Latin America and the Caribbean:
USC Title 22
Governing Procedures for USAID Environmental Impact Monitoring
of Multilateral Development Banks
Section 262m. Congressional findings and policies for multilateral development
banks respecting environment, public health, natural resources, and indigenous
peoples
The Congress finds that -
(1) United States assistance to the multilateral development banks should
promote sustainable use of natural resources and the protection of the
environment, public health, and the status of indigenous peoples in developing
countries;
(2) multilateral development bank projects, policies, and loans have failed in
some cases to provide adequate safeguards for the environment, public health,
natural resources, and indigenous peoples;
(3) many development efforts of the multilateral development banks are more
enduring and less costly if based on consultations with directly affected
population groups and communities;
(4) developing country governments sometimes do not ensure that appropriate
policies and procedures are in place to use natural resources sustainably or
consult with affected population groups and communities, where costs could be
reduced or benefits made more enduring; and
(5) in general, the multilateral development banks do not yet provide
systematic and adequate assistance to their borrowers to encourage sustainable
resource use and consultation with affected communities, where costs could be
reduced or benefits made more enduring.
Section 262m-1. Environmental performance of banks; mechanisms for improvement
The Secretary of the Treasury and the Secretary of State, in cooperation with
the Administrator of the Agency for International Development, shall vigorously
promote mechanisms to strengthen the environmental performance of these banks.
These mechanisms shall include strengthening organizational, administrative,
and procedural arrangements within the banks which will substantially improve
management of assistance programs necessary to ensure the sustainable use of
natural resources and the protection of indigenous peoples.
Section 262m-2. Environmental impact of assistance proposals
(a) Analysis by agencies, United States embassies and overseas missions of
Agency for International Development; factors considered; affirmative
investigation of adverse impacts; availability of information to public
(1) In the course of reviewing assistance proposals of the multilateral
development banks, the Administrator of the Agency for International
Development, in consultation with the Secretary of the Treasury and the
Secretary of State, shall ensure that other agencies and appropriate United
States embassies and overseas missions of the Agency for International
Development are instructed to analyze, where feasible, the environmental
impacts of multilateral development loans well in advance of such loans'
approval by the relevant institutions to determine whether the proposals will
contribute to the sustainable development of the borrowing country.
(2) To the extent possible, such reviews shall address the economic viability
of the project, adverse impacts on the environment, natural resources, public
health, and indigenous peoples, and recommendations as to measures, including
alternatives, that could eliminate or mitigate adverse impacts.
(3) If there is reason to believe that any such loan is particularly likely to
have substantial adverse impacts, the Administrator of the Agency for
International Development, in consultation with the Secretary of the Treasury
and the Secretary of State, shall ensure that an affirmative investigation of
such impacts is undertaken in consultation with relevant Federal agencies. If
not classified under the national security system of classification, the
information collected pursuant to this paragraph shall be made available to the
public.
(b) Evaluation by major shareholder governments prior to bank action on
assistance proposals
The Secretary of the Treasury shall instruct the Executive Directors
representing the United States at the International Bank for Reconstruction and
Development, the Inter-American Development Bank, the Asian Development Bank,
and the African Development Bank to urge the management and other directors of
each such bank, to provide sufficient time between the circulation of
assistance proposals and bank action on those proposals, in order to permit
their evaluation by major shareholder governments.
(c) Identification of proposals likely to have adverse impact; transmittal to
Congress
Based on the information obtained during the evaluation referred to in
subsection (a) of this section and other available information, the
Administrator of the Agency for International Development, in consultation with
the Secretary of the Treasury and the Secretary of State, shall identify those
assistance proposals likely to have adverse impacts on the environment, natural
resources, public health, or indigenous peoples. The proposals so identified
shall be transmitted to the Committee on Appropriations and the Committee on
Banking, Finance and Urban Affairs of the House of Representatives and the
Committee on Appropriations and the Committee on Foreign Relations of the
Senate, not later than June 30 and December 31 of each year following December
22, 1987.
(d) Reports to Executive Directors; elimination or mitigation of adverse
impacts
The Secretary of the Treasury shall forward reports concerning information
received under subsection (a) of this section to the Executive Director
representing the United States in the appropriate bank with instructions to
seek to eliminate or mitigate adverse impacts which may result from the
proposal.
Section 262m-3. Cooperative information exchange system
The Secretary of the Treasury, in consultation with the Secretary of State and
the Administrator of the Agency for International Development, shall create a
system for cooperative exchange of information with other interested member
countries on assistance proposals of the multilateral development banks.
Section 262m-4. Environmental educational and training programs for mid-level
bank managers and officials of borrowing countries
The Secretary of the Treasury shall instruct the United States Executive
Directors of the multilateral development banks to support the strengthening of
educational programs within each multilateral development bank to improve the
capacity of mid-level managers to initiate and manage environmental aspects of
development activities, and to train officials of borrowing countries in the
conduct of environmental analyses.
Section 262m-5. Environmental impact statements; factors considered; promotion
of activities by United States Executive Directors
(a) The Secretary of the Treasury shall instruct the United States Executive
Director of each multilateral development bank to vigorously and continuously
urge that each bank identify and develop methods and procedures to insure that
in addition to economic and technical considerations, unquantified
environmental values be given appropriate consideration in decisionmaking, and
include in the documents circulated to the Board of Executive Directors
concerning each assistance proposal a detailed statement, to include assessment
of the benefits and costs of environmental impacts and possible mitigating
measures, on the environmental impact of the proposed action, any adverse
environmental effects which cannot be avoided if the proposal is implemented,
and alternatives to the proposed action.
(b) The Secretary of the Treasury shall instruct the United States Executive
Director of each multilateral development bank to vigorously and continuously
promote -
(1) increases in the proportion of loans supporting environmentally beneficial
policies, projects, and project components;
(2) the establishment of environmental programs in appropriate policy-based
loans for the purpose of improving natural resource management, environmental
quality, and protection of biological diversity;
(3) increases in the proportion of staff with professional training and
experience in ecology and related areas and in the areas of anthropological and
sociological impact analysis to ensure systematic appraisal and monitoring of
environmental and sociocultural impacts of projects and policies;
(4) active and systematic encouragement of participation by borrowing countries
nongovernmental environmental, community and indigenous peoples' organizations
at all stages of preparations for country lending strategies, policy based
loans, and loans that may have adverse environmental or sociocultural impacts;
and
(5) full availability to concerned or affected nongovernmental and community
organization, early in the preparation phase and at all subsequent stages of
planning of full documentary information concerning details of design and
potential environmental and sociocultural impacts of proposed loans.
Section 262m-6. Repealed. Pub. L. 101-240, title V, Sec. 541(d)(4), Dec. 19,
1989, 103 Stat. 2518
Section 262m-7. Assessment of environmental impact of proposed multilateral
development bank actions
(a) Assessment required before favorable vote on action
(1) In general
Beginning 2 years after December 19, 1989, the Secretary of the Treasury shall
instruct the United States Executive Director of each multilateral development
bank not to vote in favor of any action proposed to be taken by the respective
bank which would have a significant effect on the human environment, unless for
at least 120 days before the date of the vote -
(A) an assessment analyzing the environmental impacts of the proposed action
and of alternatives to the proposed action has been completed by the borrowing
country or the institution, and been made available to the board of directors
of the institution; and
(B) except as provided in paragraph (2), such assessment or a comprehensive
summary of such assessment has been made available to the multilateral
development bank, affected groups, and local nongovernmental organizations.
(2) Exceptions and reports
(A) Exceptions
The requirement of paragraph (1)(B) shall not apply where the Secretary finds
compelling reasons to believe that disclosure in any case described in
paragraph (1) would jeopardize the confidential relationship between the
borrower country and the respective bank.
(B) Reports by Secretary
The Secretary shall submit a quarterly report in writing to the Committees
specified in subsection (f)(1) of this section of the findings described in
subparagraph (A).
(b) Access to assessments in all member countries
The Secretary of the Treasury shall seek the adoption of policies and
procedures, through discussions and negotiations with the other member
countries of the multilateral development banks and with the management of such
banks, which result in access by governmental agencies and interested members
of the public of such member countries, to environmental assessments or
documentary information containing comprehensive summaries of such assessments
which discuss the environmental impact of prospective projects and programs
being considered by such banks. Such assessments or summaries should be made
available to such governmental agencies and interested members of the public at
least 120 days before scheduled board action, and public participation in
review of the relevant environmental information should be encouraged.
(c) Consideration of assessment
The Secretary of the Treasury shall -
(1) ensure that an environmental impact assessment or comprehensive summary of
such assessment described in subsection (a) of this section accompanies loan
proposals through the agency review process; and
(2) take into consideration recommendations from all other interested Federal
agencies and interested members of the public.
(d) Development of procedures for systematic environmental assessment
The Secretary of the Treasury, in consultation with other Federal agencies,
including the Environmental Protection Agency, the Department of State, and the
Council on Environmental Quality, shall -
(1) instruct the United States Executive Director of each multilateral
development bank to initiate discussions with the other executive directors of
the respective bank and to propose that the respective bank develop and make
available to member governments of, and borrowers from, the respective bank,
within 18 months after December 19, 1989, a procedure for the systematic
environmental assessment of development projects for which the respective bank
provides financial assistance, taking into consideration the Guidelines and
Principles for Environmental Impact Assessment promulgated by the United
Nations Environmental Programme and other bilateral or multilateral assessment
procedures; and
(2) in determining the position of the United States on any action proposed to
be taken by a multilateral development bank, develop and prescribe procedures
for the consideration of, among other things -
(A) the environmental impact assessment of the action described in subsection
(a) of this section;
(B) interagency and public review of such assessment; and
(C) other environmental review and consultation of such action that is required
by other law.
(e) Use of United States personnel
The Secretary of the Treasury, in consultation with the Secretary of State, the
Secretary of the Interior, the Administrator of the Environmental Protection
Agency, the Chairman of the Council on Environmental Quality, the Administrator
of the Agency for International Development, and the Administrator of the
National Oceanic and Atmospheric Administration, shall -
(1) make available to the multilateral development banks, without charge,
appropriate United States Government personnel to assist in -
(A) training bank staff in environmental impact assessment procedures;
(B) providing advice on environmental issues;
(C) preparing environmental studies for projects with potentially significant
environmental impacts; and
(D) preparing documents for public release, and developing procedures to
provide for the inclusion of interested nongovernmental organizations in the
environmental review process; and
(2) encourage other member countries of such banks to provide similar
assistance.
(f) Reports
(1) In general
The Secretary of the Treasury shall submit to the Committees on Foreign
Relations and Environment and Public Works of the Senate and the Committee on
Banking, Finance and Urban Affairs of the House of Representatives -
(A) not later than the end of the 1-year period beginning on December 19, 1989,
a progress report on the efficacy of efforts by the United States to encourage
consistent and timely environmental impact assessment of actions proposed to be
taken by the multilateral development banks and on the progress made by the
multilateral development banks in developing and instituting environmental
assessment policies and procedures; and
(B) not later than January 1, 1993, a detailed report on the matters described
in subparagraph (A).
(2) Availability of reports
The reports required by paragraph (1) shall be made available to the member
governments of, and the borrowers from, the multilateral development banks, and
to the public.
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