Foreign Assistance Act, Part I, Chapter 7 - Debt for Nature
Exchanges
[Note: The legislative text for Chapter
7 is interrupted periodically for clarifications on misnumbering
that occurs in the text. The text flows around these interruptions
as noted.]
\376\ 22 U.S.C. 2276.
Chapter 7--Debt-For-Nature Exchanges \377\ Sec. 461.\378\
Definition.--For purpose of this chapter, the term ``debt-for-nature
exchange'' means the cancellation or redemption of the foreign
debt of the government of a country in exchange for-
\377\ Chapter 7, as enacted in the Foreign Assistance Act
of 1966 (Public Law 89-583), titled: ``Joint Commissions on
Rural Development'', was repealed by sec. 604 of the International
Development and Food Assistance Act of 1978 (Public Law 95-424;
92 Stat. 961). A new ch. 7 was added by sec. 711 of the International
Development and Finance Act of 1989 (Public Law 101-240; 103
Stat. 2521). \378\ 22 U.S.C. 2281. All sections in ch. 7 are
misnumbered, as enacted by the International Development and
Finance Act of 1989 (Public Law 101-240; 103 Stat. 2521).
Should read ``Sec. 471''.
(1) that government's making available local currencies (including
through the issuance of bonds) which are used only for eligible
projects involving the conservation or protection of the environment
in that country (as described in section 463); \379\ or
\379\
All sections in ch. 7 are misnumbered, as enacted by
the International Development and Finance Act of 1989 (Public
Law 101-240; 103 Stat. 2521). Reference should read ``section
473''.
(2) that government's financial resource or policy commitment
to take certain specified actions to ensure the restoration,
protection, or sustainable use of natural resources within
that country; or
(3) a combination of assets and actions under both paragraphs
(1) and (2). Sec. 462.\380\ Assistance for Commercial Debt
Exchanges.--
(a) The Administrator of the Agency for International Development
is authorized to furnish assistance, in the form of grants
on such terms and conditions as may be necessary, to nongovernmental
organizations for the purchase on the open market of discounted
commercial debt of a foreign government of an eligible country
which will be canceled or redeemed under the terms of an agreement
with that government as part of a debt-for-nature exchange.
\380\ 22 U.S.C. 2282.
All sections in ch. 7 are misnumbered,
as enacted by the International Development and Finance Act
of 1989 (Public Law 101-240; 103 Stat. 2521). Should read
``Sec. 472''.
(b) Notwithstanding any other provision of law, a grantee
(or any subgrantee) of the grants referred to in subsection
(a) may retain, without deposit in the Treasury of the United
States and without further appropriation by Congress, interest
earned on the proceeds of any resulting debt-for-nature exchange
pending the disbursements of such proceeds and interest for
approved program purposes, which may include the establishment
of an endowment, the income of which is used for such purposes.
Sec. 463.\381\ Eligible Projects.
(a) The Administrator of the Agency for International Development
shall seek to ensure that debt-for-nature exchanges under
this chapter support one or more of the following activities
by either the host government, a local private conservation
group, or a combination thereof:
\381\ 22 U.S.C. 2283.
All sections in ch. 7 are misnumbered,
as enacted by the International Development and Finance Act
of 1989 (Public Law 101-240; 103 Stat. 2521). Should read
``Sec. 473''.
(1) restoration, protection, or sustainable use of the world's
oceans and atmosphere;
(2) restoration, protection, or sustainable use of diverse
animal and plant species;
(3) establishment, restoration, protection, and maintenance
of parks and reserves;
(4) development and implementation of sound systems of natural
resource management;
(5) development and support of local conservation programs;
(6) training programs to strengthen conservation institutions
and increase scientific, technical, and managerial capabilities
of individuals and organizations involved in conservation
efforts;
(7) efforts to generate knowledge, increase understanding,
and enhance public commitment to conservation;
(8) design and implementation of sound programs of land and
ecosystem management; and
(9) promotion of regenerative approaches in farming, forestry,
fishing, and watershed management.
(b)(1) In cooperation with nongovernmental organizations,
the Administrator of the Agency for International Development
shall seek to identify those areas, which because of an imminent
threat, are in particular need of immediate attention to prevent
the loss of unique biological life or valuable ecosystem.
(2) The Administrator of the Agency for International Development
shall encourage as many eligible countries as possible to
propose such exchanges with the purpose of demonstrating to
a large number of governments the feasibility and benefits
of sustainable development. Sec. 464.\382\ Eligible Countries.--In
order for a foreign country to be eligible to participate
in a debt-for-nature exchange under this chapter, the Administrator
of the Agency for International Development shall determine
that-
\382\ 22 U.S.C. 2284.
All sections in ch. 7 are misnumbered,
as enacted by the International Development and Finance Act
of 1989 (Public Law 101-240; 103 Stat. 2521). Should read
``Sec. 474''.
(1) the host country is fully committed to the long- term
viability of the program or project that is to be undertaken
through the debt-for-nature exchange;
(2) a long-term plan has been prepared by the host country,
or private conservation group, which adequately provides for
the long-term viability of the program or project that is
to be undertaken through the debt-for-nature exchange or that
such a plan will be prepared in a timely manner; and
(3) there is a government agency or a local nongovernmental
organization, or combination thereof, in the host country
with the capability, commitment, and record of environmental
concern to oversee the long-term viability of the program
or project that is to be undertaken through the debt-for-nature
exchange.
Sec. 465.\383\ Terms and Conditions.
(a) The terms and conditions for making grants under this
chapter shall be deemed to be fulfilled upon final approval
by the Administrator of the Agency for International Development
of the debt-for-nature exchange, a certification by the nongovernmental
organization that the host government has accepted the terms
of the exchange, and that an agreement has been reached to
cancel the commercial debt in an agreed upon fashion.
\383\ 22 U.S.C. 2285.
All sections in ch. 7 are misnumbered,
as enacted by the International Development and Finance Act
of 1989 (Public Law 101-240; 103 Stat. 2521). Should read
``Sec. 475''.
(b) Grants made under this section are intended to complement,
and not substitute for, assistance otherwise available to
a foreign country under this Act or any other provision of
law.
(c) The United States Government is prohibited from accepting
title or interest in any land in a foreign country as a condition
on the debt exchange.
Sec. 466.\384\ Pilot Program for Sub-Saharan Africa.
(a) The Administrator of the Agency for International Development,
in cooperation with nongovernmental conservation organizations,
shall invite the government of each country in sub-Saharan
Africa to submit a list of those areas of severely degraded
national resources which threaten human survival and well-being
and the opportunity for future economic growth or those areas
of biological or ecological importance within the territory
of that country.
\384\ 22 U.S.C. 2286.
All sections in ch. 7 are misnumbered,
as enacted by the International Development and Finance
Act of 1989 (Public Law 101-240; 103 Stat. 2521). Should
read
``Sec. 476''.
(b) The Administrator of the Agency for International Development
shall assess the list submitted by each country under subsection
(a) and shall seek to reach agreement with the host country
for the restoration and future sustainable use of those areas.
(c)
(1) The Administrator of the Agency for International Development
is authorized to make grants, on such terms and conditions
as may be necessary, to nongovernmental organizations for
the purchase on the open market of discounted commercial debt
of a foreign government of an eligible sub- Saharan country
in exchange for commitments by that government to restore
natural resources identified by the host country under subsection
(a) or for commitments to develop plans for sustainable use
of such resources.
(2) Notwithstanding any other provision of law, a grantee
(or any subgrantee) of the grants referred to in section (a)
may retain, without deposit in the Treasury of the United
States and without further appropriation by Congress, interest
earned on the proceeds of any resulting debt-for-nature exchange
pending the disbursements of such proceeds and interest for
approved program purposes, which may include the establishment
of an endowment, the income of which is used for such purposes.
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