Sec. 104. Strengthening infrastructure project selection and procurement processes
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Congress makes the following findings: Corruption, as evidenced by the Odebrecht construction scandal and the Panama Papers, creates significant obstacles to doing business in Latin America and the Caribbean. China further exacerbates the levels of corruption in the region by engaging in corrupt practices when pursuing secure infrastructure contracts and procurement agreements. Procurement agreements not based exclusively on cost, quality, and necessity can lead to projects that do not serve the best interests of the public.
The Secretary of State, in coordination with the Administrator of the United States Agency for International Development, the Chief Executive Officer of United States International Development Finance Corporation, the Director of the United States Trade Development Agency, and representatives of the Department of the Treasury’s Office of Technical Assistance, shall plan and carry out initiatives to engage with governments in Latin America and the Caribbean for the purpose of strengthening infrastructure project selection processes and procurement processes, including— discussing, devising, and disseminating best practices, frameworks, and tools that— ensure greater adherence to the rule of law; promote greater transparency in infrastructure, trade, and development projects; and more effectively regulate tender processes to minimize opportunities for corrupt practices; strengthening legal structures as needed to ensure business agreements are transparent, clear, and enforceable; increasing the capacity of Latin American and Caribbean governments to effectively assess and negotiate investment opportunities in accordance with applicable laws, including commercial and public infrastructure projects; promoting legislation that codifies best practices in applying the rule of law to infrastructure, trade, and development projects; promoting the adoption of infrastructure project selection processes that include environmental impact studies that prioritize minimal environmental impact, strong environmental standards, and social safeguards for vulnerable and marginalized populations, including indigenous and Afro-Latino populations; emphasizing differences in business practices between the United States and China, particularly those relating to the rule of law, transparency, and financing; and fostering and enabling economic and technical data sharing relating to contract costs, structuring, and terms, including loan terms, cost overruns, and quality assurance, among regional governments and the United States.
During the planning of the initiatives described in subsection (b), the Secretary of State, in coordination with the Administrator of the United States Agency for International Development, the Chief Executive Officer of the United States International Development Finance Corporation, the Director of the United States Trade Development Agency’s Global Procurement Initiative, and representatives of the Department of the Treasury’s Office of Technical Assistance, shall consult with representatives of the private sector and nongovernmental organizations in the United States, Latin America, and the Caribbean.
Not later than 1 year after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of State shall provide a briefing regarding the initiatives described in subsection
(b)to— the Committee on Foreign Relations of the Senate ; and the Committee on Foreign Affairs of the House of Representatives . Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall submit a report to the congressional committees referred to in subsection
(d)that assesses, based on credible indices of the performance of the rule of law (including the World Justice Project’s Rule of Law Index), the progress made by Latin American and Caribbean governments toward strengthening the rule of law, reducing corruption, and creating greater transparency in business practices, including through— standardizing and regulating procurement practices; and streamlining, modernizing, and digitizing records for public procurement and customs duties. There is authorized to be appropriated to the Secretary of State for fiscal year 2021, $5,000,000 to carry out the activities set forth in subsections
(b)and (c). Amounts appropriated pursuant to paragraph
(1)are subject to the notification requirements applicable to expenditures from the Economic Support Fund under section 531(c) of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2346(c) ) to the extent that such funds are expended.
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Sec. 104
Strengthening infrastructure project selection and procurement processes
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