§262m–2 Environmental Impact of Assistance Proposals

Summary

Require early environmental checks of proposed loans from multilateral development banks. The AID Administrator, working with the Treasury and State, must tell U.S. agencies and embassies to study these loans’ effects before the banks approve them, when possible. Reviews must look at whether the project is economically sensible and whether it could harm the environment, natural resources, public health, or indigenous peoples, and must suggest ways or alternatives to avoid or reduce harm. If a loan seems likely to cause major damage, a formal investigation with federal agencies must be done. Findings that are not classified for national security must be made public. The Secretary of the Treasury must tell the U.S. Executive Directors (the U.S. board members at those banks) to ask for enough time between when a proposal is circulated and when the bank votes so major shareholder governments can review it. Treasury must also press the banks to improve and require public consultation on projects or policy changes with big environmental or social effects. Treasury must report progress each year to Congress. Using the review information, AID, with Treasury and State, must list proposals likely to cause harm and send them to the House and Senate Appropriations and relevant committees by June 30 and December 31 each year after December 22, 1987. Treasury must also send reports to the U.S. Executive Director at the bank and ask them to try to eliminate or reduce harmful impacts.