89–010 

Calendar No. 227 

111TH CONGRESS REPORT " ! SENATE 1st Session 111–107 

OVERSEAS PRIVATE INVESTMENT CORPORATION 

REAUTHORIZATION ACT OF 2009 

DECEMBER 15, 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. 705] 

The Committee on Foreign Relations, having had under consideration the bill S. 705, to reauthorize the programs of the Overseas 

Private Investment Corporation, and for other purposes, reports favorably thereon and recommends that the bill do pass. 

CONTENTS 

Page 

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

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

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

IV. Cost Estimate ................................................................................................. 9 

V. Evaluation of Regulatory Impact .................................................................. 13 

VI. Changes in Existing Law .............................................................................. 13 

I. PURPOSE

The purpose of S. 705 is to reauthorize the programs of the Overseas Private Investment Corporation. 

II. COMMITTEE ACTION

S. 705 was introduced by Senators Kerry and Lugar on March 

25, 2009. On March 31, 2009, the committee ordered S. 705 reported favorably by voice vote. 

III. DISCUSSION

S. 705, the ‘‘Overseas Private Investment Corporation Reauthorization Act of 2009’’ reauthorizes the agency through September 30, 

2013. It strengthens the agency’s development mandate and ensures that its activities are consistent with United States foreign 

policy objectives. The Overseas Private Investment Corporation 

(OPIC) is an independent agency of the United States established 


jbell on DSKDVH8Z91PROD with REPORTS
2 

in 1971. OPIC’s mandate is to mobilize and facilitate the participation of the U.S. private sector in the economic and social development of less developed countries, thereby complementing the development assistance objectives of the United States. OPIC provides 

political risk insurance, project financing, and other financial assistance to U.S. companies in support of these objectives. 

Over the agency’s 38-year history, OPIC projects have generated 

more than $72 billion in U.S. exports and more than 273,000 American jobs while supporting over $188 billion worth of investments 

that have helped developing countries generate almost $15 billion 

in host-government revenues leading to over 821,000 host-country 

jobs. 

The legislation includes several important changes: (1) strengthening transparency requirements to ensure NGOs and other interested groups have sufficient notice and information about potential 

OPIC-supported projects; (2) ensuring extractive industry projects 

supported by OPIC conform to standards and principles established 

by the Extractive Industries Transparency Initiative; and (3) 

strengthening the rights of workers overseas. 

Preferential Consideration of Certain Investment Projects. This 

section amends section 231(f) of the FAA and requires OPIC, to the 

greatest degree practicable and consistent with the Corporation’s 

goals, to provide 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 enable private enterprise to make its full contribution to 

the development process. This does not affect the committee’s longstanding belief that protecting human rights, strengthening the 

rule of law, and promoting democratic governance by the host government are essential elements towards sustainable long-term development. 

Transparency for Extraction Investments. The bill creates a new 

subsection under the climate change mitigation section addressing 

extraction investments. The committee recognizes the problematic 

history of extractive industry projects in developing countries. The 

committee intends for this legislation to provide important transparency safeguards so that OPIC-sponsored projects can best fulfill 

the agency’s development mandate. The legislation directs the Corporation to provide notice to Congress not later than 60 days before 

approval of extractive industry projects, defined as those which are 

Category A and valued at $10,000,000 or more. 

In general, the Corporation may approve a contract of insurance, 

reinsurance, a guaranty, or provide financing to an eligible investor 

for a project that significantly involves an extractive industry only 

if: (1) the eligible investor has agreed to implement Extractive Industries Transparency Initiative (EITI) principles and criteria, or 

substantially similar principles and criteria related to the specific 

project to be carried out; and (2) the host country where the project 

is to be carried out has committed to EITI principles and criteria 

or substantially similar principles and criteria, or the host country 

is taking the necessary steps to establish functioning systems. 

Functioning systems include: accurately accounting for revenues 

and expenditures in connection with extraction; the independent 

audit of such revenues and expenditures and the widespread public 


jbell on DSKDVH8Z91PROD with REPORTS
3 

dissemination of the finding of the audit; and verifying government 

receipts against company payments, including widespread dissemination of such payment information and disclosure of such documents as host government agreements. The legislation includes an 

exception to the above provision and allows for the Corporation to 

approve an extractive industry project, even if the host country has 

not committed to EITI or substantially similar principles and criteria and is not taking the necessary steps to establish functioning 

accounting, auditing and government receipt verification systems, 

provided that the host government does not prevent the eligible investor from implementing EITI or substantially similar principles 

and criteria related to the specific project to be carried out. 

‘‘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. 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; 

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; and 

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

Finally, this section requires the Corporation, to the extent practicable and consistent with its development objectives, to give preference to projects where both the eligible investor and host country 

have agreed to implement EITI principles and criteria, or substantially similar principles and criteria. 

Increased Transparency and Public Participation 

The committee commends OPIC for its transparency initiative 

implemented in response to the 2003 reauthorization committee report. This section furthers transparency by amending section 

231A(c)(2) of the FAA to require OPIC to provide advance notice 

and information regarding all projects considered by the Board of 

Directors. The committee wants to ensure there is a robust exchange of information and viewpoints prior to Board discussion of 

potential projects. In the past, public hearings scheduled by OPIC 

to receive views regarding the activities of the Corporation have 

been sparsely attended or cancelled due to lack of attendance. The 

committee believes public input would be enhanced by requiring 

OPIC to make information available in advance about potential 

projects to be voted on by the Board of Directors. The legislation 

is intended to address this information gap and ensure that interVerDate Nov 24 2008 06:49 Dec 17, 2009 Jkt 089010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR107.XXX SR107

jbell on DSKDVH8Z91PROD with REPORTS
4 

ested parties are aware in advance about the public hearing date 

and have sufficient information in order to prepare for such a hearing. 

The legislation directs the Corporation to hold a public hearing 

in order to afford an opportunity for any person to present view regarding the activities of the Corporation. It shall notice such a 

hearing at least 20 days in advance. To ensure participants are 

adequately prepared for such a hearing, at least 15 days in advance, the Corporation shall make available a public summary of 

each project, not including any confidential business information, 

including information related to workers rights, as well as information related to the project’s social and environmental impacts. 

The legislation also directs the Corporation to make available to 

the public the detailed methodology used to assess and monitor the 

impact of projects supported by the Corporation related to hostcountry environmental and development impact, project impact toward employment in the United States and the protection of internationally recognized worker rights, as well as the elimination of 

discrimination with respect to employment and occupation, in host 

countries. 

The legislation furthers additional transparency toward ‘‘Category A’’ projects, which are projects that have a significant adverse environmental impact. ‘‘Category A project’’ means a project 

or other activity for which the Corporation proposes to provide insurance, reinsurance, a guaranty, financing, or other assistance 

and which is likely to have a significant adverse environmental impact. 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. Such summaries, which shall not include confidential business information, shall be made available to groups in 

the area that may be impacted by the proposed project and to 

NGOs in the host country. To the extent practicable, the Corporation shall publish responses to comments received 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 for action on the 

project. 

The committee commends the Corporation for establishing an Office of Accountability. The Corporation shall continue to maintain 

an Office of Accountability to provide, to the maximum extent practicable, upon request, problem-solving services for projects supported by the Corporation and to review the Corporation’s compliance with its environmental, social, internationally recognized 

worker rights, human rights, and transparency policies and procedures. The committee expects the Office of Accountability to continue to operate in a manner that is fair, objective, and transparent. 

The committee expects that: 

• The transparency commitments made by OPIC Acting President in his April 7, 2009 letter to the Committee on Foreign 

Relations for the Senate and the Committee on Foreign Affairs 

for the House of Representatives, will be faithfully implemented by the Corporation, and will apply consistently to all 


jbell on DSKDVH8Z91PROD with REPORTS
5 

projects and subprojects. OPIC’s commitment to improved coordination with locally affected communities found in the September 21, 2006 OPIC Anti-Corruption and Transparency Initiative Fact Sheet will also be faithfully implemented. In addition, the brief project summaries will identify environmental 

and social policies that will be applied to the project and subprojects will include developmental, labor, and worker rights 

policies. 

• OPIC’s definition of ‘‘business confidential’’ should be consistent with FOIA definition as per 5 U.S.C. § 552(b)(4) and 

pursuant to the guidance of the U.S. Department of Justice. 

• Mandatory Board approval (and 60 day public notice and comment period) should be required for all Category A projects. 

• Within one year of the date of enactment of this act, the OPIC 

Board of Directors should consider a proposal to include discussion and/or votes on projects as part of the open session of 

board meetings. 

• The statutorily required review of proposed OPIC assessment 

and monitoring methodology should include the subsequent revision of this methodology. This review and revision will recur 

on every 3 years, and a minimum of 60 days of public comment 

will be provided. A summary of the project monitoring reports 

should also be disclosed. 

• Regarding 60 day public notice and comment period for Category A projects, detailed information, including documentation 

that project related information has been made available to potentially affected peoples in the host country in a language and 

manner of distribution that is accessible to them, will be required to be made available at least 60 days in advance of the 

Board meeting 

• All new Host Country Notifications, Third Party Independent 

Audits Certification and Summaries of Category A Projects and 

Subprojects for which OPIC received an application after the 

effective date of OPIC’s Transparency Initiative commitments, 

will be made publicly available on OPIC’s website as soon as 

they are issued. 

• Statutory requirements for the Office of Accountability will result in independence of budget and power to approve expenditures associated with that budget, and its ability to carry out 

investigations and analysis should not be dictated by OPIC 

management. This includes, but is not limited to, the freedom 

of the Office of Accountability staff and its designates to travel 

in fulfillment of the Office of Accountability’s duties. 

Investment Funds and Other Financial Intermediaries 

The committee expects that: 

• All requirements for OPIC projects should be applied to ‘‘subprojects,’’ investment funds, and other financial intermediaries. 

• All Category A subprojects should be approved by OPIC and 

include the public comment period and publication of environmental and social assessments. 

• Contract language: Language pertaining to environmental, 

social and labor requirements must be written into all conVerDate Nov 24 2008 06:49 Dec 17, 2009 Jkt 089010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR107.XXX SR107

jbell on DSKDVH8Z91PROD with REPORTS
6 

tracts between OPIC-supported investment funds, financial 

intermediaries and the companies and ‘‘subprojects’’ in which 

they invest. 

The committee expects that analysis of fund performance in the 

Annual Report shall identify and describe each subproject supported by OPIC Investment Funds, including an analysis of the 

performance of each fund. Such analysis shall identify the domicile 

of each fund, all subprojects of each fund, the categorization of each 

subproject (i.e. category A, B), and provide descriptions of environmental and social impacts of each subproject. 

Given the current financial climate and the opaque nature of offshore funds, the committee expects that OPIC will continue to take 

every precaution to ensure that any funds domiciled offshore meet 

the requirements of all relevant U.S. statutes. 

Ineligibility of Persons Doing Certain Business with State Sponsors of Terrorism. The bill adds a new subsection (m) to Section 

239 of the FAA to make ineligible for OPIC assistance persons with 

certain business activity in or with state sponsors of terrorism. 

This will ensure that OPIC assistance will not go towards entities, 

parent companies or affiliates that are engaged in a discouraged 

transaction with a ‘‘state sponsor of terrorism.’’ 

The legislation is meant to strike a balance between concern that 

the Corporation refrain from directing any support towards entities 

engaged in a discouraged transaction with a state sponsor of terrorism, while ensuring the Corporation is able to function in an effective and efficient manner and that certification requirements 

will not have a chilling effect on potential applicants. 

The Corporation has provided the committee with assurances 

that the certification required by this section will require the certifying officer to affirm that they have taken measures necessary to 

determine whether their firm and any applicable affiliated entities 

are engaged in discouraged transactions, and if necessary, has received any information and cooperation from affiliated entities 

needed to make the certification. 

‘‘State sponsor of terrorism’’ means any country the government 

of which the Secretary of State has determined has repeatedly provided support for acts of international terrorism pursuant to the 

Export Administration Act of 1979 and the Arms Export Control 

Act. This does not include Southern Sudan, Southern Kordofan/ 

Nuba Mountains State, Blue Nile State, and Abyei, Darfur, if the 

Corporation, with concurrence of the Secretary of State, Determines that providing assistance for projects in such regions will 

provide emergency relief, promote economic self-sufficiency, or implement a nonmilitary program in support of a viable peace agreement in Sudan. 

OPIC officials have committed to consult closely with the Secretary of State to ensure that any support provided to projects 

within Gaza is consistent with U.S. policy objectives. In addition, 

the committee expects the Corporation to consult with Senate Committee on Foreign Relations and the House Committee on Foreign 

Affairs before approval of assistance to such projects. 

Increasing Project Requirements Regarding Employment. This 

section amends section 231A of the Foreign Assistance Act (FAA) 

to require OPIC to take certain measures to strengthen the rights 


jbell on DSKDVH8Z91PROD with REPORTS
7 

of workers overseas. The committee believes that promoting internationally recognized worker rights is an integral component of 

U.S. foreign policy, and OPIC plays an important role in this effort. 

The bill directly links workers rights standards in OPIC-supported 

projects to standards established under the Generalized System of 

Preferences (GSP) in the Trade Act of 1974 and directs that the 

Corporation can only provide assistance to prospective applicants 

if: 1) the country in which the project is to be undertaken is eligible 

under GSP; or 2) the country in which the project is to be undertaken is not eligible under GSP but has taken or is taking steps 

to afford workers in the country internationally recognized worker 

rights. 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 directed towards those countries that fail to respect internationally 

recognized worker rights. The committee also expects OPIC to carefully review all project applications to ensure that project sponsors 

have not previously committed, or are currently committing, significant violations of internationally recognized worker rights. 

OPIC should monitor project compliance, and review any complaints related to a project. 

‘‘Internationally recognized worker rights’’ follows the definition 

provided in section 507(4) of the Trade act of 1974. The worker 

rights limitation does not apply to the provision of humanitarian 

services. If Congress raises GSP workers rights standards, then 

workers rights standards for OPIC projects in GSP eligible countries will also increase. The legislation directs OPIC to refer to information contained in reports required by this Act and the Trade 

Act of 1974 as well as other relevant information—including observations, reports and recommendations of the International Labor 

Organization—when making worker rights determinations for purposes of project eligibility. In addition, the legislation removes a 

waiver previously granted to the president of OPIC allowing the 

Corporation to support projects ‘‘in the national interest’’ that may 

fall below established worker rights standards. Finally, the legislation adds an ‘‘elimination of discrimination with respect to employment and occupation’’ clause to the worker rights standard. 

Climate Change Mitigation. The committee directs OPIC to institute a climate change mitigation action plan. Climate change is 

one of the critical issues facing the international community and 

has especially serious implications for developing countries. The 

committee believes that agencies such as OPIC, whose mandate is 

to promote economic and social development in less developed 

countries, has an important role to play toward mitigating climate 

change and energy security. The committee commends OPIC for 

the strong leadership role it has assumed through its greenhouse 

gas and clean energy initiative, and urges the Corporation to continue to sustain such efforts. To ensure this momentum is not lost, 

the legislation directs the Corporation to establish benchmark 

clean energy technology, climate mitigation and greenhouse gas 

goals. Within 180 days of enactment, the Corporation must institute a plan that will include the following: 

First, OPIC shall establish a goal for substantially increasing 

support of projects that use, develop, or otherwise promote the use 

of clean energy technology during the 10-year period beginning on 


jbell on DSKDVH8Z91PROD with REPORTS
8 

the date of enactment of this Act. This should include preferential 

treatment to evaluating and awarding assistance for projects that 

use, develop, or otherwise promote the use of clean energy technologies. 

Second, when the agency undertakes environmental impact assessments of potential projects, it shall take into account the degree to which the project contributes to the emission of greenhouse 

gases. This subsection applies to all projects, not just those classified as ‘‘Category A,’’ and shall not be construed to eliminate any 

other requirement found elsewhere in law. 

Third, OPIC shall continue to maintain a goal for reducing direct 

greenhouse gas emissions associated with projects in the Corporation’s portfolio by 20 percent during the 10-year period beginning 

on the date of enactment, as well as a goal for limiting annual investment in projects that have significant greenhouse gas emissions in a manner that will help achieve a 20-percent reduction in 

greenhouse gas emissions over 10 years. The Corporation is directed to maintain a goal based on total aggregate greenhouse gas 

emissions of all projects in a manner compatible with the findings 

and actions taken under the United Nations Framework Convention on Climate Change. 

The committee includes the following reporting requirements to 

be included in the Corporation’s annual report: Annual greenhouse 

gas emissions attributable to each project that has significant 

greenhouse gas emissions in the Corporation’s active portfolio; estimated greenhouse gas emissions for each new project that has significant greenhouse gas emissions; extent to which the Corporation 

is meeting its greenhouse gas reduction goals; and a listing of each 

new project supported by the Corporation that involves renewable 

energy and environmentally beneficial products and services, including clean energy technology. In submitting its annual report, 

the ‘‘reporting requirements’’ in this subsection apply to all 

projects, including those implemented through financial intermediaries. 

‘‘Clean technology’’ refers to a renewable energy supply or enduse technology that, compared over its life cycle to a similar technology already in widespread commercial use within a given country, will reduce emissions of greenhouse gases or decrease energy 

intensity of operation, substantially lower emissions of air pollutants, or generate substantially smaller and less hazardous quantities of solid and liquid waste. ‘‘Clean’’ end-use technologies include end-use energy efficiency measures that achieve substantial 

reductions in greenhouse gas emissions. ‘‘Clean’’ end-use technologies do not include HFC-23 abatement projects. 

The committee expects the President of OPIC to provide the following information within one year of the date of enactment of this 

Act: 

• An update of OPIC’s methodology for accounting for GHG 

emissions in consultation with the public. Such methodology 

shall account for all OPIC supported projects and sub-projects 

that have GHG emissions of more than 25,000 tonnes of CO2- equivalent per year. 

• Measures to be taken to reduce GHG emissions of all OPIC 

supported projects and subprojects, as rapidly as practicable, 


jbell on DSKDVH8Z91PROD with REPORTS
9 

all projects and subprojects in which OPIC invests, by at least 

50 percent by 2023 with a goal of limiting new carbon additions in proportional annual increments. 

• Inclusion in each annual report under section 240A: (i) annual 

GHG emissions of the Corporation, (ii) annual GHG emissions 

of each project that OPIC supports that are estimated to emit 

more than 25,000 tonnes of CO2 eq. 

Environmental and Social Guidelines 

The committee has strongly directed the Corporation to issue 

regulations of the highest standards in terms of environmental and 

social guidelines that can be feasibly implemented. Not only should 

these guidelines be no less rigorous than those the Corporation has 

made publicly available as of June 3, 2009 and of the environmental and social policies of the World Bank Group, these guidelines should also incorporate the highest of standards, whether 

from the World Bank Group or other relevant institutions. For example, the Asian Development Bank, having conducted a multiyear process of rewriting its environmental and social policies, proposes that draft full environmental impact assessments for all category A private sector and public sector projects be publicly disclosed 120 days prior to Board consideration, proposes that draft 

full EAIs for Category A subprojects are required to be disclosed 

120 days before approval by the appropriate body (e.g., the ADB 

Board), and proposes that environmental assessments be required 

for all Bank financed or administered projects and their components, regardless of the source of financing (i.e. whether financed 

by the ADB, co-financed, or financed by borrower). 

Scoring. In early 2009, the Congressional Budget Office issued 

a document it described as a ‘‘Notification,’’ which proposed ‘‘to stop 

crediting the Overseas Private Investment Corporation (OPIC) with 

savings of discretionary budget authority from the interest earned 

on its reserves of U.S. Treasury securities.’’ 

While this proposal was not adopted, the committee reexamined 

the relevant statutory requirements, and the committee fully expects that any assessment of OPIC’s capacity to self-fund will include interest income from its holdings of U.S. securities. The committee strongly opposes redefining the interest earned on OPIC’s 

reserves of U.S. Treasury securities as an intra-governmental 

transfer. Such an action would be inconsistent with OPIC’s statutory mandates. 

V. 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. 


jbell on DSKDVH8Z91PROD with REPORTS
10 

UNITED STATES CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, May 7, 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. 705, the Overseas Private 

Investment Corporation Reauthorization 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. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

May 7, 2009. 

S. 705 

OVERSEAS PRIVATE INVESTMENT CORPORATION

REAUTHORIZATION ACT OF 2009 

AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FOREIGN

RELATIONS ON MARCH 31, 2009

SUMMARY 

S. 705 would authorize the Overseas Private Investment Corporation (OPIC) to continue to issue political risk insurance and to 

finance investments in developing countries and emerging market 

economies with direct loans and loan guarantees. This authority, 

which is set to expire at the end of fiscal year 2009 under current 

law, would extend through September 30, 2013. CBO estimates that implementing S. 705 would cost $137 million 

over the 2010–2014 period, assuming appropriation of the estimated amounts. Enacting the bill would not affect direct spending 

or revenues. 

S. 705 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. 705 is shown in the following table. The costs of this legislation fall within budget function 150 (international affairs). 


jbell on DSKDVH8Z91PROD with REPORTS
11 

Changes in Spending Subject to Appropriation Due to S. 705 

By Fiscal Year, in Millions of Dollars 

2010 2011 2012 2013 2014 2010– 

2014 

Administrative Expenses 

Estimated Authorization 

Level .............................. 10 22 32 44 39 148 

Estimated Outlays ........... 9 20 30 42 39 140 

Insurance Program 

Estimated Authorization 

Level .............................. 5 8 10 10 7 40 

Estimated Outlays ........... 2 5 8 9 9 33 

Loan Program 

Estimated Authorization 

Level .............................. 27 19 8 1 –33 23 

Estimated Outlays ........... –1 –4 –9 –11 –11 –36 

Total Changes 

Estimated Authorization Level ............... 42 49 50 55 13 209 

Estimated Outlays .... 10 21 29 40 37 137 

BASIS OF ESTIMATE 

For this estimate, CBO assumes that S. 705 will be enacted before the end of fiscal year 2009, that the necessary funds and authority will be provided in annual appropriation acts each fiscal 

year, and that outlays will follow historical spending patterns for 

OPIC activities. 

OPIC operates a program to insure investors in developing countries and emerging markets against financial losses due to expropriation, currency inconvertibility, and damage resulting from political violence. In addition, OPIC operates a loan program to finance such investment through direct loans and loan guarantees. 

The bill would authorize OPIC to issue new insurance policies, 

loans, and loan guarantees through September 30, 2013. 

The Omnibus Appropriations Act, 2009 (Public Law 111–8) authorized OPIC to continue issuing insurance policies and financing 

investments through the end of fiscal year 2009. Estimated spending under current law therefore assumes that OPIC continues to 

service its outstanding portfolio of insurance and loans and continues to receive interest on its current investments in U.S securities, but that it issues no new policies and finances no new investments after September 30, 2009. 

Administrative Expenses 

In 2009, OPIC received appropriations of $51 million for administrative expenses. CBO expects that under current law (that is, 

without reauthorization) total appropriations for administrative expenses would decline gradually from the 2009 level to the minimum amount necessary to service its outstanding insurance and 

loans. CBO estimates that if the programs are reauthorized total 

appropriations for administrative expenses would remain at 2009 

levels, adjusted for inflation, through 2013. Administrative expenses thereafter would only be needed to service outstanding insurance and loans. CBO estimates that under the bill additional 


jbell on DSKDVH8Z91PROD with REPORTS
12 

administrative costs would total $140 million over the 2010-2014 

period, assuming appropriation of the necessary amounts. 

Insurance Program 

CBO expects that under current law insurance premiums and 

claim payments would decline each year, based on historical data 

showing that about 20 percent of insurance policies are cancelled 

or reduced each year. CBO also anticipates that there would be no 

further obligations for project-specific expenses or various activities 

to encourage investment. Under the bill, CBO assumes that OPIC’s 

insurance portfolio, premiums, and claims would remain at the estimated 2009 level through 2013. Given that claim payments have 

exceeded premiums in recent years, we estimate that, excluding 

relevant administrative expenses, extending the authority for 

OPIC’s insurance program would result in a net cost of $33 million 

(claims paid out minus premiums paid in) over the 2010–2014 period. 

Loan Program 

In 2009, OPIC received an appropriation of $29 million for the 

cost of loan subsidies as defined in the Federal Credit Reform Act. 

CBO expects that under current law subsidy costs would decline 

gradually from the 2009 level as disbursement of approved loans 

also decline. CBO estimates that under the bill subsidy costs would 

remain at 2009 levels, adjusted for inflation, through 2013. CBO 

estimates that additional subsidy costs under the bill would total 

$60 million over the 2010–2014 period. 

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

such receipts would decline gradually from an estimated $40 million in 2009 to $5 million in 2014. We estimate that under the bill 

those collections would increase by $96 million over the 2010–2014 

period. 

Thus, CBO estimates that, excluding relevant administrative expenses, reauthorizing OPIC’s loan program would result in a net 

savings of $36 million over the 2010–2014 period—$60 million in 

additional costs minus $96 million in additional receipts. 

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT 

S. 705 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 

IMPACT ON THE PRIVATE SECTOR: Burke Doherty 

ESTIMATE APPROVED BY: 

Theresa Gullo, Deputy Assistant Director for Budget Analysis. 


jbell on DSKDVH8Z91PROD with REPORTS
13 

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). 

The Foreign Assistance Act of 1961 

* * * * * * * 

TITLE IV—OVERSEAS PRIVATE INVESTMENT CORPORATION

SEC. 231. CREATION, PURPOSE AND POLICY.— * * * 

* * * * * * * 

In carrying out its purpose, the Corporation, utilizing broad criteria, shall undertake— 

(a) to conduct financing, insurance, and reinsurance operations 

on a self-sustaining basis, taking into account in its financing operations the economic and financial soundness of projects; 

* * * * * * * 

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 the greatest degree practicable and consistent with the goals 

of the Corporation, to give preferential consideration to investment 

projects in any less developed country the government of which is 

receptive to both domestic and foreign private enterprise and to 

projects in any country the government of which is willing and able 

to maintain conditions that enable private enterprise to make a full 

contribution to the development process; 

* * * * * * * 

(m) to refuse to insure, reinsure, or finance any investment subject to performance requirements which would reduce substantially 

the positive trade benefits likely to accrue to the United States 

from the investment; øand¿ 

(n) to refuse to insure, reinsure, guarantee, or finance any investment in connection with a project which the Corporation determines will pose an unreasonable or major environmental, health, 

or safety hazard, or will result in the significant degradation of national parks or similar protected areasø.¿; and 

(o) to decline to issue any contract of insurance or reinsurance, or 

any guaranty, or to enter into any agreement to provide financing 

or any other assistance for a prospective eligible investor who enters, 

directly or through an affiliate, into certain discouraged transactions with a state sponsor of terrorism. 

SEC. 231A. ADDITIONAL REQUIREMENTS.—ø(a) WORKER RIGHTS.— 


jbell on DSKDVH8Z91PROD with REPORTS
14 

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: 

ø‘‘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. 

ø(4) 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) 227 of the Trade Act of 1974.¿ 

(a) INCREASING PROJECT REQUIREMENTS REGARDING EMPLOY- MENT.— 

(1) IN GENERAL.—The Corporation may insure, reinsure, 

guaranty, or finance a project only if— 

(A) the country in which the project is to be undertaken 

is eligible for designation as a beneficiary developing country under the Generalized System of Preferences (19 U.S.C. 

2461 et seq.) and has not been determined to be ineligible 

for such designation on the basis of section 502(b)(2)(G) of 

the Trade Act of 1974 (19 U.S.C. 2462(b)(2)(G)) (relating to 

internationally recognized worker rights), or section 

502(b)(2)(H) of such Act (19 U.S.C. 2462(b)(2)(H) (relating 

to the worst forms of child labor); or 

(B) the country in which the project is to be undertaken 

is not eligible for designation as a beneficiary country 

under the Generalized System of Preferences, the government of that country has taken or is taking steps to afford 

workers in the country (including any designated zone or 


jbell on DSKDVH8Z91PROD with REPORTS
15 

special administrative region or area in that country) internationally recognized worker rights (as defined in section 

507(4) of the Trade Act of 1974) (19 U.S.C. 2467(4)). 

(2) LIMITATION INAPPLICABLE.—The limitation contained in 

paragraph (1) shall not apply to providing assistance for humanitarian services. 

(3) USE OF REPORTS.—The Corporation shall, in implementing paragraph (1), consider— 

(A) information contained in the reports required by sections 116(d) and 502B(b) of this Act and the report required by section 504 of the Trade Act of 1974 (19 U.S.C. 

2464); 

(B) other relevant sources of information readily available to the Corporation, including observations, reports, 

and recommendations of the International Labour Organization; and 

(C) information provided in the hearing required under 

subsection (c). 

(4) CONTRACT LANGUAGE.—The Corporation shall include the 

following language, in substantially the following form, in all 

contracts which the Corporation enters into with eligible investors to provide support under this title: 

‘‘The investor agrees not to take any actions to obstruct or prevent employees of the foreign enterprise from exercising the employees’ internationally recognized worker rights (as defined in 

section 507(4) of the Trade Act of 1974) (19 U.S.C. 2467(4)) and 

the investor agrees to adhere to the obligations regarding those 

rights. The investor agrees to prohibit discrimination with respect to employment and occupation.’’ 

(5) PREFERENCE TO CERTAIN COUNTRIES.—Consistent with its 

development objectives, the Corporation shall give preferential 

consideration to projects in countries that— 

(A) have adopted and maintained, in the country’s laws 

and regulations, internationally recognized worker rights, 

as well as the elimination of discrimination with respect to 

employment and occupation; and 

(B) are effectively enforcing those laws. 

* * * * * * * 

(c) PUBLIC HEARINGS.—(1) The Board shall hold at least one public hearing each year in order to afford an opportunity for any person to present views as to whether the Corporation is carrying out 

its activities in accordance with section 231 and this section or 

whether any investment in a particular country should have been 

or should be extended insurance, reinsurance, guarantees, or financing under this title. 

ø(2) In conjunction with each meeting of its Board of Directors, 

the Corporation shall hold a public hearing in order to afford an 

opportunity for any person to present views regarding the activities 

of the Corporation. Such views shall be made part of the record.¿ 

(2) In conjunction with each meeting of its Board of Directors, the 

Corporation shall hold a public hearing in order to afford an opportunity for any person to present views regarding the activities of the 

Corporation. The Corporation shall provide notice of the hearing at 

least 20 days in before the hearing. At least 15 days in before the 

hearing the Corporation shall make available a public summary of 


jbell on DSKDVH8Z91PROD with REPORTS
16 

each project, including information related to workers rights, to be 

considered at the meeting. The Corporation shall not include any 

confidential business information in the summary made available 

under this subsection. Any views expressed at the hearing or in written comments shall be made part of the record. 

* * * * * * * 

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 

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. 

øThe 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) EQUITY AUTHORITY LIMITED TO PROJECTS IN SUB-SAHA- RAN AFRICA AND CARIBBEAN BASIN AND MARINE TRANSPOR- TATION PROJECTS GLOBALLY.—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 and in 

marine transportation projects in countries and areas eligible 

for OPIC support worldwide using United States commercial 

maritime expertise. 

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. 


jbell on DSKDVH8Z91PROD with REPORTS
17 

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(5) IMPLEMENTATION.—To the extent provided in advance in 

appropriations Acts, the Corporation is authorized to create 

such legal vehicles as may be necessary for implementation of 

its authorities, which legal vehicles may be deemed non-Federal borrowers for purposes of the Federal Credit Reform Act 

of 1990. Income and proceeds of investments made pursuant to 

this section 234(g) may be used to purchase equity or quasi-equity securities in accordance with the provisions of this section: 

Provided, however, That such purchases shall not be limited to 

the 4-year period of the pilot program: Provided further, That 

the limitations contained in section 234(g)(2) shall not apply to 

such purchases. 

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) eligible investors, or 

(2) local financial institutions, guaranties, denominated in 

currencies other than United States dollars, of loans and other 

investments made to projects sponsored by or significantly involving eligible investors, assuring against loss due to such 

risks and upon such terms and conditions as the Corporation 

may determine, for projects that the Corporation determines to 

have significant developmental effects or as the Corporation 

determines to be necessary or appropriate to carry out the purposes of this title. 

* * * * * * * 

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

Corporation is hereby authorized to do the following: 

(a) INVESTMENT INSURANCE.—(1) To issue insurance, upon such 

terms and conditions as the Corporation may determine, to eligible 

investors assuring protection in whole or in part against any or all 

of the following risks with respect to projects which the Corporation has approved— 

* * * * * * * 

(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 


jbell on DSKDVH8Z91PROD with REPORTS
18 

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. 

* * * * * * * 

SEC. 234A. ENHANCING PRIVATE POLITICAL RISK INSURANCE INDUSTRY. 

* * * * * * * 

SEC. 234B. EXTRACTION INVESTMENT. 

(a) EXTRACTION INVESTMENTS.— (1) PRIOR NOTIFICATION TO CONGRESSIONAL COMMITTEES.— (A) IN GENERAL.—The Corporation shall provide notice of 

consideration of approval of a project described in subparagraph (B) to the Committees on Foreign Relations and Appropriations of the Senate and the Committees on Foreign 

Affairs and Appropriations of the House of Representatives 

not later than 60 days before approval of such project. 

(B) PROJECT DESCRIBED.—A project described in this subparagraph is a Category A project (as defined in section 

237(q)(3)) relating to an extractive industry project or any 

extractive industry project for which the assistance to be 

provided by the Corporation is valued at $10,000,000 or 

more (including contingent liability). 

(2) COMMITMENT TO EITI PRINCIPLES.— (A) IN GENERAL.—Except as provided in subparagraph 

(B), the Corporation may approve a contract of insurance, 

reinsurance, a guaranty, or enter into an agreement to provide financing to an eligible investor for a project that significantly involves an extractive industry only if— 

(i) the eligible investor has agreed to implement the 

Extractive Industries Transparency Initiative principles and criteria, or substantially similar principles 

and criteria related to the specific project to be carried 

out; and 

(ii)(I) 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; or 

(II) the host country where the project is to be carried 

out has in place or is taking the necessary steps to establish functioning systems for— 

(aa) accurately accounting for revenues and expenditures in connection with the extraction and 

export of the type of natural resource to be extracted or exported; 

(bb) the independent audit of such revenues and 

expenditures and the widespread public dissemination of the finding of the audit; and 


jbell on DSKDVH8Z91PROD with REPORTS
19 

(cc) verifying government receipts against company payments, including widespread dissemination of such payment information, and disclosure 

of such documents as host government agreements, 

concession agreements, and bidding documents, 

and allowing in any such dissemination or disclosure for the redaction of, or exceptions for, information that is commercially proprietary or that 

would create a competitive disadvantage. 

(B) EXCEPTION.—If a host country does not meet the requirements of subparagraph (A)(ii) (I) or (II), the Corporation may approve a contract of insurance, reinsurance, or 

a guaranty, or enter into an agreement to provide financing 

for a project in the host country if the Corporation determines it is in the foreign policy interest of the United States 

for the Corporation to provide support for the project in the 

host country and the host country does not prevent an eligible investor from complying with subparagraph (A)(i). 

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

projects that significantly involve an extractive industry, the 

Corporation, to the extent practicable and consistent with the 

Corporation’s development objectives, shall give preference to a 

project in which 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) EFFECT ON OTHER REQUIREMENTS.—Nothing in this subsection shall affect the limitations and prohibitions with respect 

to direct investments described in section 234(c). 

(5) REPORTING REQUIREMENT.—The Corporation shall include in each annual report required under section 240A a description of its activities to carry out this subsection. 

(b) 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 (except rock used for construction purposes), or coal. 

SEC. 235. ISSUING AUTHORITY, DIRECT INVESTMENT AUTHORITY AND 

RESERVES.— 

(a) ISSUING AUTHORITY.— 

(1) INSURANCE AND FINANCING.—(A) The maximum contingent liability outstanding at any one time pursuant to insurance issued under section 234(a), and the amount of financing 

issued under sections 234(b) and (c), shall not exceed in the aggregate $29,000,000,000. 

(B) Subject to spending authority provided in appropriations 

Acts pursuant to section 504(b) of the Federal Credit Reform 

Act of 1990, the Corporation is authorized to transfer such 

sums as are necessary from its noncredit activities to pay for 

the subsidy and administrative costs of the investment guaranties and direct loan programs under subsections (b) and (c) of 

section 234. 


jbell on DSKDVH8Z91PROD with REPORTS
20 

(2) TERMINATION OF AUTHORITY.—The authority of subsections (a), (b), and (c) of section 234 shall continue until 

ø2007¿ September 30, 2013. 

* * * * * * * 

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. 

SEC. 237. GENERAL PROVISIONS RELATING TO INSURANCE GUARANTY, AND FINANCING PROGRAM.—(a) Insurance guaranties, and reinsurance issued under this title shall cover investment made in 

connection with projects in any less developed friendly country or 

area with the government to which the President of the United 

States has agreed to institute a program for insurance, guaranties, 

or reinsurance. 

* * * * * * * 

(j) Each insurance, reinsurance, and guaranty contract executed 

by such officer or officers as may be designated by the Board shall 


jbell on DSKDVH8Z91PROD with REPORTS
21 

be conclusively presumed to be issued in compliance with the requirements of this Act. 

* * * * * * * 

(m)(1) Before finally providing insurance, reinsurance, guarantees, or financing under this title for any environmentally sensitive 

investment in connection with a project in a country, the Corporation shall notify appropriate government officials of that country 

of— 

(A) all guidelines and other standards adopted by the International Bank for Reconstruction and Development and any 

other international organization relating to the public health 

or safety or the environment which are applicable to the 

project; and 

(B) to the maximum extent practicable, any restriction under 

any law of the United States relating to public health or safety 

or the environment that would apply to the project if the 

project were undertaken in the United States. 

The notification under the preceding sentence shall include a 

summary of the guidelines, standards, and restrictions referred to 

in subparagraphs (A) and (B), and may include any environmental 

impact statement, assessment, review, or study prepared with respect to the investment pursuant to section ø239(g)¿ 239(f). 

* * * * * * * 

(o) USE OF LOCAL CURRENCIES.—Direct loans or investments 

made in order to preserve the value of funds received in inconvertible foreign currency by the Corporation as a result of activities 

conducted pursuant to section 234(a) shall not be considered in determining whether the Corporation has made or has outstanding 

loans or investments to the extent of any limitation on obligations 

and equity investment imposed by or pursuant to this title. The 

provisions of section 504(b) of the Federal Credit Reform Act of 

1990 shall not apply to direct loan obligations made with funds described in this subsection. 

(p) REVIEW OF METHODOLOGY.—Not later than 180 days after the 

date of the enactment of the Overseas Private Investment Corporation Reauthorization Act of 2009, the Corporation shall make available to the public the methodology, including relevant regulations, 

used to assess and monitor the impact of projects supported by the 

Corporation— 

(1) on employment in the United States; 

(2) on development and the environment in host countries; 

and 

(3) on the protection of internationally recognized worker 

rights, as well as the elimination of discrimination with respect 

to employment and occupation, in host countries. 

(q) PUBLIC NOTICE PRIOR TO PROJECT APPROVAL.— 

(1) PUBLIC NOTICE.— 

(A) IN GENERAL.—The Board of Directors of the Corporation may not vote in favor of any action proposed to be 

taken by the Corporation on a Category A project before the 

date that is 60 days after the Corporation— 

(i) makes available for public comment a summary of 

the project and relevant information about the project; 

and 


jbell on DSKDVH8Z91PROD with REPORTS
22 

(ii) such summary and information described in 

clause (i) has been made available to groups in the 

area that may be impacted by the proposed project and 

to nongovernmental organizations in the host country. 

(B) EXCEPTION.—The Corporation shall not include any 

confidential business information in the summary and information made available under clauses (i) and (ii) of subparagraph (A). 

(2) PUBLISHED RESPONSE.—To the extent practicable, the Corporation shall publish responses to the comments received 

under paragraph (1)(A)(i) 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) CATEGORY A PROJECT DEFINED.—The term ‘‘Category A 

project’’ means any project or other activity for which the Corporation proposes to provide insurance, reinsurance, a guaranty, financing, or other assistance under this title and which 

is likely to have a significant adverse environmental impact. 

(r) OFFICE OF ACCOUNTABILITY.—The Corporation shall maintain 

an Office of Accountability to provide, to the maximum extent practicable, upon request, problem-solving services for projects supported 

by the Corporation and review of the Corporation’s compliance with 

its environmental, social, internationally recognized worker rights, 

human rights, and transparency policies and procedures. The Office 

of Accountability shall operate in a manner that is fair, objective, 

and transparent. 

(s) 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 a railway connection or railway-related connection that connects Azerbaijan and Turkey without connecting or 

traversing with Armenia. 

SEC. 239. GENERAL PROVISIONS AND POWERS.—(a) The Corporation shall have its principal office in the District of Columbia and 

shall be deemed, for purposes of venue in civil actions, to be resident thereof. 

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. 

(2) An independent certified public accountant shall perform a financial and compliance audit of the financial statements of the 

Corporation at least once every three years, in accordance with 

generally accepted Government auditing standards for a financial 

and compliance audit, as issued by the Comptroller General. The 

independent certified public accountant shall report the results of 

such audit to the Board. The financial statements of the CorporaVerDate Nov 24 2008 06:49 Dec 17, 2009 Jkt 089010 PO 00000 Frm 00022 Fmt 6659 Sfmt 6602 E:\HR\OC\SR107.XXX SR107

jbell on DSKDVH8Z91PROD with REPORTS
23 

tion shall be presented in accordance with generally accepted accounting principles. These financial statements and the report of 

the accountant shall be included in a report which contains, to the 

extent applicable, the information identified in section 9106 of title 

31, United States Code, and which the Corporation shall submit to 

the Congress not later than six and one-half months after the end 

of the last fiscal year covered by the audit. The General Accounting 

Office may review the audit conducted by the accountant and the 

report to the Congress in the manner and at such times as the 

General Accounting Office considers necessary. 

(3) In lieu of the financial and compliance audit required by 

paragraph (2), the Government Accountability Office shall, if the 

Office considers it necessary or upon the request of the Congress, 

audit the financial statements of the Corporation in the manner 

provided in paragraph (2). The Corporation shall reimburse the 

Government Accountability Office for the full cost of any audit conducted under this paragraph. 

(4) All books, accounts, financial records, reports, files, 

workpapers, and property belonging to or in use by the Corporation 

and the accountant who conducts the audit under paragraph (2), 

which are necessary for purposes of this subsection, shall be made 

available to the representatives of the Government Accountability 

Office. 

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 imposed 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 


jbell on DSKDVH8Z91PROD with REPORTS
24 

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,334 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 insures, 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. 

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 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. 


jbell on DSKDVH8Z91PROD with REPORTS
25 

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) CONGRESSIONAL NOTIFICATION OF INCREASE IN MAXIMUM

CONTINGENT LIABILITY.—The Corporation shall notify the Committee on Foreign Relations of the Senate and the Committee on 

Foreign Affairs of the House of Representatives not later than 15 

days after the date on which the Corporation’s maximum contingent 

liability outstanding at any time pursuant to insurance issued 

under section 234(a), and the amount of finfncing issued under section 234(b) and (c), exceeds the Corporation’s maximum contingent 

liability for the preceding fiscal year by 25 percent or more. 

(l) 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 2009, 

the Corporation may select persons to manage the fund only by 

contract using competitive precedures that are full and open. 

(2) CRITERIA FOR SELECTION.—In assessing a proposal for investment fund management, 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 the countries in which the management operates, including details 

of local presence (directly or through local alliances). 

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

fiduciary in managing institution capital, meeting reporting requirements, and administration. 

(E) The prospective fund management’s record in avoiding investments in companies that would be disqualified 

under section 239(l). 

(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. 


jbell on DSKDVH8Z91PROD with REPORTS
26 

(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. 

(n) STATE SPONSOR OF TERRORISM.— (1) IN GENERAL.—In order to carry out the policy set forth in 

section 231(o) of this Act, the Corporation shall require a certification from an officer of a prospective OPIC-supported United 

States investor that the investor and all affiliates of the investor 

are not engaged in a discouraged transaction with a state sponsor of terrorism. 

(2) DISCOURAGED TRANSACTION.—In this subsection, the term 

‘‘discouraged transaction’’ means any of the following activities: (A) An investment commitment of $20,000,000 or more by 

the investor in the energy sector in a state sponsor of terrorism. 

(B) Any loan, or an extension of credit, to the government 

of a state sponsor of terrorism by the investor that— 

(i) is outstanding on the date the Corporation enters 

into a contract with the investor; and 

(ii) that has a value of more than $5,000,000, including the sale of goods for which payment is not required 

by the purchaser within 45 days. 

(C) The transfer by the investor of goods that are included on the United States Munitions List, referred to in 

section 38(a)(1) of the Arms Export Control Act (22 U.S.C. 

2778(a)(1)) to a state sponsor of terrorism within the 3-year 

period preceding the date the Corporation enters into a contract with the investor. 

(3) EXCEPTION.—An officer of a prospective OPIC-supported 

United States investor may provide a certification under this 

subsection notwithstanding the fact that an affiliate of the investor is engaged in a discouraged transaction if the transaction is carried out under a contract or other obligation of the 

affiliate that was entered into or incurred before the acquisition 

of such affiliate by the prospective OPIC-supported United 

States investor or the parent company of the OPIC-supported 

United States investor. 

(4) DEFINITIONS.—In this subsection: 

(A) AFFILIATE.—The term ‘‘affiliate’’ means any person 

that is directly or indirectly controlled by, under common 

control with, or controls a prospective OPIC-supported 

United States investor or the parent company of such investor. 

(B) INVESTMENT COMMITMENT IN THE ENERGY SECTOR OF

A STATE SPONSOR OF TERRORISM.—The term ‘‘investment 

commitment in the energy sector of a state sponsor of terrorism’’ 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 or transportation of petroleum or natural gas resources located in a country that 


jbell on DSKDVH8Z91PROD with REPORTS
27 

is a state sponsor of terrorism, or the entry into a contract providing for the general supervision or guaranty 

of another person’s performance of such a contract. 

(ii) The purchase of a share of ownership, including 

an equity interest, in the development of petroleum or 

natural resources described in clause (i). 

(iii) The entry into a contract providing for the participation in royalties, earnings, or profits in the development of petroleum or natural resources described in 

clause (i), without regard to the form of the participation. 

(C) STATE SPONSOR OF TERRORISM.—The term ‘‘state 

sponsor of terrorism’’— 

(i) means any country the government of which the 

Secretary of State has determined has repeatedly provided support for acts of international terrorism pursuant to section 6(j) of the Export Administration Act of 

1979, section 620A of this Act, or section 40 of the 

Arms Export Control Act; and 

(ii) does not include 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 providing assistance for projects in such regions will provide emergency relief, promote economic self-sufficiency, or implement a nonmilitary program in support of a viable 

peace agreement in Sudan, such as the Comprehensive 

Peace Agreement for Sudan and the Darfur Peace 

Agreement. 

SEC. 240. SMALL BUSINESS DEVELOPMENT.—(a) IN GENERAL.— * * * 

* * * * * * * 

(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 assistance 

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 United States small businesses, cooperatives, and other small United States investors that received insurance, reinsurance, financing, and other assistance from the 

Corporation, and the dollar value of such insurance, reinsurance, financing, and other assistance. 

(3) A description of the projects for which the insurance, reinsurance, financing, and other assistance was provided. 

SEC. 240A. REPORTS TO THE CONGRESS.—(a) After 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 


jbell on DSKDVH8Z91PROD with REPORTS
28 

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 

(B) notwithstanding such violations, provided such insurance, reinsurance, guaranty, financing, or financial support, on the basis of a determination (i) that the project 

will directly benefit the needy people in the country in 

which the project is located, or (ii) that the national security interest so requires. 

* * * * * * * 

Æ 


jbell on DSKDVH8Z91PROD with REPORTS