I 
111TH CONGRESS 
2D SESSION 
H. R. 5975 
To reauthorize the programs of the Overseas Private Investment Corporation, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2010 
Mr. SHERMAN (for himself and Mr. MANZULLO) introduced the following bill; 
which was referred to the Committee on Foreign Affairs 
A BILL 
To reauthorize the programs of the Overseas Private 
Investment Corporation, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Overseas Private In-
vestment Corporation Reauthorization Act of 2010’’. 
SEC. 2. REAUTHORIZATION OF OPIC PROGRAMS. 
Section 235(a)(2) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2195(a)(2)) is amended by striking 
‘‘September 30, 2007’’ and inserting ‘‘the date that is 4 
years after the date of the enactment of the Overseas Pri-
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vate Investment Corporation Reauthorization Act of 
2010’’. 
SEC. 3. CONGRESSIONAL NOTIFICATION REGARDING MAX-
IMUM CONTINGENT LIABILITY. 
Section 239 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2199) is amended by adding at the end the 
following: 
‘‘(l) CONGRESSIONAL NOTIFICATION OF INCREASE IN 
MAXIMUM CONTINGENT LIABILITY.—The Corporation 
shall notify the Committee on Foreign Relations of the 
Senate and the Committee on Foreign Affairs of the 
House of Representatives not later than 15 days after the 
date on which the Corporation’s maximum contingent li-
ability outstanding at any one time pursuant to insurance 
issued under section 234(a), and the amount of financing 
issued under sections 234(b) and 234(c), exceeds the Cor-
poration’s maximum contingent liability for the preceding 
fiscal year by 25 percent or more.’’. 
SEC. 4. TRANSPARENCY AND ACCOUNTABILITY OF INVEST-
MENT FUNDS. 
(a) IN GENERAL.—Section 239 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2199), as amended by section 
3, is amended by adding at the end the following: 
‘‘(m) TRANSPARENCY AND ACCOUNTABILITY OF IN-
VESTMENT FUNDS.— 
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‘‘(1) COMPETITIVE SELECTION OF INVESTMENT 
FUND MANAGEMENT.—With respect to any invest-
ment fund that the Corporation creates on or after 
the date of the enactment of the Overseas Private 
Investment Corporation Reauthorization Act of 
2010, the Corporation may select persons to manage 
the fund only by contract using competitive proce-
dures that are full and open. 
‘‘(2) CRITERIA FOR SELECTION.—In assessing 
a proposal for investment fund management, the 
Corporation shall consider, in addition to other fac-
tors, the following: 
‘‘(A) The prospective fund management’s 
experience, depth, and cohesiveness. 
‘‘(B) The prospective fund management’s 
track record in investing risk capital in emerg-
ing markets. 
‘‘(C) The prospective fund management’s 
experience, management record, and monitoring 
capabilities in the countries in which the man-
agement operates, including details of local 
presence (directly or through local alliances). 
‘‘(D) The prospective fund management’s 
experience as a fiduciary in managing institu-
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tional capital, meeting reporting requirements, 
and administration. 
‘‘(E) The prospective fund management’s 
record in avoiding investments in companies 
that would be disqualified under section 237(l). 
‘‘(3) ANNUAL REPORT.—The Corporation shall 
include in each annual report under section 240A an 
analysis of the investment fund portfolio of the Cor-
poration, including the following: 
‘‘(A) FUND PERFORMANCE.—An analysis 
of the aggregate financial performance of the 
investment fund portfolio grouped by region 
and maturity. 
‘‘(B) STATUS OF LOAN GUARANTIES.—The 
amount of guaranties committed by the Cor-
poration to support investment funds, including 
the percentage of such amount that has been 
disbursed to the investment funds. 
‘‘(C) RISK
RATINGS.—The definition of 
risk ratings, and the current aggregate risk rat-
ings for the investment fund portfolio, including 
the number of investment funds in each of the 
Corporation’s rating categories. 
‘‘(D) COMPETITIVE SELECTION OF INVEST-
MENT
FUND
MANAGEMENT.—The number of 
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proposals received and evaluated for each newly 
established investment fund.’’. 
(b) GAO REVIEW.—Not later than 1 year after the 
submission of the first report to Congress under section 
240A of the Foreign Assistance Act of 1961 that includes 
the information required by section 239(m)(3) of that Act 
(as added by subsection (a) of this section), the Comp-
troller General of the United States shall prepare and sub-
mit to the Committee on Foreign Relations of the Senate 
and the Committee on Foreign Affairs of the House of 
Representatives an independent assessment of the invest-
ment fund portfolio of the Overseas Private Investment 
Corporation, covering the items required to be addressed 
under such section 239(m)(3). 
SEC. 5. INCREASED TRANSPARENCY. 
(a) IN GENERAL.—Section 231A(c)(2) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2191a(c)(2)) is amend-
ed to read as follows: 
‘‘(2) In conjunction with each meeting of its Board 
of Directors, the Corporation shall hold a public hearing 
in order to afford an opportunity for any person to present 
views regarding the activities of the Corporation. The Cor-
poration shall provide notice of the hearing at least 20 
days before the hearing. At least 15 days in before the 
hearing the Corporation shall make available a public 
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summary of each project, including information related to 
workers rights, to be considered at the meeting. The Cor-
poration shall not include any confidential business infor-
mation in the summary made available under this sub-
section. Any views expressed at the hearing or in written 
comments shall be made part of the record.’’. 
(b) ADDITIONAL TRANSPARENCY.—Section 237 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2197) is 
amended by adding at the end the following new sub-
sections: 
‘‘(p) REVIEW OF METHODOLOGY.—Not later than 
180 days after the date of the enactment of the Overseas 
Private Investment Corporation Reauthorization Act of 
2010, the Corporation shall make available to the public 
the methodology, including relevant regulations, used to 
assess and monitor the impact of projects supported by 
the Corporation— 
‘‘(1) on employment in the United States; 
‘‘(2) on development and the environment in 
host countries; and 
‘‘(3) on the protection of internationally recog-
nized worker rights, as well as the elimination of dis-
crimination with respect to employment and occupa-
tion, in host countries. 
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‘‘(q) PUBLIC
NOTICE
PRIOR
TO
PROJECT
AP-
PROVAL.— 
‘‘(1) PUBLIC NOTICE.— 
‘‘(A) IN GENERAL.—The Board of Direc-
tors of the Corporation may not vote in favor 
of any action proposed to be taken by the Cor-
poration on a Category A project before the 
date that is 60 days after the Corporation— 
‘‘(i) makes available for public com-
ment a summary of the project and rel-
evant information about the project; and 
‘‘(ii) such summary and information 
described in clause (i) has been made 
available to groups in the area that may be 
impacted by the proposed project and to 
nongovernmental organizations in the host 
country. 
‘‘(B) EXCEPTION.—The Corporation shall 
not include any confidential business informa-
tion in the summary and information made 
available under clauses (i) and (ii) of subpara-
graph (A). 
‘‘(2) PUBLISHED
RESPONSE.—To the extent 
practicable, the Corporation shall publish responses 
to the comments received under paragraph (1)(A)(i) 
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with respect to a Category A project and submit the 
responses to the Board not later than 7 days before 
a vote is to be taken on any action proposed by the 
Corporation on the project. 
‘‘(3) CATEGORY
A
PROJECT
DEFINED.—The 
term ‘Category A project’ means any project or 
other activity for which the Corporation proposes to 
provide insurance, reinsurance, a guaranty, financ-
ing, or other assistance under this title and which is 
likely to have a significant adverse environmental 
impact.’’. 
(c) OFFICE OF ACCOUNTABILITY.—Section 237 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2197), as 
amended by subsection (b) of this section, is amended by 
adding at the end the following new subsection: 
‘‘(r) OFFICE OF ACCOUNTABILITY.—The Corporation 
shall maintain an Office of Accountability to provide, to 
the maximum extent practicable, upon request, problem- 
solving services for projects supported by the Corporation 
and review of the Corporation’s compliance with its envi-
ronmental, social, internationally recognized worker 
rights, human rights, and transparency policies and proce-
dures. The Office of Accountability shall operate in a man-
ner that is fair, objective, and transparent.’’. 
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SEC. 6. EXTRACTION INVESTMENT. 
Title IV of chapter 2 of part I of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2191 et seq.) is amended 
by inserting after section 234A the following new section: 
‘‘SEC. 234B. EXTRACTION INVESTMENT. 
‘‘(a) EXTRACTION INVESTMENTS.— 
‘‘(1) PRIOR NOTIFICATION TO CONGRESSIONAL 
COMMITTEES.— 
‘‘(A) IN GENERAL.—The Corporation shall 
provide notice of consideration of approval of a 
project described in subparagraph (B) to the 
Committees on Foreign Relations and Appro-
priations of the Senate and the Committees on 
Foreign Affairs and Appropriations of the 
House of Representatives not later than 60 
days before approval of such project. 
‘‘(B) PROJECT DESCRIBED.—A project de-
scribed in this subparagraph is a Category A 
project (as defined in section 237(q)(3)) relat-
ing to an extractive industry project or any ex-
tractive industry project for which the assist-
ance to be provided by the Corporation is val-
ued at $10,000,000 or more (including contin-
gent liability). 
‘‘(2) COMMITMENT TO EITI PRINCIPLES.— 
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Corporation may ap-
prove a contract of insurance, reinsurance, a 
guaranty, or enter into an agreement to provide 
financing to an eligible investor for a project 
that significantly involves an extractive industry 
only if— 
‘‘(i) the eligible investor has agreed to 
implement 
the 
Extractive 
Industries 
Transparency Initiative principles and cri-
teria, or substantially similar principles 
and criteria related to the specific project 
to be carried out; and 
‘‘(ii)(I) the host country where the 
project is to be carried out has committed 
to the Extractive Industries Transparency 
Initiative principles and criteria, or sub-
stantially similar principles and criteria; or 
‘‘(II) the host country where the 
project is to be carried out has in place or 
is taking the necessary steps to establish 
functioning systems for— 
‘‘(aa) accurately accounting for 
revenues and expenditures in connec-
tion with the extraction and export of 
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the type of natural resource to be ex-
tracted or exported; 
‘‘(bb) the independent audit of 
such revenues and expenditures and 
the widespread public dissemination of 
the finding of the audit; and 
‘‘(cc) verifying government re-
ceipts against company payments, in-
cluding widespread dissemination of 
such payment information, and disclo-
sure of such documents as host gov-
ernment 
agreements, 
concession 
agreements, and bidding documents, 
and allowing in any such dissemina-
tion or disclosure for the redaction of, 
or exceptions for, information that is 
commercially 
proprietary 
or 
that 
would create a competitive disadvan-
tage. 
‘‘(B) EXCEPTION.—If a host country does 
not meet the requirements of subparagraph 
(A)(ii) (I) or (II), the Corporation may approve 
a contract of insurance, reinsurance, or a guar-
anty, or enter into an agreement to provide fi-
nancing for a project in the host country if the 
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Corporation determines it is in the foreign pol-
icy interest of the United States for the Cor-
poration to provide support for the project in 
the host country and the host country does not 
prevent an eligible investor from complying with 
subparagraph (A)(i). 
‘‘(3) PREFERENCE FOR CERTAIN PROJECTS.— 
With respect to all projects that significantly involve 
an extractive industry, the Corporation, to the extent 
practicable and consistent with the Corporation’s de-
velopment objectives, shall give preference to a 
project in which the eligible investor has agreed to 
implement the Extractive Industries Transparency 
Initiative principles and criteria, or substantially 
similar principles and criteria, and the host country 
where the project is to be carried out has committed 
to the Extractive Industries Transparency Initiative 
principles and criteria, or substantially similar prin-
ciples and criteria. 
‘‘(4) EFFECT
ON
OTHER
REQUIREMENTS.— 
Nothing in this subsection shall affect the limita-
tions and prohibitions with respect to direct invest-
ments described in section 234(c). 
‘‘(5) REPORTING
REQUIREMENT.—The Cor-
poration shall include in each annual report required 
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under section 240A a description of its activities to 
carry out this subsection. 
‘‘(b) EXTRACTIVE INDUSTRY.—In this section, the 
term ‘extractive industry’ refers to an enterprise engaged 
in the exploration, development, or extraction of oil and 
gas reserves, metal ores, gemstones, industrial minerals 
(except rock used for construction purposes), or coal.’’. 
SEC. 7. ASSISTANCE FOR SMALL BUSINESSES AND ENTI-
TIES. 
Section 240 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2200) is amended by adding at the end the 
following: 
‘‘(c) RESOURCES
DEDICATED
TO
SMALL
BUSI-
NESSES, COOPERATIVES, AND OTHER SMALL UNITED 
STATES INVESTORS.—The Corporation shall ensure that 
adequate personnel and resources, including senior offi-
cers, are dedicated to assist United States small busi-
nesses, cooperatives, and other small United States inves-
tors in obtaining insurance, reinsurance, financing, and 
other assistance under this title. The Corporation shall in-
clude, in each annual report under section 240A, the fol-
lowing information with respect to the period covered by 
the report: 
‘‘(1) A description of such personnel and re-
sources. 
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‘‘(2) The number of United States small busi-
nesses, cooperatives, and other small United States 
investors that received insurance, reinsurance, fi-
nancing, and other assistance from the Corporation, 
and the dollar value of such insurance, reinsurance, 
financing, and other assistance. 
‘‘(3) A description of the projects for which the 
insurance, reinsurance, financing, and other assist-
ance was provided.’’. 
SEC. 8. PREFERENTIAL CONSIDERATION OF CERTAIN IN-
VESTMENT PROJECTS. 
Section 231(f) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2191(f)) is amended to read as follows: 
‘‘(f) to the greatest degree practicable and con-
sistent with the goals of the Corporation, to give 
preferential consideration to investment projects in 
any less developed country the government of which 
is receptive to both domestic and foreign private en-
terprise and to projects in any country the govern-
ment of which is willing and able to maintain condi-
tions that enable private enterprise to make a full 
contribution to the development process;’’. 
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SEC. 9. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ. 
Section 239 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2199), as amended by sections 3 and 4, is 
amended by adding at the end the following: 
‘‘(n) OPERATIONS IN IRAQ.—Notwithstanding sub-
sections (a) and (b) of section 237, the Corporation is au-
thorized to undertake in Iraq any program authorized by 
this title.’’. 
SEC. 10. INELIGIBILITY OF PERSONS DOING CERTAIN BUSI-
NESS WITH STATE SPONSORS OF TERRORISM. 
(a) IN GENERAL.—Section 231 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2191) is amended— 
(1) by striking ‘‘and’’ at the end of division 
(m); 
(2) by striking the period at the end of division 
(n) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(o) to decline to issue any contract of insur-
ance or reinsurance, or any guaranty, or to enter 
into any agreement to provide financing or any other 
assistance for a prospective eligible investor who en-
ters, directly or through an affiliate, into certain dis-
couraged transactions with a state sponsor of ter-
rorism.’’. 
(b) GENERAL PROVISIONS AND POWERS.—Section 
239 of the Foreign Assistance Act of 1961 (22 U.S.C. 
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2199), as amended by sections 3, 4, and 9, is amended 
by adding at the end the following: 
‘‘(o) STATE SPONSOR OF TERRORISM.— 
‘‘(1) IN GENERAL.—In order to carry out the 
policy set forth in section 231(o) of this Act, the 
Corporation shall require a certification from an of-
ficer of a prospective OPIC-supported United States 
investor that the investor and all affiliates of the in-
vestor are not engaged in a discouraged transaction 
with a state sponsor of terrorism. 
‘‘(2) DISCOURAGED
TRANSACTION.—In this 
subsection, the term ‘discouraged transaction’ means 
any of the following activities: 
‘‘(A) 
An 
investment 
commitment 
of 
$20,000,000 or more by the investor in the en-
ergy sector in a state sponsor of terrorism. 
‘‘(B) Any loan, or an extension of credit, 
to the government of a state sponsor of ter-
rorism by the investor that— 
‘‘(i) is outstanding on the date the 
Corporation enters into a contract with the 
investor; and 
‘‘(ii) that has a value of more than 
$5,000,000, including the sale of goods for 
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which payment is not required by the pur-
chaser within 45 days. 
‘‘(C) The transfer by the investor of goods 
that are included on the United States Muni-
tions List, referred to in section 38(a)(1) of the 
Arms 
Export 
Control 
Act 
(22 
U.S.C. 
2778(a)(1)) to a state sponsor of terrorism 
within the 3-year period preceding the date the 
Corporation enters into a contract with the in-
vestor. 
‘‘(3) EXCEPTION.—An officer of a prospective 
OPIC-supported United States investor may provide 
a certification under this subsection notwithstanding 
the fact that an affiliate of the investor is engaged 
in a discouraged transaction if the transaction is 
carried out under a contract or other obligation of 
the affiliate that was entered into or incurred before 
the acquisition of such affiliate by the prospective 
OPIC-supported United States investor or the par-
ent company of the OPIC-supported United States 
investor. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) AFFILIATE.—The term ‘affiliate’ 
means any person that is directly or indirectly 
controlled by, under common control with, or 
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