUTHORITY AND TAX EXPENDITURES

In compliance with Clause 3(c)(2) of House Rule XIII, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in 

the cost estimate prepared by the Director of the Congressional 

Budget Office, pursuant to section 402 of the Congressional Budget 

Act of 1974. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, the Committee sets forth, with respect to 

the bill, H.R.2798, the following estimate and comparison prepared 

by the Director of the Congressional Budget Office under section 

402 of the Congressional Budget Act of 1974: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 16, 2007. 

Hon. TOM LANTOS, Chairman, 

Committee on Foreign Affairs, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2798, the Overseas Private Investment Corporation Reauthorization Act of 2007. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sam Papenfuss, who can 

be reached at 226–2840. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure 

cc: Honorable Ileana Ros-Lehtinen 

Ranking Member 

H.R. 2798—Overseas Private Investment Corporation Reauthorization Act of 2007 

SUMMARY

H.R. 2798 would extend through 2011 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 with direct loans and loan guarantees. 

Additionally, the bill would require OPIC to give preferential treatment to a variety of projects, including those in less-developed 

countries, those that respect workers’ rights, those that promote 

the use of alternative energy sources, and those that agree to an 

international standard for transparency for projects that involve 

extractive industries, like mining and drilling. H.R. 2798 also 

would require OPIC to publish summaries of each project it approves on its Internet Web site, use competitive bidding to select 

managers for its investment funds, and create an office of accountability. Finally, the bill would allow OPIC to operate in Iraq on a 

permanent basis as well as in Gaza and Sudan with the concurrence of the Secretary of State. 


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CBO estimates that implementing H.R. 2798 would cost $6 mil- lion in 2008 and $74 million over the 2008–2012 period, assuming 

appropriation of the estimated amounts. Enacting the bill would 

not affect direct spending or revenues. 

H.R. 2798 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 H.R. 2798 is shown in the following table. The costs of this legislation fall within budget function 150 (international affairs). 

By Fiscal Year, in Millions of Dollars 

2007 2008 2009 2010 2011 2012 

SPENDING SUBJECT TO APPROPRIATION 

Spending Under Current Law for OPIC 

Estimated Authorization Level 1 –124 –193 –190 –189 –195 –209 

Estimated Outlays –62 –144 –165 –176 –191 –207 

Proposed Changes 

Estimated Authorization Level 2 0 33 30 29 35 4 

Estimated Outlays 0 6 7 12 23 26 

Spending Under H.R. 2798 for OPIC 

Estimated Authorization Level –124 –160 –160 –160 –160 –205 

Estimated Outlays –62 –138 –158 –164 –168 –181 

Note: OPIC = Overseas Private Investment Corporation. 

1 The 2007 level is the amount appropriated for that year plus the estimated amount of offsetting 

collections for negative subsidy receipts in OPIC’s credit program account and for collections in OPIC’s 

noncredit account. The 2008–2012 levels are CBO’s baseline projections for collections and administrative spending sufficient to service OPIC’s outstanding portfolio. 2 The estimated authorization level reflects the amount OPIC requested for its 2008 appropriation, 

adjusted for inflation, minus the estimated amount OPIC would need to service its outstanding portfolio of insurance, loans, and loan guarantees. 

BASIS OF ESTIMATE

For this estimate, CBO assumes that the bill will be enacted before the end of fiscal year 2007, that the necessary 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 for OPIC activities. 

OPIC insures investors in developing countries and emerging 

markets against losses due to expropriation, currency inconvertibility, and damage that results from political violence. In addition, 

OPIC provides direct loans and loan guarantees to finance such investment. The bill would authorize OPIC to issue new insurance 

policies and to make direct loans and loan guarantees through 

2011, to the extent the necessary authority and funds are provided 

in annual appropriations acts. 

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 policies and finances no new investments 

after September 30, 2007. (Interest on existing securities brings in 

collections of more than $200 million a year to the OPIC account, 

but that interest is paid by the U.S. Treasury and thus shows up 


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as an offsetting payment elsewhere in the federal budget.) CBO expects that administrative expenses under current law would gradually be reduced to the minimum rate necessary to service outstanding insurance and credits. 

CBO estimates that funding for administrative expenses and the 

cost of credit would be provided in annual appropriations acts at 

the level requested by OPIC for 2008—$77 million—adjusted for inflation. Additionally, we expect that under H.R. 2798, OPIC would 

continue to issue new insurance policies through 2011. Because the 

bill would extend OPIC’s authorities through 2011 only, we estimate that funding in 2012 would only be needed for the administrative expenses of servicing outstanding insurance, direct loans, 

and loan guarantees. 

For the past few years, the subsidy rate for many loan guarantees made by OPIC has been negative, thus generating discretionary offsetting collections. CBO estimates that under current 

law those collections would gradually decline from $36 million in 

2007 to $6 million in 2011. Under the bill, CBO estimates that negative subsidy collections would increase by $114 million over the 

2008–2012 period, and those collections are reflected in the net estimated costs over the 2008–2012 period. 

Based on information from OPIC, CBO estimates that the new 

requirements in H.R. 2798 would not significantly affect the costs 

of OPIC’s operations. Accordingly, CBO estimates that extending 

OPIC’s authorization through 2011 would have a net cost of $6 million in 2008 and $74 million over the 2008–2012 period, assuming 

appropriation of the necessary funds. 

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

H.R. 2798 contains no intergovernmental or private-sector mandates as defined in UMRA and would not affect the budgets of 

state, local or tribal governments. 

ESTIMATE PREPARED BY: 

Federal Costs: Sam Papenfuss (226–2840) 

Impact on State, Local, and Tribal Governments: Neil Hood (225–

3220) 

Impact on the Private Sector: Paige Piper/Bach (226–2960) 

ESTIMATE APPROVED BY: 

Peter H. Fontaine 

Deputy Assistant Director for Budget Analysis 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause (3)(c) of House rule XIII, upon enactment of 

this legislation, the Overseas Private Investment Corporation 

should use the support programs that it offers to promote internationally-recognized worker rights, encourage the use of clean and 

efficient energy technology, and deter investments in states that 

sponsor terrorism, engage in nuclear proliferation, or commit acts 

of genocide. 


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CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legislation in article I, section 8 of the Constitution. 

NEW ADVISORY COMMITTEES

H.R. 2798 does not establish or authorize any new advisory committees. 

CONGRESSIONAL ACCOUNTABILITY ACT

H.R. 2798 does not apply to the Legislative Branch. 

EARMARK IDENTIFICATION

H.R. 2798 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), 

or 9(f) of rule XXI. 

SECTION-BY-SECTION ANALYSIS AND DISCUSSION

Section 1. Short Title. 

This section states that this Act may be cited as the ‘‘Overseas 

Private Investment Corporation Reauthorization Act of 2007.’’

Section 2. Findings. 

This section includes several findings that support the reauthorization of the Overseas Private Investment Corporation, hereafter 

referred to as ‘‘OPIC’’ or ‘‘the Corporation.’’ The findings note that 

since its creation in 1971, the Corporation has generated 

$71,000,000,000 in United States exports and supported more than 

271,000 United States jobs. Beyond its goal of assisting less developed countries, the Committee believes that OPIC should continue 

to prioritize expanding U.S. exports, supporting U.S. jobs, and assisting U.S. small- and medium-sized businesses. 

This section also notes that OPIC assistance is a privilege and 

should be granted to persons who, along with their affiliated companies, demonstrate responsible and sustainable business practices, 

particularly with regard to the environment, international worker 

rights, and efforts against genocide and nuclear proliferation. Moreover, OPIC is in a unique position to advance democracy by supporting investments in those countries that promote human rights 

and the rule of law as opposed to countries that have oppressive 

regimes. 

Section 3. Reauthorization of OPIC Programs. 

This section amends section 235 of the Foreign Assistance Act of 

1961 (FAA) by reauthorizing OPIC through September 30, 2011. 

The Corporation’s current authority expires September 30, 2007. 

Section 4. Preferential Consideration of Certain Investment Projects. 

This section amends section 231 of the FAA to require OPIC to 

give preferential consideration to investment projects in less developed countries, the governments of which are receptive to private 

enterprise and are willing and able to maintain conditions that enVerDate Aug 31 2005 20:36 Jul 19, 2007 Jkt 059006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6601 E:\HR\OC\HR241.XXX HR241

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able private enterprise to make its full contribution to the development process. The Committee believes that the prospects for a 

country’s development are improved, especially over the long run, 

when the host government protects the human rights of its people, 

strengthens the rule of law, and promotes democratic governance. 

Section 5. Requirements Regarding International Worker Rights. 

This section amends section 231A of the FAA to require OPIC to 

take certain measures to strengthen the rights of workers overseas. 

This subsection requires that OPIC support a project only if the 

country in which the project is to be undertaken has made or is 

making significant progress toward the recognition, adoption, and 

implementation of laws that substantially provide international 

worker rights. Here, ‘‘international worker rights’’ is defined as the 

International Labor Organization (ILO) core labor standards plus 

acceptable conditions of work. Current law provides that the Corporation may support a project only if the country in which the 

project is to be undertaken is taking steps to adopt and implement 

laws that extend internationally-recognized worker rights to workers in that country. This requirement does not, however, prohibit 

the Corporation from supporting a project that provides humanitarian assistance. Moreover, each eligible investor will be required 

contractually not to take any action to obstruct or prevent an employee from exercising their international worker rights, a greater 

commitment than what was previously required. This subsection 

also requires, to the degree possible and consistent with its development objectives, OPIC to give preferential consideration to 

projects in countries that have adopted, maintain, and enforce laws 

that substantially provide international worker rights. 

The Committee believes that promoting international worker 

rights is a cornerstone of U.S. foreign policy, and OPIC should play 

an active role in this effort. OPIC must guarantee that all eligible 

investors provide for and respect international worker rights. While 

the Committee recognizes that the Corporation currently relies on 

the Generalized System of Preferences (GSP) process for verifying 

the majority of countries in which OPIC assistance may be provided, the Committee expects OPIC to implement a thorough review of its approval process for determining the eligibility of nonGSP cleared countries to ensure that OPIC assistance is not being 

used to reward those countries that fail to respect international 

worker rights. 

The Committee also expects OPIC to carefully review all project 

applications to ensure that project sponsors have not previously 

committed serious violations of international worker rights and are 

not currently violating those rights on any current projects. OPIC 

should also closely and routinely monitor project compliance, and 

review any complaints related to a project. 

Additionally, the Corporation should make every effort to further 

advance international worker rights abroad by giving preferential 

treatment to projects in countries that have adopted, maintain, and 

enforce laws that provide international worker rights. The Committee requires OPIC to promote U.S. investment in developing 

countries that proactively provide for international worker rights, 

rather than in those countries that are making minimal progress. 

Such a system should not reward minor progress of states toward 


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ensuring respect for workers; it should instead encourage U.S. investment in developing countries that respect the rights of workers 

in practice. 

Subsection (b) amends section 233 of the FAA to state that the 

selection of the small business, organized labor, and cooperative directors to OPIC’s Board should be made, respectively, in consultation with relevant representative organizations. 

Subsection (c) amends section 238 of the FAA by broadening the 

definition of international worker rights to include the elimination 

of discrimination with respect to employment and occupation. 

Subsection (d) amends section 239 of the FAA by making changes 

to OPIC’s general provisions. 

Section 6. Environmental Assessments. 

This section amends section 231A of the FAA to require an OPIC 

project applicant to conduct an environmental impact assessment 

or audit for any project that is likely to have significant adverse environmental impacts. The assessment required by this section must 

be undertaken at least sixty days prior to OPIC approval and made 

available to the public. 

The Committee believes that OPIC must maintain strong environmental safeguards. In furtherance of this mandate, interested 

parties in the Unites States and in the host country must have 

ample opportunity to comment on these assessments and audits. 

The Corporation must make readily accessible, in full, the aforementioned assessments and audits to all members of the Board of 

Directors, the American public, and all affected groups in the host 

country. 

Section 7. Community Support. 

This section amends section 237 of the FAA to require applicants 

for OPIC assistance to obtain broad community support for projects 

that are likely to have significant adverse environmental impacts. 

The Committee believes that securing the support of local communities potentially impacted by these projects is critical to ensuring 

effective results. Local support for the project is likely to be inadequate if efforts to obtain approval do not respect local community 

and indigenous decision making structures. 

Efforts by the International Finance Corporation (IFC) to implement its Policy and Performance Standards on Social and Environmental Sustainability requirement for ‘‘broad community support’’

provide one model for understanding how the support of communities should be obtained. Applicants for OPIC assistance should 

obtain the support of indigenous peoples and other locally affected 

communities for proposed projects, and be manifested in specific 

and mutual agreements. Such agreements should result from a 

participatory process by which indigenous peoples, local communities, government agencies, and companies reach consensus in a 

forum that gives affected people enough leverage to negotiate the 

conditions under which the proposed project could proceed. Such a 

process should provide transparent and measurable outcomes that 

clearly benefit the community after project completion. 


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Section 8. Climate Change Mitigation Action Plan. 

This section amends title IV of chapter 2 of part I of the FAA 

by inserting a new section after section 234A that requires OPIC 

to institute a climate change mitigation action plan. Within 180 

days of enactment, the Corporation must institute a plan that: (1) 

establishes a goal of substantially increasing its support of projects 

that use, develop, or otherwise promote the use of clean energy 

technologies; and (2) gives preferential treatment to projects that 

use, develop, or otherwise promote the use of clean and efficient energy technologies. This section further requires OPIC to take into 

account the degree to which a project contributed to greenhouse 

gas emissions in making an environmental assessment under section 231A(b) (as amended by this Act). The Committee notes that 

Section 8 should not be construed to detract from OPIC’s ability to 

respond to other environmental remediation projects. 

In February 2007, the Intergovernmental Panel on Climate 

Change released its report on climate change science, finding ‘‘unequivocal’’ evidence that the Earth’s climate is warming. The report 

further states that the current atmospheric concentrations of carbon dioxide and methane, two important greenhouse gas emissions, 

‘‘exceeds by far the natural range over the last 650,000 years.’’ In 

response, OPIC must develop and implement a comprehensive climate change mitigation plan that substantially reduces the Corporation’s greenhouse gas footprint. 

The World Bank Group, consistent with the carbon disclosure 

practices of a number of similar institutions and major corporations, is developing a system to estimate the impacts of overall 

greenhouse gas emissions in countries where it operates. Pursuant 

to the Clean Energy Investment Framework, mandated by the 

Group of 8 in Gleneagles in 2005 and subsequently being developed 

by the World Bank Group, similar work is being initiated. The options assessment will include an ex ante accounting for all direct 

and indirect greenhouse gas emissions and the project lifetime trajectory of those expected emissions. 

The Committee expects OPIC to develop a climate change mitigation action plan and ensure that its environmental impact assessments include an accounting of both direct and indirect greenhouse 

gas emissions over the lifetime of all projects assisted by the Corporation. 

Private sector firms Citigroup and Bank of America set clean en- ergy investment targets of $50 billion and $20 billion respectively. 

In 2005, Goldman Sachs set a $1 billion target for clean energy and 

met that target. The World Bank has adopted a target to increase 

investments in ‘‘new renewable energy’’ by 20 percent annually. 

Similarly, OPIC should establish, as appropriate, a goal that at 

least 10 percent of its aggregate loan, guarantee, and insurance authority goes to support projects that use, develop, or otherwise promote clean and efficient energy technologies or energy conservation. A wide variety of options are available to the Corporation for 

meeting this goal, including investments in solar technology, energy efficiency, geothermal technology, carbon capture systems, and 

other technologies that significantly reduce emissions of greenhouse gases. OPIC should avoid any investment in controversial 

projects involving nuclear energy, environmentally questionable hydroelectric projects over 10 megawatts, or wind projects which have 


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a negative environmental impact which may exceed its positive environmental impact. 

Some observers have expressed concern about providing U.S. assistance to projects that involve extractive industries. An extractive 

industry refers to an enterprise engaged in the exploration, development, or extraction of oil and gas reserves, metal ores, 

gemstones, industrial minerals, or coal. History has shown that 

while these industries have generated a lot of government revenues, many of these have been exploited for personal gain by public 

officials. In recent years, many in the international community 

have sought to address these problems by promoting an array of 

‘‘good governance’’ measures aimed at increasing the transparency 

of these projects. For example, the International Finance Corporation (IFC), a component of the World Bank Group, requires that clients of all IFC-financed extractive industry projects publicly disclose their material payments from those projects to the host government(s). 

Section 8 contains a number of requirements for OPIC to support 

projects that involve the extractive industries. This section requires 

OPIC to notify the Committee on Foreign Affairs of the House of 

Representatives and the Committee on Foreign Relations of the 

Senate 30 days prior to approving any project which significantly 

involves an extractive industry where OPIC financing exceeds 

$10,000,000. 

This section further mandates that in order for OPIC to support 

a project that involves the extractive industry, either the host country or project sponsor must commit to the Extractive Industries 

Transparency Initiative (EITI) principles and criteria, or substantially similar principles and criteria. The EITI supports improved 

governance in resource-rich countries through the verification and 

full publication of the project sponsor’s payments and government 

revenues. 

By ‘‘substantially similar principles and criteria,’’ the Committee 

means the general agreement of EITI principles, as well as the 

adoption of specific criteria, including: 

1) Regular publication of all material oil, gas and mining payments by companies to governments and all material revenues received by governments from oil, gas and mining companies to a wide audience in a publicly accessible, comprehensive and comprehensible manner. Where such audits 

do not already exist, payments and revenues are the subject 

of a credible, independent audit, applying international auditing standards; 

2) Payments and revenues are reconciled by a credible, independent administrator, applying international auditing 

standards and with publication of the administrator’s opinion regarding that reconciliation including discrepancies, 

should any be identified; 

3) This approach should be extended to all companies including state-owned enterprises; 

4) Civil society is actively engaged as a participant in the design, monitoring and evaluation of this process and contributes towards public debate; and 


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5) A public, financially sustainable work plan for all the above 

is developed by the host government, with assistance from 

the international financial institutions where required, including measurable targets, a timetable for implementation, 

and an assessment of potential capacity constraints. 

Finally, this section requires the Corporation, to the degree possible and consistent with its development objectives, to give preference to a project in which both the eligible investor and host 

country has agreed to implement the Extractive Industries Transparency Initiative principles and criteria, or substantially similar 

principles and criteria. 

The Committee believes that OPIC should also seek the disclosure of such documents as Host Government Agreements, Concession Agreements, and bidding documents, allowing in any such dissemination or disclosure for the redaction of, or exceptions for, 

business proprietary information or information that would create 

a competitive disadvantage. 

The Committee commends OPIC for its transition away from assisting large oil and gas projects to focus on projects that better 

meet its development mandate. Limited public resources for foreign 

assistance should focus on the many critical needs of developing 

countries. Extractive industries have significant access to private 

capital markets and increasingly do not need OPIC assistance. 

Following a 2-year multi-stakeholder process that evaluated the 

effects of international oil projects on poverty reduction and the environment in a development country and on the global climate, the 

Extractive Industries Review of the World Bank Group recommended an end to financing oil projects by the World Bank 

Group by 2008 and that from January 1, 2007, clients of all IFCfinanced extractive industry projects publicly disclose their material payments from those projects to the host government(s). Similarly, OPIC is currently prohibited from providing direct investment loans to finance any project that involves the extraction of oil 

and gas. The Committee discourages the Corporation from pursuing or issuing contracts of insurance, reinsurance, or any guaranty, entering into any agreement to provide financing, or providing other assistance for projects that involve the development, 

extraction, processing or transportation of crude oil. 

While the Committee has not legislatively prohibited the Corporation from supporting projects that significantly involve an extractive industry, the provisions in this section will greatly improve 

the transparency of OPIC’s investment in extractive industries. 

The Committee will closely monitor OPIC’s efforts to improve 

transparency when considering the appropriateness of the Corporation’s involvement in this sector. OPIC should include in its annual 

report to Congress information concerning the progress made by 

the Corporation in implementing the provisions contained in this 

section. 

Section 9. Prohibition on Assistance to Develop or Promote Certain 

Railway Connections and Railway-Related Connections. 

This section amends section 237 of the FAA to prohibit OPIC 

from supporting the development or promotion of any railway connection that does not traverse or connect with Armenia and does 

connect Azerbaijan and Turkey. While the prohibition in this secVerDate Aug 31 2005 20:36 Jul 19, 2007 Jkt 059006 PO 00000 Frm 00020 Fmt 6659 Sfmt 6601 E:\HR\OC\HR241.XXX HR241

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tion is limited to railway projects in the Caucasus, the Committee 

believes that the Corporation should not support any projects designed to deliberately isolate countries friendly to the United 

States or which otherwise shut out a country allied with the United 

States from participation in a regional development project. 

The Committee commends OPIC’s President, Robert Mosbacher, 

for his commitment to prohibit OPIC support for a controversial 

railway project in the Caucasus. This section will ensure that future presidents likewise avoid OPIC participation in this and similar railway development projects. The proposed Kars-Tbilisi-Baku 

railway is estimated to cost as much as $800 million. The existing 

railroad could be utilized to connect these cities more efficiently 

and for a tiny fraction of the cost if an existing rail linkage through 

Armenian territory would be utilized. However, efficient and inexpensive development of rail connections in the region is not the 

only goal of this project, as evidenced by statements of Azeri officials, including President Aliyev. Isolation of Armenia is a significant motivating factor in the route of this proposed railway. U.S. 

support for projects in this region should be used to promote economic development and, where possible, to lay the groundwork for 

reconciliation through mutual benefit and should support projects 

that reinforce the need for peaceful coexistence between Armenia 

and its neighbors. 

Section 10. Ineligibility of Persons Doing Certain Business with 

State Sponsors of Terrorism. 

Section 10 adds a new subsection (r) to Section 237 of the FAA 

to make ineligible for OPIC assistance persons with certain business activity in or with state sponsors of terrorism. 

Paragraph (1) provides that OPIC may not support an applicant’s 

project where an applicant for OPIC assistance has an investment 

commitment valued at $20 million or more in the energy sector of 

a country identified by the Department of State as a state sponsor 

of terrorism, or where an applicant has an outstanding loan or extension of credit to the government of one of the countries designated as a state sponsor of terrorism. Sales of goods and services, 

other than food or medicine, on anything other than a cash basis 

constitute an extension of credit for these purposes. 

The Committee believes that OPIC assistance is a privilege, not 

a right. The Committee believes that only good actors should receive such assistance, which does not include those persons engaged in business activities in or with countries designated by the 

Department of State as state sponsors of terrorism. United States 

law and regulations apply a wide array of sanctions to these countries, often prohibiting U.S. persons from conducting most transactions with these countries. The Committee is aware that for the 

most part, U.S. firms are already prohibited from conducting the 

activities described in this section. 

Paragraph (2) defines cash basis as requiring payment within 45 

days of receipt of goods. Allowing a government buyer to keep open 

accounts beyond 45 days, either by agreement or because the seller 

regularly declines to demand or otherwise enforce its right to timely payment, shall be considered an impermissible extension of credit. Investment commitment in the energy sector is broadly defined 


hsrobinson on PROD1PC76 with HEARING
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to include any commitment to help develop petroleum and/or natural gas resources of the countries. 

While the Committee employs a similar definition of an investment commitment to that used in the Iran Sanctions Act (50 U.S.C. 

1701 note), the Committee does not intend for that statute to govern this provision’s application to investments in Iran. The Department of State has willfully ignored that law and failed to find a 

single violation of the statute since 1998. OPIC should not find that 

a company or any of the applicable affiliated entities are eligible 

for OPIC assistance merely because the Department of State has 

never found them in violation of the Iran Sanctions Act. OPIC 

should take every necessary step to determine whether there is a 

disqualifying investment commitment. Where some evidence exists 

(perhaps through reportage in the financial press) that an applicant or an applicable affiliated entity has a disqualifying energy 

sector investment in any of the state sponsors of terrorism, then 

the burden of proof should be on the applicant to demonstrate to 

the Corporation that it and its applicable affiliates does not have 

such an investment. 

Paragraph (3) requires that the chief executive officers of applicant firms certify as part of the application process that their firms 

are not undertaking the disqualifying activities. The chief executive 

officer of an applicant will sign on behalf of his/her firm and any 

subsidiaries in which they hold a majority stake. If the applicant 

cannot certify that it, and its majority owned subsidiaries, are not 

undertaking these activities, they are ineligible for OPIC assistance. The ultimate parent entity of the applicant must similarly 

certify that it, and its majority-owned subsidiaries, is not conducting the disqualifying activities. The ultimate parent of an applicant is the entity at the top of the majority-ownership chain. For 

example, if more than 50 percent of the shares of an applicant are 

owned by company A, and if more than 50 percent of the shares 

of company A are in turn owned by company B and if no single entity owns 50% of company B, then the highest ranking executive 

of company B must certify that his/her company and any of its majority-owned subsidiary entities are not engaged in disqualifying 

activities described by this section. The term ‘‘chief executive officer’’ is meant as a descriptive term—the highest ranking officer of 

the company should sign the required certification, whatever his/ 

her title may be. 

The Committee has been concerned that U.S. corporations have 

used their foreign-incorporated subsidiaries to avoid U.S. sanctions 

laws. While this conduct may sometimes comply with the letter of 

the law, the Committee believes that such corporations should prevent their subsidiaries and other affiliates under their control from 

doing business in countries that are state sponsors of terrorism. 

Firms that fail to take this action should, at a minimum, face a 

loss of OPIC assistance to all of the companies they control. 

The certifications are designed to ease implementation and enforcement of the provision. In making the required certifications, 

the signing officers should not rely on the fact that their firms and 

any applicable affiliates have not been found in violation of the 

Iran Sanctions Act or any other statutes and regulations concerning business with state sponsors of terrorism. The officers may 

know more about the corporations they control than the DepartVerDate Aug 31 2005 20:36 Jul 19, 2007 Jkt 059006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6601 E:\HR\OC\HR241.XXX HR241

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ment of State can learn or process. The officers must sign under 

penalty of perjury and their inquiries into their own firm’s and any 

applicable affiliates’ activities should therefore be exacting. The 

Committee expects signing officers to err on the side of caution 

when possible disqualifying activities are found. Likewise, the Corporation should not simply take at face value the certifications provided by applicable officers. There are a number of sources available that will allow the Corporation to periodically verify the accuracy of certifications. 

A chief executive officer may provide a required certification 

under an exemption to the certification requirements provided for 

in subsection (E) notwithstanding the fact that an affiliated entity 

has a $20 million investment commitment in the energy sector of 

one of the state sponsors of terrorism or has an outstanding loan 

or extension of credit to one of the governments of those countries, 

so long as the affiliated entity’s disqualifying activity occurred prior 

to the time of affiliation. However, if an existing business relationship or contract that would be a disqualifying act is expanded or 

extended temporarily after acquisition, than this exemption shall 

not apply. For example, an executive required to provide one of the 

certifications called for by this section may do so notwithstanding 

the fact that a firm that his/her corporation acquired two years ago 

has an investment in the energy sector of Sudan pursuant to a contract entered into prior to the acquisition of the subsidiary. If however, the contract were to be extended for an additional period, or 

expanded to include additional development, the certification could 

not be made. 

Subparagraph (3) also applies the certification requirement to ‘‘straw man’’ transactions, which involve a non-applicant firm that 

receives much of the benefits of OPIC assistance and provides 

much of the goods or services supported by the assistance, but 

which is not directly in contract with OPIC. The applicant firm 

should be considered a ‘‘straw man’’ if the applicant is: (1) buying 

goods and services from another firm, and (2) those goods or services are worth 50 percent or more of the total provided to the 

project by the applicant, and (3) the other, non-applicant firm will 

receive $20 million or more or an amount equal to or greater than 

50 percent of the value of the OPIC assistance as consideration for 

the goods and services provided. The chief executive officer of the 

non-applicant firm is required to sign the certification called for by 

Paragraph 3(A) and any ultimate parent entity of the non-applicant 

firm must sign the certification required by Paragraph 3(B). This 

provision is meant to prevent a situation where one firm would be 

able to effectively receive OPIC assistance notwithstanding prohibited activities, through contract or other commitment with another 

firm that would be the actual applicant. 

Subsection (4) sets out an exception for otherwise disqualifying 

investments or business in certain areas of Sudan, including Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile 

State, and Abei, Darfur, if the Corporation, with the concurrence 

of the Secretary of State, determines that the investment or other 

business will provide humanitarian relief, promote self-sufficiency 

or support certain peace agreements. 

The Committee acknowledges that certain investments and business in Sudan, especially in the South, may actually benefit the 


hsrobinson on PROD1PC76 with HEARING
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cause of peace and beneficial economic development for the very 

people who have been victimized by the regime in Khartoum. The 

Committee provides that the disqualification in section 10 should 

not apply to business activities by applicants in Sudan that benefit 

certain populations of the country. The Committee strongly believes that OPIC should provide assistance for projects in certain 

areas of Sudan, including Southern Sudan, Southern Kordofan/ 

Nuba Mountains State, Blue Nile State, and Abei, Darfur. 

Subsection (5) provides for the termination of these provisions 

with respect to a country if the President certifies that the country 

is no longer a state sponsor of terrorism and also does not have nuclear weapons or a program to develop nuclear weapons, and is no 

longer committing genocide or ‘‘ethnic cleansing that approaches 

genocide.’’ This section applies to any country listed by the Department of State as a sponsor of terrorism. However, in order for this 

provision to cease to be effective against a country, its government 

must demonstrate, and the President must affirmatively concur, 

that it no longer supports terrorism and no longer has a nuclear 

program or possesses nuclear weapons, and is no longer committing 

genocide or a program of ethnic cleansing that approaches genocide. 

The Committee, through previous legislative action, has determined the Khartoum government’s actions in Darfur constitute 

genocide. In the future, whether similarly gross violations against 

human rights rise to the level of genocide may be debated. The 

Committee believes that the inclusion of the term ‘‘ethnic cleansing 

that approaches genocide’’ should avoid ambiguity with respect to 

the termination of this provision. 

Section 11. Increased Transparency. 

This section amends section 237 of the FAA to increase the 

transparency of OPIC activities. Subsection (a) requires the Corporation (1) to make public, and post on its Internet website, summaries of all new projects supported by the Corporation (excluding 

any confidential business information), and (2) to publish in the 

Federal Register and subject to a period of public comment, the detailed methodology used to assess and monitor the impact of 

projects supported by the Corporation on the development and environment of, and international worker rights in, host countries, 

and on United States employment. Subsection (a) also requires that 

OPIC’s Board of Directors may not vote in favor of any action proposed to be taken by the Corporation on any Category A project 

until at least 60 days after the Corporation makes available for 

public comment a summary of the project and relevant information 

about the project. 

To strengthen its monitoring of international worker rights and 

environmental practices and to enhance the credibility of its efforts 

in these areas among outside parties, the Committee expects OPIC 

to make its procedures significantly more transparent, adopting industry best practices of posting information about controversial 

cases, internal and third-party inspection results, and remediation 

follow-up on OPIC’s website. 

The Committee expects the Corporation to make available on its 

website as much project information as possible without disclosing 

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poration to make available to the public in whole all eligible documents and the eligible portions of documents containing relevant 

information on environmental, economic, social, and worker rights 

impacts, including pre-approval and post-approval documents. 

The Committee is concerned by the lack of information regarding 

the methodologies employed by OPIC to determine whether it is 

complying with its mandate. To ensure that OPIC is meeting its 

obligations, OPIC must publish in the Federal Register, subject to 

a period of public comment, the detailed methodology used to assess and monitor the impact of projects supported by the Corporation on the development and environment of, and international 

worker rights in, host countries, and on United States employment. 

OPIC is additionally subject to new requirements intended to increase the transparency of ‘‘Category A’’ projects, which involve 

projects that have a significant adverse environmental impact. 

OPIC’s Board of Directors cannot vote in favor of any ‘‘Category A’’ project until at least 60 days after the Corporation makes available 

for public comment a summary of the project and all eligible and 

relevant information about the project. It is the intent of the Committee that the Corporation, to the maximum extent practicable, 

works with relevant and concerned parties in assessing the environmental impact of its projects and provides substantive responses 

to the concerns of the American public, affected groups in the area 

of impact of the proposed project, host country non-governmental 

organizations, and other stakeholders. Consequently, the Corporation is barred from approving any ‘‘Category A’’ project unless all 

members of the Board of Directors receive 7 days prior to the vote 

full copies of the Corporation’s responses to the comments received 

from all stakeholders. 

Subsection (b) requires OPIC to maintain an Office of Accountability to provide problem-solving services for projects supported by 

the Corporation and to review the Corporation’s compliance with 

its environmental, social, worker rights, human rights, and transparency policies and procedures. The Committee expects the Office 

of Accountability to operate in a manner that is fair, objective and 

transparent. 

The Corporation is to be commended for establishing an Office of 

Accountability, which was called for in the Overseas Private Investment Corporation Amendments Act of 2003. The Committee expects OPIC to properly maintain the Office. The Office of Accountability must provide problem-solving services for OPIC-supported 

projects, and it must, on an ongoing basis, review the Corporation’s 

compliance with its environmental, social, worker rights, human 

rights, and transparency policies and procedures. 

Section 12. Fraud and Other Breaches of Contract. 

The Committee recognizes and commends OPIC for its efforts to 

address cases of fraud. To ensure that OPIC upholds the highest 

standards of accountability, the Committee, under this section, requires the President of OPIC to refer to the Department of Justice 

for appropriate action information known to the Corporation concerning any substantial evidence of: (1) a violation of this title; (2) 

a material breach of contract entered into with the Corporation by 

an eligible investor; or (3) a material false representation made by 

an investor to the Corporation. This section does not apply if the 


hsrobinson on PROD1PC76 with HEARING
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President of the Corporation concludes that the matter is not evidence of a possible violation of criminal law and is not evidence 

that the Federal Government is entitled to civil remedy or to impose a civil penalty. 

Section 13. Transparency and Accountability of Investment Funds. 

Subsection (a) amends Section 239 of the FAA by adding provisions relating to transparency and accountability of OPIC investment funds. This subsection mandates that the Corporation contract with persons to manage investment funds only by full and 

open competition. This subsection also requires that OPIC consider 

various factors in assessing proposals for investment fund management, including the prospective fund manager’s track record in investing risk capital in emerging markets, and its record in avoiding 

investments in companies that would be disqualified under section 

237(r) of the FAA (as added by section 10 of this Act). 

The Committee requires OPIC to select the investment fund 

management through a competitive and open process, using criteria that assess the prospective management’s experience and 

track record. The Committee recognizes and commends OPIC for 

initiating this policy already as a response to abuses in the 1990s. 

The Committee intends to legislatively mandate this reform. 

The Committee requires OPIC to report on the investment fund 

management selection process. Existing reporting on the investment funds leaves it unclear how competitive it actually is for capital management firms to secure OPIC management contracts. The 

Committee requires this information to assess the competitiveness 

of the selection process, as well as the nature of the investment 

fund market. This information is especially important given the increasing number of OPIC investment funds. The Committee also 

intends that investment fund managers and beneficiary firms be 

considered applicants for OPIC assistance for purposes of section 

10. 

Subsection (b) requires the Government Accountability Office to 

carry out an independent assessment of the investment fund portfolio of OPIC. 

Section 14. Extension of Authority to Operate in Iraq. 

This section amends section 239 of the FAA to allow OPIC to 

support projects in Iraq, notwithstanding subsection (a) and (b) of 

section 237 of the FAA. Those provisions require that there be an 

agreement in place with the government of any country in which 

it operates and that suitable conditions exist to protect the interests of the Corporation. Given the violent and chaotic situation in 

Iraq, and due to difficulties in dealing with an unstable Iraqi government, no agreement is in place between the United States and 

Iraq to provide OPIC assistance. 

The Committee has provided limited authority to allow OPIC to 

provide assistance to projects in Iraq, notwithstanding subsection 

(a) and (b) of section 237 of the FAA. The Corporation should otherwise comply with all other requisite mandates, including worker 

rights provisions, in operating in that country. The committee has 

permitted OPIC to support development in Iraq provided that Iraq 

is taking substantial steps toward reaching such an agreement 

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tablishing the conditions that protect the interest of the Corporation. 

Section 15. Consistency with Existing Law. 

This section amends section 239 of the FAA to ensure that OPIC, 

in providing support for projects in the West Bank and Gaza, is 

complying with other statutory restrictions related to providing 

U.S. assistance to these areas. Additionally, OPIC may not support 

a project in any part of Gaza or the West Bank unless the Secretary of State determines that the location for the project is not 

under the effective control of Hamas or any other foreign terrorist 

organization designated under section 219 of the Immigration and 

Nationality Act. 

Congress enacted the Palestinian Anti-Terrorism Act of 2006 in 

December, 2006. The Act was a response to the Palestinian elections held in January 2006, where Hamas, a group designated by 

the State Department as a foreign terrorist organization, won a 

majority of seats in the Palestinian Parliament. The intent of this 

section is to clarify that the restrictions on U.S. assistance provided 

for under that Act apply to OPIC assistance. 

Section 16. Congressional Notification Regarding Maximum Contingent Liability. 

This section amends section 239 of the FAA to require that OPIC 

notifies the House Committee on Foreign Affairs and the Senate 

Committee on Foreign Relations within 15 days after the Corporation’s maximum contingent liability outstanding exceeds the previous fiscal years maximum contingent liability by 25 percent. 

Although world economic conditions have been stable in recent 

years and OPIC is well-reserved against potential losses, future 

economic instability or financial shocks in developing markets 

(such as occurred in Mexico, Asia, Russia and Brazil from 1994– 1999) cannot be ruled out. Such an eventuality, while perhaps unlikely, could raise into question the ability of OPIC to absorb potential losses without having to seek appropriations funding from the 

Congress. This provision requires that Congress be given ‘‘early 

warning’’ of any undue expansion of OPIC’s balance sheet, thereby 

helping to enhance Congressional oversight and help shield the 

American taxpayers from potential liability. 

Section 17. Assistance for Small Business and Entities. 

This section amends section 240 of the FAA by requiring that 

OPIC commit adequate staff and resources to assist small businesses and investors in the United States with obtaining the insurance, reinsurance, financing, and the other types of support that 

the Corporation offers. The Corporation is required to detail in 

each annual report the progress it has made in terms of assisting 

small business by including: (1) a description of the staff and resources directed to this area; (2) the number of small businesses 

and investors that the Corporation has supported, and the total 

dollar value associated with that support; and (3) a description of 

each small business project that the Corporation supported. 

OPIC continues to play a critical role in helping U.S. small- and 

medium-sized enterprises (SMEs) operate abroad. OPIC already 

has an existing Small Business Center that offers a streamlined 


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approval process to help SMEs access the OPIC services. The Small 

Business Center is headed by a Vice President who reports directly 

to the President and CEO of OPIC. OPIC also has teams of specialists within their insurance division and other divisions within 

OPIC (such as the General Counsel’s office) to cater to the unique 

needs of SMEs. The Committee commends OPIC for taking these 

initiatives to administratively create these offices to meet the challenges of serving United States SMEs. As a result, OPIC’s financing support to U.S. SMEs grew 62 percent over the past 10 years—

to $320—million since attention was first brought to this issue. 

More than 80 percent of all OPIC projects approved in 2006 were 

for U.S. SMEs—up from just 18 percent in 1996. The Committee 

strongly encourages more U.S. small businesses to get involved in 

exporting as one way to help lower the nation’s trade deficit. Having various Federal trade promotion agencies pay special attention 

to SMEs by ensuring that adequate resources and personnel are in 

place will go a long way toward accomplishing the goal of increased 

U.S. exports. 

The purpose of Section 17 is to ensure that OPIC will continue 

to have a specialized cadre of experts on staff that understand and 

can quickly respond to the unique needs of SMEs. Small businesses 

often have tighter time frames in which to conclude a deal and cannot afford to wait in line behind an application filed in support of 

a complex, ‘‘big business’’ deal. Section 17 is intended to give maximum management flexibility to OPIC in implementing this provision which would allow OPIC to maintain its current structure 

with respect to SMEs or to streamline the small and medium business operations at some point in the future. However, the Committee wants to also ensure that the SME team at OPIC includes 

senior officials, including at least one individual at the Vice President level, that reports directly to the President and CEO of OPIC. 

This ensures that the voice of SMEs will continue to be heard at 

the top in order to implement policies or procedures that respond 

to the ever changing needs of SMEs engaged in the global marketplace. The Committee would strongly disapprove any downgrading 

of the current structure at OPIC that is designed to assist SMEs. 

Section 17 also ensures that OPIC reveals as part of its annual 

report various performance measurements as to how OPIC served 

U.S. SMEs during the previous year. The information shall include 

a description of the personnel and resources OPIC primarily dedicates to SMEs, the number of SMEs helped by OPIC’s programs, 

the dollar volume of such assistance, and a description of the SME 

projects. This information will give the Committee and the general 

public another tool by which to evaluate the effectiveness of OPIC. 

Section 18. Technical Corrections. 

This section amends various sections of the FAA to make technical and conforming corrections. 

Section 19. Effective Date. 

Subsection (a) establishes that the Overseas Private Investment 

Corporation Reauthorization Act of 2007 and the amendments 

made by the Act shall apply to only applications for OPIC support 

that both are received by the Corporation on or after July 1, 2007 


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and also approved by the Corporation on or after the date of the 

enactment of the Act. 

Subsection (b) establishes that the Overseas Private Investment 

Corporation Reauthorization Act of 2007 and the amendments 

made by the Act shall apply to any extension or renewal of OPIC 

support that was entered into before the enactment of the Act if 

the extension or renewal is approved on or after the date of the enactment of the Act. 

Subsection (b) establishes that the Overseas Private Investment 

Corporation Reauthorization Act of 2007 and the amendments 

made by the Act do not apply to an extension or renewal of OPIC 

support that is substantially identical to an extension or renewal 

formally requested before July 1, 2007. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, 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 italics, 

existing law in which no change is proposed is shown in roman): 

FOREIGN ASSISTANCE ACT OF 1961 

PART I 

* * * * * * * 

TITLE IV—OVERSEAS PRIVATE INVESTMENT CORPORATION

SEC. 231. CREATION, PURPOSE AND POLICY.—To mobilize and facilitate the participation of United States private capital and skills 

in the economic and social development of less developed countries 

and areas, and countries in transition from nonmarket to market 

economies, thereby complementing the development assistance objectives of the United States, there is hereby created the Overseas 

Private Investment Corporation (hereinafter called the ‘‘Corporation’’), which shall be an agency of the United States under the policy guidance of the Secretary of State. 

* * * 

* * * * * * * 

ø(f) to consider in the conduct of its operations the extent to 

which less developed country governments are receptive to private enterprise, domestic and foreign, and their willingness 

and ability to maintain conditions which enable private enterprise to make its full contribution to the development process;¿ 

(f) to give preferential consideration to investment projects in 

less developed countries the governments of which are receptive 

to private enterprise, domestic and foreign, and to projects in 

countries the governments of which are willing and able to 

maintain conditions that enable private enterprise to make its 

full contribution to the development process; 

* * * * * * * 

SEC. 231A. ADDITIONAL REQUIREMENTS.—(a) øWORKER RIGHTS¿ 

INTERNATIONAL WORKER RIGHTS.—


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ø(1) LIMITATION ON OPIC ACTIVITIES.—The Corporation may 

insure, reinsure, guarantee, or finance a project only if the 

country in which the project is to be undertaken is taking steps 

to adopt and implement laws that extend internationally recognized worker rights, as defined in section 507(4) of the Trade 

Act of 1974, to workers in that country (including any designated zone in that country). The Corporation shall also include the following language, in substantially the following 

form, in all contracts which the Corporation enters into with 

eligible investors to provide financial support under this title: 

The investor agrees not to take actions to prevent employees 

of the foreign enterprise from lawfully exercising their right of 

association and their right to organize and bargain collectively. 

The investor further agrees to observe applicable laws relating 

to a minimum age for employment of children, acceptable conditions of work with respect to minimum wages, hours of work, 

and occupational health and safety, and not to use forced labor. 

The investor is not responsible under this paragraph for the 

actions of a foreign government. 

ø(2) USE OF ANNUAL REPORTS ON WORKERS RIGHTS.—The 

Corporation shall, in making its determinations under paragraph (1), use the reports submitted to the Congress pursuant 

to section 504 of the Trade Act of 1974. The restriction set 

forth in paragraph (1) shall not apply until the first such report is submitted to the Congress. 

ø(3) WAIVER.—Paragraph (1) shall not prohibit the Corporation from providing any insurance, reinsurance, guaranty, or financing with respect to a country if the President determines 

that such activities by the Corporation would be in the national economic interests of the United States. Any such determination shall be reported in writing to the Congress, together 

with the reasons for the determination.¿ 

(1) LIMITATION ON OPIC ACTIVITIES.—(A) The Corporation 

may insure, reinsure, guarantee, or finance a project only if the 

country in which the project is to be undertaken has made or 

is making significant progress towards the recognition, adoption, and implementation of laws that substantially provide 

international worker rights, including in any designated zone, 

or special administrative region or area, in that country. 

(B) The Corporation shall also include the following language, in substantially the following form, in all contracts 

which the Corporation enters into with eligible investors to provide financial support under this title: ‘‘The investor agrees not to take any actions to obstruct or prevent employees of the foreign enterprise from exercising their 

international worker rights (as defined in section 238(h) of the 

Foreign Assistance Act of 1961), and agrees to adhere to the obligations regarding those international worker rights.’’ (2) PREFERENCE TO CERTAIN COUNTRIES.—To the degree possible and consistent with its development objectives, the Corporation shall give preferential consideration to projects in 

countries that have adopted, maintain, and enforce laws that 

substantially provide international worker rights. 

(3) USE OF ANNUAL REPORTS ON INTERNATIONAL WORKER

RIGHTS.—The Corporation shall, in carrying out paragraph 


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(1)(A), use, among other sources, the reports submitted to the 

Congress pursuant to section 504 of the Trade Act of 1974. 

Such other sources include the observations, reports, and recommendations of the International Labor Organization, and 

other relevant organizations. 

(4) INAPPLICABILITY TO HUMANITARIAN ACTIVITIES.—Paragraph (1) shall not prohibit the Corporation from providing any 

insurance, reinsurance, guaranty, financing, or other assistance 

for the provision of humanitarian assistance in a country. 

ø(4) In¿ (5) ADDITIONAL DETERMINATION.—In making a determination under this section for the People’s Republic of 

China, the Corporation shall discuss fully and completely the 

justification for making such determination with respect to 

each item set forth in subparagraphs (A) through (E) of section 

507(4) of the Trade Act of 1974. 

ø(b) ENVIRONMENTAL IMPACT.—The Board of Directors of the 

Corporation shall not vote in favor of any action proposed to be 

taken by the Corporation that is likely to have significant adverse 

environmental impacts that are sensitive, diverse, or unprecedented, unless for at least 60 days before the date of the vote— ø(1) an environmental impact assessment or initial environmental audit, analyzing the environmental impacts of the proposed action and of alternatives to the proposed action has 

been completed by the project applicant and made available to 

the Board of Directors; and 

ø(2) such assessment or audit has been made available to the 

public of the United States, locally affected groups in the host 

country, and host country nongovernmental organizations.¿ 

(b) ENVIRONMENTAL IMPACT.—The Board of Directors of the Corporation shall not vote in favor of any action proposed to be taken 

by the Corporation that is likely to have significant adverse environmental impacts, unless for at least 60 days before the date of the 

vote— (1) an environmental impact assessment, or initial environmental audit, analyzing the environmental impacts of the proposed action and of alternatives to the proposed action has been 

completed by the project applicant and made available to the 

Board of Directors; and 

(2) such assessment or audit has been made available to the 

public of the United States, locally affected groups in the host 

country, and host country nongovernmental organizations. 

* * * * * * * 

SEC. 233. ORGANIZATION AND MANAGEMENT.—(a) * * * 

(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 


hsrobinson on PROD1PC76 with HEARING
32 

expire in any one year. Such Directors shall serve until their successors are appointed and qualified and may be reappointed. 

* * * * * * * 

All Directors who are not officers of the Corporation or officials 

of the Government of the United States shall be compensated at a 

rate equivalent to that of level IV of the Executive Schedule (5 

U.S.C. 5315) when actually engaged in the business of the Corporation and may be paid per diem in lieu of subsistence at the applicable rate prescribed in the standardized Government travel regulations, as amended, from time to time, while away from their homes 

or usual places of business. The selection of the small business, organized labor, and cooperative directors should be made, respectively, in consultation with relevant representative organizations. 

* * * * * * * 

SEC. 234. INVESTMENT INSURANCE AND OTHER PROGRAMS.—The 

Corporation is hereby authorized to do the following: 

(a) * * * 

(b) INVESTMENT GUARANTIES.—To issue to eligible investors guaranties of loans and other investments made by such investors assuring against loss due to such risks and upon such terms and conditions as the Corporation may determine: Provided, however, That 

such guaranties on other than loan investments shall not exceed 75 

per centum of such investment: Provided further, That except for 

loan investments for credit unions made by eligible credit unions 

or credit union associations, the aggregate amount of investment 

(exclusive of interest and earnings) so guaranteed with respect to 

any project shall not exceed, at the time of issuance of any such 

guaranty, 75 per centum of the total investment committed to any 

such project as determined by the Corporation, which determination shall be conclusive for purposes of the Corporation’s authority 

to issue any such guaranty: Provided further, That not more than 

15 per centum of the maximum contingent liability of investment 

guaranties which the Corporation is permitted to have outstanding 

under section ø235(a)(2)¿ 235(a)(1) shall be issued to a single investor. 

* * * * * * * 

ø(g) PILOT EQUITY FINANCE PROGRAM.— ø(1) AUTHORITY FOR PILOT PROGRAM.—In order to study the 

feasibility and desirability of a program of equity financing, the 

Corporation is authorized to establish a 4-year pilot program 

under which it may, on the limited basis prescribed in paragraphs (2) through (5), purchase, invest in, or otherwise acquire equity or quasi-equity securities of any firm or entity, 

upon such terms and conditions as the Corporation may determine, for the purpose of providing capital for any project which 

is consistent with the provisions of this title except that—

ø(A) the aggregate amount of the Corporation’s equity 

investment with respect to any project shall not exceed 30 

percent of the aggregate amount of all equity investment 

made with respect to such project at the time that the Corporation’s equity investment is made, except for securities 

acquired through the enforcement of any lien, pledge, or 

contractual arrangement as a result of a default by any 


hsrobinson on PROD1PC76 with HEARING
33 

party under any agreement relating to the terms of the 

Corporation’s investment; and 

ø(B) the Corporation’s equity investment under this subsection with respect to any project, when added to any 

other investments made or guaranteed by the Corporation 

under subsection (b) or (c) with respect to such project, 

shall not cause the aggregate amount of all such investment to exceed, at the time any such investment is made 

or guaranteed by the Corporation, 75 percent of the total 

investment committed to such project as determined by the 

Corporation. 

The determination of the Corporation under subparagraph (B) 

shall be conclusive for purposes of the Corporation’s authority 

to make or guarantee any such investment. 

ø(2) LIMITATION TO PROJECTS IN SUB-SAHARAN AFRICA AND

CARIBBEAN BASIN.—Equity investments may be made under 

this subsection only in projects in countries eligible for financing under this title that are countries in sub-Saharan Africa or 

countries designated as beneficiary countries under section 212 

of the Caribbean Basin Economy Recovery Act. 

ø(3) ADDITIONAL CRITERIA.—In making investment decisions 

under this subsection, the Corporation shall give preferential 

consideration to projects sponsored by or significantly involving 

United States small business or cooperatives. The Corporation 

shall also consider the extent to which the Corporation’s equity 

investment will assist in obtaining the financing required for 

the project. 

ø(4) DISPOSITION OF EQUITY INTEREST.—Taking into consideration, among other things, the Corporations’ financial interests 

and the desirability of fostering the development of local capital markets in less developed countries, the Corporation shall 

endeavor to dispose of any equity interest it may acquire under 

this subsection within a period of 10 years from the date of acquisition of such interest. 

ø(6) CONSULTATIONS WITH CONGRESS.—The Corporation shall 

consult annually with the Committee on Foreign Affairs of the 

House of Representatives and the Committee on Foreign Relations of the Senate on the implementation of the pilot equity 

finance program established under this subsection.¿ 

ø(h)¿ (g) LOCAL CURRENCY GUARANTIES FOR ELIGIBLE INVESTORS.—To issue to—

(1) * * * 

* * * * * * * 

SEC. 234B. CLIMATE CHANGE MITIGATION. 

(a) MITIGATION ACTION PLAN.—The Corporation shall, not later 

than 180 days after the date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2007, institute 

a climate change mitigation action plan that includes the following: 

(1) CLEAN AND EFFICIENT ENERGY TECHNOLOGY.—

(A) INCREASING ASSISTANCE.—The Corporation shall establish a goal of substantially increasing its support of 

projects that use, develop, or otherwise promote the use of 

clean energy technologies over the 4-year period beginning 


hsrobinson on PROD1PC76 with HEARING
34 

on the date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2007. 

(B) PREFERENTIAL TREATMENT TO PROJECTS.—The Corporation shall give preferential treatment to the evaluation 

and awarding of assistance for and provide greater flexibility in supporting projects that use, develop, or otherwise 

promote the use of clean and efficient energy technologies. 

(2) ENVIRONMENTAL IMPACT ASSESSMENTS.— (A) GREENHOUSE GAS EMISSIONS.—The Corporation 

shall, in making an environmental impact assessment for 

a project under section 231A(b), take into account the degree to which the project contributes to the emission of 

greenhouse gases. 

(B) OTHER DUTIES NOT AFFECTED.—The requirement 

under subparagraph (A) is in addition to any other requirement, obligation, or duty that the Corporation has. 

(3) REPORT TO CONGRESSIONAL COMMITTEES.—The Corporation shall, within 180 days after the date of the enactment of 

the Overseas Private Investment Corporation Reauthorization 

Act of 2007, submit to the Committee on Foreign Affairs of the 

House of Representatives and the Committee on Foreign Relations of the Senate a report on the plan developed to carry out 

paragraph (1)(A). Thereafter, the Corporation shall include in 

its annual report under section 240A a discussion of such plan 

and its implementation. 

(b) EXTRACTION INVESTMENTS.— (1) PRIOR NOTIFICATION TO CONGRESSIONAL COMMITTEES.— The Corporation may not approve any contract of insurance or 

reinsurance, or any guaranty, or enter into any agreement to 

provide financing for any project which significantly involves 

an extractive industry and in which assistance by the Corporation would be valued at $10,000,000 or more (including contingent liability), until at least 30 days after the Corporation notifies the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate of 

such contract or agreement. 

(2) COMMITMENT TO EITI PRINCIPLES.—The Corporation may 

approve a contract of insurance or reinsurance, or any guaranty, or enter into an agreement to provide financing to an eligible investor for a project that significantly involves an extractive industry only if— (A) the eligible investor has agreed to implement the Extractive Industries Transparency Initiative principles and 

criteria, or substantially similar principles and criteria; or 

(B) the host country where the project is to be carried out 

has committed to the Extractive Industries Transparency 

Initiative principles and criteria, or substantially similar 

principles and criteria. 

(3) PREFERENCE FOR CERTAIN PROJECTS.—With respect to all 

projects that significantly involve an extractive industry, the 

Corporation, to the degree possible and consistent with its development objectives, shall give preference to a project in which 

both the eligible investor has agreed to implement the Extractive Industries Transparency Initiative principles and criteria, 

or substantially similar principles and criteria, and the host 


hsrobinson on PROD1PC76 with HEARING
35 

country where the project is to be carried out has committed to 

the Extractive Industries Transparency Initiative principles and 

criteria, or substantially similar principles and criteria. 

(4) DEFINITIONS.—In this subsection: 

(A) EXTRACTIVE INDUSTRY.—The term ‘‘extractive industry’’ refers to an enterprise engaged in the exploration, development, or extraction of oil and gas reserves, metal ores, 

gemstones, industrial minerals, or coal. 

(B) EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE

PRINCIPLES AND CRITERIA.—The term ‘‘Extractive Industries 

Transparency Initiative principles and criteria’’ means the 

principles and criteria of the Extractive Industries Transparency Initiative, as set forth in Annex A to the Anti-Corruption Policies and Strategies Handbook of the Corporation, as published in September 2006. 

(5) REPORTING REQUIREMENT.—The Corporation shall include in its annual report required under section 240A a description of its activities to carry out this subsection. 

(c) DEFINITIONS.—In this section: 

(1) CLEAN AND EFFICIENT ENERGY TECHNOLOGY.—The term 

‘‘clean and efficient energy technology’’ means an energy supply 

or end-use technology—

(A) such as—

(i) solar technology; 

(ii) wind technology; 

(iii) geothermal technology; 

(iv) hydroelectric technology; and 

(v) carbon capture technology; and 

(B) that, over its life cycle and compared to a similar 

technology already in commercial use—

(i) is reliable, affordable, economically viable, socially acceptable, and compatible with the needs and 

norms of the country involved; 

(ii) results in—

(I) reduced emissions of greenhouse gases; or 

(II) increased geological sequestration; and 

(iii) may—

(I) substantially lower emissions of air pollutants; or 

(II) generate substantially smaller and less hazardous quantities of solid or liquid waste. 

(2) GREENHOUSE GAS.—The term ‘‘greenhouse gas’’ means—

(A) carbon dioxide; 

(B) methane; 

(C) nitrous oxide; 

(D) hydrofluorocarbons; 

(E) perfluorocarbons; or 

(F) sulfur hexafluoride. 

SEC. 235. ISSUING AUTHORITY, DIRECT INVESTMENT AUTHORITY

AND RESERVES.—

(a) ISSUING AUTHORITY.—

(1) * * * 


hsrobinson on PROD1PC76 with HEARING
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(2) TERMINATION OF AUTHORITY.—The authority of subsections (a), (b), and (c) of section 234 shall continue until 

øSeptember 30, 2007¿ September 30, 2011. 

* * * * * * * 

ø(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.¿ 

ø(f)¿ (e) 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 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 noncredit account revolving fund until the amount 

of funds in the noncredit account revolving fund is less than 

$25,000,000. Any appropriations to augment the 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. 

(1) * * * 

* * * * * * * 

SEC. 237. GENERAL PROVISIONS RELATING TO INSURANCE GUARANTY, AND FINANCING PROGRAM.—(a) * * * 

* * * * * * * 

(j) Each insurance, reinsurance, and guaranty contract executed 

by such officer or officers as may be designated by the Board shall 

be conclusively presumed to be issued in compliance with the requirements of this Act. 

* * * * * * * 

(m)(1) * * * 


hsrobinson on PROD1PC76 with HEARING
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(A) * * * 

* * * * * * * 

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 ø239(g)¿ 239(f). 

* * * * * * * 

(n) PENALTIES FOR FRAUD.—øWhoever¿ 

(1) IN GENERAL.—Whoever knowingly makes any false statement or report, or willfully overvalues any land, property, or 

security, for the purpose of influencing in any way the action 

of the Corporation with respect to any insurance, reinsurance, 

guarantee, loan, equity investment, or other activity of the 

Corporation under section 234 or any change or extension of 

any such insurance, reinsurance, guarantee, loan, equity investment, or activity, by renewal, deferment of action or otherwise, or the acceptance, release, or substitution of security 

therefor, shall be fined not more than $1,000,000 or imprisoned 

not more than 30 years, or both. 

(2) DEFERRALS TO DEPARTMENT OF JUSTICE.—(A) The President of the Corporation shall refer to the Department of Justice 

for appropriate action information known to the Corporation 

concerning any substantial evidence of— (i) a violation of this title; 

(ii) a material breach of contract entered into with the 

Corporation by an eligible investor; or 

(iii) a material false representation made by an investor 

to the Corporation. 

(B) Subparagraph (A) does not apply if the President of the 

Corporation concludes that the matter described in clause (i), 

(ii), or (iii), as the case may be, of subparagraph (A)—

(i) is not evidence of a possible violation of criminal law; 

and 

(ii) is not evidence that the Federal Government is entitled to civil remedy or to impose a civil penalty. 

* * * * * * * 

(p) COMMUNITY SUPPORT.—To the maximum extent practicable, 

the Corporation shall require the applicant for a project that is subject to section 231A(b) to obtain broad community support for the 

project. 

(q) PROHIBITION ON ASSISTANCE FOR CERTAIN RAILWAY

PROJECTS.—The Corporation may not provide insurance, reinsurance, a guaranty, financing, or other assistance to support the development or promotion of any railway connection or railway-related 

connection that does not traverse or connect with Armenia and does 

connect Azerbaijan and Turkey. 

(r) INELIGIBLE PROJECTS.—

(1) IN GENERAL.—A project will not be eligible to receive support provided by the Corporation under this title if either of the 

following applies: 

(A)(i) An applicant for insurance, reinsurance, financing, 

or other support for a project provided to the government 


hsrobinson on PROD1PC76 with HEARING
38 

of a state sponsor of terrorism a loan, or an extension of 

credit, that remains outstanding. 

(ii) For purposes of this subparagraph, the sale of goods, 

other than food or medicine, on any terms other than a 

cash basis shall be considered to be an extension of credit. 

(B) An applicant for insurance, reinsurance, financing, or 

other support for a project has an investment commitment 

valued at $20,000,000 or more for the energy sector in a 

country that is a state sponsor of terrorism. 

(2) DEFINITIONS.—In this subsection: 

(A) CASH BASIS.—The term ‘‘cash basis’’ refers to a sale 

in which the purchaser of goods or services is required to 

make payment in full within 45 days after receiving the 

goods or services. 

(B) ENERGY SECTOR.—The term ‘‘energy sector’’ refers to 

activities to develop or transport petroleum or natural gas 

resources. 

(C) INVESTMENT COMMITMENT.—The term ‘‘investment 

commitment’’ means any of the following activities if such 

activity is undertaken pursuant to a commitment, or pursuant to the exercise of rights under a commitment, that was 

entered into with the government of a state sponsor of terrorism or a nongovernmental entity in a country that is a 

state sponsor of terrorism: 

(i) The entry into a contract that includes responsibility for the development of petroleum resources located in a country that is a state sponsor of terrorism, 

or the entry into a contract providing for the general 

supervision and guarantee of another person’s performance of such a contract. 

(ii) The purchase of a share of ownership, including 

an equity interest, in that development. 

(iii) The entry into a contract providing for the participation in royalties, earnings, or profits in that development, without regard to the form of the participation. 

(D) STATE SPONSOR OF TERRORISM.—The term ‘‘state 

sponsor of terrorism’’ means a country the government of 

which the Secretary of State has determined, for purposes 

of section 6(j) of the Export Administration Act of 1979, section 620A of the Foreign Assistance Act of 1961, section 40 

of the Arms Export Control Act, or any other provision of 

law, to be a government that has repeatedly provided support for acts of international terrorism. 

(3) CERTIFICATION.—

(A) BY APPLICANTS.—A person or entity applying for insurance, reinsurance, a guaranty, financing, or other assistance under this title may not receive such support unless its 

chief executive officer certifies to the Corporation, under 

penalty of perjury, that the person or entity and its majority-owned subsidiaries are not engaged in any activity described in subparagraph (A) or (B) of paragraph (1). 

(B) BY ULTIMATE PARENT ENTITIES.—In the case of an applicant that is a majority-owned entity of another entity, in 

addition to the certification under subparagraph (A), the 


hsrobinson on PROD1PC76 with HEARING
39 

chief executive officer of the ultimate parent entity of the 

applicant must certify, under penalty of perjury, that it and 

its majority-owned subsidiaries are not engaged in any activity described in subparagraph (A) or (B) of paragraph 

(1). 

(C) APPLICATION TO STRAW MAN TRANSACTIONS.—In any 

case in which— (i) an applicant for insurance, reinsurance, financing, or other assistance under this title is providing 

goods and services to a project, 

(ii) more than 50 percent of such goods and services 

are acquired from an unaffiliated entity, and (iii) the unaffiliated entity is receiving $20,000,000 

or more, or sums greater than 50 percent of the amount 

of the assistance provided by the Corporation for the 

project (including contingent liability), for such goods 

or services, 

then the chief executive officer of the unaffiliated entity 

must make a certification under subparagraph (A), and 

any ultimate parent entity must make a certification required by subparagraph (B). 

(D) DILIGENT INQUIRY.—A certification required by subparagraph (A), (B), or (C) may be made to the best knowledge and belief of the certifying officer if that officer states 

that he or she has made diligent inquiry into the matter 

certified. 

(E) EXCEPTION.—(i) A chief executive officer of an applicant or other entity may provide a certification required by 

subparagraph (A), (B), or (C) with respect to the activity of 

a majority-owned subsidiary or entity notwithstanding activity by such majority-owned subsidiary or entity that 

would cause a project to be ineligible for support under 

subparagraph (A) or (B) of paragraph (1) if such activity 

is carried out under a contract or other obligation of such 

majority-owned subsidiary or entity that was entered into 

or incurred before the acquisition of such majority-owned 

subsidiary or entity by the applicant or ultimate parent entity. 

(ii) Clause (i) shall not apply if the terms of such contract 

or other obligation are expanded or extended after such acquisition. 

(F) DEFINITION.—For purposes of this paragraph, a person is an ultimate parent of an entity if the person owns 

directly, or through majority ownership of other entities, 

greater than 50 percent of the equity of the entity. 

(4) EXCEPTION.—The prohibition in paragraph (1) shall not—

(A) apply to a loan, extension of credit, or investment 

commitment by an applicant, or other entity covered by a 

certification under subparagraph (A), (B), or (C) of paragraph (3), in Southern Sudan, Southern Kordofan/Nuba 

Mountains State, Blue Nile State, or Abyei, Darfur, if the 

Corporation, with the concurrence of the Secretary of State, 

determines that such loan, extension of credit, or investment commitment will provide emergency relief, promote 

economic self-sufficiency, or implement a nonmilitary proVerDate Aug 31 2005 20:36 Jul 19, 2007 Jkt 059006 PO 00000 Frm 00039 Fmt 6659 Sfmt 6603 E:\HR\OC\HR241.XXX HR241

hsrobinson on PROD1PC76 with HEARING
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gram in support of a viable peace agreement in Sudan, including the Comprehensive Peace Agreement for Sudan and 

the Darfur Peace Agreement; or 

(B) prohibit the Corporation from providing support for 

projects in Southern Sudan, Southern Kordofan/Nuba 

Mountains State, Blue Nile State, and Abyei, Darfur, if the 

Corporation, with the concurrence of the Secretary of State, 

determines that such projects will provide emergency relief, 

promote economic self-sufficiency, or implement a nonmilitary program in support of a viable peace agreement in 

Sudan, including the Comprehensive Peace Agreement for 

Sudan and the Darfur Peace Agreement . 

(5) PROSPECTIVE APPLICATION OF SUBSECTION.—This subsection shall not be applied to limit support by the Corporation 

under this title because an applicant, or other entity covered by 

a certification under subparagraph (A), (B), or (C) of paragraph 

(3) engaged in commercial activity specifically licensed by the 

Office of Foreign Assets Control of the Department of the Treasury. 

(s) AVAILABILITY OF PROJECT INFORMATION.—Beginning 90 days 

after the date of the enactment of the Overseas Private Investment 

Corporation Reauthorization Act of 2007, the Corporation shall 

make public, and post on its Internet website, summaries of all new 

projects supported by the Corporation, and other relevant information, except that the Corporation shall not include any confidential 

business information in the summaries and information made 

available under this subsection. 

(t) REVIEW OF METHODOLOGY.—Not later than 180 days after the 

date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2007, the Corporation shall publish in 

the Federal Register and periodically revise, subject to a period of 

public comment, the detailed methodology, including relevant regulations, used to assess and monitor the impact of projects supported 

by the Corporation on the development and environment of, and 

international worker rights in, host countries, and on United States 

employment. 

(u) PUBLIC NOTICE PRIOR TO PROJECT APPROVAL.—

(1) PUBLIC NOTICE.—The Board of Directors of the Corporation may not vote in favor of any action proposed to be taken 

by the Corporation on any Category A project until at least 60 

days after the Corporation—

(A) makes available for public comment a summary of 

the project and relevant information about the project; and 

(B) makes the summary and information described in 

paragraph (1) available to locally affected groups in the 

area of impact of the proposed project, and to host country 

nongovernmental organizations. 

The Corporation shall not include any business confidential information in the summary and information made available 

under subparagraphs (A) and (B). 

(2) PUBLISHED RESPONSE.—To the extent practicable, the Corporation shall publish responses to the comments received 

under paragraph (1) with respect to a Category A project and 

submit the responses to the Board not later than 7 days before 


hsrobinson on PROD1PC76 with HEARING
41 

a vote is to be taken on any action proposed by the Corporation 

on the project. 

(3) DEFINITIONS.—In this subsection, the term ‘‘Category A 

project’’ means any project or other activity for which the Corporation proposes to provide insurance, reinsurance, financing, 

or other support under this title and which is likely to have significant adverse environmental impacts. 

(v) OFFICE OF ACCOUNTABILITY.—The Corporation shall maintain 

an Office of Accountability to provide problem-solving services for 

projects supported by the Corporation and to review the Corporation’s compliance with its environmental, social, worker rights, 

human rights, and transparency policies and procedures, to the 

maximum extent practicable. The Office of Accountability shall operate in a manner that is fair, objective and transparent. 

SEC. 238. DEFINITIONS.—As used in this title—

(a) * * * 

* * * * * * * 

(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); øand¿ 

(g) the term ‘‘local financial institution’’—

(1) * * * 

(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 

operateø.¿; and 

(h) the term ‘‘international worker rights’’ means—

(1) internationally recognized worker rights, as defined in 

section 507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4)); 

and 

(2) the elimination of discrimination with respect to employment and occupation. 

SEC. 239. GENERAL PROVISIONS AND POWERS.—(a) * * * 

ø(b) The President shall transfer to the Corporation, at such time 

as he may determine, all obligations, assets and related rights and 

responsibilities arising out of, or related to, predecessor programs 

and authorities similar to those provided for in section 234 (a), (b), 

and (d). Until such transfer, the agency heretofore responsible for 

such predecessor programs shall continue to administer such assets 

and obligations, and such programs and activities authorized under 

this title as may be determined by the President.¿ 

ø(c)¿ (b)(1) The Corporation shall be subject to the applicable 

provisions of chapter 91 of title 31, United States Code, except as 

otherwise provided in this title. 

* * * * * * * 

ø(d)¿ (c) To carry out the purposes of this title, the Corporation 

is authorized to adopt and use a corporate seal, which shall be judicially noticed; to sue and be sued in its corporate name; to adopt, 

amend, and repeal bylaws governing the conduct of its business 

and the performance of the powers and duties granted to or imVerDate Aug 31 2005 20:36 Jul 19, 2007 Jkt 059006 PO 00000 Frm 00041 Fmt 6659 Sfmt 6601 E:\HR\OC\HR241.XXX HR241

hsrobinson on PROD1PC76 with HEARING
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posed upon it by law; to acquire, hold or dispose of, upon such 

terms and conditions as the Corporation may determine, any property, real, personal, or mixed, tangible or intangible, or any interest 

therein; to invest funds derived from fees and other revenues in obligations of the United States and to use the proceeds therefrom, 

including earnings and profits, as it shall deem appropriate; to indemnify directors, officers, employees and agents of the Corporation for liabilities and expenses incurred in connection with their 

Corporation activities; to require bonds of officers, employees, and 

agents and pay the premiums therefor; notwithstanding any other 

provision of law, to represent itself or to contract for representation 

in all legal and arbitral proceedings; to enter into limited-term contracts with nationals of the United States for personal services to 

carry out activities in the United States and abroad under subsections (d) and (e) of section 234; to purchase, discount, rediscount, sell, and negotiate, with or without its endorsement or guaranty, and guarantee notes, participation certificates, and other evidence of indebtedness (provided that the Corporation shall not 

issue its own securities, except participation certificates for the 

purpose of carrying out section 231(c) or participation certificates 

as evidence of indebtedness held by the Corporation in connection 

with settlement of claims under section 237(i)); to make and carry 

out such contracts and agreements as are necessary and advisable 

in the conduct of its business; to exercise the priority of the Government of the United States in collecting debts from bankrupt, insolvent, or decedents’ estates; to determine the character of and the 

necessity for its obligations and expenditures, and the manner in 

which they shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to Government corporations; to 

collect or compromise any obligations assigned to or held by the 

Corporation, including any legal or equitable rights accruing to the 

Corporation; and to take such actions as may be necessary or appropriate to carry out the powers herein or hereafter specifically 

conferred upon it. 

ø(e)¿ (d) The Inspector General of the Agency for International 

Development (1) may conduct reviews, investigations, and inspections of all phases of the Corporation’s operations and activities 

and (2) shall conduct all security activities of the Corporation relating to personnel and the control of classified material. With respect 

to his responsibilities under this subsection, the Inspector General

shall report to the Board. The agency primarily responsible for administering part I shall be reimbursed by the Corporation for all 

expenses incurred by the Inspector General in connection with his 

responsibilities under this subsection. 

ø(f)¿ (e) Except for the provisions of this title, no other provision 

of this or any other law shall be construed to prohibit the operation 

in Yugoslavia, Poland, Hungary, or any other East European country, or the People’s Republic of China, or Pakistan of the programs 

authorized by this title, if the President determines that the operation of such program in such country is important to the national 

interest. 

ø(g)¿ (f) 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 inVerDate Aug 31 2005 20:36 Jul 19, 2007 Jkt 059006 PO 00000 Frm 00042 Fmt 6659 Sfmt 6601 E:\HR\OC\HR241.XXX HR241

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sures, reinsures, guarantees, or finances under this title in connection with a project in a country. 

ø(h)¿ (g) In order to carry out the policy set forth in paragraph 

(1) of the second undesignated paragraph of section 231 of this Act, 

the Corporation shall prepare and maintain for each investment 

project it insures, finances, or reinsures, a development impact profile consisting of data appropriate to measure the projected and actual effects of such project on development. Criteria for evaluating 

projects shall be developed in consultation with the Agency for 

International Development. In addition, the Corporation should 

consult with relevant stakeholders in developing such criteria. 

ø(i)¿ (h) The Corporation shall take into account in the conduct 

of its programs in a country, in consultation with the Secretary of 

State, all available information about observance of and respect for 

human rights and fundamental freedoms, including international 

worker rights, in such country and the effect the operation of such 

programs will have on human rights and fundamental freedoms in 

such country. The provisions of section 116 of this Act shall apply 

to any insurance, reinsurance, guaranty, or loan issued by the Corporation for projects in a country, except that in addition to the exception (with respect to benefiting needy people) set forth in subsection (a) of such section, the Corporation may support a project 

if the national security interest so requires. 

ø(j)¿ (i) The Corporation, including its franchise, capital, reserves, surplus, advances, intangible property, and income, shall be 

exempt from all taxation at any time imposed by the United States, 

by any territory, dependency, or possession of the United States, or 

by any State, the District of Columbia, or any county, municipality, 

or local taxing authority. 

ø(k)¿ (j) The Corporation shall publish, and make available to applicants for insurance, reinsurance, guarantees, financing, or other 

assistance made available by the Corporation under this title, the 

policy guidelines of the Corporation relating to its programs. 

(k) TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT

FUNDS.—

(1) COMPETITIVE SELECTION OF INVESTMENT FUND MANAGE- MENT.—With respect to any investment fund that the Corporation creates on or after the date of the enactment of the Overseas 

Private Investment Corporation Reauthorization Act of 2007, 

the Corporation may select persons to manage the fund only by 

contract using full and open competitive procedures. 

(2) CRITERIA FOR SELECTION.—In assessing proposals for investment fund management proposals, the Corporation shall 

consider, in addition to other factors, the following: 

(A) The prospective fund management’s experience, depth, 

and cohesiveness. 

(B) The prospective fund management’s track record in 

investing risk capital in emerging markets. 

(C) The prospective fund management’s experience, management record, and monitoring capabilities in its target 

countries, including details of local presence (directly or 

through local alliances). 

(D) The prospective fund management’s experience as a 

fiduciary in managing institutional capital, meeting reporting requirements, and administration. 


hsrobinson on PROD1PC76 with HEARING
44 

(E) The prospective fund management’s record in avoiding investments in companies that would be disqualified 

under section 237(r). 

(3) ANNUAL REPORT.—The Corporation shall include in each 

annual report under section 240A an analysis of the investment 

fund portfolio of the Corporation, including the following: 

(A) FUND PERFORMANCE.—An analysis of the aggregate 

financial performance of the investment fund portfolio 

grouped by region and maturity. 

(B) STATUS OF LOAN GUARANTIES.—The amount of guaranties committed by the Corporation to support investment 

funds, including the percentage of such amount that has 

been disbursed to the investment funds. 

(C) RISK RATINGS.—The definition of risk ratings, and 

the current aggregate risk ratings for the investment fund 

portfolio, including the number of investment funds in each 

of the Corporation’s rating categories. 

(D) COMPETITIVE SELECTION OF INVESTMENT FUND MAN- AGEMENT.—The number of proposals received and evaluated for each newly established investment fund. 

(l) OPERATIONS IN IRAQ.—Notwithstanding subsections (a) and (b) 

of section 237, the Corporation is authorized to undertake in Iraq 

any program authorized by this title. 

(m) CONSISTENCY WITH OTHER LAW.—Section 620L of this Act 

shall apply to any insurance, reinsurance, guaranty, or other financing issued by the Corporation for projects in the West Bank 

and Gaza to the same extent as such section applies to other assistance under this Act. 

(n) LIMITATION ON ASSISTANCE TO GAZA AND THE WEST BANK.— The Corporation may not provide insurance, reinsurance, a guaranty, financing, or other assistance to support a project in any part 

of Gaza or the West Bank unless the Secretary of State determines 

that the location for the project is not under the effective control of 

Hamas or any other foreign terrorist organization designated under 

section 219 of the Immigration and Nationality Act (8 U.S.C. 1189). 

(o) CONGRESSIONAL NOTIFICATION OF INCREASE IN MAXIMUM

CONTINGENT LIABILITY.—The Corporation shall notify the Committee on Foreign Affairs of the House of Representatives and the 

Committee on Foreign Relations of the Senate not later than 15 

days after the date on which the Corporation’s 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), exceeds the previous fiscal year’s maximum 

contingent liability by 25 percent. 

SEC. 240. SMALL BUSINESS DEVELOPMENT.—(a) * * * 

* * * * * * * 

(c) RESOURCES DEDICATED TO SMALL BUSINESSES, COOPERA- TIVES, AND OTHER SMALL UNITED STATES INVESTORS.—The Corporation shall ensure that adequate personnel and resources, including senior officers, are dedicated to assist United States small 

businesses, cooperatives, and other small United States investors in 

obtaining insurance, reinsurance, financing, and other support 

under this title. The Corporation shall include, in each annual report under section 240A, the following information with respect to 

the period covered by the report: 


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(1) A description of such personnel and resources. 

(2) The number of small businesses, cooperatives, and other 

small United States investors that received such insurance, reinsurance, financing, and other support, and the dollar value 

of such insurance, reinsurance, financing and other support. 

(3) A description of the projects for which such insurance, reinsurance, financing, and other support was provided. 

SEC. 240A. REPORTS TO THE CONGRESS.—After (a) the end of 

each fiscal year, the Corporation shall submit to the Congress a 

complete and detailed report of its operations during such fiscal 

year. Such report shall include— (1) an assessment, based upon the development impact profiles required by section ø239(h)¿ 239(g), of the economic and 

social development impact and benefits of the projects with respect to which such profiles are prepared, and of the extent to 

which the operations of Corporation complement or are compatible with the development assistance programs of the 

United States and other donors; and 

(2) a description of any project for which the Corporation— (A) refused to provide any insurance, reinsurance, guaranty, financing, or other financial support, on account of 

violations of human rights referred to in section ø239(i)¿ 

239(h); or 

* * * * * * * 

SECTION 209 OF THE ADMIRAL JAMES W. NANCE AND 

MEG DONOVAN FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2000 AND 2001 

SEC. 209. CONTINUATION OF REPORTING REQUIREMENTS. 

(a) * * * 

* * * * * * * 

(e) CONTINUATION OF REPORTS TERMINATED BY THE FEDERAL REPORTS ELIMINATION AND SUNSET ACT OF 1995.—Section 3003(a)(1) 

of the Federal Reports Elimination and Sunset Act of 1995 (Public 

Law 104–66; 31 U.S.C. 1113 note) does not apply to any report required to be submitted under any of the following provisions of law: 

(1) * * * 

* * * * * * * 

(16) Section ø239(c)¿ 239(b) of the Foreign Assistance Act of 

1961 (Public Law 87–195; 22 U.S.C. ø2199(c)¿ 2199(b)) (relating to OPIC audit report). 

* * * * * * * 

Æ 


hsrobinson on PROD1PC76 with HEARING