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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1129 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1129

  To provide authorizations of appropriations for certain development 
                     banks, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 26, 2005

 Mr. Lugar (for himself and Mr. Hagel) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
  To provide authorizations of appropriations for certain development 
                     banks, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Development Bank Reform and 
Authorization Act of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The United States has strong national security and 
        humanitarian interests in alleviating poverty and promoting 
        development around the world.
            (2) The World Bank, the African Development Bank, the Asian 
        Development Bank, the European Bank for Reconstruction and 
        Development, and the Inter-American Development Bank leverage 
        the resources that the United States and other donors can 
        devote to such goals.
            (3) Contributions from the United States and other donors 
        to the multilateral development banks must be well managed so 
        that the mission of such banks is fully realized and not 
        undermined by corruption. Bribes can influence important bank 
        decisions on projects and contractors and misuse of funds can 
        inflate project costs, cause projects to fail, and undermine 
        development effectiveness.
            (4) Officials of the World Bank have identified corruption 
        as the single greatest obstacle to economic and social 
        development. Corruption undermines development by distorting 
        the rule of law and weakening the institutional foundation on 
        which economic growth depends.
            (5) Officials of the World Bank have determined that the 
        harmful effects of corruption are especially severe on the 
        poor, who are hardest hit by economic decline, are most reliant 
        on the provision of public services, and are least capable of 
        paying the extra costs associated with bribery, fraud, and the 
        misappropriation of economic privileges.
            (6) In hearings before the Foreign Relations Committee of 
        the Senate, it was demonstrated that--
                    (A) significant multilateral development bank 
                funding has been lost to corruption and it is difficult 
                to ascertain such amount precisely, in part because the 
                multilateral development banks have not implemented 
                procedures to calculate such amounts, either in the 
                aggregate or on a country basis;
                    (B) the multilateral development banks are taking 
                action to address fraud and corruption but additional 
                measures remain to be carried out;
                    (C) the capability of anti-corruption mechanisms 
                are not consistent among the multilateral development 
                banks and divergences in anti-corruption policies exist 
                that may hinder coordination on fighting corruption;
                    (D) weaknesses in whistleblower policy and practice 
                exist at the multilateral development banks, to varying 
                degree, that impede anti-fraud and anti-corruption 
                efforts;
                    (E) greater transparency is necessary to provide 
                effective development aid;
                    (F) the Secretary of the Treasury encourages anti-
                corruption efforts at the multilateral development 
                banks and reviews loans made by such banks, however, 
                the United States has limited ability to investigate 
                the misuse of funds from such banks; and
                    (G) in some cases, the countries bearing the cost 
                of prosecuting corruption related to the multilateral 
                development banks are the countries that can least 
                afford such costs, for example, the Government of 
                Lesotho incurred considerable expense, despite 
                competing priorities, such as those arising from an 
                HIV/AIDS rate of more than 25 percent in that country, 
                to investigate and prosecute fraud and corruption 
                related to a project that received funding from the 
                World Bank and the World Bank did not contribute money 
                towards the prosecution or investigation.
            (7) The General Accounting Office issued a report in 2001 
        that evaluated the external audit reporting of the African 
        Development Bank, the Asian Development Bank, the European Bank 
        for Reconstruction and Development, and the Inter-American 
        Development Bank and a report in 2000 that evaluated the 
        internal controls of the World Bank, and recommended measures 
        to strengthen such audit reporting and controls.
            (8) The International Financial Institutions Advisory 
        Commission (also known as the ``Meltzer Commission'') concluded 
        in 2000, among other things, that--
                    (A) pressure to lend for lending's sake is built 
                into the structure of the multilateral development 
                banks;
                    (B) although several of the multilateral 
                development banks recognize this problem and have 
                called attention to the need for change, there is, at 
                most, weak counterbalance to the pressure to lend; and
                    (C) the multilateral development banks' systems for 
                project evaluation, performance evaluation, and project 
                selection must be improved, and that such evaluation 
                should be a repetitive process spread over time, 
                including many years after final disbursement of funds.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Relations and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on International 
        Relations and the Committee on Financial Services of the House 
        of Representatives.
            (2) Group of 7.--The term ``Group of 7'' means Canada, 
        France, Germany, Italy, Japan, the United Kingdom, and the 
        United States.
            (3) Group of 8.--The term ``Group of 8'' means the Group of 
        7 and Russia.
            (4) Multilateral development banks.--The term 
        ``multilateral development banks'' means the African 
        Development Bank, the Asian Development Bank, the European Bank 
        for Reconstruction and Development, the Inter-American 
        Development Bank, the World Bank, and any subsidiary or 
        affiliate of such institutions.
            (5) Person.--The term ``person'' includes a government, a 
        government-controlled entity, a corporation, a company, an 
        association, a firm, a partnership, a society, and a joint 
        stock company, as well as an individual.
            (6) Secretary.--Except as otherwise provided, the term 
        ``Secretary'' means the Secretary of the Treasury.
            (7) World bank.--The term ``World Bank'' means the 
        International Bank for Reconstruction and Development, the 
        International Development Association, the International 
        Finance Corporation, and the Multilateral Investment Guarantee 
        Agency and any subsidiary or affiliate of such institutions.

SEC. 4. REFORMS.

    (a) Authority.--The Secretary is authorized to seek the creation of 
a pilot program that establishes an Anti-Corruption Trust at the World 
Bank, as described in this section.
    (b) Purposes.--The purposes of the Anti-Corruption Trust pilot 
program shall include--
            (1) to assist poor countries in investigations and 
        prosecutions of fraud and corruption related to a loan, grant, 
        or credit of the World Bank; and
            (2) to determine whether such a program should be carried 
        out at other multilateral development banks.
    (c) Repayment of Funds.--If a poor country assesses a fine or 
receives any renumeration as part of a prosecution paid for with funds 
from the Anti-Corruption Trust pilot program, such country shall repay 
the amount received from the Trust until the total amount received by 
such country is repaid.
    (d) Monitoring.--The Secretary shall be responsible for 
establishing a system for monitoring the disbursement and use of funds 
from the Anti-Corruption Trust pilot program and promoting access to 
such funds by poor countries that are challenged by the high cost of 
investigating and prosecuting corruption and fraud linked to a loan 
from, or a project funded by, the World Bank.
    (e) Other Donors.--The Secretary shall encourage other donors to 
the multilateral development banks to contribute funds to the Anti-
Corruption Trust.
    (f) Poor Countries Defined.--In this section, the term ``poor 
countries'' means countries eligible to borrow from the International 
Development Association, as such eligibility is determined by gross 
national product per capita, lack of creditworthiness to borrow on 
market terms, and good policy performance.
    (g) Reports.--
            (1) Report on implementation.--Not later than September 1, 
        2006, the Secretary shall submit to the appropriate 
        congressional committees a report that describes the actions 
        taken to establish the Anti-Corruption Trust as described in 
        this section.
            (2) Report on evaluation.--Not later than September 1, 
        2007, the Secretary shall submit to the appropriate 
        congressional committees a report that--
                    (A) evaluates the effectiveness of the Anti-
                Corruption Trust pilot program; and
                    (B) evaluates the feasibility of establishing 
                similar trusts at other multilateral development banks.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary such sums as may be necessary for 
contribution on behalf of the United States to an Anti-Corruption Trust 
if a pilot program establishing such a Trust is established as 
described in this section.

SEC. 5. PROMOTION OF POLICY GOALS AT MULTILATERAL DEVELOPMENT BANKS.

    Title XV of the International Financial Institutions Act (22 U.S.C. 
262o) is amended by adding at the end the following:

``SEC. 1505. PROMOTION OF POLICY GOALS.

    ``(a) Definitions.--In this section:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the Committee on 
        Foreign Relations and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on International 
        Relations and the Committee on Financial Services of the House 
        of Representatives.
            ``(2) Multilateral development banks.--The term 
        `multilateral development banks' means the African Development 
        Bank, the Asian Development Bank, the European Bank for 
        Reconstruction and Development, the Inter-American Development 
        Bank, the World Bank, and any subsidiary or affiliate of such 
        institutions.
            ``(3) Person.--The term `person' includes a government, a 
        government-controlled entity, a corporation, a company, an 
        association, a firm, a partnership, a society, and a joint 
        stock company, as well as an individual.
            ``(4) Secretary.--Except as otherwise provided, the term 
        `Secretary' means the Secretary of the Treasury.
            ``(5) World bank.--The term `World Bank' means the 
        International Bank for Reconstruction and Development, the 
        International Development Association, the International 
        Finance Corporation, and the Multilateral Investment Guarantee 
        Agency, and any subsidiary or affiliate of such institutions.
    ``(b) Transparency.--
            ``(1) Publication of statements.--
                    ``(A) In general.--Not later than 60 calendar days 
                after a meeting of the board of directors of a 
                multilateral development bank, the Secretary shall 
                provide for publication on the Internet Web site of the 
                Department of the Treasury of--
                            ``(i) the justification for each vote by 
                        the United States Executive Director at the 
                        multilateral development bank on any matter 
                        before the board of directors of the bank; and
                            ``(ii) any written statement presented at 
                        the meeting by such United States Executive 
                        Director at the bank concerning--
                                    ``(I) a lending, grant, or 
                                guarantee operation which would result 
                                or be likely to result in significant 
                                social or environmental effects;
                                    ``(II) an institutional policy or 
                                strategy of the bank that generates 
                                significant public interest, including 
                                operational policies and sector or 
                                thematic strategies;
                                    ``(III) a project on which a claim 
                                has been made to the inspection 
                                mechanism of the bank; or
                                    ``(IV) a case pending before the 
                                inspection mechanism of the bank.
                    ``(B) Redacted material.--The Secretary may redact 
                material from the material to be made available under 
                subparagraph (A) if the Secretary determines such 
                material is too sensitive for public distribution.
            ``(2) Voice and vote.--The Secretary shall instruct the 
        United States Executive Director at each multilateral 
        development bank to inform the bank of the publication policy 
        described in paragraph (3), and use the voice and vote of the 
        United States to implement such policy.
            ``(3) Publication policy.--
                    ``(A) In general.--The publication policy referred 
                to in paragraph (2) is a policy that each multilateral 
                development bank shall--
                            ``(i) make available to the public, 
                        including on the Internet Web site of such 
                        bank, the loan, credit, and grant documents, 
                        country assistance strategies, sector 
                        strategies, and sector policies prepared by the 
                        bank that are to be presented for endorsement 
                        or approval by the board of directors of the 
                        bank, 15 calendar days prior to the date that 
                        such document, strategy, or policy will be 
                        considered by the board or, if not available at 
                        that time, at the time the documents are 
                        distributed to the board;
                            ``(ii) make available to the public all 
                        draft country strategies 120 calendar days 
                        prior to consideration of such strategies by 
                        the board of directors of the bank;
                            ``(iii) make a concerted effort to 
                        distribute paper copies of the material 
                        referred to in clauses (i) and (ii) to 
                        communities affected by the documents referred 
                        to in such clauses;
                            ``(iv) make available to the public, 
                        including on the Internet Web site of such 
                        bank, the minutes of a meeting of the board of 
                        directors of the bank, not later than 60 
                        calendar days after the date that the bank 
                        approves the minutes of the board meeting;
                            ``(v) make available to the public, 
                        including on the Internet Web site of such 
                        bank, a summary of discussion of the meeting of 
                        the board of directors of the bank, not later 
                        than 90 calendar days after the date of the 
                        meeting;
                            ``(vi) keep a written transcript or 
                        electronic recording of each meeting of its 
                        board of directors and preserve the transcript 
                        or recording for not less than 10 years after 
                        the date of such meeting; and
                            ``(vii) make available to the public a 
                        written transcript or an electronic recording 
                        of a meeting of the board of directors of the 
                        bank during the 5-year period beginning on the 
                        date that is 5 years after the date of the 
                        meeting.
                    ``(B) Redacted material.--The president of a 
                multilateral development bank may redact material from 
                the material to be made available under subparagraph 
                (A) if the president of a multilateral development bank 
                determines such material is too sensitive for public 
                distribution.
    ``(c) Strengthening Development Bank Administration.--The Secretary 
shall instruct the United States Executive Director at each 
multilateral development bank to inform the bank of, and use the voice 
and vote of the United States to achieve at the bank, the following 
United States policy goals:
            ``(1) Each multilateral development bank shall require 
        mandatory financial disclosure of any possible or apparent 
        conflict of interest by each employee of the bank, consultant 
        to the bank, or independent expert to the bank whose duties and 
        responsibilities include, through decision or the exercise of 
        judgment, the taking of any action regarding--
                    ``(A) contracting or procurement;
                    ``(B) developing, administering, managing, or 
                monitoring loans, grants, programs, projects, 
                subsidies, or other conferred financial or operational 
                benefits provided by the bank; or
                    ``(C) evaluating or auditing any project, program 
                or entity.
            ``(2) Each multilateral development bank shall reform the 
        `pressure to lend' incentive structure at such bank by linking 
        project design and implementation to staff performance 
        appraisals and shall require that staff increase its focus on 
        monitoring existing loans.
            ``(3) Each multilateral development bank shall continue 
        strengthening whistleblower policies at the bank to the level 
        of emerging standards for national and international law in the 
        Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.), the 
        Inspector General Act of 1978 (5 U.S.C. App.), and the model 
        approved for member nations by the Organization of American 
        States to implement the Inter-American Convention Against 
        Corruption, done at Caracas on March 29, 1996.
            ``(4) All loan, credit, guarantee, and grant documents and 
        other agreements with borrowers shall include provisions for 
        the financial resources and conditionality necessary to ensure 
        that a person who obtains financial support from a multilateral 
        development bank complies with applicable bank policies and 
        national and international laws in carrying out the terms and 
        conditions of such documents and agreements, including bank 
        policies and national and international laws pertaining to the 
        comprehensive assessment and transparency of the activities 
        supported, such as those concerning public consultation, access 
        to information, public health, safety, and environmental 
        protection.
            ``(5) Each multilateral development bank shall develop 
        clear procedures setting forth the circumstances under which a 
        person will be barred from receiving a loan, contract, grant, 
        or credit from such bank, shall make such procedures available 
        to the public, and shall make the identities of such person 
        available to the public.
            ``(6) Each multilateral development bank shall coordinate 
        policies across international institutions on issues including 
        debarment, cross-debarment, procurement and consultant 
        guidelines, and fiduciary standards so that a person that is 
        debarred by one multilateral development bank is automatically 
        declared ineligible to conduct business with the other 
        multilateral development banks during the specified 
        ineligibility period.
    ``(d) Anti-Corruption Practices.--
            ``(1) Voice and vote.--The Secretary shall instruct the 
        United States Executive Director at each multilateral 
        development bank to inform the bank of the United States anti-
        corruption policy described in paragraph (2), and use the voice 
        and vote of the United States to implement such policy at the 
        bank.
            ``(2) Anti-corruption policy.--The anti-corruption policy 
        referred to in paragraph (1) is the United States policy that a 
        person that receives money from a multilateral development bank 
        shall sign a code of conduct that embodies the standards set 
        out in section 104 of the Foreign Corrupt Practices Act of 1977 
        (15 U.S.C. 78dd-2), and that prohibits such person from 
        corruptly in furtherance of an offer, payment, promise to pay, 
        or authorization of the payment of any money, or offer, gift, 
        promise to give, or authorization of the giving of anything of 
        value to any official for purposes, directly or indirectly--
                    ``(A)(i) influencing any act or decision of such 
                official in his or her official capacity;
                    ``(ii) supporting any political party, political 
                entity, any official of a political party, or any 
                candidate for political office;
                    ``(iii) inducing such official to do or omit to do 
                any act in violation of the lawful duty of such 
                official; or
                    ``(iv) securing any improper advantage; or
                    ``(B) inducing such official to use the official's 
                influence with a government or instrumentality thereof, 
                to affect or influence any act or decision of such 
                government or instrumentality,
        in order to assist such person in obtaining or retaining 
        business for or with, or directing business to, any other 
        person.
    ``(e) Strengthening Development Bank Auditing.--
            ``(1) Voice and vote.--The Secretary shall instruct the 
        United States Executive Director at each multilateral 
        development bank to inform the bank of, and use the voice and 
        vote of the United States to achieve at the bank, the following 
        United States policy goals:
                    ``(A) Each multilateral development bank shall--
                            ``(i) establish an independent Office of an 
                        Inspector General, establish or strengthen an 
                        independent auditing function at the bank, and 
                        require that the Inspector General and the 
                        auditing function report directly to the board 
                        of directors of the bank; and
                            ``(ii) adopt and implement an 
                        internationally recognized internal controls 
                        framework, allocate adequate staffing to 
                        auditing and supervision, require external 
                        audits of internal controls, and external and 
                        forensic audits of loans where fraud is 
                        suspected.
                    ``(B) Each multilateral development bank shall 
                establish a plan and schedule for conducting regular, 
                independent audits of internal management controls and 
                procedures for meeting operational objectives, 
                complying with the policies of such bank, and 
                preventing fraud, and making reports describing the 
                scope and findings of such audits available to the 
                public.
                    ``(C) Each multilateral development bank shall 
                establish effective procedures for the receipt, 
                retention, and treatment of--
                            ``(i) complaints received by the bank 
                        regarding fraud, accounting, mismanagement, 
                        internal accounting controls, or auditing 
                        matters; and
                            ``(ii) the confidential, anonymous 
                        submission, particularly by employees of the 
                        bank, of concerns regarding fraud, accounting, 
                        mismanagement, internal accounting controls, or 
                        auditing matters.
                    ``(D) Each multilateral development bank shall post 
                on the Internet Web site of such bank an annual report 
                containing statistical summaries and case studies of 
                the fraud and corruption cases pursued by the bank's 
                investigations unit.
    ``(f) Compensation Packages for People Negatively Affected by 
Development Bank Projects.--
            ``(1) Voice and vote.--The Secretary shall instruct the 
        United States Executive Director at each multilateral 
        development bank to inform the bank of the United States policy 
        goals related to compensation described in paragraph (2), and 
        use the voice and vote of the United States to implement such 
        policy at the bank.
            ``(2) Compensation policy.--The compensation policy 
        referred to in paragraph (1) is a policy that each multilateral 
        development bank shall, for each project funded by the bank 
        where compensation, including resettlement or rehabilitation 
        assistance, is to be provided to persons adversely impacted by 
        the project, require that an independent mechanism be 
        established for, or included in the design of, the project to 
        receive and adjudicate complaints from a person who is eligible 
        for compensation if such person, not more than 6 years after 
        the date of the completion of the project, finds that the 
        compensation is either inadequate or improperly implemented.
    ``(g) Evaluation.--The Secretary shall instruct the United States 
Executive Director at each multilateral development bank to inform the 
bank of, and use the voice and vote of the United States to achieve at 
the bank, the following goals:
            ``(1) Each multilateral development bank shall make the 
        results of project and non-project operations evaluations 
        available to the public, including through the Internet Web 
        site of the bank and including information on the quantity of 
        projects evaluated per year as a percentage of total projects 
        carried out.
            ``(2) Each multilateral development bank shall require that 
        all loans, grants, credits, policies, and strategies, including 
        budget support, prepared by the bank include specific outcome 
        and output indicators to measure results, and that the 
        indicators and results be published periodically during the 
        execution and at the completion of the appropriate project or 
        program, and at the number of years after such completion 
        determined to be appropriate for such loan, grant, credit, 
        policy, or strategy.
            ``(3) Each multilateral development bank shall promote 
        rigorous evaluation of projects and policies to ensure that the 
        intent of such projects and policies is realized. Such a bank 
        shall favor grants and loans to applicants who agree, in 
        consultation with an independent evaluator or evaluators, to 
        design projects to facilitate the evaluation of outcomes. 
        Rigorous evaluations shall measure the impact on those served 
        by a loan, grant, or credit and shall have a carefully 
        constructed comparison group to help measure the impacts of the 
        loan, grant, or credit.
    ``(h) Qualification Policy.--
            ``(1) Voice and vote.--The Secretary shall instruct the 
        United States Executive Director at each multilateral 
        development bank to encourage the bank to implement the 
        qualification policy for borrowing countries described in 
        paragraph (2), and use the voice and vote of the United States 
        to achieve such policy at each bank.
            ``(2) Qualification policy for borrowing countries.--The 
        qualification policy for borrowing countries referred to in 
        paragraph (1) is a policy that requires, in addition to the 
        standards in effect on the date of the enactment of the 
        Development Bank Reform and Authorization Act of 2005, each 
        multilateral development bank to qualify a country for budget 
        support, adjustment lending, policy lending for non-project 
        loans, grants, or credits, or other loans directed to the 
        country's budget based on transparency in procurement and 
        fiduciary requirements and requiring the borrowing country to 
        make its budget available to the public before funds are 
        disbursed to that country.
    ``(i) Microfinance and Business Development.--The Secretary shall 
inform the management of each multilateral development bank and the 
public that it is the policy of the United States to encourage 
microfinance services for the poor and very poor (as that term is 
defined in section 259 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2214a)), and micro-, small-, and medium-enterprise development 
programs, particularly in a country where the government of such 
country ranks poorly in the World Bank Institute's governance 
indicators.
    ``(j) Resource Dependent Country Revenue Transparency.--
            ``(1) Requirements for resource assistance for a 
        government.--The Secretary shall inform the management of each 
        multilateral development bank and the public that it is the 
        policy of the United States that any assistance provided by a 
        such bank including any investment, loan, credit, grant, or 
        guarantee, to a government of a resource-dependent country or 
        for any project located in a resource-dependent country, other 
        than humanitarian assistance, assistance to address HIV/AIDS, 
        tuberculosis, malaria or food aid, may not be provided unless 
        the government has in place or is taking the necessary steps to 
        establish functioning systems for--
                    ``(A) accurately accounting for all revenues 
                received by a borrowing government from a person and 
                all payments to a government in connection with the 
                extraction or export of natural resources, such as gas, 
                oil, oil shale, tar sands, coal, any metal, mineral, or 
                timber;
                    ``(B) the independent auditing of such payments and 
                such revenues by a credible, independent auditor, 
                applying international auditing standards, and the 
                widespread regular public dissemination of the 
                auditor's findings, including a reconciliation of 
                aggregate payments and revenues;
                    ``(C) verifying such revenues against the records 
                for such payments made by each person, including 
                widespread dissemination of aggregate payment 
                information in a manner that protects proprietary 
                information, that observes the law of the borrowing 
                country, and that the person determines does not cause 
                substantial competitive harm;
                    ``(D) making available to the public all contracts 
                between the government of such country or any person 
                owned or controlled by such government, and any person 
                that is engaged in the extraction or export of natural 
                resources through a project or program supported by a 
                bank, unless the person determines such disclosure 
                would cause substantial competitive harm;
                    ``(E) applying the revenue transparency approach 
                described in this paragraph equally and fully to all 
                extractive industry companies operating in the country, 
                including state-owned entities; and
                    ``(F) establishing a legal framework for disclosure 
                of payments from a person or contracts with a person 
                and outlining the level and extent of disclosure or 
                payment information by companies in the extractive 
                industries.
            ``(2) Requirements for other natural resource assistance.--
        The Secretary shall inform the management of each multilateral 
        development bank and the public that it is the policy of the 
        United States that any assistance, including any investment, 
        loan, or guarantee, provided by such a bank to private sector 
        sponsors for the extraction or export of natural resources in a 
        resource-dependent country shall only be provided if the 
        government of the country has in place or is taking necessary 
        steps to establish the functioning systems described in 
        subparagraphs (A) through (F) in paragraph (1) and if the 
        private sector sponsors of such projects publicly disclose 
        revenue payments made to the government of such country, in 
        accordance with the laws of such country regarding the required 
        level and extent of such disclosure.
            ``(3) Compliance with transparency guidelines prior to 
        approval of assistance.--In furtherance of the policy described 
        in paragraph (1), not later than 2 years after the date of the 
        enactment of the Development Bank Reform and Authorization Act 
        of 2005, the Secretary shall inform the management of each 
        multilateral development bank and the public that it is the 
        policy of the United States that any assistance by such a bank, 
        including any investment, loan, credit, grant, or guarantee, 
        other than humanitarian assistance, assistance to address HIV/
        AIDS, tuberculosis, or malaria or to provide food, to any 
        government of a resource-dependent country or for any project 
        located in such country, shall not be provided unless the bank, 
        prior to the approval of such assistance, has--
                    ``(A) determined that the government has in place 
                the systems described in subparagraphs (A) through (F) 
                of paragraph (1), based on all information that is 
                relevant, applicable and reasonably available to the 
                bank, including, the views of other international 
                financial institutions active in such country and the 
                views of civil society organizations that are active 
                within and outside such country;
                    ``(B) determined that private sector sponsors of 
                projects for the extraction and export of natural 
                resources have agreed to publicly disclose revenue 
                payments to host governments; and
                    ``(C) made available to the public the findings and 
                conclusions identifying the information taken into 
                consideration in making such determinations and the 
                reasons for such determinations.
            ``(4) Resource-dependent country defined.--In this 
        subsection, the term `resource-dependent country' means a 
        country that has--
                    ``(A) an average share of natural resource-derived 
                fiscal revenues of at least 25 percent of the total 
                fiscal revenues during the preceding 3-year period; or
                    ``(B) an average share of natural resource export 
                proceeds of at least 25 percent of the total export 
                proceeds during the preceding 3-year period.''.

SEC. 6. SENSE OF CONGRESS ON THE EXTRACTIVE INDUSTRY TRANSPARENCY 
              INITIATIVE AND G-8 AGREEMENTS.

    It is the sense of Congress that--
            (1) the President should continue promoting the Extractive 
        Industry Transparency Initiative as one approach to help ensure 
        that the revenues from extractive industries contribute to 
        sustainable development and poverty reduction, as such 
        Initiative is a voluntary initiative intended--
                    (A) to promote greater transparency of developing 
                country government revenues and expenditures, 
                procurement, concession-granting systems; and
                    (B) to work to recover stolen assets and enforce 
                antibribery laws;
            (2) the United States should encourage the continued work 
        of the G-8 to promote the Extractive Industries Transparency 
        Initiative; and
            (3) the United States should support and encourage the 
        carrying out of the agreements of the G-8 made at the 2004 
        Summit at Sea Island, Georgia, and at the 2003 Summit at Evian, 
        France, to promote transparency in public budgets, including 
        revenues and expenditures, government procurement, public 
        concessions, the granting of licenses with special emphasis on 
        countries with large extractive industries sectors, including 
        the agreements made at the Summit at Sea Island which 
        specifically--
                    (A) support the efforts of the Public Expenditure 
                and Financial Accountability program at the World Bank 
                to help developing countries achieve accountability in 
                public finance and expenditure and to extend harmonized 
                approaches to the assessment and reform of their public 
                financial, accountability, and procurement systems;
                    (B) invite developing countries to prepare 
                anticorruption action plans to implement the 
                commitments of such countries in regional and 
                international conventions; and
                    (C) achieve agreement on full disclosure of the 
                World Bank International Development Association's 
                Country Policy and Institutional Assessment results, 
                with disclosure to begin with the 2005 ratings.

SEC. 7. REPORTS FROM THE GOVERNMENT ACCOUNTABILITY OFFICE.

    (a) Sense of Congress on Access to Information.--It is the sense of 
Congress that--
            (1) to evaluate the compliance of the multilateral 
        development banks with the policies of the United States 
        described in section 1505 of the International Financial 
        Institutions Act, as added by section 5 of this Act, and to 
        prepare the reports required by this section, the Comptroller 
        General of the United States should have full and complete 
        access to financial information relating to the multilateral 
        development banks, including information related to the 
        performance, accountability, oversight, financial transactions, 
        organization, and activities of the multilateral development 
        banks;
            (2) the Secretary should seek to conclude memorandums of 
        understanding with the multilateral development banks to ensure 
        that the United States will have access to documents related to 
        information described in paragraph (1); and
            (3) the Secretary of the Treasury should facilitate access 
        by the Comptroller General of the United States to the 
        financial information described in paragraph (1).
    (b) Report on Effectiveness of Multilateral Development Banks.--Not 
later than 3 years after the date of the enactment of this Act, the 
Comptroller General of the United States shall--
            (1) conduct a review of the effectiveness of each 
        multilateral development bank in achieving the mission of such 
        bank as set out in the articles of agreement of such bank, 
        specifically poverty reduction and economic development; and
            (2) submit to the appropriate congressional committees a 
        report on the findings of the review.
    (c) Report on Consistency of Multilateral Development Bank 
Practices With Statutory Policies.--Not later than 3 years after the 
date of the enactment of this Act, the Comptroller General of the 
United States shall prepare and submit to the appropriate congressional 
committees a report on the extent to which the practices of the 
multilateral development banks are consistent with the policies of the 
United States, as expressly contained in Federal law applicable to the 
multilateral development banks.
    (d) Report on Reforms at the Multilateral Development Banks.--Not 
later than 1 year after the date of the enactment of this Act, the 
Comptroller General of the United States shall prepare and submit to 
the appropriate congressional committees a report on the extent of the 
implementation of the reforms called for by the Group of 8 or by the 
Group of 7, starting with the 2000 Okinawa Summit, as delineated in 
communiques, chairman's statements, and other official communication 
through the summit or finance ministerial processes of the Group of 8 
or the Group of 7.

SEC. 8. CONTRIBUTIONS TO MULTILATERAL DEVELOPMENT BANKS.

    (a) World Bank.--The International Development Association Act (22 
U.S.C. 284 et seq.) is amended by adding at the end the following new 
section:

``SEC. 23. FOURTEENTH REPLENISHMENT.

    ``(a) Contribution Authority.--
            ``(1) In general.--The United States Governor of the 
        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.
            ``(2) Subject to appropriations.--Any commitment to make 
        the contribution authorized by paragraph (1) shall be effective 
        only to such extent or in such amounts as are provided in 
        advance in appropriations Acts.
    ``(b) Authorization of Appropriations.--For the contribution 
authorized by subsection (a), there are authorized to be appropriated, 
without fiscal year limitation, $2,850,000,000 for payment by the 
Secretary of the Treasury.''.
    (b) African Development Bank Fund.--The African Development Fund 
Act (22 U.S.C. 290g et seq.) is amended by adding at the end the 
following new section:

``SEC. 218. TENTH REPLENISHMENT.

    ``(a) Contribution Authority.--
            ``(1) In general.--The United States Governor of the Fund 
        is authorized to contribute on behalf of the United States 
        $407,000,000 to the tenth replenishment of the resources of the 
        Fund.
            ``(2) Subject to appropriations.--Any commitment to make 
        the contribution authorized by paragraph (1) shall be effective 
        only to such extent or in such amounts as are provided in 
        advance in appropriations Acts.
    ``(b) Authorization of Appropriations.--For the contribution 
authorized by subsection (a), there are authorized to be appropriated, 
without fiscal year limitation, $407,000,000 for payment by the 
Secretary of the Treasury.''.
    (c) Asian Development Fund of the Asian Development Bank.--The 
Asian Development Bank Act (22 U.S.C. 285 et seq.) is amended by adding 
at the end the following new section:

``SEC. 32. EIGHTH REPLENISHMENT.

    ``(a) Contribution Authority.--
            ``(1) In general.--The United States Governor of the Bank 
        is authorized to contribute on behalf of the United States 
        $461,000,000 to the eighth replenishment of the resources of 
        the Fund.
            ``(2) Subject to appropriations.--Any commitment to make 
        the contribution authorized by paragraph (1) shall be effective 
        only to such extent or in such amounts as are provided in 
        advance in appropriations Acts.
    ``(b) Authorization of Appropriations.--For the contribution 
authorized by subsection (a), there are authorized to be appropriated, 
without fiscal year limitation, $461,000,000 for payment by the 
Secretary of the Treasury.''.

SEC. 9. ANNUAL REPORTS.

    (a) Initial Report.--Not later than September 1, 2006, the 
Secretary shall submit a report to the appropriate congressional 
committees the describes the actions taken by the United States 
Executive Director at each multilateral development bank to implement 
the policy goals described in this Act and the amendments made by this 
Act and any other actions that should be taken to implement such goals.
    (b) Updates.--The Secretary shall submit to the appropriate 
congressional committees an annual update of the report required by 
subsection (a) for each of the fiscal years 2007, 2008, and 2009.
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