1185 
of law prohibiting assistance to countries that support 
international terrorism; or 
(2) with respect to section 116 of the Foreign As-
sistance Act of 1961 or any comparable provision of 
law prohibiting assistance to the government of a 
country that violates internationally recognized 
human rights. 
LOCAL COMPETITION 
SEC. 7028. (a) REQUIREMENTS FOR EXCEPTIONS TO 
COMPETITION FOR LOCAL ENTITIES.—Funds appropriated 
by this Act that are made available to the United States 
Agency for International Development (USAID) may only 
be made available for limited competitions through local en-
tities if— 
(1) prior to the determination to limit competi-
tion to local entities, USAID has— 
(A) assessed the level of local capacity to ef-
fectively implement, manage, and account for 
programs included in such competition; and 
(B) documented the written results of the 
assessment and decisions made; and 
(2) prior to making an award after limiting 
competition to local entities—
1186 
(A) each successful local entity has been de-
termined to be responsible in accordance with 
USAID guidelines; and 
(B) effective monitoring and evaluation sys-
tems are in place to ensure that award funding 
is used for its intended purposes; and 
(3) no level of acceptable fraud is assumed. 
(b) In addition to the requirements of paragraph (1), 
the USAID Administrator shall report, on a semi-annual 
basis, to the appropriate congressional committees on all 
awards subject to limited or no competition for local enti-
ties: Provided, That such report should be posted on the 
USAID Web site: Provided further, That the requirements 
of this subsection shall only apply to awards in excess of 
$3,000,000 and sole source awards to local entities in excess 
of $2,000,000. 
(c) Section 7077 of division I of Public Law 112–74 
shall continue in effect during fiscal year 2014: Provided, 
That subsection (b) of such section is amended in subsection 
(b)(3) by striking ‘‘either’’ and in subsection (b)(3)(A) by 
striking ‘‘or’’ after the semicolon and replacing in lieu 
thereof ‘‘and’’. 
INTERNATIONAL FINANCIAL INSTITUTIONS 
SEC. 7029. (a) None of the funds appropriated under 
title V of this Act should be made as payment to any inter-
1187 
national financial institution unless the Secretary of the 
Treasury certifies to the Committees on Appropriations that 
such institution has a policy and practice of requiring inde-
pendent, outside evaluations of each project and program 
loan or grant and significant analytical, non-lending activ-
ity, and the impact of such loan, grant, or activity on 
achieving the institution’s goals, including reducing poverty 
and promoting equitable economic growth, consistent with 
effective safeguards. 
(b) None of the funds appropriated under title V of 
this Act may be made as payment to any international fi-
nancial institution while the United States executive direc-
tor to such institution is compensated by the institution at 
a rate which, together with whatever compensation such ex-
ecutive director receives from the United States, is in excess 
of the rate provided for an individual occupying a position 
at level IV of the Executive Schedule under section 5315 
of title 5, United States Code, or while any alternate United 
States executive director to such institution is compensated 
by the institution at a rate in excess of the rate provided 
for an individual occupying a position at level V of the 
Executive Schedule under section 5316 of title 5, United 
States Code. 
(c) The Secretary of the Treasury shall instruct the 
United States executive director of each international fi-
1188 
nancial institution to oppose any loan, grant, strategy, or 
policy of such institution that would require user fees or 
service charges on poor people for primary education or pri-
mary healthcare, including maternal and child health, and 
the prevention, care and treatment of HIV/AIDS, malaria, 
and tuberculosis in connection with such institution’s fi-
nancing programs. 
(d) The Secretary of the Treasury shall instruct the 
United States Executive Director of the International Mon-
etary Fund (IMF) to use the voice and vote of the United 
States to oppose any loan, project, agreement, memo-
randum, instrument, plan, or other program of the IMF 
to a Heavily Indebted Poor Country that imposes budget 
caps or restraints that do not allow the maintenance of or 
an increase in governmental spending on healthcare or edu-
cation; and to promote government spending on healthcare, 
education, agriculture and food security, or other critical 
safety net programs in all of the IMF’s activities with re-
spect to Heavily Indebted Poor Countries. 
(e) The Secretary of the Treasury shall instruct the 
United States executive director of each international fi-
nancial institution to seek to ensure that each such institu-
tion responds to the findings and recommendations of its 
accountability mechanisms by providing just compensation 
or other appropriate redress to individuals and commu-
1189 
nities that suffer violations of human rights, including 
forced displacement, resulting from any loan, grant, strat-
egy or policy of such institution. 
(f) The Secretary of the Treasury shall direct the 
United States executive directors of the World Bank and 
the Inter-American Development Bank to report to the 
Committees on Appropriations not later than 30 days after 
enactment of this Act and every 90 days thereafter until 
September 30, 2014, on the steps being taken by such insti-
tutions to support implementation of the April 2010 Rep-
arations Plan for Damages Suffered by the Communities 
Affected by the Construction of the Chixoy Hydroelectric 
Dam in Guatemala. 
(g) For the purposes of this Act ‘‘international finan-
cial institutions’’ shall mean the International Bank for 
Reconstruction and Development, the International Devel-
opment Association, the International Finance Corpora-
tion, the Inter-American Development Bank, the Inter-
national Monetary Fund, the Asian Development Bank, the 
Asian Development Fund, the Inter-American Investment 
Corporation, the North American Development Bank, the 
European Bank for Reconstruction and Development, the 
African Development Bank, and the African Development 
Fund.
1190 
DEBT-FOR-DEVELOPMENT 
SEC. 7030. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovernmental 
organization which is a grantee or contractor of the United 
States Agency for International Development may place in 
interest bearing accounts local currencies which accrue to 
that organization as a result of economic assistance pro-
vided under title III of this Act and, subject to the regular 
notification procedures of the Committees on Appropria-
tions, any interest earned on such investment shall be used 
for the purpose for which the assistance was provided to 
that organization. 
FINANCIAL MANAGEMENT AND BUDGET TRANSPARENCY 
SEC. 7031. (a) LIMITATION ON DIRECT GOVERNMENT- 
TO-GOVERNMENT ASSISTANCE.— 
(1) Funds appropriated by this Act may be 
made available for direct government-to-government 
assistance only if— 
(A) each implementing agency or ministry 
to receive assistance has been assessed and is 
considered to have the systems required to man-
age 
such 
assistance 
and 
any 
identified 
vulnerabilities or weaknesses of such agency or 
ministry have been addressed; and
1478 
(A) For occupied units in the transferring 
project: the number of low-income and very low- 
income units and the configuration (i.e. bedroom 
size) provided by the transferring project shall be 
no less than when transferred to the receiving 
project or projects and the net dollar amount of 
Federal assistance provided to the transferring 
project shall remain the same in the receiving 
project or projects. 
(B) For unoccupied units in the transfer-
ring project: the Secretary may authorize a re-
duction in the number of dwelling units in the 
receiving project or projects to allow for a recon-
figuration of bedroom sizes to meet current mar-
ket demands, as determined by the Secretary and 
provided there is no increase in the project-based 
assistance budget authority. 
(2) The transferring project shall, as determined 
by the Secretary, be either physically obsolete or eco-
nomically nonviable. 
(3) The receiving project or projects shall meet or 
exceed applicable physical standards established by 
the Secretary. 
(4) The owner or mortgagor of the transferring 
project shall notify and consult with the tenants re-