79–010 

Calendar No. 112 

111TH CONGRESS REPORT " ! SENATE 1st Session 111–50 

WORLD BANK INTERNATIONAL DEVELOPMENT 

ASSOCIATION REPLENISHMENT ACT OF 2009 

JULY 16, 2009.—Ordered to be printed 

Mr. KERRY, from the Committee on Foreign Relations, 

submitted the following 

R E P O R T 

[To accompany S. 954] 

The Committee on Foreign Relations, having had under consideration the bill (S. 954), to authorize United States participation in 

the replenishment of resources of the International Development 

Association, and for other purposes, reports favorably thereon with 

amendments, and recommends that the bill, as amended, do pass. 

CONTENTS 

Page 

I. Purpose ........................................................................................................... 1 

II. Committee Action .......................................................................................... 1 

III. Discussion ....................................................................................................... 1 

IV. Cost Estimate ................................................................................................. 3 

V. Evaluation of Regulatory Impact .................................................................. 6 

VI. Changes in Existing Law .............................................................................. 6 

I. PURPOSE

The purpose of S. 954 is to authorize United States participation 

in the fifteenth replenishment of resources of the International Development Association (IDA) of the International Bank for Reconstruction and Development. 

II. COMMITTEE ACTION

S. 954 was introduced by Senators Kerry and Lugar on May 1, 

2009. It is cosponsored by Senator Kaufman. On May 5, 2009, the 

committee ordered S. 954 reported favorably by voice vote. 

III. DISCUSSION

S. 954, the ‘‘World Bank International Development Association 

Replenishment Act of 2009’’ authorizes the Secretary of the 

Treasury, as U.S. Governor of the International Development Association, to U.S. participation in the fifteenth replenishment of 

the International Development Association (IDA). The U.S. 3-year 

appropriation, 2009–2011, amounts to $3.7 billion, representing 


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14.7 percent of the total $41.6 billion replenishment. Although this 

represents an increase from the previous U.S. replenishment contribution, for the first time the United Kingdom (UK) has replaced 

the U.S. as the top donor to IDA. The UK’s contribution for this 

replenishment is $4.3 billion or 16.7 percent of the total. In the 

previous IDA replenishment, the Congress appropriated $2.85 billion out of a total replenishment of $33 billion. 

IDA was founded in 1960, 16 years after the creation of the 

World Bank, to address concern that the poorest countries could 

not afford to borrow at the near-market rate terms offered by the 

International Bank for Reconstruction and Development (IBRD). 

It was established as a revolving fund, providing concessional 

loans to the poorest countries subsidized by donor contributions 

and transfers from the IBRD. It is the largest provider of multilateral official development assistance to low income countries; between 1994 and 2005 it disbursed approximately $80 billion. Since 

IDA provides the poorest countries with grants and loans at subsidized rates, its resources must be periodically replenished. Donor 

nations have replenished IDA 14 times since its founding. 

On March 5, 2007, donor nations began to discuss a possible fifteenth replenishment of funds for IDA. This is the first replenishment since the G8 summit at the Gleneagles Resort in Scotland in 

2005 where world leaders proposed the creation of the Multilateral 

Debt Relief Initiative (MDRI). The MDRI cancels the remaining 

debt of the world’s poorest countries and pledges to double the 

amount of aid to Sub-Saharan Africa between 2004 and 2010, primarily in the form of grant-based assistance. In the negotiations, 

the U.S. emphasized the following reform areas: An expanded results measurement system to increase project effectiveness, improvements to World Bank engagement in fragile and post-conflict 

states, measures to enhance debt sustainability in debt relief recipients, and greater institutional transparency. 

Enhanced efforts to improve results. IDA has established a results measurement system to monitor progress against key development indicators (such as primary school completion rates and 

HIV prevalence rates). The committee supports the World Bank’s 

commitment to continue to improve the quality of data and the way 

it is measured, strengthening the link between expenditures and 

poverty reduction. 

Fragile and post-conflict states. The committee notes that the 

World Bank has increased the scale of its assistance to fragile and 

post-conflict states such as Liberia. This is a positive development; 

the committee intends for this replenishment to increase the World 

Bank’s capacity to help cash-strapped post-conflict states. Restoring 

essential services, initiating infrastructure reconstruction, and 

bringing about a ‘‘peace dividend’’ are critical areas that require 

sustained Bank support. 

Debt sustainability and grants. The Bank will be able to provide 

grants to countries at risk of experiencing debt distress. The committee believes this represents an important step towards ending 

lend-and-forgive policies and will ensure that the poorest countries 

will be able to sustainably service their debt. 


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Transparency. Increased transparency is a high priority for the 

committee. It is important that the Bank continue to implement 

transparency reforms in the latest replenishment, including disclosing Board minutes, strengthening public consultation procedures, and continuing independent audits of internal management 

controls. The committee continues to monitor progress at the World 

Bank on anti-corruption efforts in its projects and programs and 

believes that ensuring that development funds are not stolen or 

misused will result in better project and program outcomes. The 

committee also continues to monitor progress at the World Bank on 

anti-corruption and transparency promotion with client countries. 

S. 954 lays out several congressional priorities. First, the bill requires that the World Bank consider greenhouse gas emissions 

when undertaking environmental assessments of potential funded 

projects. Second, the bill directs the Secretary of the Treasury to 

urge the World Bank to help countries build capacity to investigate, adjudicate, and punish corruption. Third, it requires the 

Secretary to use the voice and vote of the United States to 

strengthen inspection panel functions within the multilateral development banks. Fourth, it includes language promoting that MDBs 

rigorously evaluate the development impact of selected projects, 

programs, and financing operations. Fifth, it authorizes separate 

appropriations for the Multilateral Debt Relief Initiative to ensure 

full funding of U.S. commitments. Sixth, it directs the Secretary of 

the Treasury to conduct a study on the respective roles of the Departments of State, Treasury and the U.S. Agency for International 

Development play in the formulation of United States policy concerning the development policy, programs, and activities of the 

World Bank Group. 

IV. COST ESTIMATE

In accordance with Rule XXVI, paragraph 11(a) of the Standing 

Rules of the Senate, the committee provides this estimate of 

the costs of this legislation prepared by the Congressional Budget 

Office. 

UNITED STATES CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, June 11, 2009. 

Hon. JOHN F. KERRY., Chairman, Committee on Foreign Relations, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 954, the World Bank International Development Association Replenishment Act of 2009. 

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

to provide them. The CBO staff contact is John Chin. 

Sincerely, 

DOUGLAS W. ELMENDORF. 


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CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

June 11, 2009. 

S. 954 

World Bank International Development Association 

Replenishment Act of 2009 

AS ORDERED REPORTED BY THE SENATE COMMITTEE ON

FOREIGN RELATIONS ON MAY 5, 2009

SUMMARY

S. 954 would authorize the appropriation of $3.7 billion for the 

United States’ share of the fifteenth general replenishment of the 

resources of the International Development Association (IDA–15). 

That replenishment agreement covers the three-year-period ending 

in June 2011. 

The bill also would authorize the appropriation of up to $356 million to meet potential shortfalls in the U.S. commitment to compensate the International Development Association (IDA) for debts 

cancelled under the Multilateral Debt Relief Initiative (MDRI) during the IDA–15 replenishment period. 

CBO estimates that implementing S. 954 would cost about $2.6 

billion over the 2010-2014 period, assuming appropriation of that 

amount. (The Congress has already appropriated $1.1 billion for 

fund replenishment in 2009.) Enacting the bill would not affect direct spending or revenues. 

S. 954 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act (UMRA) and 

would not affect the budgets of state, local, or tribal governments. 

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of S. 954 is shown in the following table. The costs of this legislation fall within budget function 150 (international affairs). 

Changes in Spending Due to S. 955* 

By Fiscal Year, in Millions of Dollars 

2010 2011 2012 2013 2014 2010– 

2014 

Fifteenth Replenishment of the International Development Association 

Estimated Authorization Level .............................. 1,320 1,319 0 0 0 2,639 

Estimated Outlays ................................................... 1,196 1,319 124 0 0 2,639 

Multilateral Debt Relief Initiative 

Estimated Authorization Level .............................. 0 0 5 0 0 5 

Estimated Outlays ................................................... 0 0 5 0 0 5 

Total Changes.

Estimated Authorization Level ....................... 1,320 1,319 5 0 0 2,644 

Estimated Outlays ........................................... 1,195 1,319 129 0 0 2,644 

* The Congress appropriated $1,115 million for a contribution to the International Development Association 

(IDA) for fiscal year 2009, enacted in the Omnibus Appropriations Act, 2009 (Public Law 111–8) on March 11, 

2009. CBO assumes there would be no additional funding for the IDA for this year. 


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BASIS OF ESTIMATE

For this estimate, CBO assumes that S. 954 will be enacted before June 30, 2009, that the estimated amounts will be appropriated each fiscal year, and that outlays will follow historical 

spending patterns for U.S. contributions to IDA. 

Fifteenth Replenishment of the International Development Association 

S. 954 would authorize the appropriation of $3.7 billion for contributions to IDA–15. The 15th replenishment was agreed to in December 2007, committing the United States and other donors to 

contribute a total of $25.1 billion to IDA. 

Based on information from the Department of the Treasury, CBO 

expects that the U.S. commitment to IDA–15 would be funded with 

appropriations over fiscal years 2009 through 2011. The Omnibus 

Appropriations Act, 2009 (Public Law 111–8) provided a total of 

$1,115 million for IDA. The Treasury Department has indicated 

that it has used $49 million of this amount to clear arrears to IDA– 

14, and that it plans to provide the remaining $1,066 million for 

the first installment to IDA–15. CBO further expects that the remaining authorized amounts of $2,639 million for IDA–15 would be 

provided in two installments of about $1,320 million a year in 2010 

and 2011. We estimate that making those contributions would cost 

$2,639 million over the 2010–2014 period. 

Multilateral Debt Relief Initiative 

S. 954 also would authorize the appropriation of up to $356 million to meet potential shortfalls in the U.S. commitment to compensate IDA for debts cancelled under the MDRI during the IDA– 

15 replenishment period. 

The Treasury Department has indicated that it expects to fund 

most or all of the United States’ MDRI commitment of $356 million 

for IDA–15 by accelerating the encashment (payment) schedule for 

U.S. replenishment payments to IDA–15. Under the department’s 

plan, those payments would be completed in four years—by 2012— 

rather than the nine years that would otherwise be allotted. Based 

on a formula negotiated with IDA, those early payments would 

earn credits towards the U.S. MDRI commitment because of the 

additional interest IDA would earn. Based on information provided 

by the Treasury Department on this early encashment income, 

CBO estimates that additional appropriations would be required to 

meet the U.S. MDRI commitment. Assuming appropriation and accelerated encashment of the estimated amounts over the 2009– 

2012 period, CBO estimates that authorizing such appropriations 

would cost about $5 million in 2012. 

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

S. 954 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: John Chin 

Impact on State, Local, and Tribal Governments: Jacob Kuipers 


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Impact on the Private Sector: Burke Doherty 

Estimate approved by: 

Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to Rule XXVI, paragraph 11(b) of the Standing Rules 

of the Senate, the committee has determined that there is no regulatory impact as a result of this legislation. 

VI. CHANGES IN EXISTING LAW

In compliance with Rule XXVI, paragraph 12 of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman). 

International Development Association Act 

* * * * * * * 

SEC. 23. FOURTEENTH REPLENISHMENT. 

(a) The United States Governor International Development Association is authorized to contribute on behalf of the United States 

$2,850,000,000 to the fourteenth replenishment of the resources of 

the Association, subject to obtaining the necessary appropriations. 

(b) In order to pay for the United States contribution provided 

for in subsection (a), there are authorized to be appropriated, without fiscal year limitation, $2,850,000,000 for payment by the Secretary of the Treasury. 

SEC. 24. FIFTEENTH REPLENISHMENT. 

(a) The United States Governor of the International Development 

Association is authorized to contribute, on behalf of the United 

States, $3,705,000,000 to the fifteenth replenishment of the resources 

of the Association, subject to obtaining the necessary appropriations. 

(b) In order to pay for the United States contribution provided for 

in subsection (a), there are authorized to be appropriated 

$3,705,000,000 for payment by the Secretary of the Treasury. 

SEC. 25. MULTILATERAL DEBT RELIEF. 

(a) The Secretary of the Treasury is authorized to contribute, on 

behalf of the United States, not more than $356,000,000 to the 

International Development Association for the purpose of funding 

debt relief under the Multilateral Debt Relief Initiative in the period 

governed by the fifteenth replenishment of resources of the International Development Association, subject to obtaining the necessary 

appropriations and without prejudice to any funding arrangements 

in existence on the date of the enactment of this section. 

(b) In order to pay for the United States contribution provided for 

in subsection (a), there are authorized to be appropriated, without 

fiscal year limitation, not more than $356,000,000 for payment by 

the Secretary of the Treasury. 

(c) In this section, the term ‘‘Multilateral Debt Relief Initiative’’ 

means the proposal set out in the G8 Finance Ministers’ Communique entitled ‘‘Conclusions on Development,’’ done at London, June 


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11, 2005, and reaffirmed by G8 Heads of State at the Gleneagles 

Summit on July 8, 2005. 

International Financial Institutions Act 

* * * * * * * 

TITLE XIII.—THE ENVIRONMENT 

* * * * * * * 

SEC. 1307. ASSESSMENT OF ENVIRONMENTAL IMPACT OF PROPOSED 

MULTILATERAL DEVELOPMENT BANK ACTIONS. 

* * * * * * * 

SEC. 1308. EXPANSION OF CLIMATE CHANGE MITIGATION ACTIVITIES 

OF, AND USE OF GREENHOUSE GAS ACCOUNTING BY, MULTILATERAL DEVELOPMENT BANKS. 

(a) USE OF GREENHOUSE GAS ACCOUNTING.—The Secretary of the 

Treasury shall seek to ensure that multilateral development banks 

(as defined in section 1701(c)(4)) adopt and implement greenhouse 

gas accounting in analyzing the benefits and costs of individual 

projects (excluding those with de minimus greenhouse gas emissions) for which funding is sought from the bank. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that adopting and implementing greenhouse gas accounting includes— 

(1) calculating net greenhouse gas flows; 

(2) establishing uniform calculation techniques, with provision for modification as professional standards evolve; 

(3) making public the calculation techniques and calculations; 

(4) measuring greenhouse gas emissions of individual 

projects; 

(5) considering global social costs of the emissions when evaluating the economic cost benefit of such projects; and 

(6) performing greenhouse gas accounting for each such 

project. 

(c) EXPANSION OF CLIMATE CHANGE MITIGATION ACTIVITIES.—The 

Secretary of the Treasury shall work to ensure that the multilateral 

development banks (as defined in section 1701(c)(4)) expand their 

activities supporting climate change mitigation by— 

(1) expending support for investments in energy efficiency and 

renewable energy; 

(2) reviewing all proposed infrastructure investments to ensure that all opportunities for integrating viable energy efficiency measures have been considered; 

(3) increasing the dialogue with the governments of developing countries regarding-- 

(A) analysis and policy measures needed for low carbon 

emission economic development; and 

(B) reforms needed to promote private sector engagement 

in renewable and energy efficiency investments; and 

(4) integrate low carbon emission economic development objectives into multilateral development bank country strategies. 

(d) REPORT TO CONGRESS.—NOT LATER THAN 1 YEAR AFTER THE

DATE OF THE ENACTMENT OF THIS SECTION, AND ANNUALLY THEREAFTER, THE SECRETARY OF THE TREASURY SHALL SUBMIT A REPORT

ON THE STATUS OF EFFORTS TO IMPLEMENT THIS SECTION TO THE


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COMMITTEE ON FOREIGN RELATIONS OF THE SENATE AND THE COM- MITTEE ON FINANCIAL SERVICES OF THE HOUSE OF REPRESENTA- TIVES. 

Æ 


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