107TH CONGRESS
2D SESSION
H. R. 2604
AN ACT
To authorize the United States to participate in
and contribute to the seventh replenishment of
the resources of the Asian Development Fund
and the fifth replenishment of the resources of
the International Fund for Agricultural Develop-
ment, and to set forth additional policies of the
United States towards the African Development
Bank, the African Development Fund, the Asian
Development Bank, the Inter-American Develop-
ment Bank, and the European Bank for Recon-
struction and Development.
107TH CONGRESS
2D SESSION
H. R. 2604
AN ACT
To authorize the United States to participate in and con-
tribute to the seventh replenishment of the resources
of the Asian Development Fund and the fifth replenish-
ment of the resources of the International Fund for
Agricultural Development, and to set forth additional
policies of the United States towards the African Devel-
opment Bank, the African Development Fund, the Asian
Development Bank, the Inter-American Development
Bank, and the European Bank for Reconstruction and
Development.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. UNITED STATES CONTRIBUTION TO THE SEV-
ENTH REPLENISHMENT OF THE RESOURCES
OF THE ASIAN DEVELOPMENT FUND.
The Asian Development Bank Act (22 U.S.C. 285–
285aa) is amended by adding at the end the following:
‘‘SEC. 31. SEVENTH REPLENISHMENT.
‘‘(a) CONTRIBUTION AUTHORITY.—
‘‘(1) IN
GENERAL.—The United States Gov-
ernor of the Bank may contribute on behalf of the
United States $412,000,000 to the Asian Develop-
ment Fund, a special fund of the Bank.
‘‘(2) SUBJECT TO APPROPRIATIONS.—The au-
thority provided by paragraph (1) shall be effective
only to such extent or in such amounts as are pro-
vided in advance in appropriations Acts.
‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.—For contribution authorized by subsection
(a), there are authorized to be appropriated to the Sec-
retary of the Treasury not more than $412,000,000, with-
out fiscal year limitation.’’.
SEC. 2. UNITED STATES CONTRIBUTION TO THE FIFTH RE-
PLENISHMENT OF THE RESOURCES OF THE
INTERNATIONAL FUND FOR AGRICULTURAL
DEVELOPMENT.
(a) CONTRIBUTION AUTHORITY.—
(1) IN GENERAL.—The United States Governor
of the International Fund for Agricultural Develop-
ment may contribute on behalf of the United States
$30,000,000 to the International Fund for Agricul-
tural Development.
(2) SUBJECT
TO
APPROPRIATIONS.—The au-
thority provided by paragraph (1) shall be effective
only to such extent or in such amounts as are pro-
vided in advance in appropriations Acts.
(b) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—For contribution authorized by subsection
(a), there are authorized to be appropriated to the Sec-
retary of the Treasury not more than $30,000,000, with-
out fiscal year limitation.
(c) REPORT ON PARTICIPATION OF THE IFAD IN
THE ENHANCED HIPC INITIATIVE.—Within 3 months
after the date of the enactment of this Act, the Secretary
of the Treasury shall submit to the Committee on Finan-
cial Services of the House of Representatives and the
Committee on Foreign Relations of the Senate a report
on the participation of the International Fund for Agricul-
tural Development in the Enhanced HIPC Initiative. The
report shall include a statement of the cost to the Inter-
national Fund for Agricultural Development of partici-
pating in the Enhanced HIPC Initiative, the effects of
such participation (if not reimbursed) on current and fu-
ture programs of the International Fund for Agricultural
Development, the feasibility of allowing the World Bank
HIPC Trust Fund to reimburse the International Fund
for Agricultural Development for the costs of such partici-
pation, and the amount of additional appropriations from
the United States to the World Bank HIPC Trust Fund
that would be necessary to allow such participation.
SEC. 3. HIV/AIDS STRATEGIC PLAN.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is amended by adding at
the end the following:
‘‘SEC. 1625. HIV/AIDS STRATEGIC PLAN.
‘‘The Secretary of the Treasury shall instruct the
United States Executive Directors at the African Develop-
ment Bank, the African Development Fund, the Asian De-
velopment Bank, the Asian Development Fund, a special
fund of the Asian Development Bank, and the Inter-Amer-
ican Development Bank, and the United States Governor
of the International Fund for Agricultural Development
to support continued efforts by such institutions as appro-
priate in regard to HIV/AIDS, tuberculosis, malaria, and
other infectious diseases, including—
‘‘(1) development and implementation of a stra-
tegic plan to fight against the spread of HIV/AIDS,
tuberculosis, malaria, and other infectious diseases;
‘‘(2) integration of HIV/AIDS, tuberculosis,
malaria, and other infectious diseases activities in
ongoing projects as appropriate, development of new
dedicated HIV/AIDS, tuberculosis, malaria, and
other infectious diseases, projects as appropriate
that take into consideration the institution’s man-
date and core strengths, and the building of AIDS-
mitigation measures into other projects;
‘‘(3) design and implementation of HIV/AIDS,
tuberculosis, malaria, and other infectious diseases
impact assessment criteria into environmental and
social assessment processes that the institution con-
siders when designing and evaluating new project
proposals;
‘‘(4) work on disseminating information on best
practices and project design for HIV/AIDS, tuber-
culosis, malaria, and other infectious diseases
projects; and
‘‘(5) support training for professional staff on
HIV/AIDS, tuberculosis, malaria, and other infec-
tious disease prevention issues to ensure that these
health-related concerns are integrated into all as-
pects of the work of the institution.’’.
SEC. 4. USER FEES.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is further amended by
adding at the end the following:
‘‘SEC. 1626. USER FEES.
‘‘The Secretary of the Treasury shall instruct the
United States Executive Director at the African Develop-
ment Bank, the African Development Fund, the Asian De-
velopment Bank, the Asian Development Fund, a special
fund of the Asian Development Bank, and the Inter-Amer-
ican Development Bank, and the United States Governor
of the International Fund for Agricultural Development
to oppose any loan, grant, document, or strategy that is
subject to endorsement or approval by the board of direc-
tors of any such institution, which includes user fees or
service charges in impoverished countries directly or under
the guise of community financing, cost-sharing, or cost re-
covery mechanisms, for primary education or primary
health care, including prevention and treatment efforts for
HIV/AIDS, malaria, tuberculosis, and infant, child, and
maternal well-being.’’.
SEC. 5. TRANSPARENCY.
(a) 
UNITED
STATES
POLICY
IN
REGIONAL
MULITLATERAL
DEVELOPMENT
INSTITUTIONS.—Title
XV of the International Financial Institutions Act (22
U.S.C. 262o—262o–2) is further amended by adding at
the end the following:
‘‘SEC. 1504. TRANSPARENCY.
‘‘(a) IN GENERAL.—The Secretary of the Treasury
shall instruct the United States Executive Director at the
African Development Bank, the African Development
Fund, the Asian Development Bank, the Asian Develop-
ment Fund, a special fund of the Asian Development
Bank, the Inter-American Development Bank, and the
European Bank for Reconstruction and Development, and
the United States Governor of the International Fund for
Agricultural Development to—
‘‘(1) continue to make efforts to promote great-
er transparency regarding the activities of such in-
stitutions, including project design, project moni-
toring and evaluation, project implementation, re-
source allocation, and decisionmaking;
‘‘(2) support continued efforts to allow in-
formed participation and input by affected commu-
nities, including translation of information on pro-
posed projects, providing information through infor-
mation technology applications, oral briefings, and
outreach to and dialogue with community organiza-
tions and institutions in affected areas; and
‘‘(3) work toward ensuring that—
‘‘(A) meetings of the Boards of Directors
(or, in the case of the International Fund for
Agricultural Development, the Board of Gov-
ernors) of their respective institutions are open
to the public and the media, except for discus-
sion of sensitive matters such as individual per-
sonnel matters;
‘‘(B) transcripts of such meetings are
available to the public no later than 60 calendar
days after the meetings, except for discussion of
sensitive matters such as individual personnel
matters; and
‘‘(C) all key documents that are presented
for endorsement or approval by the Board of
Directors (or, in the case of the International
Fund for Agricultural Development, the Board
of Governors) of their respective institutions
will be made available to the public at least 15
days before consideration by the Board.
‘‘(b) STATEMENT OF GOALS.—The Secretary of the
Treasury shall instruct the United States Executive Direc-
tor at the African Development Bank, the African Devel-
opment Fund, the Asian Development Bank, the Asian
Development Fund, a special fund of the Asian Develop-
ment Bank, the Inter-American Development Bank, and
the European Bank for Reconstruction and Development,
and the United States Governor of the International Fund
for Agricultural Development to inform their respective in-
stitutions of the goals enumerated in subsection (a), in
a manner that the Secretary of the Treasury deems appro-
priate.’’.
(b) CONGRESSIONAL TESTIMONY REQUIRED.—The
United States Executive Directors at the African Develop-
ment Bank, the African Development Fund, the Asian De-
velopment Bank, the Asian Development Fund, a special
fund of the Asian Development Bank, the Inter-American
Development Bank, and the European Bank for Recon-
struction and Development, and the United States Gov-
ernor of the International Fund for Agricultural Develop-
ment shall, at the request of the Committee on Financial
Services of the House of Representatives or of the Com-
mittee on Foreign Relations of the Senate appear before
the committee making the request, on an annual basis,
and testify on the efforts undertaken pursuant to section
1504 of the International Financial Institutions Act and
on other matters relating to any such institution.
(c) GRANTS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury may make grants in such amounts as the Sec-
retary deems appropriate to any institution specified
in paragraph (2) which—
(A) has implemented the measures de-
scribed in section 1504 of the International Fi-
nancial Institutions Act; and
(B) provides assurances to the Secretary
that the institution will use the grant solely for
transparency activities.
(2) INSTITUTIONS.—The institutions specified
in this paragraph are the African Development
Bank, the African Development Fund, the Asian De-
velopment Bank, the Asian Development Fund, a
special fund of the Asian Development Bank, the
Inter-American Development Bank, the European
Bank for Reconstruction and Development, and the
International Fund for Agricultural Development.
(3) LIMITATIONS ON AUTHORIZATION OF AP-
PROPRIATIONS.—For grants under this subsection,
there are authorized to be appropriated to the Sec-
retary of the Treasury not more than $10,000,000
for fiscal year 2002.
(d) CONGRESSIONAL PURSUIT
OF TRANSPARENCY
GOALS IN INTERPARLIAMENTARY DIALOGUES AND MEET-
INGS.—The Congress shall pursue the transparency goals
described in section 1504 of the International Financial
Institutions Act, in all official interparliamentary dia-
logues and meetings as appropriate.
(e) PURSUIT OF TRANSPARENCY GOALS BY THE SEC-
RETARY OF THE TREASURY.—The Secretary of the Treas-
ury shall submit annually to the Committee on Financial
Services of the House of Representatives and the Com-
mittee on Foreign Relations of the Senate a written report
detailing the steps that have been taken by the United
States Executive Directors at the institutions, by the fi-
nance ministers, and by the institutions, referred to in
paragraph (1) to implement the measures described in
such section 1504.
SEC. 6. GENERAL OBJECTIVES.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is further amended by
adding at the end the following:
‘‘SEC. 1627. GENERAL OBJECTIVES.
‘‘The Secretary of the Treasury shall instruct the
United States Executive Director at the African Develop-
ment Bank, the African Development Fund, the Asian De-
velopment Bank, the Asian Development Fund, a special
fund of the Asian Development Bank, and the Inter-Amer-
ican Development Bank, and the United States Governor
of the International Fund for Agricultural Development
to focus on poverty alleviation, economic growth, increased
productivity, sustainable development, environmental pro-
tection, labor rights, and an increased focus on edu-
cation.’’.
SEC. 7. REQUIREMENTS FOR FINANCIAL SUPPORT FOR
DAMS.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is further amended by
adding at the end the following:
‘‘SEC. 1628. REQUIREMENTS FOR FINANCIAL SUPPORT FOR
DAMS.
‘‘The Secretary of the Treasury shall instruct the
United States Executive Directors at the African Develop-
ment Bank, the African Development Fund, the Asian De-
velopment Bank, the Asian Development Fund, a special
fund of the Asian Development Bank, and the Inter-Amer-
ican Development Bank, and the United States Governor
of the International Fund for Agricultural Development
to oppose any loan which provides support for any project
that includes a dam unless the project conforms to all of
the following terms:
‘‘(1) Comprehensive and participatory assess-
ments of the energy, water, and flood management
needs to be met and different options for meeting
these needs are developed before detailed studies are
done on any specific project.
‘‘(2) Priority is given to demand side manage-
ment measures and optimizing the performance of
existing infrastructure before building any new
projects.
‘‘(3) No dam is built without full consultation
with affected people.
‘‘(4) Periodic participatory reviews are done for
existing dams to assess issues including dam safety,
and the possibility of dam decommissioning.
‘‘(5) Mechanisms are developed to provide social
compensation for those who are suffering the im-
pacts of dams, and to restore damaged ecosystems.’’.
SEC. 8. STUDY BY THE GENERAL ACCOUNTING OFFICE.
Within 1 year after the date of the enactment of this
Act, the Comptroller General of the United States shall
prepare and submit to the Committee on Financial Serv-
ices of the House of Representatives and the Committee
on Foreign Relations of the Senate a report on the bene-
fits and costs of the African Development Fund, the Asian
Development Fund, a special fund of the Asian Develop-
ment Bank, the International Fund for Agricultural De-
velopment, and the Fund for Special Operations of the
Inter-American Development Bank, providing grants in-
stead of loans.
SEC. 9. COMMENDATION.
(a) FINDINGS.—The Congress finds that—
(1) the African Development Bank and Fund
elected Omar Kabbaj, an official of the Ministry of
Finance of Morocco, as the new President in 1995;
(2) President Kabbaj implemented successful
fiscal and managerial reforms, including refocusing
the activity of the African Development Fund on
poverty alleviation;
(3) under the leadership of President Kabbaj,
the African Development Bank began to issue yearly
portfolio status reports reflecting improved project
monitoring and supervision;
(4) President Kabbaj successfully emphasized
the importance of project post-evaluation in helping
the Bank avoid problems identified with earlier
funded projects;
(5) President Kabbaj has taken a program ap-
proach where all stakeholders, including the bene-
ficiaries of the borrower countries, are involved in
program design and implementation;
(6) President Kabbaj was unanimously ap-
pointed to a second 5-year term in May 2000; and
(7) under the leadership of President Kabbaj,
on June 6, 2001, Standard & Poor’s revised the out-
look on its AA+ long term issuer ratings of the Af-
rican Development Bank to stable from negative.
(b) COMMENDATION.—The Congress, on behalf of
the people of the United States, commends President
Omar Kabbaj for his successful reform efforts as Presi-
dent of the African Development Bank and Fund, and en-
courages his continued efforts at reform.
SEC. 10. ACTION BY THE PRESIDENT.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is further amended by
adding at the end the following:
‘‘SEC. 1629. ACTION BY THE PRESIDENT.
‘‘If the President determines that a foreign country
has taken or has committed to take actions that either
contribute or do not contribute to efforts of the United
States to respond to, deter, or prevent acts of inter-
national terrorism, the Secretary of the Treasury may,
consistent with other applicable law, instruct the United
States Executive Director at, or the United States Gov-
ernor of, the regional multilateral devlopment bank to take
the determination into account in considering whether to
approve an application of the country for assistance from
the institution.’’.
SEC. 11. SENSE OF THE CONGRESS REGARDING PRIVATIZA-
TION PROJECTS.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is further amended by
adding at the end the following:
‘‘SEC. 1630. SENSE OF THE CONGRESS REGARDING PRIVAT-
IZATION PROJECTS.
‘‘The Secretary of the Treasury should instruct the
United States Executive Director at the Asian Develop-
ment Bank, the African Development Bank, the African
Development Fund, the International Fund for Agricul-
tural Development, the Inter-American Development
Bank, and the European Bank for Reconstruction and De-
velopment, and the United States Governor of the Inter-
national Fund for Agricultural Development to use the
voice and vote of the United States to oppose the provision
by the respective institution of assistance for a project
that involves privatization of a government-held industry
or sector if—
‘‘(1) the privatization transaction is not imple-
mented in a transparent manner;
‘‘(2) the privatization transaction is not imple-
mented in a manner that adequately protects the in-
terests of workers, small investors, and vulnerable
groups in society to the extent that they are affected
by the privatization transaction; or
‘‘(3) appropriate regulatory regimes have not
been established to ensure the proper function of
competitive markets in the industry or sector.’’.
SEC. 12. OPPOSITION OF UNITED STATES TO REDUCTION
OF MINIMUM WAGE BELOW INTERNATION-
ALLY RECOGNIZED LEVEL OF POVERTY.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is further amended by
adding at the end the following:
‘‘SEC. 1631. OPPOSITION OF UNITED STATES TO REDUC-
TION OF MINIMUM WAGE BELOW INTER-
NATIONALLY RECOGNIZED LEVEL OF POV-
ERTY.
‘‘The Secretary of the Treasury shall instruct the
United States Executive Director at the African Develop-
ment Bank, the African Development Fund, the Asian De-
velopment Bank, the Asian Development Fund, a special
fund of the Asian Development Bank, the Inter-American
Development Bank, and the European Bank for Recon-
struction and Development, and the United States Gov-
ernor of the International Fund for Agricultural Develop-
ment to oppose any loan, grant, document, or strategy
that is subject to endorsement or approval by the board
of directors of any such institution, which includes any
provision that would recommend or encourage the reduc-
tion of a country’s minimum wage to a level of less than
$2.00 per day.’’.
SEC. 13. SUPPORT FOR ASIAN DEVELOPMENT FUND AS-
SISTANCE FOR PROJECTS THAT ARE DI-
RECTED AT ADDRESSING ARSENIC CONTAMI-
NATION IN DRINKING WATER IN SOUTH ASIA.
Title XVI of the International Financial Institutions
Act (22 U.S.C. 262p—262p–7) is further amended by
adding at the end the following:
‘‘SEC. 1632. SUPPORT FOR PROJECTS THAT ARE DIRECTED
AT ADDRESSING ARSENIC CONTAMINATION
IN DRINKING WATER IN SOUTH ASIA.
‘‘The Secretary of the Treasury shall instruct the
United States Executive Director at the Asian Develop-
ment Fund, a special fund of the Asian Development
Bank, to use the voice and vote of the United States to
support projects that are directed at addressing arsenic
contamination in drinking water in South Asia.’’.
Passed the House of Representatives May 1, 2002.
Attest:
Clerk.