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Text of the International Development Association Replenishment Act of 2008

This bill was introduced on June 24, 2008, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 16, 2008 (Reported by Senate Committee).

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Source: GPO

II

Calendar No. 969

110th CONGRESS

2d Session

S. 3168

[Report No. 110–464]

IN THE SENATE OF THE UNITED STATES

June 19, 2008

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

September 16, 2008

Reported by , without amendment

A BILL

To authorize United States participation in the replenishment of resources of the International Development Association, and for other purposes.

1.

Short title

This Act may be cited as the International Development Association Replenishment Act of 2008.

2.

Definitions

In this Act:

(1)

Greenhouse gas

The term greenhouse gas means carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, a perfluorocarbon, or a hydrofluorocarbon.

(2)

Multilateral development bank

The term multilateral development bank has the meaning given that term in section 1307 of the International Financial Institutions Act (Public Law 95–118; 22 U.S.C. 262m–7).

3.

International Development Association

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

24.

Fifteenth replenishment

(a)

The United States Governor of the International Development Association is authorized to contribute on behalf of the United States $3,705,000,000 to the fifteenth replenishment of the resources of the Association, subject to obtaining the necessary appropriations.

(b)

In order to pay for the United States contribution provided for in subsection (a), there are authorized to be appropriated $3,705,000,000 for payment by the Secretary of the Treasury.

.

4.

Anticorruption Trust Pilot Program

(a)

Authorization

The Secretary of the Treasury (referred to in this section as the Secretary) is authorized to negotiate the creation of a pilot program that establishes an anticorruption trust at the World Bank, in accordance with this section.

(b)

Purposes

The Secretary shall support the creation of an Anticorruption Trust Pilot Program (referred to in this section as the Trust) whose purposes include—

(1)

assisting poor countries in investigations and prosecutions of fraud and corruption related to a loan, grant, or credit from the World Bank; and

(2)

determining whether such a program should be carried out at other multilateral development banks.

(c)

Poor countries defined

In this section, the term poor countries means countries that are eligible to borrow from the International Development Association, as such eligibility is determined by gross national product per capita, lack of creditworthiness to borrow on market terms, and good policy performance.

(d)

Repayment of funds

The Secretary may support a policy that allows a poor country that assesses a fine or receives any proceeds as a result of a prosecution paid for with funds from the Trust to repay the amount received from the Trust, up to the total amount received by such country.

(e)

Monitoring

The Secretary shall be responsible for establishing a system for—

(1)

monitoring the disbursement and use of funds from the Trust; and

(2)

promoting access to such funds by poor countries that are challenged by the high cost of investigating and prosecuting corruption and fraud linked to a loan from, or a project funded by, the World Bank.

(f)

Other donors

The Secretary shall encourage other donors to the multilateral development banks to contribute funds to the Trust.

(g)

Reports

(1)

Implementation and feasibility report

Not later than June 1, 2009, the Secretary shall submit a report to the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives that—

(A)

describes the actions taken to establish the Trust;

(B)

evaluates the feasibility of establishing similar trusts at other multilateral development banks; and

(C)

evaluates the feasibility of encouraging each of the multilateral development banks to develop their own funding for programs, rather than through a trust, to assist poor countries in investigations and prosecutions of fraud and corruption related to a loan, grant, or credit from such bank.

(2)

Evaluation report

If the Trust is established in accordance with this section, the Secretary, not later than June 1, 2010, shall submit a report to the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives that evaluates the effectiveness of the Trust.

(h)

Authorization of Appropriations

There is authorized to be appropriated to the Secretary $2,000,000 for contribution on behalf of the United States to the Trust, if the Trust is established in accordance with this section.

5.

Requirements to consider greenhouse gas emissions in environmental impact assessments and to make such assessments available in the languages of the people affected

(a)

In general

Section 1307(a) of the International Financial Institutions Act (22 U.S.C. 262m–7(a)) is amended by striking paragraphs (1) and (2) and inserting the following:

(1)

an assessment analyzing the environmental impacts, including associated and cumulative impacts and net greenhouse gas emissions, of the proposed action and of alternatives to the proposed action, has been made available to the board of directors of the bank; and

(2)
(A)

such assessment or a comprehensive summary of the assessment (with propriety information redacted) has been made available to affected groups and local nongovernmental organizations in English and in the official languages of the countries of the affected groups; and

(B)

notice of the availability of the assessment or comprehensive summary at the bank and in the countries of the affected groups has been posted on the Internet website of the bank.

.

(b)

Effective date

The amendment made by subsection (a) shall apply with respect to proposals for multilateral development bank projects made on or after October 1, 2009.

6.

Report on greenhouse gas emissions associated with multilateral development bank actions

(a)

In general

Not later than January 1, 2010, and annually thereafter, the Secretary of the Treasury, after consultation with the Secretary of State, the Administrator of the United States Agency for International Development, and the Administrator of the Environmental Protection Agency, shall submit to the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives a report on the assessments provided for in section 1307(a) of the International Financial Institutions Act (22 U.S.C. 262m–7(a)).

(b)

Contents

Each report submitted under subsection (a) shall describe the assessments provided for in section 1307(a) of such Act, including—

(1)

an assessment of—

(A)

the amount of greenhouse gas emissions associated with each project with respect to which each multilateral development bank has provided a loan, guarantee, extension of credit, or grant, or has taken any other action, in the last year; and

(B)

the total greenhouse gas emissions of all projects described in subparagraph (A);

(2)

an assessment of the greenhouse gas emissions of project alternatives that would address similar economic and social goals; and

(3)

a description of the plans of the Secretary of the Treasury to direct the United States Executive Director of each multilateral development bank in which the United States participates to use the voice and vote of the United States to encourage reductions of greenhouse gas emissions associated with projects with respect to which the bank provides a loan, guarantee, extension of credit, or grant, or takes any other action.

(c)

Performance evaluations of assessments

Each report submitted under subsection (a) shall include an evaluation of—

(1)

the methods that could be used to reduce greenhouse gas emissions associated with projects with respect to which a multilateral development bank provides a loan, guarantee, extension of credit, or grant, or takes any other action;

(2)

an identification of best practices for assessing the direct and indirect greenhouse gas emissions associated with such projects; and

(3)

an evaluation of the extent to which each multilateral development bank is using the best practices identified in paragraph (2) in conducting the assessments of projects as provided for in section 1307(a) of such Act.

7.

Report on Process to Address Grievances with the Multilateral Development Banks

(a)

In general

Not later than August 1, 2009, the Secretary of the Treasury shall submit, to the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives, a report that evaluates the efficacy of the World Bank Inspection Panel, the Compliance Advisor Ombudsman of the International Finance Corporation and Multilateral Investment Guarantee Agency, the African Development Bank Independent Review Mechanism, the Inter-American Development Bank Independent Investigation Mechanism, the Asian Development Bank Accountability Mechanism, and the European Bank for Reconstruction and Development Independent Recourse Mechanism.

(b)

Contents

The report submitted under subsection (a) shall include—

(1)

an assessment of—

(A)

the number of cases, key findings, and outcomes of completed grievance processes;

(B)

the level and adequacy of participation of requesters and other affected people in the compliance investigation process, including the extent to which their concerns were raised before the Board and senior management of the bank;

(C)

the level and adequacy of participation of requesters and other affected people in the problem-solving process, if applicable, including the extent to which their concerns were raised before the Board and management of the bank;

(D)

inclusion of stakeholders in the creation of action plans to—

(i)

remedy identified violations of the policies and procedures of the bank; and

(ii)

address outstanding issues identified in problem-solving initiatives, if applicable;

(E)

the quality and timeliness of the implementation of action plans;

(F)

the degree to which the Board exercises systematic oversight of the implementation of action plans;

(G)

the degree to which stakeholders participate in monitoring and implementation of action plans; and

(H)

if action plans are not adequately implemented, the suitability of the mechanisms for recourse for affected people; and

(2)

a discussion regarding how the United States Executive Director of each multilateral development bank will strengthen weaknesses identified with each applicable grievance mechanism.

September 16, 2008

Reported without amendment