[House Report 108-339]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-339
======================================================================
OVERSEAS PRIVATE INVESTMENT CORPORATION AMENDMENTS ACT OF 2003
_______
November 4, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hyde, from the Committee on International Relations, submitted the
following
R E P O R T
[To accompany H.R. 3145]
[Including cost estimate of the Congressional Budget Office]
The Committee on International Relations, to whom was
referred the bill (H.R. 3145) to amend the Foreign Assistance
Act of 1961 to reauthorize the Overseas Private Investment
Corporation, and for other purposes, having considered the
same, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Overseas Private Investment
Corporation Amendments Act of 2003''.
SEC. 2. ISSUING AUTHORITY.
Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C.
2195(a)(2)) is amended by striking ``November 1, 2000'' and inserting
``2007''.
SEC. 3. TECHNICAL CORRECTIONS.
(a) Administrative Costs.--Section 235(a)(1)(B) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2195(a)(1)(B)) is amended by striking
``subsidy cost'' and inserting ``subsidy and administrative costs''.
(b) Noncredit Account Revolving Fund.--Section 235(c) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2195(c)) is amended--
(1) in the first sentence--
(A) by striking ``an insurance and guaranty fund,
which shall have separate accounts to be known as the
Insurance Reserve and the Guaranty Reserve, which
reserves'' and inserting ``a noncredit account
revolving fund, which''; and
(B) by striking ``such reserves have'' and inserting
``of the fund has'';
(2) by striking the third sentence; and
(3) in the last sentence, by striking ``reserves'' and
inserting ``fund''.
(c) Payments to Discharge Liabilities.--Section 235(d) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2195(d)) is amended--
(1) in the first sentence, by striking ``Insurance Reserve,
as long as such reserve'' and inserting ``noncredit account
revolving fund, as long as such fund''; and
(2) in the second sentence, by striking ``or under similar
predecessor guaranty authority'' and all that follows through
``subsection (f) of this section'' and inserting ``or 234(c)
shall be paid in accordance with the Federal Credit Reform Act
of 1990''.
(d) Authorization of Appropriations.--Section 235(f) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2195(f)) is amended--
(1) in the first sentence, by striking ``insurance and
guaranty fund'' and inserting ``noncredit account revolving
fund''; and
(2) by striking ``Insurance Reserve'' each place it appears
and inserting ``noncredit account revolving fund''.
(e) Board of Directors.--Section 233(b) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2193(b)) is amended in the second paragraph--
(1) by striking ``officials'' and inserting ``principal
officers'';
(2) by inserting ``whose duties relate to the programs of the
Corporation'' after ``Government of the United States''; and
(3) by striking ``an official'' and inserting ``one such
officer''.
SEC. 4. INVESTMENT INSURANCE.
(a) Expropriation or Confiscation.--Section 234(a)(1)(B) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2194(a)(1)(B)) is amended by
inserting ``or any political subdivision thereof'' after
``government''.
(b) Definition of Expropriation.--Section 238(b) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2198(b)) is amended by inserting ``,
a political subdivision of a foreign government, or a corporation owned
or controlled by a foreign government,'' after ``government''.
SEC. 5. LOCAL CURRENCY GUARANTY.
(a) Local Currency Guaranty.--Section 234 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2194) is amended by adding at the end the
following:
``(h) Local Currency Guaranties for Eligible Investors.--To issue
to--
``(1) eligible investors, or
``(2) local financial institutions,
guaranties, denominated in currencies other than United States dollars,
of loans and other investments made to projects sponsored by or
significantly involving eligible investors, assuring against loss due
to such risks and upon such terms and conditions as the Corporation may
determine, for projects that the Corporation determines to have
significant developmental effects or as the Corporation determines to
be necessary or appropriate to carry out the purposes of this title.''.
(b) Definition of Local Financial Institution.--Section 238 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2198) is amended--
(1) in subsection (d), by striking ``and'' after the
semicolon;
(2) in subsection (f), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(g) the term `local financial institution'--
``(1) means any bank or financial institution that is
organized under the laws of any country or area in
which the Corporation operates; but
``(2) does not include a branch, however organized,
of a bank or other financial institution that is
organized under the laws of a country in which the
Corporation does not operate.''.
SEC. 6. OUTREACH TO MINORITY- AND WOMEN-OWNED BUSINESSES.
(a) In General.--Section 240 of the Foreign Assistance Act of 1961
(22 U.S.C. 2200) is amended--
(1) in the first sentence, by striking ``The Corporation''
and inserting
``(a) In General.--The Corporation''; and
(2) by adding at the end the following:
``(b) Outreach to Minority-Owned and Women-Owned Businesses.--The
Corporation shall collect data on the involvement of minority- and
women-owned businesses in projects supported by the Corporation,
including--
``(1) the amount of insurance and financing provided by the
Corporation to such businesses in connection with projects
supported by the Corporation; and
``(2) to the extent such information is available, the
involvement of such businesses in procurement activities
conducted or supported by the Corporation.
The Corporation shall include, it its annual report submitted to the
Congress under section 240A, the aggregate data collected under this
paragraph, in such form as to quantify the effectiveness of the
Corporation's outreach activities to minority- and women-owned
businesses.''.
Purpose and Summary
The bill reauthorizes the Overseas Private Investment
Corporation through September 30, 2007, makes several technical
and perfecting amendments to its underlying statute, provides
the Corporation with modest enhancements in its investment
insurance and local currency guaranty programs and directs the
Corporation to collect data on the amount of insurance and
financing provided to minority and women-owned businesses.
OPIC's authorization expired on September 30, 2003, and has
been extended through October in the continuing resolution.
OPIC is a self-sustaining, independent government agency
providing political risk insurance and project finance to U.S.
businesses in over 150 emerging markets and developing
countries. Its operations and activities have supported over
250,000 U.S. jobs and produced $64 billion of U.S. exports
while generating $4.4 billion in reserves. Over the past 30
years, it has created close to 670,000 host country jobs and
supported $145 billion of investments overseas. Nearly 70
percent of suppliers to OPIC-backed projects are U.S. small
businesses.
Background and Need for the Legislation
OPIC's programs grew out of the Marshall Plan, which
enlisted private sector investment to assist in rebuilding war-
torn Europe after World War II. In 1971, OPIC was established
as an independent government corporation by Congress to help
American businesses compete overseas and to promote economic
development in key host countries.
Over the past several years, OPIC Chairman and CEO Peter
Watson has focused his agency's programs and activities on
helping to rebuild the economies of front-line states such as
Afghanistan, Pakistan and potentially in Iraq, where the
Administration is seeking authority to operate its programs and
fund(s). He is also to be commended for his efforts to refocus
OPIC on the Administration's overall development priorities,
particularly in sub-Saharan Africa where new project approvals
over the past two years now amount to $750 million. They are
focused on the housing and health sectors, promoting projects
and activities in South Africa that meet the challenges of HIV/
AIDS, and providing clean drinking water to countries in West
and East Africa.
OPIC and its outreach efforts--The Committee commends the
recent efforts of OPIC to outreach to NGOs and the labor
community on issues relating to accountability, transparency,
environmental and labor standards, human rights and corruption.
The Committee expects OPIC to continue a regular dialogue with
all stakeholders and the goal of making reforms and process
improvements with respect to issues such as accountability,
transparency, environmental, social/labor and worker rights
protections.
OPIC and an accountability mechanism and a transparency
initiative--The Committee is aware of the establishment in
recent years of various mechanisms within multilateral and
bilateral financial and export-promotion institutions to
increase accountability and transparency of those institutions.
These institutions include: the World Bank, the International
Finance Corporation, the Asian Development Bank, the Inter-
American Development Bank, the Multilateral Investment
Guarantee Agency, the European Bank for Reconstruction and
Development, the International Monetary Fund, the Export
Development Corporation of Canada, and the Japan Bank for
International Cooperation. The Committee encourages OPIC to
follow the example of the best practices of these institutions
and work with all stakeholders to establish an accountability
mechanism and continue its ``transparency initiative.''
An accountability mechanism should: evaluate and report on
OPIC compliance with environmental, social, labor, human
rights, and transparency standards consistent with OPIC
statutory mandates; provide a forum for resolving concerns
regarding the impacts of specific OPIC-supported projects with
respect to such issues; and provide advice regarding OPIC
projects, policies and practices. Such a mechanism should also:
be transparent in its operations and outputs, and be responsive
to stakeholders' considerations on environmental and social
concerns, including labor, human rights and corruption
concerns; be accessible to project-affected parties; and insure
the independence and integrity of the evaluations and advice
provided by the accountability mechanism. With respect to the
independence of the accountability mechanism, the Committee
urges the Corporation to follow the model of several
international financial institutions by providing the mechanism
the ability to report directly to the Corporation's Board of
Directors.
The Committee commends OPIC's efforts to convene a dialogue
with stakeholders on a transparency initiative and encourages
OPIC to continue this dialogue. The Committee believes a
transparency initiative should heighten transparency and
information disclosure concerning OPIC's projects and internal
mechanisms, consistent with existing statutes and laws.
Interested stakeholders, including NGOs, environmental and
labor organizations, and the business/investor community,
should play an active role in this process and provide
recommendations on how it should be used to strengthen OPIC's
programs and policies.
The Committee will use its oversight function to monitor
OPIC's performance and progress toward achieving these goals,
and expects a fulsome briefing by OPIC on such progress and
performance six months after enactment of this Act, and
annually thereafter for the duration of the authorization
contained in this bill.
OPIC and labor rights--While our overall policy toward
internationally recognized worker rights needs to be debated
and shaped in other fora and by committees with jurisdiction
over our principal trade policy agency, the Committee
recognizes that OPIC has its own statutory obligations which
must be fully implemented.
The Committee also commends the efforts of OPIC in ensuring
that there are no losses of U.S. jobs as a result of OPIC-
supported projects. OPIC should continue to work, in
consultation with all its stakeholders, to ensure that: OPIC-
supported projects do not result in significant job loss or
substantially reduce positive trade benefits for the U.S.;
investors provide detailed information on jobs created or
supported by an OPIC-supported project; due diligence,
reporting, and monitoring procedures provide detailed, accurate
and timely information on U.S. effects; and enforcement
procedures are comprehensive, effective, and transparent.
The Committee will use its oversight function to monitor
OPIC's performance and progress toward achieving these goals
and expects a fulsome briefing by OPIC on such progress and
performance six months after enactment of this Act, and
annually thereafter for the duration of the authorization
contained in this bill.
OPIC and the Baku-Tblisi-Ceyhan Pipeline--The Committee
understands that OPIC hasunder consideration an application for
political risk insurance in connection with construction of the so-
called Baku-Tblisi-Ceyhan pipeline, which is planned to carry Caspian
oil from the eastern Azerbaijani port of Baku to the Turkish
Mediterranean port of Ceyhan, through parts of the Republic of Georgia.
This pipeline route has the advantage of bringing Caspian oil to market
without having to rely on Iran's cooperation or providing that country
with significant economic benefit. It also avoids further congestion in
the Turkish Straits.
The diversification of energy sources is imperative to U.S.
national security interests. Indeed, the development of energy
resources in previously under-developed or undeveloped regions
has the potential to serve not only as an important means of
providing the U.S. with alternative sources of fuel, but also
as a means of engagement on environmental, rule-of-law,
transparency, and social development issues.
OPIC and minority-business outreach--The Committee commends
OPIC for its minority-owned business outreach efforts and
encourages the Corporation to continue its activities and to
work with other U.S. Government trade, development and finance
agencies in promoting economic opportunities for small and
minority-owned businesses in developing countries.
OPIC and small business--The Committee commends OPIC's
efforts in support of U.S. Small- and Medium-sized Enterprises
(SMEs). The Committee notes that many of these firms,
particularly those with annual revenues of less than $35
million, could substantially increase their exports to the
extent that they secure access to OPIC financing and investment
support. The Committee is supportive of recent efforts by the
Corporation to establish a Small Business Center, to create a
Small Business Initiative in coordination with the Small
Business Administration, to launch a SME shared-risk loan
guaranty program in partnership with the private sector, and to
create a new Small and Medium Enterprise Department to
implement and oversee SME activities.
Hearings
The Committee held a hearing on H.R. 3145 on June 10, 2003.
Testimony was received from: The Honorable Peter S. Watson,
President and Chief Executive Officer of the Overseas Private
Investment Corporation; Elizabeth J. Drake, International
Policy Analyst, American Federation of Labor and Congress of
Industrial Organizations; Theodore H. Moran, Professor of
International Business and Finance, Georgetown University;
Bruce Rich, Senior Attorney and Director for International
Programs, Environmental Defense and Edmund Rice, President of
the Coalition for Employment through Exports, and also
representing the National Foreign Trade Council. Additional
material was submitted by several individuals and
organizations.
Committee Consideration
On September 25, 2003, the International Relations
Committee marked up the bill, pursuant to notice, in open
session. Rep. Lee offered an amendment which added a section
regarding minority-and women-owned businesses. The amendment
was agreed to. The Committee agreed to a motion offered by
Chairman Hyde to favorably report the bill, as amended, to the
House of Representatives, by a voice vote, a quorum being
present.
Rollcall Votes
Clause (3)(b) of rule XIII of the Rules of the House of
Representatives requires that the results of each record vote
on an amendment or motion to report, together with the names of
those voting for or against, be printed in the Committee
Report. There were no record votes during consideration of H.R.
3145.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of House Rule XIII is inapplicable because
this legislation does not provide new budgetary authority or
increased tax expenditures.
Congressional Budget Office Cost Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to the bill, H.R. 3145 the following estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 30, 2003.
Hon. Henry J. Hyde,
Chairman, Committee on International Relations,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3145, the Overseas
Private Investment Corporation Amendments Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Joseph C.
Whitehill.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
H.R. 3145--Overseas Private Investment Corporation Amendments Act of
2003
Summary: H.R. 3145 would extend through 2007 the authority
of the Overseas Private Investment Corporation (OPIC) to issue
political risk insurance and to finance investments in
developing countries and emerging market economies. The bill
would clarify that the term ``expropriation'' would include
actions by political subdivisions or a foreign government or
corporations owned by or controlled by foreign governments. It
also would authorize OPIC to issue guarantees in local
currencies, and it would require OPIC to report to Congress on
the effectiveness of its activities to reach businesses owned
by women and minorities. OPIC's authority would be limited to
such amounts as may be provided in advance in appropriations
acts. CBO estimates that implementing the bill would cost $146
million over the 2004-2008 period, assuming the appropriation
of the necessary funds. The bill would not affect direct
spending or receipts.
OPIC is a government corporation authorized to encourage
private-sector investment in developing countries and emerging
market economies. It insures investments against the risk of
losses due to expropriation, inconvertability of currencies,
and war or political violence. In addition, OPIC finances
investments through guaranteed and direct loans. OPIC is
largely self-financing. Its noncredit program earns income from
investments in government securities and insurance operations.
H.R. 3145 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3145 is shown in the following table.
The estimate assumes that the bill will be enacted near the
start of fiscal year 2004, that funds and authority will be
provided in annual appropriation acts near the start of each
fiscal year over the 2004-2007 period, and that outlays will
follow historical spending patterns. The costs of this
legislation fall within budget function 150 (international
affairs).
----------------------------------------------------------------------------------------------------------------
By fiscal year, 2004 in millions of dollars--
-----------------------------------------------------
2003 2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for OPIC:
Estimated Authorization Level \1\..................... -209 -233 -245 -266 -282 -297
Estimated Outlays..................................... -213 -218 -232 -257 -277 -294
Proposed Changes:
Estimated Authorization Level \2\..................... 0 27 35 47 58 36
Estimated Outlays..................................... 0 3 14 31 46 53
Spending Under H.R. 3145 for OPIC:
Estimated Authorization Level \1\..................... -209 -206 -210 -219 -224 -261
Estimated Outlays..................................... -213 -215 -218 -226 -231 -241
----------------------------------------------------------------------------------------------------------------
OPIC = Overseas Private Investment Corporation.
\1\ The 2003 level is the amount appropriated for that year plus the estimated amount of offsetting collections
in OPIC's noncredit account.
\2\ The estimated authorization level assumes the 2003 funding level adjusted for inflation through 2007.
Funding at the 2003 level over that period would lower outlays by $21 million over the 2004-2008 period.
Basis of estimate: In 2003, OPIC received appropriations of
$40 million for administrative expenses and $24 million for the
cost of credit as defined by the Federal Credit Reform Act. The
estimated spending under current law assumes that OPIC
continues to service its outstanding insurance and credits and
to receive collections on its investments in U.S. securities,
but that it issues no new insurance or finances no new
investments after September 30, 2003. (Interest on existing
securities brings in collections of more than $230 million a
year to the OPIC account; but those collections are offset by
interest paid elsewhere in the federal budget.) CBO assumes
that administrative expenses under current law would be
gradually reduced to a minimum rate necessary to service
outstanding insurance and credits.
CBO assumes that under H.R. 3145 OPIC would continue to
issue insurance over the 2004-2007 period and that funding for
administrative expenses and the cost of credit would be
provided in annual appropriations acts at the 2003 level
adjusted for inflation through 2007. Based on information from
OPIC, CBO estimates that the new reporting requirement and
local-currency guarantees would not significantly affect the
costs of OPIC's operations. Thus, enacting the bill would
continue the policies that are assumed in CBO's baseline
through 2007. Because the bill would extend OPIC's authorities
through 2007 only, we estimate that funding in 2008 would only
be needed for the administrative expenses of servicing
outstanding insurance and credits.
Intergovernmental and private-sector impact: H.R. 3145
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs: Joseph C. Whitehill;
Impact on State, Local, and Tribal Governments: Melissa
Merrell; and Impact on the Private Sector: Jean Talarico.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
The bill will provide the Overseas Private Investment
Corporation with the authorities needed to fulfill its foreign
economic mandates through 2007.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in article I, section 8 of the Constitution.
Section-by-Section Analysis
Sec. 1--Short Title. This section provides that the Bill
may be cited as the ``Overseas Private Investment Corporation
Amendment Act of 2003''.
Sec. 2--Issuing Authority. This section extends the
authority of OPIC to issue investment insurance and guaranties
until September 30, 2007.
Sec. 3--Technical Corrections. This section makes technical
and conforming corrections to OPIC's statute and makes certain
limitations on the power of the President to appoint public
sector members of OPIC's Board of Directors.
Sec. 4--Investment Insurance. In view of the fact that
governmental functions, especially those relating to
infrastructure development and operations, are performed to an
increasing degree through entities owned or controlled by
governments rather than by agencies of the governments, this
section clarifies the definition of expropriation to include
explicitly acts of an entity owned or controlled by a foreign
government.
Sec. 5--Local Currency Guaranty. While OPIC currently has
the authority to make loans in local currencies, it lacks the
specific authority to provide a guaranty of local currency
loans to projects sponsored by eligible investors. This section
provides this authority. It should be implemented fully
consistent with the other authorities of Section 234, including
the limitations of Section 234(b).
Sec. 6--Outreach to Minority and Women-owned Businesses.
This section directs OPIC to collect data on the amount of
insurance and financing provided by the Corporation to minority
and women-owned businesses in OPIC-supported projects and, to
the extent information is available, on the involvement of such
businesses in procurement activities conducted or supported by
the Corporation.
Agency Views
The Administration supports the bill.
New Advisory Committees
H.R. 3145 does not establish or authorize any new advisory
committees.
Congressional Accountability Act
H.R. 3145 does not apply to the legislative branch.
Federal Mandates
H.R. 3145 provides no Federal mandates.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
FOREIGN ASSISTANCE ACT OF 1961
* * * * * * *
PART I
* * * * * * *
Chapter 2--Other Programs
* * * * * * *
Title IV--Overseas Private Investment Corporation
* * * * * * *
Sec. 233. Organization and Management.--(a) * * *
(b) Board of Directors.--All powers of the Corporation shall
vest in and be exercised by or under the authority of its Board
of Directors (``the Board'') which shall consist of fifteen
Directors, including the Chairman, with eight Directors
constituting a quorum for the transaction of business. Eight
Directors shall be appointed by the President of the United
States, by and with the advice and consent of the Senate, and
shall not be officials or employees of the Government of the
United States. At least two of the eight Directors appointed
under the preceding sentence shall be experienced in small
business, one in organized labor, and one in cooperatives. Each
such Director shall be appointed for a term of no more than
three years. The terms of no more than three such Directors
shall expire in any one year. Such Directors shall serve until
their successors are appointed and qualified and may be
reappointed.
The other Directors shall be [officials] principal officers
of the Government of the United States whose duties relate to
the programs of the Corporation, including the President of the
Corporation, the Administrator of the Agency for International
Development, the United States Trade Representative, and [an
official] one such officer of the Department of Labor,
designated by and serving at the pleasure of the President of
the United States. The United States Trade Representative may
designate a Deputy United States Trade Representative to serve
on the Board in place of the United States Trade
Representative.
* * * * * * *
Sec. 234. Investment Insurance and Other Programs.--The
Corporation is hereby authorized to do the following:
(a) Investment Insurance.--(1) To issue insurance, upon such
terms and conditions as the Corporation may determine, to
eligible investors assuring protection in whole or in part
against any or all of the following risks with respect to
projects which the Corporation has approved--
(A) * * *
(B) loss of investment, in whole or in part, in the
approved project due to expropriation or confiscation
by action of a foreign government or any political
subdivision thereof;
* * * * * * *
(h) Local Currency Guaranties for Eligible Investors.--To
issue to--
(1) eligible investors, or
(2) local financial institutions,
guaranties, denominated in currencies other than United States
dollars, of loans and other investments made to projects
sponsored by or significantly involving eligible investors,
assuring against loss due to such risks and upon such terms and
conditions as the Corporation may determine, for projects that
the Corporation determines to have significant developmental
effects or as the Corporation determines to be necessary or
appropriate to carry out the purposes of this title.
* * * * * * *
Sec. 235. Issuing Authority, Direct Investment Authority and
Reserves.--
(a) Issuing Authority.--
(1) Insurance and financing.--(A) * * *
(B) Subject to spending authority provided in
appropriations Acts pursuant to section 504(b) of the
Federal Credit Reform Act of 1990, the Corporation is
authorized to transfer such sums as are necessary from
its noncredit activities to pay for the [subsidy cost]
subsidy and administrative costs of the investment
guaranties and direct loan programs under subsections
(b) and (c) of section 234.
(2) Termination of authority.--The authority of
subsections (a), (b), and (c) of section 234 shall
continue until September 30, [November 1, 2000] 2007.
(c) There shall be established in the Treasury of the United
States [an insurance and guaranty fund, which shall have
separate accounts to be known as the Insurance Reserve and the
Guaranty Reserve, which reserves] a noncredit account revolving
fund, which shall be available for discharge of liabilities, as
provided in subsection (d) of this section until such time as
all such liabilities have been discharged or have expired or
until all [such reserves have] of the fund has been expended in
accordance with the provisions of this section. Such fund shall
be funded by: (1) the funds heretofore available to discharge
liabilities under predecessor guaranty authority (including
housing guaranty authorities), less both the amount made
available for housing guaranty programs pursuant to section
223(b) and the amount made available to the Corporation
pursuant to subsection (e) of this section and (2) such sums
as shall be appropriated pursuant to subsection (f) of this
section for such purposes. [The allocation of such funds to
each such reserve shall be determined by the Board after
consultation with the Secretary of the Treasury.] Additional
amounts may thereafter be transferred to such [reserves] fund
pursuant to section 236.
(d) Any payment made to discharge liabilities under
investment insurance or reinsurance issued under section 234
under similar predecessor guaranty authority or under section
234A, shall be paid first out of the [Insurance Reserve, as
long as such reserve] noncredit account revolving fund, as long
as such fund remains available, and thereafter out of funds
made available pursuant to subsection (f) of this section. Any
payments made to discharge liabilities under guaranties issued
under section 234(b) [or under similar predecessor guaranty
authority shall be paid first out of the Guaranty Reserve as
long as such reserve remains available, and thereafter out of
funds made available pursuant to subsection (f) of this
section] or 234(c) shall be paid in accordance with the Federal
Credit Reform Act of 1990.
* * * * * * *
(f) There are authorized to be appropriated to the
Corporation, to remain available until expended, such amounts
as may be necessary from time to time to replenish or increase
the [insurance and guaranty fund] noncredit account revolving
fund, to discharge the liabilities under insurance,
reinsurance, or guaranties issued by the Corporation or issued
under predecessor guaranty authority, or to discharge
obligations of the Corporation purchased by the Secretary of
the Treasury pursuant to this subsection. However, no
appropriations shall be made to augment the [Insurance Reserve]
noncredit account revolving fund until the amount of funds in
the [Insurance Reserve] noncredit account revolving fund is
less than $25,000,000. Any appropriations to augment the
[Insurance Reserve] noncredit account revolving fund shall then
only be made either pursuant to specific authorization enacted
after the date of enactment of the Overseas Private Investment
Corporation Amendments Act of 1974, or to satisfy the full
faith and credit provision of section 237(c). In order to
discharge liabilities under investment insurance or
reinsurance, the Corporation is authorized to issue from time
to time for purchase by the Secretary of the Treasury its
notes, debentures, bonds, or other obligations; but the
aggregate amount of such obligations outstanding at any one
time shall not exceed $100,000,000. Any such obligation shall
be repaid to the Treasury within one year after the date of
issue of such obligation. Any such obligation shall bear
interest at a rate determined by the Secretary of the Treasury,
taking into consideration the current average market yield on
outstanding marketable obligations of the United States of
comparable maturities during the month preceding the issuance
of any obligation authorized by this subsection. The Secretary
of the Treasury shall purchase any obligation of the
Corporation issued under this subsection, and for such purchase
he may use as a public debt transaction the proceeds of the
sale of any securities issued under the Second Liberty Bond Act
after the date of enactment of the Overseas Private Investment
Corporation Amendments Act of 1974. The purpose for which
securities may be issued under such Bond Act shall include any
such purchase.
(1) * * *
* * * * * * *
Sec. 238. Definitions.--As used in this title--
(a) * * *
(b) the term ``expropriation'' includes, but is not
limited to, any abrogation, repudiation, or impairment
by a foreign government, a political subdivision of a
foreign government, or a corporation owned or
controlled by a foreign government, of its own contract
with an investor with respect to a project, where such
abrogation, repudiation, or impairment is not caused by
the investor's own fault or misconduct, and materially
adversely affects the continued operation of the
project;
* * * * * * *
(d) the term ``noncredit account revolving fund''
means the account in which funds under section 236 and
all funds from noncredit activities are held; [and]
* * * * * * *
(f) the term ``predecessor guaranty authority'' means
prior guaranty authorities (other than housing guaranty
authorities) repealed by the Foreign Assistance Act of
1969, section 202(b) and 413(b) of the Mutual Security
Act of 1954, as amended, and section 111(b)(3) of the
Economic Cooperation Act of 1948, as amended (exclusive
of authority relating to informational media
guaranties)[.]; and
(g) the term ``local financial institution''--
(1) means any bank or financial institution
that is organized under the laws of any country
or area in which the Corporation operates; but
(2) does not include a branch, however
organized, of a bank or other financial
institution that is organized under the laws of
a country in which the Corporation does not
operate.
* * * * * * *
Sec. 240. Small Business Development.--
(a) In General.--The Corporation shall undertake, in
cooperation with appropriate departments, agencies, and
instrumentalities of the United States as well as private
entities and others, to broaden the participation of United
States small business, cooperatives, and other small United
States investors in the development of small private enterprise
in less developed friendly countries or areas. The Corporation
shall allocate up to 50 percent of its annual net income, after
making suitable provision for transfers and additions to
reserves, to assist and facilitate the development of projects
consistent with the provisions of this section. Such funds may
be expended, notwithstanding the requirements of section
231(a), on such terms and conditions as the Corporation may
determine, through loans, grants, or other programs authorized
by section 234 and section 234A.
(b) Outreach to Minority-Owned and Women-Owned Businesses.--
The Corporation shall collect data on the involvement of
minority- and women-owned businesses in projects supported by
the Corporation, including--
(1) the amount of insurance and financing provided by
the Corporation to such businesses in connection with
projects supported by the Corporation; and
(2) to the extent such information is available, the
involvement of such businesses in procurement
activities conducted or supported by the Corporation.
The Corporation shall include, it its annual report submitted
to the Congress under section 240A, the aggregate data
collected under this paragraph, in such form as to quantify the
effectiveness of the Corporation's outreach activities to
minority- and women-owned businesses.
* * * * * * *