To authorize the United States to participate in and contribute to the seventh replenishment of the resources of the Asian Development Fund and the fifth replenishment of the resources of the International Fund for Agricultural Development, and to set forth additional policies of the United States towards the African Development Bank, the African Development Fund, the Asian Development Bank, the Inter-American Development Bank, and the European Bank for Reconstruction and Development.

Amends the Asian Development Bank Act to authorize appropriations for: (1) the U.S. contribution to the seventh replenishment of the Asian Development Fund; and (2) the U.S. contribution to the fifth replenishment of the International Fund for Agricultural Development.

(Sec. 2) Directs the Secretary of the Treasury to report to specified congressional committees on the participation of the International Fund for Agricultural Development in the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative.

(Sec. 3) Amends the International Financial Institutions Act to direct the Secretary to instruct the U.S. Executive Directors at certain international financial institutions, and the U.S. Governor of the International Fund for Agricultural Development, to: (1) support continued efforts by such institutions in the fight against HIV/AIDS, tuberculosis, malaria, and other infectious diseases; and (2) oppose any loan, grant, document, or strategy that is subject to endorsement or approval by the board of directors of such institutions, which includes user fees in impoverished countries, for primary education or primary healthcare, including prevention and treatment efforts for HIV/AIDS, malaria, tuberculosis, and infant, child, and maternal well-being.

(Sec. 5) Sets forth provisions promoting greater transparency with regard to such institutions' activities. Authorizes the Secretary to make grants to such institutions that have implemented transparency measures and have provided assurances that they will use such grants solely for such measures. Authorizes appropriations. Requires the Secretary to report annually to specified congressional committees detailing steps taken by the U.S. Executive Directors at the institutions, by the finance ministers, and by such institutions to implement transparency measures with respect to their activities.

(Sec. 6) Directs the Secretary to instruct the U.S. Executive Directors at such institutions, and the U.S. Governor of the International Fund for Agricultural Development, to focus on poverty alleviation, economic growth, increased productivity, sustainable development, environmental protection, labor rights, and an increased focus on education.

(Sec. 7) Directs the Secretary to instruct the U.S. Executive Directors at such institutions, and the U.S. Governor of the International Fund for Agricultural Development, to oppose any loan which provides support for any project that includes a dam unless such project conforms to specified conditions, including that comprehensive assessments of the energy, water, and flood management needs to be met and different options for meeting them are developed before detailed studies are done and before building any new projects.

(Sec. 8) Directs the Comptroller General of the United States to report to specified congressional committees on the benefits and costs of such institutions providing grants instead of loans.

(Sec. 9) Commends Omar Kabbaj (an official of the Ministry of Finance of Morocco) for his successful reform efforts as President of the African Development Bank and Fund.

(Sec. 10) Authorizes the Secretary to instruct the U.S. Executive Director at, or the U.S. Governor of, the regional multilateral development bank, when considering whether to approve a foreign country's application for assistance, to take into consideration whether it has taken or has committed to take actions that either contribute or do not contribute to efforts of the United States to respond to, deter, or prevent acts of international terrorism.

(Sec. 11) Directs the Secretary to instruct the U.S. Executive Directors at such institutions, and the U.S. Governor of the International Fund for Agricultural Development, to use the U.S. vote to oppose the provision of assistance for a project that involves privatization of a government-held industry or sector if: (1) the privatization transaction is not implemented in a transparent manner; (2) the privatization is not implemented in a manner that adequately protects the interests of workers, small investors, and vulnerable groups; and (3) appropriate regulatory regimes have not been established to ensure the proper function of competitive markets in the industry or sector.

(Sec. 12) Directs the Secretary to instruct the U.S. Executive Directors at such institutions, and the U.S. Governor of the International Fund for Agricultural Development, to oppose any loan, grant, document, or strategy that is subject to endorsement or approval by the board of directors of such institutions, if it includes any provision that would recommend the reduction of a country's minimum wage to a level of less than $2.00 per day.

(Sec. 13) Directs the Secretary to instruct the U.S. Executive Director at the Asian Development Fund to use the U.S. vote to support projects directed at addressing arsenic contamination in drinking water in South Asia.