II 

Calendar No. 674 

109TH CONGRESS 

2D 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, Mr. HAGEL, Mr. MARTINEZ, Mrs. CLINTON, Mr. 

STEVENS, Mr. ALEXANDER, Mr. COCHRAN, Mr. COLEMAN, Mr. OBAMA, 

Mr. THUNE, Mr. ISAKSON, and Mr. BIDEN) introduced the following bill; 

which was read twice and referred to the Committee on Foreign Relations 

DECEMBER 8, 2006 

Reported by Mr. LUGAR, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To provide authorizations of appropriations for certain 

development banks, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Development Bank Re5 form and Authorization Act of 2005’’. 


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1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) The United States has strong national secu4 rity and humanitarian interests in alleviating pov5 erty and promoting development around the world. 

6 (2) The World Bank, the African Development 

7 Bank, the Asian Development Bank, the European 

8 Bank for Reconstruction and Development, and the 

9 Inter-American Development Bank leverage the re10 sources that the United States and other donors can 

11 devote to such goals. 

12 (3) Contributions from the United States and 

13 other donors to the multilateral development banks 

14 must be well managed so that the mission of such 

15 banks is fully realized and not undermined by cor16 ruption. Bribes can influence important bank deci17 sions on projects and contractors and misuse of 

18 funds can inflate project costs, cause projects to fail, 

19 and undermine development effectiveness. 

20 (4) Officials of the World Bank have identified 

21 corruption as the single greatest obstacle to eco22 nomic and social development. Corruption under23 mines development by distorting the rule of law and 

24 weakening the institutional foundation on which eco25 nomic growth depends. 


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1 (5) Officials of the World Bank have deter2 mined that the harmful effects of corruption are es3 pecially severe on the poor, who are hardest hit by 

4 economic decline, are most reliant on the provision 

5 of public services, and are least capable of paying 

6 the extra costs associated with bribery, fraud, and 

7 the misappropriation of economic privileges. 

8 (6) In hearings before the Foreign Relations 

9 Committee of the Senate, it was demonstrated 

10 that— 

11 (A) significant multilateral development 

12 bank funding has been lost to corruption and it 

13 is difficult to ascertain such amount precisely, 

14 in part because the multilateral development 

15 banks have not implemented procedures to cal16 culate such amounts, either in the aggregate or 

17 on a country basis; 

18 (B) the multilateral development banks are 

19 taking action to address fraud and corruption 

20 but additional measures remain to be carried 

21 out; 

22 (C) the capability of anti-corruption mech23 anisms are not consistent among the multilat24 eral development banks and divergences in antiVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1129.RS S1129

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1 corruption policies exist that may hinder coordi2 nation on fighting corruption; 

3 (D) weaknesses in whistleblower policy and 

4 practice exist at the multilateral development 

5 banks, to varying degree, that impede anti6 fraud and anti-corruption efforts; 

7 (E) greater transparency is necessary to 

8 provide effective development aid; 

9 (F) the Secretary of the Treasury encour10 ages anti-corruption efforts at the multilateral 

11 development banks and reviews loans made by 

12 such banks, however, the United States has lim13 ited ability to investigate the misuse of funds 

14 from such banks; and 

15 (G) in some cases, the countries bearing 

16 the cost of prosecuting corruption related to the 

17 multilateral development banks are the coun18 tries that can least afford such costs, for exam19 ple, the Government of Lesotho incurred con20 siderable expense, despite competing priorities, 

21 such as those arising from an HIV/AIDS rate 

22 of more than 25 percent in that country, to in23 vestigate and prosecute fraud and corruption 

24 related to a project that received funding from 

25 the World Bank and the World Bank did not 


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1 contribute money towards the prosecution or in2 vestigation. 

3 (7) The General Accounting Office issued a re4 port in 2001 that evaluated the external audit re5 porting of the African Development Bank, the Asian 

6 Development Bank, the European Bank for Recon7 struction and Development, and the Inter-American 

8 Development Bank and a report in 2000 that evalu9 ated the internal controls of the World Bank, and 

10 recommended measures to strengthen such audit re11 porting and controls. 

12 (8) The International Financial Institutions Ad13 visory Commission (also known as the ‘‘Meltzer 

14 Commission’’) concluded in 2000, among other 

15 things, that— 

16 (A) pressure to lend for lending’s sake is 

17 built into the structure of the multilateral devel18 opment banks; 

19 (B) although several of the multilateral de20 velopment banks recognize this problem and 

21 have called attention to the need for change, 

22 there is, at most, weak counterbalance to the 

23 pressure to lend; and 

24 (C) the multilateral development banks’ 

25 systems for project evaluation, performance 


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1 evaluation, and project selection must be im2 proved, and that such evaluation should be a re3 petitive process spread over time, including 

4 many years after final disbursement of funds. 

5 SEC. 3. DEFINITIONS. 

6 In this Act: 

7 (1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘‘appropriate congressional com9 mittees’’ means the Committee on Foreign Relations 

10 and the Committee on Banking, Housing, and 

11 Urban Affairs of the Senate and the Committee on 

12 International Relations and the Committee on Fi13 nancial Services of the House of Representatives. 

14 (2) GROUP OF 7.—The term ‘‘Group of 7’’ 

15 means Canada, France, Germany, Italy, Japan, the 

16 United Kingdom, and the United States. 

17 (3) GROUP OF 8.—The term ‘‘Group of 8’’ 

18 means the Group of 7 and Russia. 

19 (4) MULTILATERAL DEVELOPMENT BANKS.— 

20 The term ‘‘multilateral development banks’’ means 

21 the African Development Bank, the Asian Develop22 ment Bank, the European Bank for Reconstruction 

23 and Development, the Inter-American Development 

24 Bank, the World Bank, and any subsidiary or affil25 iate of such institutions. 


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1 (5) PERSON.—The term ‘‘person’’ includes a 

2 government, a government-controlled entity, a cor3 poration, a company, an association, a firm, a part4 nership, a society, and a joint stock company, as 

5 well as an individual. 

6 (6) SECRETARY.—Except as otherwise provided, 

7 the term ‘‘Secretary’’ means the Secretary of the 

8 Treasury. 

9 (7) WORLD BANK.—The term ‘‘World Bank’’ 

10 means the International Bank for Reconstruction 

11 and Development, the International Development 

12 Association, the International Finance Corporation, 

13 and the Multilateral Investment Guarantee Agency 

14 and any subsidiary or affiliate of such institutions. 

15 SEC. 4. REFORMS. 

16 (a) AUTHORITY.—The Secretary is authorized to seek 

17 the creation of a pilot program that establishes an Anti18 Corruption Trust at the World Bank, as described in this 

19 section. 

20 (b) PURPOSES.—The purposes of the Anti-Corrup21 tion Trust pilot program shall include— 

22 (1) to assist poor countries in investigations 

23 and prosecutions of fraud and corruption related to 

24 a loan, grant, or credit of the World Bank; and 


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1 (2) to determine whether such a program 

2 should be carried out at other multilateral develop3 ment banks. 

4 (c) REPAYMENT OF FUNDS.—If a poor country as5 sesses a fine or receives any renumeration as part of a 

6 prosecution paid for with funds from the Anti-Corruption 

7 Trust pilot program, such country shall repay the amount 

8 received from the Trust until the total amount received 

9 by such country is repaid. 

10 (d) MONITORING.—The Secretary shall be respon11 sible for establishing a system for monitoring the disburse12 ment and use of funds from the Anti-Corruption Trust 

13 pilot program and promoting access to such funds by poor 

14 countries that are challenged by the high cost of inves15 tigating and prosecuting corruption and fraud linked to 

16 a loan from, or a project funded by, the World Bank. 

17 (e) OTHER DONORS.—The Secretary shall encourage 

18 other donors to the multilateral development banks to con19 tribute funds to the Anti-Corruption Trust. 

20 (f) POOR COUNTRIES DEFINED.—In this section, the 

21 term ‘‘poor countries’’ means countries eligible to borrow 

22 from the International Development Association, as such 

23 eligibility is determined by gross national product per cap24 ita, lack of creditworthiness to borrow on market terms, 

25 and good policy performance. 


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1 (g) REPORTS.— 

2 (1) REPORT ON IMPLEMENTATION.—Not later 

3 than September 1, 2006, the Secretary shall submit 

4 to the appropriate congressional committees a report 

5 that describes the actions taken to establish the 

6 Anti-Corruption Trust as described in this section. 

7 (2) REPORT ON EVALUATION.—Not later than 

8 September 1, 2007, the Secretary shall submit to 

9 the appropriate congressional committees a report 

10 that— 

11 (A) evaluates the effectiveness of the Anti12 Corruption Trust pilot program; and 

13 (B) evaluates the feasibility of establishing 

14 similar trusts at other multilateral development 

15 banks. 

16 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

17 authorized to be appropriated to the Secretary such sums 

18 as may be necessary for contribution on behalf of the 

19 United States to an Anti-Corruption Trust if a pilot pro20 gram establishing such a Trust is established as described 

21 in this section. 


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1 SEC. 5. PROMOTION OF POLICY GOALS AT MULTILATERAL 

2 DEVELOPMENT BANKS. 

3 Title XV of the International Financial Institutions 

4 Act (22 U.S.C. 262o) is amended by adding at the end 

5 the following: 

6 ‘‘SEC. 1505. PROMOTION OF POLICY GOALS. 

7 ‘‘(a) DEFINITIONS.—In this section: 

8 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘appropriate congressional com10 mittees’ means the Committee on Foreign Relations 

11 and the Committee on Banking, Housing, and 

12 Urban Affairs of the Senate and the Committee on 

13 International Relations and the Committee on Fi14 nancial Services of the House of Representatives. 

15 ‘‘(2) MULTILATERAL DEVELOPMENT BANKS.— 

16 The term ‘multilateral development banks’ means 

17 the African Development Bank, the Asian Develop18 ment Bank, the European Bank for Reconstruction 

19 and Development, the Inter-American Development 

20 Bank, the World Bank, and any subsidiary or affil21 iate of such institutions. 

22 ‘‘(3) PERSON.—The term ‘person’ includes a 

23 government, a government-controlled entity, a cor24 poration, a company, an association, a firm, a part25 nership, a society, and a joint stock company, as 

26 well as an individual. 


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1 ‘‘(4) SECRETARY.—Except as otherwise pro2 vided, the term ‘Secretary’ means the Secretary of 

3 the Treasury. 

4 ‘‘(5) WORLD BANK.—The term ‘World Bank’ 

5 means the International Bank for Reconstruction 

6 and Development, the International Development 

7 Association, the International Finance Corporation, 

8 and the Multilateral Investment Guarantee Agency, 

9 and any subsidiary or affiliate of such institutions. 

10 ‘‘(b) TRANSPARENCY.— 

11 ‘‘(1) PUBLICATION OF STATEMENTS.— 

12 ‘‘(A) IN GENERAL.—Not later than 60 cal13 endar days after a meeting of the board of di14 rectors of a multilateral development bank, the 

15 Secretary shall provide for publication on the 

16 Internet Web site of the Department of the 

17 Treasury of— 

18 ‘‘(i) the justification for each vote by 

19 the United States Executive Director at 

20 the multilateral development bank on any 

21 matter before the board of directors of the 

22 bank; and 

23 ‘‘(ii) any written statement presented 

24 at the meeting by such United States Ex25 ecutive Director at the bank concerning— 


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1 ‘‘(I) a lending, grant, or guar2 antee operation which would result or 

3 be likely to result in significant social 

4 or environmental effects; 

5 ‘‘(II) an institutional policy or 

6 strategy of the bank that generates 

7 significant public interest, including 

8 operational policies and sector or the9 matic strategies; 

10 ‘‘(III) a project on which a claim 

11 has been made to the inspection 

12 mechanism of the bank; or 

13 ‘‘(IV) a case pending before the 

14 inspection mechanism of the bank. 

15 ‘‘(B) REDACTED MATERIAL.—The Sec16 retary may redact material from the material to 

17 be made available under subparagraph (A) if 

18 the Secretary determines such material is too 

19 sensitive for public distribution. 

20 ‘‘(2) VOICE AND VOTE.—The Secretary shall in21 struct the United States Executive Director at each 

22 multilateral development bank to inform the bank of 

23 the publication policy described in paragraph (3), 

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

25 implement such policy. 


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1 ‘‘(3) PUBLICATION POLICY.— 

2 ‘‘(A) IN GENERAL.—The publication policy 

3 referred to in paragraph (2) is a policy that 

4 each multilateral development bank shall— 

5 ‘‘(i) make available to the public, in6 cluding on the Internet Web site of such 

7 bank, the loan, credit, and grant docu8 ments, country assistance strategies, sector 

9 strategies, and sector policies prepared by 

10 the bank that are to be presented for en11 dorsement or approval by the board of di12 rectors of the bank, 15 calendar days prior 

13 to the date that such document, strategy, 

14 or policy will be considered by the board 

15 or, if not available at that time, at the time 

16 the documents are distributed to the 

17 board; 

18 ‘‘(ii) make available to the public all 

19 draft country strategies 120 calendar days 

20 prior to consideration of such strategies by 

21 the board of directors of the bank; 

22 ‘‘(iii) make a concerted effort to dis23 tribute paper copies of the material re24 ferred to in clauses (i) and (ii) to commuVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6401 E:\BILLS\S1129.RS S1129

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1 nities affected by the documents referred 

2 to in such clauses; 

3 ‘‘(iv) make available to the public, in4 cluding on the Internet Web site of such 

5 bank, the minutes of a meeting of the 

6 board of directors of the bank, not later 

7 than 60 calendar days after the date that 

8 the bank approves the minutes of the 

9 board meeting; 

10 ‘‘(v) make available to the public, in11 cluding on the Internet Web site of such 

12 bank, a summary of discussion of the 

13 meeting of the board of directors of the 

14 bank, not later than 90 calendar days after 

15 the date of the meeting; 

16 ‘‘(vi) keep a written transcript or elec17 tronic recording of each meeting of its 

18 board of directors and preserve the tran19 script or recording for not less than 10 

20 years after the date of such meeting; and 

21 ‘‘(vii) make available to the public a 

22 written transcript or an electronic record23 ing of a meeting of the board of directors 

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1 ning on the date that is 5 years after the 

2 date of the meeting. 

3 ‘‘(B) REDACTED MATERIAL.—The presi4 dent of a multilateral development bank may 

5 redact material from the material to be made 

6 available under subparagraph (A) if the presi7 dent of a multilateral development bank deter8 mines such material is too sensitive for public 

9 distribution. 

10 ‘‘(c) STRENGTHENING DEVELOPMENT BANK ADMIN11 ISTRATION.—The Secretary shall instruct the United 

12 States Executive Director at each multilateral develop13 ment bank to inform the bank of, and use the voice and 

14 vote of the United States to achieve at the bank, the fol15 lowing United States policy goals: 

16 ‘‘(1) Each multilateral development bank shall 

17 require mandatory financial disclosure of any pos18 sible or apparent conflict of interest by each em19 ployee of the bank, consultant to the bank, or inde20 pendent expert to the bank whose duties and respon21 sibilities include, through decision or the exercise of 

22 judgment, the taking of any action regarding— 

23 ‘‘(A) contracting or procurement; 

24 ‘‘(B) developing, administering, managing, 

25 or monitoring loans, grants, programs, projects, 


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1 subsidies, or other conferred financial or oper2 ational benefits provided by the bank; or 

3 ‘‘(C) evaluating or auditing any project, 

4 program or entity. 

5 ‘‘(2) Each multilateral development bank shall 

6 reform the ‘pressure to lend’ incentive structure at 

7 such bank by linking project design and implementa8 tion to staff performance appraisals and shall re9 quire that staff increase its focus on monitoring ex10 isting loans. 

11 ‘‘(3) Each multilateral development bank shall 

12 continue strengthening whistleblower policies at the 

13 bank to the level of emerging standards for national 

14 and international law in the Sarbanes-Oxley Act of 

15 2002 (15 U.S.C. 7201 et seq.), the Inspector Gen16 eral Act of 1978 (5 U.S.C. App.), and the model ap17 proved for member nations by the Organization of 

18 American States to implement the Inter-American 

19 Convention Against Corruption, done at Caracas on 

20 March 29, 1996. 

21 ‘‘(4) All loan, credit, guarantee, and grant doc22 uments and other agreements with borrowers shall 

23 include provisions for the financial resources and 

24 conditionality necessary to ensure that a person who 

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1 opment bank complies with applicable bank policies 

2 and national and international laws in carrying out 

3 the terms and conditions of such documents and 

4 agreements, including bank policies and national and 

5 international laws pertaining to the comprehensive 

6 assessment and transparency of the activities sup7 ported, such as those concerning public consultation, 

8 access to information, public health, safety, and en9 vironmental protection. 

10 ‘‘(5) Each multilateral development bank shall 

11 develop clear procedures setting forth the cir12 cumstances under which a person will be barred 

13 from receiving a loan, contract, grant, or credit from 

14 such bank, shall make such procedures available to 

15 the public, and shall make the identities of such per16 son available to the public. 

17 ‘‘(6) Each multilateral development bank shall 

18 coordinate policies across international institutions 

19 on issues including debarment, cross-debarment, 

20 procurement and consultant guidelines, and fidu21 ciary standards so that a person that is debarred by 

22 one multilateral development bank is automatically 

23 declared ineligible to conduct business with the other 

24 multilateral development banks during the specified 

25 ineligibility period. 


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1 ‘‘(d) ANTI-CORRUPTION PRACTICES.— 

2 ‘‘(1) VOICE AND VOTE.—The Secretary shall in3 struct the United States Executive Director at each 

4 multilateral development bank to inform the bank of 

5 the United States anti-corruption policy described in 

6 paragraph (2), and use the voice and vote of the 

7 United States to implement such policy at the bank. 

8 ‘‘(2) ANTI-CORRUPTION POLICY.—The anti-cor9 ruption policy referred to in paragraph (1) is the 

10 United States policy that a person that receives 

11 money from a multilateral development bank shall 

12 sign a code of conduct that embodies the standards 

13 set out in section 104 of the Foreign Corrupt Prac14 tices Act of 1977 (15 U.S.C. 78dd–2), and that pro15 hibits such person from corruptly in furtherance of 

16 an offer, payment, promise to pay, or authorization 

17 of the payment of any money, or offer, gift, promise 

18 to give, or authorization of the giving of anything of 

19 value to any official for purposes, directly or indi20 rectly— 

21 ‘‘(A)(i) influencing any act or decision of 

22 such official in his or her official capacity; 

23 ‘‘(ii) supporting any political party, polit24 ical entity, any official of a political party, or 

25 any candidate for political office; 


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1 ‘‘(iii) inducing such official to do or omit 

2 to do any act in violation of the lawful duty of 

3 such official; or 

4 ‘‘(iv) securing any improper advantage; or 

5 ‘‘(B) inducing such official to use the offi6 cial’s influence with a government or instru7 mentality thereof, to affect or influence any act 

8 or decision of such government or instrumen9 tality, 

10 in order to assist such person in obtaining or retain11 ing business for or with, or directing business to, 

12 any other person. 

13 ‘‘(e) STRENGTHENING DEVELOPMENT BANK AUDIT14 ING.— 

15 ‘‘(1) VOICE AND VOTE.—The Secretary shall in16 struct the United States Executive Director at each 

17 multilateral development bank to inform the bank of, 

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

19 achieve at the bank, the following United States pol20 icy goals: 

21 ‘‘(A) Each multilateral development bank 

22 shall— 

23 ‘‘(i) establish an independent Office of 

24 an Inspector General, establish or 

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1 tion at the bank, and require that the In2 spector General and the auditing function 

3 report directly to the board of directors of 

4 the bank; and 

5 ‘‘(ii) adopt and implement an inter6 nationally recognized internal controls 

7 framework, allocate adequate staffing to 

8 auditing and supervision, require external 

9 audits of internal controls, and external 

10 and forensic audits of loans where fraud is 

11 suspected. 

12 ‘‘(B) Each multilateral development bank 

13 shall establish a plan and schedule for con14 ducting regular, independent audits of internal 

15 management controls and procedures for meet16 ing operational objectives, complying with the 

17 policies of such bank, and preventing fraud, and 

18 making reports describing the scope and find19 ings of such audits available to the public. 

20 ‘‘(C) Each multilateral development bank 

21 shall establish effective procedures for the re22 ceipt, retention, and treatment of— 

23 ‘‘(i) complaints received by the bank 

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1 ment, internal accounting controls, or au2 diting matters; and 

3 ‘‘(ii) the confidential, anonymous sub4 mission, particularly by employees of the 

5 bank, of concerns regarding fraud, ac6 counting, mismanagement, internal ac7 counting controls, or auditing matters. 

8 ‘‘(D) Each multilateral development bank 

9 shall post on the Internet Web site of such 

10 bank an annual report containing statistical 

11 summaries and case studies of the fraud and 

12 corruption cases pursued by the bank’s inves13 tigations unit. 

14 ‘‘(f) COMPENSATION PACKAGES FOR PEOPLE NEGA15 TIVELY AFFECTED BY DEVELOPMENT BANK

16 PROJECTS.— 

17 ‘‘(1) VOICE AND VOTE.—The Secretary shall in18 struct the United States Executive Director at each 

19 multilateral development bank to inform the bank of 

20 the United States policy goals related to compensa21 tion described in paragraph (2), and use the voice 

22 and vote of the United States to implement such 

23 policy at the bank. 

24 ‘‘(2) COMPENSATION POLICY.—The compensa25 tion policy referred to in paragraph (1) is a policy 


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1 that each multilateral development bank shall, for 

2 each project funded by the bank where compensa3 tion, including resettlement or rehabilitation assist4 ance, is to be provided to persons adversely impacted 

5 by the project, require that an independent mecha6 nism be established for, or included in the design of, 

7 the project to receive and adjudicate complaints 

8 from a person who is eligible for compensation if 

9 such person, not more than 6 years after the date 

10 of the completion of the project, finds that the com11 pensation is either inadequate or improperly imple12 mented. 

13 ‘‘(g) EVALUATION.—The Secretary shall instruct the 

14 United States Executive Director at each multilateral de15 velopment bank to inform the bank of, and use the voice 

16 and vote of the United States to achieve at the bank, the 

17 following goals: 

18 ‘‘(1) Each multilateral development bank shall 

19 make the results of project and non-project oper20 ations evaluations available to the public, including 

21 through the Internet Web site of the bank and in22 cluding information on the quantity of projects eval23 uated per year as a percentage of total projects car24 ried out. 


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1 ‘‘(2) Each multilateral development bank shall 

2 require that all loans, grants, credits, policies, and 

3 strategies, including budget support, prepared by the 

4 bank include specific outcome and output indicators 

5 to measure results, and that the indicators and re6 sults be published periodically during the execution 

7 and at the completion of the appropriate project or 

8 program, and at the number of years after such 

9 completion determined to be appropriate for such 

10 loan, grant, credit, policy, or strategy. 

11 ‘‘(3) Each multilateral development bank shall 

12 promote rigorous evaluation of projects and policies 

13 to ensure that the intent of such projects and poli14 cies is realized. Such a bank shall favor grants and 

15 loans to applicants who agree, in consultation with 

16 an independent evaluator or evaluators, to design 

17 projects to facilitate the evaluation of outcomes. Rig18 orous evaluations shall measure the impact on those 

19 served by a loan, grant, or credit and shall have a 

20 carefully constructed comparison group to help 

21 measure the impacts of the loan, grant, or credit. 

22 ‘‘(h) QUALIFICATION POLICY.— 

23 ‘‘(1) VOICE AND VOTE.—The Secretary shall in24 struct the United States Executive Director at each 

25 multilateral development bank to encourage the 


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1 bank to implement the qualification policy for bor2 rowing countries described in paragraph (2), and use 

3 the voice and vote of the United States to achieve 

4 such policy at each bank. 

5 ‘‘(2) QUALIFICATION POLICY FOR BORROWING

6 COUNTRIES.—The qualification policy for borrowing 

7 countries referred to in paragraph (1) is a policy 

8 that requires, in addition to the standards in effect 

9 on the date of the enactment of the Development 

10 Bank Reform and Authorization Act of 2005, each 

11 multilateral development bank to qualify a country 

12 for budget support, adjustment lending, policy lend13 ing for non-project loans, grants, or credits, or other 

14 loans directed to the country’s budget based on 

15 transparency in procurement and fiduciary require16 ments and requiring the borrowing country to make 

17 its budget available to the public before funds are 

18 disbursed to that country. 

19 ‘‘(i) MICROFINANCE AND BUSINESS DEVELOP20 MENT.—The Secretary shall inform the management of 

21 each multilateral development bank and the public that 

22 it is the policy of the United States to encourage micro23 finance services for the poor and very poor (as that term 

24 is defined in section 259 of the Foreign Assistance Act 

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1 dium-enterprise development programs, particularly in a 

2 country where the government of such country ranks poor3 ly in the World Bank Institute’s governance indicators. 

4 ‘‘(j) RESOURCE DEPENDENT COUNTRY REVENUE

5 TRANSPARENCY.— 

6 ‘‘(1) REQUIREMENTS FOR RESOURCE ASSIST7 ANCE FOR A GOVERNMENT.—The Secretary shall in8 form the management of each multilateral develop9 ment bank and the public that it is the policy of the 

10 United States that any assistance provided by a 

11 such bank including any investment, loan, credit, 

12 grant, or guarantee, to a government of a resource13 dependent country or for any project located in a re14 source-dependent country, other than humanitarian 

15 assistance, assistance to address HIV/AIDS, tuber16 culosis, malaria or food aid, may not be provided un17 less the government has in place or is taking the 

18 necessary steps to establish functioning systems 

19 for— 

20 ‘‘(A) accurately accounting for all revenues 

21 received by a borrowing government from a per22 son and all payments to a government in con23 nection with the extraction or export of natural 

24 resources, such as gas, oil, oil shale, tar sands, 

25 coal, any metal, mineral, or timber; 


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1 ‘‘(B) the independent auditing of such pay2 ments and such revenues by a credible, inde3 pendent auditor, applying international auditing 

4 standards, and the widespread regular public 

5 dissemination of the auditor’s findings, includ6 ing a reconciliation of aggregate payments and 

7 revenues; 

8 ‘‘(C) verifying such revenues against the 

9 records for such payments made by each per10 son, including widespread dissemination of ag11 gregate payment information in a manner that 

12 protects proprietary information, that observes 

13 the law of the borrowing country, and that the 

14 person determines does not cause substantial 

15 competitive harm; 

16 ‘‘(D) making available to the public all 

17 contracts between the government of such coun18 try or any person owned or controlled by such 

19 government, and any person that is engaged in 

20 the extraction or export of natural resources 

21 through a project or program supported by a 

22 bank, unless the person determines such disclo23 sure would cause substantial competitive harm; 

24 ‘‘(E) applying the revenue transparency 

25 approach described in this paragraph equally 


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1 and fully to all extractive industry companies 

2 operating in the country, including state-owned 

3 entities; and 

4 ‘‘(F) establishing a legal framework for 

5 disclosure of payments from a person or con6 tracts with a person and outlining the level and 

7 extent of disclosure or payment information by 

8 companies in the extractive industries. 

9 ‘‘(2) REQUIREMENTS FOR OTHER NATURAL RE10 SOURCE ASSISTANCE.—The Secretary shall inform 

11 the management of each multilateral development 

12 bank and the public that it is the policy of the 

13 United States that any assistance, including any in14 vestment, loan, or guarantee, provided by such a 

15 bank to private sector sponsors for the extraction or 

16 export of natural resources in a resource-dependent 

17 country shall only be provided if the government of 

18 the country has in place or is taking necessary steps 

19 to establish the functioning systems described in 

20 subparagraphs (A) through (F) in paragraph (1) 

21 and if the private sector sponsors of such projects 

22 publicly disclose revenue payments made to the gov23 ernment of such country, in accordance with the 

24 laws of such country regarding the required level 

25 and extent of such disclosure. 


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1 ‘‘(3) COMPLIANCE WITH TRANSPARENCY

2 GUIDELINES PRIOR TO APPROVAL OF ASSISTANCE.— 

3 In furtherance of the policy described in paragraph 

4 (1), not later than 2 years after the date of the en5 actment of the Development Bank Reform and Au6 thorization Act of 2005, the Secretary shall inform 

7 the management of each multilateral development 

8 bank and the public that it is the policy of the 

9 United States that any assistance by such a bank, 

10 including any investment, loan, credit, grant, or 

11 guarantee, other than humanitarian assistance, as12 sistance to address HIV/AIDS, tuberculosis, or ma13 laria or to provide food, to any government of a re14 source-dependent country or for any project located 

15 in such country, shall not be provided unless the 

16 bank, prior to the approval of such assistance, has— 

17 ‘‘(A) determined that the government has 

18 in place the systems described in subparagraphs 

19 (A) through (F) of paragraph (1), based on all 

20 information that is relevant, applicable and rea21 sonably available to the bank, including, the 

22 views of other international financial institu23 tions active in such country and the views of 

24 civil society organizations that are active within 

25 and outside such country; 


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1 ‘‘(B) determined that private sector spon2 sors of projects for the extraction and export of 

3 natural resources have agreed to publicly dis4 close revenue payments to host governments; 

5 and 

6 ‘‘(C) made available to the public the find7 ings and conclusions identifying the information 

8 taken into consideration in making such deter9 minations and the reasons for such determina10 tions. 

11 ‘‘(4) RESOURCE-DEPENDENT COUNTRY DE12 FINED.—In this subsection, the term ‘resource-de13 pendent country’ means a country that has— 

14 ‘‘(A) an average share of natural resource15 derived fiscal revenues of at least 25 percent of 

16 the total fiscal revenues during the preceding 3- 

17 year period; or 

18 ‘‘(B) an average share of natural resource 

19 export proceeds of at least 25 percent of the 

20 total export proceeds during the preceding 3- 

21 year period.’’. 

22 SEC. 6. SENSE OF CONGRESS ON THE EXTRACTIVE INDUS23 TRY TRANSPARENCY INITIATIVE AND G–8 

24 AGREEMENTS. 

25 It is the sense of Congress that— 


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1 (1) the President should continue promoting 

2 the Extractive Industry Transparency Initiative as 

3 one approach to help ensure that the revenues from 

4 extractive industries contribute to sustainable devel5 opment and poverty reduction, as such Initiative is 

6 a voluntary initiative intended— 

7 (A) to promote greater transparency of de8 veloping country government revenues and ex9 penditures, procurement, concession-granting 

10 systems; and 

11 (B) to work to recover stolen assets and 

12 enforce antibribery laws; 

13 (2) the United States should encourage the con14 tinued work of the G–8 to promote the Extractive 

15 Industries Transparency Initiative; and 

16 (3) the United States should support and en17 courage the carrying out of the agreements of the 

18 G–8 made at the 2004 Summit at Sea Island, Geor19 gia, and at the 2003 Summit at Evian, France, to 

20 promote transparency in public budgets, including 

21 revenues and expenditures, government procurement, 

22 public concessions, the granting of licenses with spe23 cial emphasis on countries with large extractive in24 dustries sectors, including the agreements made at 

25 the Summit at Sea Island which specifically— 


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1 (A) support the efforts of the Public Ex2 penditure and Financial Accountability program 

3 at the World Bank to help developing countries 

4 achieve accountability in public finance and ex5 penditure and to extend harmonized approaches 

6 to the assessment and reform of their public fi7 nancial, accountability, and procurement sys8 tems; 

9 (B) invite developing countries to prepare 

10 anticorruption action plans to implement the 

11 commitments of such countries in regional and 

12 international conventions; and 

13 (C) achieve agreement on full disclosure of 

14 the World Bank International Development As15 sociation’s Country Policy and Institutional As16 sessment results, with disclosure to begin with 

17 the 2005 ratings. 

18 SEC. 7. REPORTS FROM THE GOVERNMENT ACCOUNT19 ABILITY OFFICE. 

20 (a) SENSE OF CONGRESS ON ACCESS TO INFORMA21 TION.—It is the sense of Congress that— 

22 (1) to evaluate the compliance of the multilat23 eral development banks with the policies of the 

24 United States described in section 1505 of the Inter25 national Financial Institutions Act, as added by secVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6401 E:\BILLS\S1129.RS S1129

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1 tion 5 of this Act, and to prepare the reports re2 quired by this section, the Comptroller General of 

3 the United States should have full and complete ac4 cess to financial information relating to the multilat5 eral development banks, including information re6 lated to the performance, accountability, oversight, 

7 financial transactions, organization, and activities of 

8 the multilateral development banks; 

9 (2) the Secretary should seek to conclude mem10 orandums of understanding with the multilateral de11 velopment banks to ensure that the United States 

12 will have access to documents related to information 

13 described in paragraph (1); and 

14 (3) the Secretary of the Treasury should facili15 tate access by the Comptroller General of the United 

16 States to the financial information described in 

17 paragraph (1). 

18 (b) REPORT ON EFFECTIVENESS OF MULTILATERAL

19 DEVELOPMENT BANKS.—Not later than 3 years after the 

20 date of the enactment of this Act, the Comptroller General 

21 of the United States shall— 

22 (1) conduct a review of the effectiveness of each 

23 multilateral development bank in achieving the mis24 sion of such bank as set out in the articles of agreeVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6401 E:\BILLS\S1129.RS S1129

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1 ment of such bank, specifically poverty reduction 

2 and economic development; and 

3 (2) submit to the appropriate congressional 

4 committees a report on the findings of the review. 

5 (c) REPORT ON CONSISTENCY OF MULTILATERAL

6 DEVELOPMENT BANK PRACTICES WITH STATUTORY

7 POLICIES.—Not later than 3 years after the date of the 

8 enactment of this Act, the Comptroller General of the 

9 United States shall prepare and submit to the appropriate 

10 congressional committees a report on the extent to which 

11 the practices of the multilateral development banks are 

12 consistent with the policies of the United States, as ex13 pressly contained in Federal law applicable to the multilat14 eral development banks. 

15 (d) REPORT ON REFORMS AT THE MULTILATERAL

16 DEVELOPMENT BANKS.—Not later than 1 year after the 

17 date of the enactment of this Act, the Comptroller General 

18 of the United States shall prepare and submit to the ap19 propriate congressional committees a report on the extent 

20 of the implementation of the reforms called for by the 

21 Group of 8 or by the Group of 7, starting with the 2000 

22 Okinawa Summit, as delineated in communiqu ́es, chair23 man’s statements, and other official communication 

24 through the summit or finance ministerial processes of the 

25 Group of 8 or the Group of 7. 


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1 SEC. 8. CONTRIBUTIONS TO MULTILATERAL DEVELOP2 MENT BANKS. 

3 (a) WORLD BANK.—The International Development 

4 Association Act (22 U.S.C. 284 et seq.) is amended by 

5 adding at the end the following new section: 

6 ‘‘SEC. 23. FOURTEENTH REPLENISHMENT. 

7 ‘‘(a) CONTRIBUTION AUTHORITY.— 

8 ‘‘(1) IN GENERAL.—The United States Gov9 ernor of the Association is authorized to contribute 

10 on behalf of the United States $2,850,000,000 to 

11 the fourteenth replenishment of the resources of the 

12 Association. 

13 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com14 mitment to make the contribution authorized by 

15 paragraph (1) shall be effective only to such extent 

16 or in such amounts as are provided in advance in 

17 appropriations Acts. 

18 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

19 contribution authorized by subsection (a), there are au20 thorized to be appropriated, without fiscal year limitation, 

21 $2,850,000,000 for payment by the Secretary of the 

22 Treasury.’’. 

23 (b) AFRICAN DEVELOPMENT BANK FUND.—The Af24 rican Development Fund Act (22 U.S.C. 290g et seq.) is 

25 amended by adding at the end the following new section: 


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1 ‘‘SEC. 218. TENTH REPLENISHMENT. 

2 ‘‘(a) CONTRIBUTION AUTHORITY.— 

3 ‘‘(1) IN GENERAL.—The United States Gov4 ernor of the Fund is authorized to contribute on be5 half of the United States $407,000,000 to the tenth 

6 replenishment of the resources of the Fund. 

7 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com8 mitment to make the contribution authorized by 

9 paragraph (1) shall be effective only to such extent 

10 or in such amounts as are provided in advance in 

11 appropriations Acts. 

12 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

13 contribution authorized by subsection (a), there are au14 thorized to be appropriated, without fiscal year limitation, 

15 $407,000,000 for payment by the Secretary of the Treas16 ury.’’. 

17 (c) ASIAN DEVELOPMENT FUND OF THE ASIAN DE18 VELOPMENT BANK.—The Asian Development Bank Act 

19 (22 U.S.C. 285 et seq.) is amended by adding at the end 

20 the following new section: 

21 ‘‘SEC. 32. EIGHTH REPLENISHMENT. 

22 ‘‘(a) CONTRIBUTION AUTHORITY.— 

23 ‘‘(1) IN GENERAL.—The United States Gov24 ernor of the Bank is authorized to contribute on be25 half of the United States $461,000,000 to the eighth 

26 replenishment of the resources of the Fund. 


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1 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com2 mitment to make the contribution authorized by 

3 paragraph (1) shall be effective only to such extent 

4 or in such amounts as are provided in advance in 

5 appropriations Acts. 

6 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

7 contribution authorized by subsection (a), there are au8 thorized to be appropriated, without fiscal year limitation, 

9 $461,000,000 for payment by the Secretary of the Treas10 ury.’’. 

11 SEC. 9. ANNUAL REPORTS. 

12 (a) INITIAL REPORT.—Not later than September 1, 

13 2006, the Secretary shall submit a report to the appro14 priate congressional committees the describes the actions 

15 taken by the United States Executive Director at each 

16 multilateral development bank to implement the policy 

17 goals described in this Act and the amendments made by 

18 this Act and any other actions that should be taken to 

19 implement such goals. 

20 (b) UPDATES.—The Secretary shall submit to the ap21 propriate congressional committees an annual update of 

22 the report required by subsection (a) for each of the fiscal 

23 years 2007, 2008, and 2009. 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Development Bank Re3 form and Authorization Act of 2005’’. 

4 SEC. 2. FINDINGS. 

5 Congress makes the following findings: 

6 (1) The United States has strong national secu7 rity and humanitarian interests in alleviating pov8 erty and promoting development around the world. 

9 (2) The World Bank, the African Development 

10 Bank, the Asian Development Bank, the European 

11 Bank for Reconstruction and Development, and the 

12 Inter-American Development Bank leverage the re13 sources that the United States and other donors can 

14 devote to such goals. 

15 (3) Contributions from the United States and 

16 other donors to the multilateral development banks 

17 must be well managed so that the mission of such 

18 banks is fully realized and not undermined by cor19 ruption. Corruption can influence important bank de20 cisions on projects and contractors and misuse of 

21 funds can inflate project costs, cause projects to fail, 

22 undermine development effectiveness, and erode public 

23 confidence in institutions. 

24 (4) Officials of the World Bank have identified 

25 corruption as the single greatest obstacle to economic 

26 and social development. Corruption undermines develVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6203 E:\BILLS\S1129.RS S1129

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1 opment by distorting the rule of law and weakening 

2 the institutional foundation on which economic 

3 growth depends. 

4 (5) Officials of the World Bank have determined 

5 that the harmful effects of corruption are especially 

6 severe on the poor, who are hardest hit by economic 

7 decline, are most reliant on the provision of public 

8 services, and are least capable of paying the extra 

9 costs associated with corruption, bribery, fraud, and 

10 the misappropriation of economic privileges. 

11 (6) In hearings before the Foreign Relations 

12 Committee of the Senate, it was demonstrated that— 

13 (A) significant multilateral development 

14 bank funding has been lost to corruption and it 

15 is difficult to ascertain such amount precisely, in 

16 part because the multilateral development banks 

17 have not implemented procedures to calculate 

18 such amounts, either in the aggregate or on a 

19 country basis; 

20 (B) the multilateral development banks are 

21 taking action to address fraud and corruption 

22 but additional measures remain to be carried 

23 out; 

24 (C) the capability of anticorruption mecha25 nisms, including investigations, reporting, and 


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1 disposition, are not consistent among the multi2 lateral development banks and divergences in 

3 anticorruption policies exist that may hinder co4 ordination on fighting corruption; 

5 (D) weaknesses in whistleblower and report6 ing policy and practice exist at the multilateral 

7 development banks, to varying degree, that im8 pede antifraud and anticorruption efforts; 

9 (E) greater transparency and investigative 

10 independence is necessary to provide effective de11 velopment aid; 

12 (F) the Secretary of the Treasury encour13 ages anticorruption efforts at the multilateral de14 velopment banks and reviews loans made by such 

15 banks, however, the United States has limited 

16 ability to investigate the misuse of funds from 

17 such banks; and 

18 (G) in some cases, the countries bearing the 

19 cost of prosecuting corruption related to the mul20 tilateral development banks are the countries 

21 that can least afford such costs, for example, the 

22 Government of Lesotho incurred considerable ex23 pense, despite competing priorities, such as those 

24 arising from an HIV/AIDS rate of more than 25 

25 percent in that country, to investigate and prosVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6203 E:\BILLS\S1129.RS S1129

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1 ecute fraud and corruption related to a project 

2 that received funding from the World Bank and 

3 the World Bank did not contribute money to4 wards the prosecution or investigation. 

5 (7) The Government Accountability Office issued 

6 a report in 2001 that evaluated the external audit re7 porting of the African Development Bank, the Asian 

8 Development Bank, the European Bank for Recon9 struction and Development, and the Inter-American 

10 Development Bank and a report in 2000 that evalu11 ated the internal controls of the World Bank, and rec12 ommended measures to strengthen such audit report13 ing and controls. 

14 (8) The International Financial Institutions Ad15 visory Commission (also known as the ‘‘Meltzer Com16 mission’’) concluded in 2000, among other things, 

17 that— 

18 (A) pressure to lend for lending’s sake is 

19 built into the structure of the multilateral devel20 opment banks; 

21 (B) although several of the multilateral de22 velopment banks recognize this problem and have 

23 called attention to the need for change, there is, 

24 at most, weak counterbalance to the pressure to 

25 lend; and 


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1 (C) the multilateral development banks’ sys2 tems for project evaluation, performance evalua3 tion, and project selection must be improved, and 

4 that such evaluation should be a repetitive proc5 ess spread over time, including many years after 

6 final disbursement of funds. 

7 SEC. 3. DEFINITIONS. 

8 In this Act: 

9 (1) APPROPRIATE CONGRESSIONAL COMMIT10 TEES.—The term ‘‘appropriate congressional commit11 tees’’ means the Committee on Foreign Relations of 

12 the Senate and the Committee on Financial Services 

13 of the House of Representatives. 

14 (2) GROUP OF 7.—The term ‘‘Group of 7’’ means 

15 Canada, France, Germany, Italy, Japan, the United 

16 Kingdom, and the United States. 

17 (3) GROUP OF 8.—The term ‘‘Group of 8’’ means 

18 the Group of 7 and Russia. 

19 (4) MULTILATERAL DEVELOPMENT BANKS.—The 

20 term ‘‘multilateral development banks’’ means the Af21 rican Development Bank, the Asian Development 

22 Bank, the European Bank for Reconstruction and De23 velopment, the Inter-American Development Bank, the 

24 World Bank, and any subsidiary or affiliate of such 

25 institutions. 


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1 (5) PERSON.—The term ‘‘person’’ includes a gov2 ernment, a government-controlled entity, a corpora3 tion, a company, an association, a firm, a partner4 ship, a society, and a joint stock company, as well as 

5 an individual. 

6 (6) SECRETARY.—Except as otherwise provided, 

7 the term ‘‘Secretary’’ means the Secretary of the 

8 Treasury. 

9 (7) WORLD BANK.—The term ‘‘World Bank’’ 

10 means the International Bank for Reconstruction and 

11 Development, the International Development Associa12 tion, the International Finance Corporation, and the 

13 Multilateral Investment Guarantee Agency and any 

14 subsidiary or affiliate of such institutions. 

15 SEC. 4. ANTICORRUPTION PROPOSAL AND REPORT. 

16 (a) PROPOSAL.—The Secretary shall develop a pro17 posal for a mechanism or program, that includes consider18 ation of an anticorruption trust and of a set aside of loans 

19 or grants, that could be established at the multilateral devel20 opment banks— 

21 (1) to assist poor countries in investigations and 

22 prosecutions of fraud and corruption related to a 

23 loan, grant, or credit of the multilateral development 

24 banks; 


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1 (2) to provide the means for hands-on prosecu2 torial training and education in order to better equip 

3 recipient countries to fight fraud and corruption; and 

4 (3) to build the capacity of agencies in recipient 

5 countries to prevent fraud and corruption. 

6 (b) REPORT.—Not later than September 1, 2006, the 

7 Secretary shall submit to the appropriate congressional 

8 committees a report on the proposal required by subsection 

9 (a). 

10 SEC. 5. PROMOTION OF POLICY GOALS AT MULTILATERAL 

11 DEVELOPMENT BANKS. 

12 Title XV of the International Financial Institutions 

13 Act (22 U.S.C. 262o et seq.) is amended by adding at the 

14 end the following: 

15 ‘‘SEC. 1505. PROMOTION OF POLICY GOALS. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘appropriate congressional commit19 tees’ means the Committee on Foreign Relations of the 

20 Senate and the Committee on Financial Services of 

21 the House of Representatives. 

22 ‘‘(2) MULTILATERAL DEVELOPMENT BANKS.— 

23 The term ‘multilateral development banks’ means the 

24 African Development Bank, the Asian Development 

25 Bank, the European Bank for Reconstruction and DeVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6203 E:\BILLS\S1129.RS S1129

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1 velopment, the Inter-American Development Bank, the 

2 World Bank, and any subsidiary or affiliate of such 

3 institutions. 

4 ‘‘(3) PERSON.—The term ‘person’ includes a gov5 ernment, a government-controlled entity, a corpora6 tion, a company, an association, a firm, a partner7 ship, a society, and a joint stock company, as well as 

8 an individual. 

9 ‘‘(4) SECRETARY.—Except as otherwise provided, 

10 the term ‘Secretary’ means the Secretary of the Treas11 ury. 

12 ‘‘(5) WORLD BANK.—The term ‘World Bank’ 

13 means the International Bank for Reconstruction and 

14 Development, the International Development Associa15 tion, the International Finance Corporation, and the 

16 Multilateral Investment Guarantee Agency, and any 

17 subsidiary or affiliate of such institutions. 

18 ‘‘(b) TRANSPARENCY.— 

19 ‘‘(1) PUBLICATION OF STATEMENTS.— 

20 ‘‘(A) IN GENERAL.—Not later than 60 cal21 endar days after a meeting of the board of direc22 tors of a multilateral development bank, the Sec23 retary— 


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1 ‘‘(i) shall provide for publication on 

2 the Web site of the Department of the Treas3 ury of— 

4 ‘‘(I) the justification for each vote 

5 by the United States Executive Direc6 tor at the multilateral development 

7 bank on any policy, loan, grant, or 

8 credit before the board of directors of 

9 the bank; and 

10 ‘‘(II) any official position state11 ment issued at the meeting by such 

12 United States Executive Director at 

13 the bank concerning an institutional 

14 policy or strategy of the bank, includ15 ing operational policies, 

16 anticorruption policies, and sector or 

17 thematic strategies that were subject to 

18 public consultation or public comment 

19 period; and 

20 ‘‘(ii) should provide for publication on 

21 the Web site of the Department of the Treas22 ury of any official position statement issued 

23 at the meeting by such United States Exec24 utive Director at the bank concerning a 

25 lending, grant, or guarantee operation 


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1 which would result or be likely to result in 

2 significant social or environmental effects. 

3 ‘‘(B) REDACTED MATERIAL.—The Secretary 

4 may redact material from the material to be 

5 made available under subparagraph (A) if the 

6 Secretary determines such material is too sen7 sitive for public distribution. 

8 ‘‘(2) INFORMATION DISCLOSURE.—The Secretary 

9 shall instruct the United States Executive Director at 

10 each multilateral development bank to use the voice 

11 and vote of the United States to make available to the 

12 public all draft country strategies not less than 120 

13 calendar days prior to consideration of such strategies 

14 by the board of directors of the bank. 

15 ‘‘(c) STRENGTHENING DEVELOPMENT BANK ADMINIS16 TRATION.—The Secretary shall instruct the United States 

17 Executive Director at each multilateral development bank 

18 to inform the bank of, and use the voice and vote of the 

19 United States to achieve at the bank, the following United 

20 States policy goals: 

21 ‘‘(1) Each multilateral development bank should 

22 require annual mandatory financial disclosure of any 

23 possible or apparent conflict of interest by each em24 ployee of the bank, consultant to the bank, or inde25 pendent expert to the bank whose duties and responVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6203 E:\BILLS\S1129.RS S1129

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1 sibilities include, through decision or the exercise of 

2 judgment, the taking of any action regarding— 

3 ‘‘(A) contracting or procurement; 

4 ‘‘(B) developing, administering, managing, 

5 or monitoring loans, grants, programs, projects, 

6 subsidies, or other conferred financial or oper7 ational benefits provided by the bank; or 

8 ‘‘(C) evaluating or auditing any project, 

9 program or entity. 

10 ‘‘(2) Each multilateral development bank should 

11 reform the ‘pressure to lend’ incentive structure at 

12 such bank by— 

13 ‘‘(A) holding management accountable for 

14 program and project effectiveness; 

15 ‘‘(B) linking project design and implemen16 tation and results to staff performance apprais17 als; and 

18 ‘‘(C) requiring that staff increase its focus 

19 on monitoring existing loans. 

20 ‘‘(3) Each multilateral development bank should 

21 continue strengthening whistleblower policies at the 

22 bank to the level of emerging standards reflected in 

23 national and international law in the Sarbanes-Oxley 

24 Act of 2002 (15 U.S.C. 7201 et seq.), and the Inspec25 tor General Act of 1978 (5 U.S.C. App.). 


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1 ‘‘(4) Each multilateral development bank should 

2 continue strengthening voluntary disclosure programs 

3 for firms and individuals participating in projects fi4 nanced by such banks, to the level of emerging best5 practices as expressed in the Department of Defense 

6 Guidelines for Voluntary Disclosure and the audit 

7 policy of the Environmental Protection Agency. 

8 ‘‘(5) All loan, credit, guarantee, and grant docu9 ments and other agreements with borrowers should in10 clude provisions for the financial resources and condi11 tionality necessary to ensure that a person who ob12 tains financial support from a multilateral develop13 ment bank complies with applicable bank policies and 

14 national and international laws in carrying out the 

15 terms and conditions of such documents and agree16 ments, including bank policies and national and 

17 international laws pertaining to the comprehensive 

18 assessment and transparency of the activities sup19 ported, such as those concerning public consultation, 

20 access to information, public health, safety, and envi21 ronmental protection. 

22 ‘‘(6) Each multilateral development bank should 

23 develop, if it has not already done so, clear procedures 

24 setting forth a clear and uniform definition of 

25 sanctionable misconduct and the circumstances under 


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1 which a person will be barred from receiving a loan, 

2 contract, grant, or credit from such bank, should 

3 make such procedures available to the public, and 

4 should make the identities of such person available to 

5 the public. 

6 ‘‘(7) Each multilateral development bank should 

7 coordinate policies consistent with best practices 

8 across international institutions on issues including 

9 common definitions of fraud and corruption, debar10 ment procedures, procurement and consultant guide11 lines, and fiduciary standards so that a person that 

12 is debarred by one multilateral development bank is 

13 ineligible to conduct business with the other multilat14 eral development banks during the specified ineligi15 bility period. 

16 ‘‘(d) ANTICORRUPTION PRACTICES.— 

17 ‘‘(1) VOICE AND VOTE.—The Secretary shall in18 struct the United States Executive Director at each 

19 multilateral development bank to inform the bank of 

20 the United States anticorruption policy described in 

21 paragraph (2)(A), and to use the voice and vote of the 

22 United States to achieve such policy at the bank. 

23 ‘‘(2) ANTICORRUPTION POLICY.— 

24 ‘‘(A) IN GENERAL.—The anticorruption pol25 icy referred to in paragraph (1) is a policy that 


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1 requires a person (including beneficiaries of in2 vestment loans and grants made by a multilat3 eral development bank), as well as a bidder, sup4 plier, or contractor under a contract financed by 

5 a multilateral development bank to observe the 

6 highest standard of ethics during the procure7 ment and exception of such a contract. Such a 

8 standard of ethics should be consistent with those 

9 in the Foreign Corrupt Practices Act of 1977 

10 (Public Law 95–213; 91 Stat. 1496) and in sec11 tion 27 of the Office of Federal Procurement Pol12 icy Act (41 U.S.C. 423) and prohibit coercive 

13 practices, collusive practices, corrupt practices, 

14 and fraudulent practices. 

15 ‘‘(B) DEFINITIONS.—In this paragraph: 

16 ‘‘(i) COERCIVE PRACTICE.—The term 

17 ‘coercive practices’ means harming or 

18 threatening to harm, directly or indirectly, 

19 persons, or their property, to influence the 

20 issuance, receipt, execution, or performance 

21 of any contract, loan, credit, grant, or other 

22 conferred financial or operational benefit 

23 provided by each multilateral development 

24 bank. 


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1 ‘‘(ii) COLLUSIVE PRACTICE.—The term 

2 ‘collusive practices’ means a scheme or ar3 rangement between 2 or more bidders, with 

4 or without the knowledge of the Borrower, 

5 designed to establish bid prices at artificial, 

6 noncompetitive levels. 

7 ‘‘(iii) CORRUPT PRACTICE.—The term 

8 ‘corrupt practice’ means the offering, giv9 ing, receiving, or soliciting, directly or indi10 rectly, of anything of value to influence the 

11 action of a public official (including staff of 

12 a multilateral development bank) in the 

13 issuance, receipt, execution, or performance 

14 of any contract, loan, credit, grant, or other 

15 conferred financial or operational benefit by 

16 each multilateral development bank. 

17 ‘‘(iv) FRAUDULENT PRACTICE.—The 

18 term ‘fraudulent practice’ means a mis19 representation or omission of facts in order 

20 to influence the issuance, receipt, execution, 

21 or performance of any contract, loan, credit, 

22 grant, or other conferred financial or oper23 ational benefit by each multilateral develop24 ment bank. 


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1 ‘‘(e) STRENGTHENING DEVELOPMENT BANK AUDITING

2 AND PROCUREMENT.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall instruct 

4 the United States Executive Director at each multi5 lateral development bank to inform the bank of, and 

6 use the voice and vote of the United States to achieve 

7 at the bank, the United States policy goal that each 

8 multilateral development bank, that has not already 

9 done so, should— 

10 ‘‘(A) establish an independent investigation 

11 office and an internal auditing function that is 

12 free from interference in determining the scope of 

13 investigations and internal auditing, performing 

14 work, and communicating results, and that regu15 larly report to the board of directors of the bank; 

16 ‘‘(B) adopt and implement an internation17 ally recognized internal controls framework, allo18 cate adequate staffing and budget to auditing, 

19 require external auditor attestations of internal 

20 controls and of external financial reporting, and 

21 conduct forensic audits of loans where fraud is 

22 suspected; 

23 ‘‘(C) develop and formally adopt a proce24 dure for the confidential voluntary reporting of 


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1 misconduct by individuals and firms partici2 pating in bank-financed projects; and 

3 ‘‘(D) adopt, implement, and apply consist4 ently internationally accepted procurement prac5 tices. 

6 ‘‘(2) CORRUPTION INVESTIGATION INFORMATION

7 CENTER.—The Secretary shall instruct the United 

8 States Executive Director at each multilateral devel9 opment bank to inform the bank of, and use the voice 

10 and vote of the United States to achieve at the bank, 

11 the United States policy goal that the banks should 

12 create a Corruption Investigation Information Center 

13 to be staffed by the banks and charged with maintain14 ing a relational investigative database for use by in15 vestigators from all the banks. Such database should 

16 contain forensic, financial, and transnational infor17 mation pertaining to projects finance by a bank that 

18 is developed as a result of investigations within a 

19 bank, for use by all banks as a means to taking collec20 tive enforcement action against entities, individuals, 

21 and officials engaged in corruption in connection 

22 with a project financed by a bank. 

23 ‘‘(3) INDEPENDENT INVESTIGATIVE FUNCTION.— 

24 ‘‘(A) IN GENERAL.—The Secretary shall in25 struct the United States Executive Director at 


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1 each multilateral development bank to inform the 

2 bank of, and use the voice and vote of the United 

3 States to achieve at the bank, the establishment 

4 of an independent investigative function to in5 vestigate corruption in their operational activi6 ties. 

7 ‘‘(B) REPORT.—Each year, the United 

8 States Executive Director of each multilateral 

9 development should submit to the Secretary a re10 port on— 

11 ‘‘(i) the status of the investigative func12 tion at the Director’s bank; 

13 ‘‘(ii) the Director’s views as to whether 

14 the investigative function remains oper15 ationally independent and capable of car16 rying out its mission; and 

17 ‘‘(iii) what policies, practices, or proce18 dures are needed to strengthen the investiga19 tive function at each bank. 

20 ‘‘(f) COMPENSATION FOR PEOPLE NEGATIVELY AF21 FECTED BY DEVELOPMENT BANK PROJECTS.— 

22 ‘‘(1) VOICE AND VOTE.—The Secretary shall in23 struct the United States Executive Director at each 

24 multilateral development bank to use the voice and 


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1 vote of the United States to achieve the policy de2 scribed in paragraphs (2) and (3) at the bank. 

3 ‘‘(2) COMPENSATION POLICY.—In consultation 

4 with various stakeholders including affected commu5 nities, each multilateral development bank should de6 velop a compensation policy which would apply to 

7 each project where compensation, including resettle8 ment or rehabilitation assistance, is to be provided to 

9 persons adversely impacted by the project. The policy 

10 should require the establishment and financing of an 

11 independent and transparent mechanism that is re12 sponsive to affected communities which will receive 

13 and resolve complaints from a person who is eligible 

14 for compensation if such person finds that the com15 pensation is either inadequate or improperly imple16 mented. 

17 ‘‘(3) REPORT ON RESETTLEMENT.—Each multi18 lateral development bank should publish in its annual 

19 report the number of people that have been resettled 

20 by projects funded by such bank during the previous 

21 fiscal year and report on the rehabilitation status of 

22 resettled people in relevant project documents. 

23 ‘‘(g) EVALUATION.—The Secretary shall instruct the 

24 United States Executive Director at each multilateral devel25 opment bank to inform the bank of, and use the voice and 


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1 vote of the United States to achieve at the bank, the fol2 lowing goals: 

3 ‘‘(1) Each multilateral development bank should 

4 make the results of project and nonproject operations 

5 evaluations available to the public, including through 

6 the Internet Web site of the bank. Such information 

7 should include data on the number of projects evalu8 ated per year as a percentage of total projects carried 

9 out. 

10 ‘‘(2) Each multilateral development bank should 

11 require that all loans, grants, credits, guarantees, 

12 policies, and strategies, including budget support, 

13 prepared by the bank include specific outcome and 

14 output indicators to measure results, and that the in15 dicators and results be published periodically during 

16 the execution and at the completion of the appro17 priate project or program, and at the number of years 

18 after such completion determined to be appropriate 

19 for such loan, grant, credit, policy, or strategy. 

20 ‘‘(3) Each multilateral development bank should 

21 promote rigorous independent evaluation of projects 

22 and policies to ensure that the intent of such projects 

23 and policies is realized. Each bank should encourage 

24 applicants and borrowers to agree, in consultation 

25 with an independent evaluator or evaluators, to deVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6203 E:\BILLS\S1129.RS S1129

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1 sign projects to facilitate the evaluation of outcomes. 

2 Rigorous independent evaluations should measure the 

3 impact on those served by a loan, grant, or credit and 

4 should have a carefully constructed comparison group 

5 to help measure the impacts of the loan, grant, or 

6 credit. 

7 ‘‘(h) QUALIFICATION POLICY.— 

8 ‘‘(1) VOICE AND VOTE.—The Secretary shall in9 struct the United States Executive Director at each 

10 multilateral development bank to encourage the bank 

11 to implement the qualification policy for borrowing 

12 countries described in paragraph (2), and use the 

13 voice and vote of the United States to achieve such 

14 policy at each bank. 

15 ‘‘(2) QUALIFICATION POLICY FOR BORROWING

16 COUNTRIES.—The qualification policy for borrowing 

17 countries referred to in paragraph (1) is a policy that 

18 requires, in addition to the standards in effect on the 

19 date of the enactment of the Development Bank Re20 form and Authorization Act of 2005, each multilat21 eral development bank to qualify a country for budget 

22 support, adjustment lending, policy lending for non23 project loans, grants, or credits, or other loans di24 rected to the country’s budget based on transparency 

25 in procurement and fiduciary requirements and reVerDate Aug 31 2005 01:41 Dec 10, 2006 Jkt 059200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6203 E:\BILLS\S1129.RS S1129

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1 quiring the borrowing country to make its budget 

2 available to the public before funds are disbursed to 

3 that country. 

4 ‘‘(i) MICROFINANCE AND BUSINESS DEVELOPMENT.— 

5 The Secretary shall inform the management of each multi6 lateral development bank and the public that it is the policy 

7 of the United States to encourage microfinance services for 

8 the poor and very poor (as that term is defined in section 

9 259 of the Foreign Assistance Act of 1961 (22 U.S.C. 

10 2214a)), and micro-, small-, and medium-enterprise devel11 opment programs, because of the merit of these programs 

12 in addressing poverty and economic growth, particularly 

13 in a country where the government of such country ranks 

14 poorly in the World Bank Institute’s governance indicators. 

15 ‘‘(j) EXTRACTIVE INDUSTRY TRANSPARENCY.— 

16 ‘‘(1) REQUIREMENTS FOR RESOURCE ASSIST17 ANCE.—The Secretary shall instruct the United States 

18 Executive Director at each multilateral development 

19 bank to inform the bank and the public and use their 

20 voice and vote of the United States so that any invest21 ment, loan, credit, grant, or guarantee made by a 

22 multilateral development bank for extraction or ex23 port of gas, oil, minerals, timber, or other natural re24 sources should not be provided unless the recipient 

25 government has in place, or is taking the necessary 


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1 steps to establish prior to June 2008, functioning sys2 tems for— 

3 ‘‘(A) accurately accounting for all revenues 

4 received by a borrowing government from a per5 son and all payments to a government in con6 nection with the extraction or export of natural 

7 resources, such as gas, oil, oil shale, tar sands, 

8 coal, any metal, mineral, or timber; 

9 ‘‘(B) the independent auditing of such pay10 ments and such revenues by a credible, function11 ally independent auditor applying international 

12 auditing standards, and making publicly avail13 able the auditor’s findings and recommendations; 

14 ‘‘(C) verifying government receipts against 

15 company payments made by each person, includ16 ing widespread dissemination of annual pay17 ment information in a manner that does not cre18 ate competitive disadvantage or disclose propri19 etary information; 

20 ‘‘(D) establishing a legal framework for dis21 closure of payments from a person or contracts 

22 with a person and outlining the level and extent 

23 of disclosure or payment information by persons 

24 in the extractive industries; 


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1 ‘‘(E) making available to the public all con2 tracts between the government of such country or 

3 any person owned or controlled by such govern4 ment, and any person that is engaged in the ex5 traction or export of natural resources through a 

6 project or program supported by a bank, unless 

7 such disclosure would cause substantial competi8 tive harm; 

9 ‘‘(F) adopting internal control and audit 

10 procedures for handling resource revenue receipts 

11 through internal government accounts or special 

12 fund arrangements and clearly describing and 

13 disclosing to the public the spending of such re14 ceipts from such accounts or funds; 

15 ‘‘(G) establishing a national audit body or 

16 equivalent organization which is independent of 

17 the executive, that would provide timely reports 

18 for the legislative, and public on the financial 

19 integrity of government accounts; and 

20 ‘‘(H) applying the revenue transparency 

21 approach described in this paragraph equally 

22 and fully to all extractive companies operating 

23 in the country, including State-owned entities. 

24 ‘‘(2) REQUIREMENTS FOR SPONSORS OF RE25 SOURCE PROJECTS.—The Secretary shall inform the 


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1 management of each multilateral development bank 

2 and the public that it is the policy of the United 

3 States that any multilateral development bank assist4 ance, including any investment, loan, or guarantee, 

5 provided to public or private sector sponsors for the 

6 extraction or export of natural resources should be 

7 provided only if— 

8 ‘‘(A) the government of the country has in 

9 place or is taking necessary steps to establish the 

10 functioning systems described in subparagraphs 

11 (A) through (H) of paragraph (1); 

12 ‘‘(B) the sponsors of such projects publicly 

13 disclose payments made to the government of 

14 such country in accordance with the legal frame15 work described in subparagraph (D) of para16 graph (1); and 

17 ‘‘(C) agree to contract disclosure as de18 scribed in subparagraphs (D) and (E) of para19 graph (1). 

20 ‘‘(3) COMPLIANCE WITH TRANSPARENCY GUIDE21 LINES PRIOR TO APPROVAL OF ASSISTANCE.—In fur22 therance of the policy described in paragraphs (1) 

23 and (2), not later than 3 years after the date of the 

24 enactment of the Development Bank Reform and Au25 thorization Act of 2005, the Secretary shall inform the 


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1 management of each multilateral development bank 

2 and the public that it is the policy of the United 

3 States to oppose any secondary or follow-up invest4 ment, loan, credit, grant, or guarantee if the recipient 

5 government does not have in place the systems de6 scribed in subparagraphs (A) through (H) of para7 graph (1). 

8 ‘‘(4) REPORT TO CONGRESS.—Not later than 

9 June 1, 2006, and annually thereafter, the Secretary 

10 of the Treasury shall submit to Congress and make 

11 available on the Web site of the Department of the 

12 Treasury, a report that includes, for each multilateral 

13 development bank, the following: 

14 ‘‘(A) A description of the assistance ap15 proved during the previous fiscal year for a 

16 project or program as set out in paragraph (1) 

17 or (2). 

18 ‘‘(B) An assessment of the extent to which 

19 each country receiving such assistance is imple20 menting a program that complies with the policy 

21 set out in paragraph (1), based on all relevant 

22 information including the views of the inter23 national institutions and of civil society organi24 zations. 


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1 ‘‘(C) An assessment of the extent to which a 

2 person that received such assistance has disclosed 

3 payments to governments and agreed to contract 

4 disclosure, as described in subparagraphs (D) 

5 and (E) of paragraph (1).’’. 

6 SEC. 6. SENSE OF CONGRESS ON THE EXTRACTIVE INDUS7 TRY TRANSPARENCY INITIATIVE AND G–8 

8 AGREEMENTS. 

9 It is the sense of Congress that— 

10 (1) the President should continue promoting the 

11 Transparency Initiative of the Group of 8 and the 

12 Extractive Industry Transparency Initiative as ap13 proaches to help ensure that the revenues from extrac14 tive industries contribute to sustainable development 

15 and poverty reduction, as such initiatives are vol16 untary initiatives intended— 

17 (A) to promote greater transparency of de18 veloping country government revenues and ex19 penditures, procurement, concession-granting 

20 systems; and 

21 (B) to work to recover stolen assets and en22 force antibribery and anticorruption laws; and 

23 (2) the United States should strongly support 

24 and encourage the carrying out of the agreements of 

25 the Group of 8 made at the 2005 Summit at 


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1 Gleneagles, Scotland, at the 2004 Summit at Sea Is2 land, Georgia, and at the 2003 Summit at Evian, 

3 France, to promote transparency in public budgets, 

4 including revenues and expenditures, government pro5 curement, public concessions, the granting of licenses 

6 with special emphasis on countries with large extrac7 tive industries sectors, including the agreements made 

8 at the Summit at Gleneagles which called on the 

9 World Bank and other multilateral development 

10 banks to implement the Extractive Industries Trans11 parency Initiative, and at the Summit at Sea Island 

12 which specifically— 

13 (A) support the efforts of the Public Ex14 penditure and Financial Accountability pro15 gram at the World Bank to help developing 

16 countries achieve accountability in public fi17 nance and expenditure and to extend harmonized 

18 approaches to the assessment and reform of their 

19 public financial, accountability, and procure20 ment systems; 

21 (B) invite developing countries to prepare 

22 anticorruption action plans to implement the 

23 commitments of such countries in regional and 

24 international conventions; and 


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1 (C) achieve agreement on full disclosure of 

2 the World Bank International Development Asso3 ciation’s Country Policy and Institutional As4 sessment results, with disclosure to begin with 

5 the 2005 ratings. 

6 SEC. 7. CONTRIBUTIONS TO MULTILATERAL DEVELOPMENT 

7 BANKS. 

8 (a) WORLD BANK.—The International Development 

9 Association Act (22 U.S.C. 284 et seq.) is amended by add10 ing at the end the following new section: 

11 ‘‘SEC. 23. FOURTEENTH REPLENISHMENT. 

12 ‘‘(a) CONTRIBUTION AUTHORITY.— 

13 ‘‘(1) IN GENERAL.—The United States Governor 

14 of the Association is authorized to contribute on be15 half of the United States $2,850,000,000 to the four16 teenth replenishment of the resources of the Associa17 tion. 

18 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com19 mitment to make the contribution authorized by 

20 paragraph (1) shall be effective only to such extent or 

21 in such amounts as are provided in advance in ap22 propriations Acts. 

23 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

24 contribution authorized by subsection (a), there are author25 ized to be appropriated, without fiscal year limitation, 


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1 $2,850,000,000 for payment by the Secretary of the Treas2 ury.’’. 

3 (b) AFRICAN DEVELOPMENT BANK FUND.—The Afri4 can Development Fund Act (22 U.S.C. 290g et seq.) is 

5 amended by adding at the end the following new section: 

6 ‘‘SEC. 218. TENTH REPLENISHMENT. 

7 ‘‘(a) CONTRIBUTION AUTHORITY.— 

8 ‘‘(1) IN GENERAL.—The United States Governor 

9 of the Fund is authorized to contribute on behalf of 

10 the United States $407,000,000 to the tenth replenish11 ment of the resources of the Fund. 

12 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com13 mitment to make the contribution authorized by 

14 paragraph (1) shall be effective only to such extent or 

15 in such amounts as are provided in advance in ap16 propriations Acts. 

17 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

18 contribution authorized by subsection (a), there are author19 ized to be appropriated, without fiscal year limitation, 

20 $407,000,000 for payment by the Secretary of the Treas21 ury.’’. 

22 (c) ASIAN DEVELOPMENT FUND OF THE ASIAN DEVEL23 OPMENT BANK.—The Asian Development Bank Act (22 

24 U.S.C. 285 et seq.) is amended by adding at the end the 

25 following new section: 


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1 ‘‘SEC. 32. EIGHTH REPLENISHMENT. 

2 ‘‘(a) CONTRIBUTION AUTHORITY.— 

3 ‘‘(1) IN GENERAL.—The United States Governor 

4 of the Bank is authorized to contribute on behalf of 

5 the United States $461,000,000 to the eighth replen6 ishment of the resources of the Fund. 

7 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com8 mitment to make the contribution authorized by 

9 paragraph (1) shall be effective only to such extent or 

10 in such amounts as are provided in advance in ap11 propriations Acts. 

12 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For the 

13 contribution authorized by subsection (a), there are author14 ized to be appropriated, without fiscal year limitation, 

15 $461,000,000 for payment by the Secretary of the Treas16 ury.’’. 

17 SEC. 8. REPORTS TO CONGRESS. 

18 (a) REPORTS FROM THE GOVERNMENT ACCOUNT19 ABILITY OFFICE.— 

20 (1) SENSE OF CONGRESS ON ACCESS TO INFOR21 MATION.—It is the sense of Congress that— 

22 (A) to evaluate the compliance of the multi23 lateral development banks with the policies of the 

24 United States described in section 1505 of the 

25 International Financial Institutions Act, as 

26 added by section 5 of this Act, and to prepare 


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1 the reports required by this section, the Comp2 troller General of the United States should have 

3 full and complete access to financial information 

4 relating to the multilateral development banks, 

5 including information related to the perform6 ance, accountability, oversight, financial trans7 actions, organization, and activities of the multi8 lateral development banks; 

9 (B) the Secretary should seek to conclude 

10 memorandums of understanding with the multi11 lateral development banks to ensure that the 

12 United States will have access to documents re13 lated to information described in subparagraph 

14 (A); and 

15 (C) the Secretary of the Treasury should fa16 cilitate access by the Comptroller General of the 

17 United States to the financial information de18 scribed in subparagraph (A). 

19 (2) REPORT ON REFORMS AT THE MULTILAT20 ERAL DEVELOPMENT BANKS.—Not later than 1 year 

21 after the date of the enactment of this Act, the Comp22 troller General of the United States shall prepare and 

23 submit to the appropriate congressional committees a 

24 report on the extent of the implementation of the re25 forms called for by the Group of 8 or by the Group 


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1 of 7, starting with the 2000 Okinawa Summit, as de2 lineated in communique ́s, chairman’s statements, and 

3 other official communication through the summit or 

4 finance ministerial processes of the Group of 8 or the 

5 Group of 7. 

6 (3) REPORT ON FINANCIAL STRUCTURE OF THE

7 WORLD BANK.—Not later than 2 years after the date 

8 of enactment of this Act, the Comptroller General of 

9 the United States shall prepare and submit to the ap10 propriate congressional committees a report on the 

11 appropriateness of the World Bank’s equity-loan ratio 

12 to best address financial risks and development goals. 

13 (4) REPORT ON EFFECTIVENESS OF MULTILAT14 ERAL DEVELOPMENT BANKS.—Not later than 3 years 

15 after the date of the enactment of this Act, the Comp16 troller General of the United States shall— 

17 (A) conduct a review of the effectiveness of 

18 each multilateral development bank in achieving 

19 the mission of such bank as set out in the articles 

20 of agreement of such bank, specifically poverty 

21 reduction and economic development; and 

22 (B) submit to the appropriate congressional 

23 committees a report on the findings of the re24 view. 


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1 (5) REPORT ON CONSISTENCY OF MULTILATERAL

2 DEVELOPMENT BANK PRACTICES WITH STATUTORY

3 POLICIES.—Not later than 3 years after the date of 

4 the enactment of this Act, the Comptroller General of 

5 the United States shall prepare and submit to the ap6 propriate congressional committees a report on the ex7 tent to which the practices of the multilateral develop8 ment banks are consistent with the policies of the 

9 United States, as expressly contained in Federal law 

10 applicable to the multilateral development banks. 

11 (b) REPORTS ON IMPLEMENTATION OF POLICY

12 GOALS.— 

13 (1) INITIAL REPORT.—Not later than September 

14 1, 2006, the Secretary shall submit a report to the ap15 propriate congressional committees that describes the 

16 actions taken by the United States Executive Director 

17 at each multilateral development bank to implement 

18 the policy goals described in this Act and the amend19 ments made by this Act and any other actions that 

20 should be taken to implement such goals. 

21 (2) UPDATES.—The Secretary shall submit to the 

22 appropriate congressional committees an annual up23 date of the report required by paragraph (1) for each 

24 of the fiscal years 2007 and 2008. 


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Calendar No. 674 

109TH CONGRESS 

2D SESSION S. 1129 

A BILL 

To provide authorizations of appropriations for 

certain development banks, and for other purposes. 

DECEMBER 8, 2006 

Reported with an amendment 


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