Overseas Private Investment Corporation Amendments Act of 2003

Mr. Speaker, I yield myself such time as I might consume.

(Mr. LANTOS asked and was given permission to revise and extend his remarks, and include extraneous material.)

Mr. Speaker, I rise in strong support of S. 1824, the Overseas Private Investment Corporation Amendments Act of 2003.

Mr. Speaker, I would first like to express my deep appreciation to the gentleman from Illinois (Chairman Hyde), who once again demonstrated outstanding leadership in managing this all-encompassing, bipartisan committee review of OPIC's operations and management.

On November 4 of this year, the Committee on International Relations reported H.R. 3145, the identical companion bill to the legislation we are considering today. All of the language in the committee's report should be considered directly applicable to the reauthorization we are voting on today.

Mr. Speaker, OPIC has faced its share of controversy over many years. In particular, OPIC's mission to support private investment in developing countries has sometimes seemed to be in conflict with its own statutory responsibilities regarding loss of U.S. jobs and the protection of the environment.

OPIC's leadership recently has made significant efforts to address these issues. I want to commend Dr. Peter Watson, the president and CEO of the Overseas Private Investment Corporation, for his commitment to ensuring that OPIC complies with its statutory mandate on environment and labor rights standards.

The reauthorization package we have before us is sound. Not only does the bill reauthorize OPIC through September 30, 2007, but it reflects a comprehensive, bipartisan compromise between the committee, OPIC, and all of its stakeholders.

I am particularly pleased, Mr. Speaker, that our package will address the concerns shared by many of my colleagues in recent years about the effectiveness of OPIC's safeguards to ensure that its projects support the interests of American workers, protect the global environment, and support human rights.

I want to thank my distinguished colleague, the gentleman from Illinois (Mr. Hyde), for his willingness to work with us to address these concerns. The report language we have agreed upon directs OPIC to establish a robust and independent accountability mechanism on these matters, which I strongly believe will help guarantee broad congressional support for this important institution.

Mr. Speaker, this legislation has strong bipartisan support, as well as the support from environmental and labor groups. I urge all of my colleagues to support OPIC's reauthorization by voting in favor of this legislation.

Mr. Speaker, before I close, I include for the Record two letters from OPIC President Watson to Chairman Hyde and me that were crucial to our side's support for this legislation.

Overseas Private

Investment Corporation,

Washington, DC, October 30, 2003.

Hon. Henry Hyde,

Chairman, Committee on International Relations, House of

Representatives, Washington, DC.

Hon. Tom Lantos,

Ranking Member, Committee on International Relations, House

of Representatives, Washington, DC.

Dear Chairman Hyde and Congressman Lantos: As Congress

prepares to conclude action on legislation to reauthorize the

Overseas Private Investment Corporation (OPIC), I wanted to

affirm to you again my strong commitment to OPIC's statutory

mandates with regard to the environment.

During my confirmation hearing before the Senate Foreign

Relations Committee in May 2001, I said, ``I support OPIC's

rejection of applications for projects that pose major or

unreasonable hazards to the environment, health and safety.

OPEC should continue to support only environmentally

responsible development.'' I believe that my actions and

decisions over the past two years in promoting

environmentally sound development have given substance to

these words.

Over this time, I have had the opportunity to talk with

members of the International Relations Committee and

Congressional Committee staff concerning OPIC's environmental

stewardship, and to discuss ways to make our program more

accountable and transparent. My meetings with Representative

Earl Blumenauer have been particularly valuable in this

regard.

Based on these many discussions, I want to confirm to the

Committee my intent, in consultation with stakeholders, to

create an ``accountability mechanism'' at OPIC. Among other

functions, it is my intention that the mechanism will allow

for a robust, consistent and independent environmental

evaluation of OPIC projects, policies and practices, ensuring

that OPIC environmental program is the model for best

practices in other bilateral and multilateral institutions,

and that the agency continues to meet its developmental goals

in the most environmentally responsible manner. I look

forward to beginning this ambitious process in the coming

weeks.

I also want to confirm to the Committee my intent to

continue the dialogue with stakeholders on a ``transparency''

initiative. Among other functions, such an initiative is

intended to ensure that stakeholders can more clearly see how

OPIC is implementing its statutory mandates and policy

commitments concerning environmental stewardship. This

initiative would heighten transparency and information

disclosure concerning OPIC's projects and internal

mechanisms. I look forward to re-engaging in this dialogue in

the coming weeks and months.

Additionally, with a view toward fully supporting our

statutory mandates and enhancing the contribution provided to

the Corporation by the Board of Directors, I wanted to inform

the Committee that when a private sector Director term

expires, I am prepared to recommend to the Administration

that a future private sector Director have, as part of that

individual's professional qualifications, substantial

experience in advocating for or managing regulatory

compliance with environmental standards.

I deeply appreciate the bipartisan support OPIC has

received from the Committee over the past year, and look

forward to continuing to work with you and other members of

the Committee in the future.

Best regards,

Peter S. Watson,

President & CEO.

Mr. Speaker, I rise in support of the Overseas Private Investment Corporation Amendments Act of 2003 (S. 1824), which will reauthorize the vital programs of the Overseas Private Investment Corporation (OPIC) for another four years. As the author of the previous OPIC reauthorization bill in 1999 (P.L. 106-158), I am pleased to strongly endorse S. 1824.

Since 1971, OPIC-supported projects have facilitated $145 billion worth of investments in hundreds of projects that have helped developing countries and emerging economies of the former East Bloc improve their standard of living. In addition, OPIC-supported projects have helped to create or sustain 254,000 American jobs and $65 billion in exports; expanded economic development; encouraged political stability; and promoted free market reforms around the world.

As an additional benefit, OPIC operates at no net cost to taxpayers by charging fees for its services. It has earned a profit in each year of operations--$175 million in 2002--and built its substantial reserves to more than $4 billion. I wish every government agency operated like OPIC by producing a profit for the taxpayer. All of OPIC's guaranty and insurance obligations are backed by OPIC's own substantial reserves and by the full faith and credit of the U.S. Government.

As chairman of the Small Business Committee, I am particularly pleased that under the current leadership of OPIC President and CEO Peter Watson, OPIC has launched two significant initiatives to encourage greater use of OPIC's programs by small business exporters to fulfill the mandate contained in P.L. 106-158 to expand OPIC's small business efforts. First, in July 2003, OPIC announced the establishment of a new department focusing on small and medium-size businesses. The Small and Medium Enterprise Department will be responsible for OPIC's Direct Loan program, which provides financing to U.S. businesses with annual revenues under $250 million. The Small Business Center will also be part of the new department. Small businesses looking to participate in the global marketplace have unique requirements. Lack of resources to pursue opportunities abroad, concern over political risks, or the inability to find private sector support can prevent U.S. small businesses from expanding overseas. The Small Business Center at OPIC will help meet these needs by providing financing and political risk insurance to small businesses with annual revenues of less than $35 million.

Second, OPIC and a small business lender. WorldBusiness Capital, Inc. (WBC) of Hartford, Connecticut, in July 2003 entered into a historic cooperative agreement that will expand support for U.S. small businesses investing overseas and enhance the activities of OPIC's Small Business Center. Under the agreement, OPIC will provide loan guarantees for WBC projects pursuant to a risk-sharing arrangement. WBC will make loans with its own funds, and will continue to monitor and service each loan. WorldBusiness Capital, Inc. intends to make OPIC- guaranteed loans of between $250,000 and $10 million to U.S. small businesses expanding into overseas markets. Hopefully, this private- public partnership will set an example for other banks to enter into similar arrangements to publicize and maximize the leverage of OPIC's programs to small business exporters. Delegated authority lenders and preferred lenders are quite common programs at the Export-Import Bank of the United States and the Small Business Administration. The same should hold true for OPIC.

Mr. Speaker, it is a privilege and honor for me to support the Overseas Private Investment Corporation Amendments Act of 2003. I commend my good friends, Chairman Henry Hyde of Illinois and ranking minority Member Tom Lantos of California of the House International Relations Committee for working so hard on this bill and bringing it to the floor in a timely manner. My only regret is that my duties on the Small Business Committee prevented me from taking a more active role in the OPIC reauthorization process this time around. I urge my colleagues to support S. 1824.

Mr. Speaker, I move to suspend the rules and pass the Senate bill (S. 1824) to amend the Foreign Assistance Act of 1961 to reauthorize the Overseas Private Investment Corporation, and for other purposes.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I urge my colleagues to pass the bill before us this afternoon, S. 1824, the Overseas Private Investment Corporation Amendments Act of 2003. This bipartisan measure, which passed the Senate on November 14 by unanimous consent, would extend the authority to the Overseas Private Investment Corporation through September 30, 2007.

This action is necessary in light of the fact that the authority for this important agency originally terminated on September 30 of this year and that its continuation on an emergency basis expires at the end of this week. This Member, therefore, asks his colleagues to pass this bill so it can be sent to the President and signed into law without delay. Its provisions are identical to those contained in H.R. 3145 which was approved by voice vote by the Committee on International Relations on September 25.

The OPIC Amendments Act of 2003 makes technical and conforming changes to OPIC's statutes, allows the corporation to offer its investment insurance in several key markets, including acts of an entity owned or controlled by a foreign government, permits the corporation to provide a guarantee of local currency loans made by a locally-established bank in countries without an established banking presence, and directs the corporation to collect data on the involvement of minority- and women-owned businesses in all of its projects.

This key development agency has compiled an impressive track record since its inception in 1971, supporting U.S. investors in overseas markets in order to help our exporters. At the same time, it has created more than 250,000 jobs in the U.S. and led to $64 billion in U.S. exports. It operates on a self-sustaining basis, returning approximately $200 million each year to the U.S. Treasury, and helps to support other key U.S. development programs.

Members' support of this measure will ensure that OPIC continues to play a developmental role in frontline states such as Pakistan and Afghanistan and will permit it to implement investment and financing programs in Iraq at minimal cost to the American taxpayer. Therefore, this Member urges support of this measure.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, it is my pleasure to yield such time as he may consume to the distinguished gentleman from California (Mr. Rohrabacher), a member of the committee.

Mr. Speaker, I thank the gentleman from California (Mr. Lantos) for his statement and for the cooperation that he and other Members on his side of the aisle and the staff of both sides of the aisle have given us in the advancement of this legislation to reauthorize OPIC.

Mr. Speaker, I urge all Members to support the reauthorization of this very worthy, important agency.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I rise in support of S. 1824, a bill to reauthorize funding for the Overseas Private Investment Corporation. I never supported OPIC in the past because, until recently, what OPIC basically did was provide insurance for Fortune 500 corporations to invest overseas, and when those investments went belly up, the American taxpayer picked up the bill. OPIC was basically an ATM machine for the Fortune 500.

Well, things are different now. Things are changing at OPIC for the better.

A new president, Dr. Peter Watson, is in charge of OPIC, and OPIC funds are now being channeled to business initiatives that promote democracy and justice and are in the interests of the American people.

One case of particular interest is that of Ethiopia.

Ethiopia is a case of particular interest. Ethiopia is run today by leaders who are inclined towards war and who frequently violate the rights of honest people whose property has been confiscated by their government. Some of these victims are U.S. citizens. One of the victims is Mr. Berhane, my constituent, and now a U.S. citizen. The Berhane family is a very well-respected family in Orange County. We all know them and respect them as honest, hard-working people.

Mr. Berhane owned a successful enterprise in Ethiopia that was stolen, confiscated by Ethiopia's former Marxist dictatorship. Although the current regime in Ethiopia claims that such stolen property will be returned, they refuse to give the Berhane family back their business or offer just compensation.

Members of Congress and officials from the executive branch have warned the government of Ethiopia that this issue is taken seriously; and it will, therefore, have damaging repercussions if this injustice to the Berhane family continues.

Underscoring this new commitment at OPIC, I have been informed that OPIC will no longer consider any project for Ethiopia until this American family is properly compensated for their property, for their confiscated property. Let the government of Ethiopia be forewarned, this issue will not stop here. We applaud OPIC today. Funding for Ethiopia by multilateral development banks and the United States Agency for International Development is in jeopardy. It will be called into question until Americans are treated fairly in Ethiopia and their just claims dealt with honestly.

I applaud OPIC and call on those who run Ethiopia not to hurt their own people for selfish reasons and to give the

Berhane family back its property. I call on my colleagues to support this reauthorization of OPIC which is now reconforming itself to those noble principles which justified the creation of OPIC in the beginning, and it is doing so demonstrably in my district by standing up for this American family. So I am very proud to stand for the reauthorization of OPIC today.

Mr. Speaker, I support the reauthorization of the Overseas Private Investment Corporation (OPIC) and the important role it plays in assisting emerging markets in developing countries and promoting U.S. exports, which creates jobs here at home. OPIC's operations and activities have supported over 250,000 U.S. jobs and produced $64 billion of U.S. exports.

With this important role comes a responsibility to ensure that projects promoted by OPIC uphold adequate environmental, labor, and human rights standards, I am pleased that OPIC is taking steps to ensure this responsibility is upheld. The Report accompanying this legislation outlines the International Relations Committee's expectation that OPIC continue its work towards implementing an ``accountability mechanism'' and ``transparency initiative.''

The accountability mechanism should be in the form of an independent position within OPIC that evaluates and reports on environmental, social, labor and human rights impacts. The transparency initiative should make certain that interested stakeholders have appropriate access to information concerning OPIC's projects. This level of transparency will strengthen OPIC's programs and policies.

I expect this Congress and the International Relations Committee to monitor OPIC's progress towards these initiatives through hearings and reports. I look forward to continued dialogue with OPIC on these issues to strengthen the link between economic development, and environmental and social progress.