§262m–2 Environmental Impact of Assistance Proposals

Summary

Make sure proposed loans from international development banks are checked for harm before the banks approve them. The USAID Administrator, working with the Treasury and State Departments, must get other agencies and U.S. embassies to review these loans early. Reviews must look at whether the project makes economic sense, could hurt the environment, natural resources, public health, or indigenous peoples, and must suggest ways or alternatives to avoid or reduce harm. If a loan looks likely to cause major harm, a formal investigation must be done with the right federal agencies and the findings must be made public unless classified. The Treasury Secretary must tell U.S. Executive Directors at those banks to ask for enough time for these reviews. They must also push the banks to improve public consultation and require public input on policies with big environmental or social effects. Progress goes into Treasury’s yearly report. USAID, with Treasury and State, must send lists of loan proposals likely to cause harm to four congressional committees by June 30 and December 31 each year after December 22, 1987. Treasury must also send reports to the U.S. Executive Directors with instructions to try to eliminate or reduce harms.