Overseas Private Investment Corporation Amendments Act of 1978

(Conference report filed in House, H. Rept. 95-1043)

Overseas Private Investment Corporation Amendments Act - Amends the Foreign Assistance Act of 1961 to require the Overseas Private Investment Corporation (OPIC) to give preferential consideration to investment projects in less developed countries that have per capita incomes of $520 or less, and to restrict its activities in less developed countries with per capita incomes of $1,000 or more in 1975 United States dollars.

Requires that OPIC increase the proportion of projects sponsored by or significantly involving United States small business to at least 30 percent of all projects insured, reinsured, or guaranteed by OPIC.

Prohibits OPIC from providing insurance or reinsurance or any guarantee or entering into an agreement for financing any investment which would result in a significant reduction in the number of employees in the United States.

Permits OPIC to finance operations for the mining or other extraction of deposits of ore or other nonfuel minerals up to an amount of $4,000,000 in any given year. Permits OPIC to use up to $200,000 annually of its own funds to finance surveys to ascertain the existence and location of such minerals. Prohibits direct investment loans for oil or gas extraction.

Deletes the private participation guidelines of the Act. Prohibits OPIC from engaging in a general program of direct underwriting of insurance jointly with private insurance companies.

Deletes the current dollar limitation of OPIC quaranties of credit union investments. Extends OPIC's issuing authority from December 31, 1977 to September 30, 1981.

Permits OPIC to make adjustments in the insured dollar value of an investment to reflect the replacement cost of project assets between the time a policy is written and a claim is filed. Removes the ten percent coinsurance requirement in the case of loans by banks to other financial institutions to unrelated parties.

Prohibits insurance payments to any investor for any loss occurring with respect to a project, if the preponderant cause of such loss was an act of bribery, and a court of the United States has entered a final judgment that such act constituted a violation under the Foreign Corrupt Practices Act of 1977. Directs OPIC to adopt regulations under which an investor's eligibility for OPIC support may be suspended for up to five years after such a conviction for bribery with respect to an OPIC supported project.

Requires the Corporation to prepare a Development Impact Profile on projects involving insurance of development programs.

Prohibits OPIC from supporting: (1) any new or significantly expanded project involving the exploration for or the mining of copper, which is to begin before January 1, 1981, or (2) any project which would begin production after that date, if the project will cause injury to the primary United States copper industry.

Prohibits investment for any project establishing or expanding the production or processing of palm oil, sugar, or citrus crops for export.

Requires the Corporation to utilize all available information concerning the effect the operation of its programs will have on human rights and fundamental freedoms in any foreign country. Permits OPIC to support a project in a country which violates human rights if the national security interest so requires.

Requires that OPIC allocate up to 50 percent of its annual net income to assist and facilitate the development of projects involving United States small business and small private enterprise in less developed friendly countries or areas.