[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 492 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 492
To make access to safe water and sanitation for developing countries a
specific policy objective of the United States foreign assistance
programs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 2, 2005
Mr. Frist (for himself, Mr. Reid, and Mr. Lugar) introduced the
following bill; which was read twice and referred to the Committee on
Foreign Relations
_______________________________________________________________________
A BILL
To make access to safe water and sanitation for developing countries a
specific policy objective of the United States foreign assistance
programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Safe Water: Currency for Peace Act
of 2005''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Water-related diseases are a human tragedy, killing and
debilitating millions of people annually, preventing millions
of people from leading healthy lives, and undermining
development efforts.
(2) Providing safe supplies of water, and sanitation and
hygiene improvements would save millions of lives by reducing
the prevalence of water-borne diseases, water-based diseases,
water-privation diseases, and water-related vector diseases.
(3) An estimated 1,800,000 people die of diarrhoeal
diseases every year. Ninety percent of these people are
children under the age of five who live in developing
countries. Simple household and personal hygiene measures, such
as household water treatment and safe storage and effective
hand washing with soap, reduce the burden of diarrhoeal disease
by more than 40 percent.
(4) According to the World Health Organization, 88 percent
of diarrhoeal disease can be attributed to unsafe water supply,
and inadequate sanitation and hygiene.
(5) Around the world, more than 150,000,000 people are
threatened by blindness caused by trachoma, a disease that is
spread through poor hygiene and sanitation, and aggravated by
inadequate water supply.
(6) Chronic intestinal helminth infections are a leading
source of global morbidity, including cognitive impairment and
anemia for hundreds of millions of children and adults. Access
to safe water and sanitation and better hygiene practices can
greatly reduce the number of these infections.
(7) Schistosomiasis is a disease that affects 200,000,000
people, 20,000,000 of whom suffer serious consequences,
including liver and intestinal damage. Improved water resource
management to reduce infestation of surface water, improved
sanitation and hygiene, and deworming treatment can
dramatically reduce this burden.
(8) In 2002, 2,600,000,000 people lacked access to improved
sanitation. In sub-Saharan Africa, only 36 percent of the
population has access to improved sanitation. In developing
countries, only 31 percent of the population in rural areas has
access to improved sanitation.
(9) Improved management of water resources can contribute
to comprehensive strategies for controlling mosquito
populations associated with life-threatening vector-borne
diseases in developing countries, especially malaria, which
kills more than 1,000,000 people each year, most of whom are
children.
(10) Natural disasters such as floods and droughts threaten
people's health. Floods contaminate drinking-water systems with
industrial waste refuse, sewage, and human and animal excreta.
Droughts exacerbate malnutrition and limit access to drinking
water supplies. Sound water resource management can mitigate
the impact of such natural disasters.
(11) The United Nations Population Fund report entitled
``Water: A Critical Resource'' stated that ``Nearly 500 million
people [suffer from] water stress or serious water scarcity.
Under current trends, two-thirds of the world's population may
be subject to moderate to high water stress by 2025''.
Effective water management and equitable allocation of scarce
water supplies for all uses will become increasingly important
for meeting both human and ecosystem water needs in the future.
(12) The participants in the World Summit on Sustainable
Development, held in Johannesburg, South Africa, in 2002,
agreed to the Plan of Implementation of the World Summit on
Sustainable Development which included an agreement to work
to reduce by one-half ``the proportion of people who are unable to
reach or afford safe drinking water,'' and ``the proportion of people
without access to basic sanitation'' by 2015.
(13) At the World Summit on Sustainable Development,
building on the U.S.-Japan Partnership for Security and
Prosperity announced in June 2001 by President Bush and Prime
Minister Koizumi, the United States and Japan announced a Clean
Water for People Initiative to cooperate in providing safe
water and sanitation to the world's poor, improve watershed
management, and increase the productivity of water.
(14) At the World Summit on Sustainable Development, the
United States announced the Water for the Poor Initiative which
committed the United States to provide $970,000,000 over 3
years to increase access to safe water and sanitation services,
improve watershed management, and increase the productivity of
water. During fiscal year 2004, the United States provided an
estimated $817,000,000 in assistance to the Water for the Poor
Initiative, including funds made available for reconstruction
activities in Iraq, of which $388,000,000 was made available
for safe drinking water and sanitation programs.
(15) During fiscal year 2004, the United States provided
$49,000,000 in assistance for activities to provide safe
drinking water and sanitation in sub-Saharan Africa, an amount
that is equal to 6.5 percent of total United States foreign
assistance provided for all water activities in the Water for
the Poor Initiative.
(16) At the 2003 Summit of the Group of Eight in Evian,
France, the members of the Group of Eight produced a plan
entitled ``Water: A G8 Action Plan'' that stated that a lack of
water can undermine human security. The Action Plan committed
the members of the Group of Eight to playing a more active role
in international efforts to provide safe water and sanitation
to the world's poor by mobilizing domestic resources in
developing countries for water infrastructure financing through
the development and strengthening of local capital markets and
financial institutions, particularly by establishing, where
appropriate, at the national and local levels, revolving funds
that offer local currency financings, which allow communities
to finance capital-intensive water infrastructure projects over
an affordable period of time at competitive rates.
(17) The G8 Action Plan also committed members of the Group
of Eight to provide risk mitigation mechanisms for such
revolving funds and to provide technical assistance for the
development of efficient local financial markets and building
municipal government capacity to design and implement
financially viable projects and provide, as appropriate,
targeted subsidies for the poorest communities that cannot
fully service market rate debt.
(18) The United Nations General Assembly Resolution 58/217
of February 9, 2004, proclaimed ``the period from 2005 to 2015
the International Decade for Action, `Water for Life', to
commence on World Water Day, 22 March 2005'' for the purpose of
increasing the focus of the international community on water-
related issues at all levels and on the implementation of
water-related programs and projects.
SEC. 3. WATER FOR HEALTH AND DEVELOPMENT.
(a) In General.--Part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) is amended by inserting after section 104C the
following new section:
``SEC. 104D. WATER FOR HEALTH AND DEVELOPMENT.
``(a) Finding.--Congress makes the following findings:
``(1) Access to safe water and sanitation and improved
hygiene are significant factors in controlling the spread of
disease in the developing world and positively affecting
economic development.
``(2) The health of children and other vulnerable rural and
urban populations in developing countries, especially sub-
Saharan Africa and South Asia, is threatened by a lack of
adequate safe water, sanitation, and hygiene.
``(3) Efforts to meet United States foreign assistance
objectives, including those related to agriculture, the human
immunodeficiency virus (HIV) and acquired immune deficiency
syndrome (AIDS), and the environment will be advanced by
improving access to safe water and sanitation and promoting
sound water management throughout the world.
``(4) Developing sustainable financing mechanisms,
including private sector financing, is critical to the long-
term sustainability of improved water supply, sanitation, and
hygiene.
``(5) The annual level of investment needed to meet the
water and sanitation needs of developing countries far exceeds
the amount of Official Development Assistance (ODA) and
spending by governments of developing countries, so attracting
greater public and private investment is essential.
``(6) Long-term sustainability in the provision of access
to safe water and sanitation and in the maintenance of water
and sanitation facilities requires a legal and regulatory
environment conducive to private sector investment and private
sector participation in the delivery of water and sanitation
services.
``(7) The absence of robust domestic financial markets and
sources for long-term financing are a major impediment to the
development of water and sanitation projects in developing
countries.
``(8) At the 2003 Summit of the Group of Eight in Evian,
France, the members of the Group of Eight produced a plan
entitled `Water: A G8 Action Plan' that contemplated the
promotion of domestic revolving funds to provide local currency
financing for capital-intensive water infrastructure projects.
Innovative financing mechanisms such as revolving funds and
pooled-financings have been effective vehicles for mobilizing
domestic savings for investments in water and sanitation both
in the United States and in some developing countries. These
mechanisms can serve as a catalyst for greater investment in water and
sanitation projects by villages, small towns, and municipalities.
``(9) The G8 Action Plan also committed members of the
Group of Eight to improving coordination and cooperation
between donors, and such improved coordination and cooperation
is essential for enlarging the beneficial impact of donor
initiatives.
``(b) Policy.--It is a major objective of United States foreign
assistance--
``(1) to promote good health and economic development by
providing assistance to expand access to safe water and
sanitation, promote sound water management, and improve hygiene
for people around the world; and
``(2) to promote, to the maximum extent practicable and
appropriate, long-term sustainability in the provision of
access to safe water and sanitation by encouraging private
investment in water and sanitation infrastructure and services.
``(c) Authorization.--
``(1) In general.--To carry out the policy set out in
subsection (b), the President is authorized to furnish
assistance, including health information and education, to
advance good health and promote economic development by
improving the safety of water supplies, expanding access to
safe water and sanitation, promoting sound water management,
and promoting better hygiene.
``(2) Local currency.--The President may use payments made
in local currencies under an agreement made under title I of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1701 et seq.) to provide assistance under this
section, including assistance for activities related to
drilling or maintaining wells.''.
(b) Conforming Amendment.--Section 104(c) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1704(c)) is amended by
adding at the end the following new paragraph:
``(9) Safe water.--To provide assistance under section 104D
of the Foreign Assistance Act of 1961 to advance good health
and promote economic development by improving the safety of
water supplies, including programs related to drilling or
maintaining wells.''.
SEC. 4. PILOT PROGRAM FOR WATER SUSTAINABILITY INFRASTRUCTURE
DEVELOPMENT AND CAPACITY BUILDING.
(a) In General.--Section 104D of the Foreign Assistance Act of
1961, as added by section 3, is amended by adding at the end the
following new subsection:
``(d) Pilot Clean Water Sustainability Infrastructure Development
Program.--
``(1) Authority for pilot program.--In order to study the
feasibility and desirability of a program to assist countries
that have a high proportion of the population that is
susceptible to water-borne illnesses as a result of a lack of
basic infrastructure for clean water and sanitation, the
President, in close coordination with the Administrator of the
United States Agency for International Development and the
Director of the Overseas Private Investment Corporation, is
authorized to establish a 5-year pilot program under which the
President may--
``(A) provide for the issuance of investment
insurance, investment guarantees, or loan guarantees,
provide for direct investment or investment
encouragement, or carry out special projects and
programs for eligible investors to assist such
countries in the development of safe drinking water and
sanitation infrastructure programs; and
``(B) provide assistance to support the activities
described in subparagraphs (A) through (D) of paragraph
(2) for the purposes of--
``(i) carrying out the policy set out in
subsection (b); and
``(ii) maximizing the effectiveness of
assistance provided under subparagraph (A).
``(2) Activities supported.--Assistance provided to a
country under paragraph (1)(B) shall be used to--
``(A) assess the water development needs of such
country;
``(B) design projects to address such water
development needs;
``(C) develop the capacity of individuals and
institutions in such country to carry out and maintain
water development programs through training, joint work
projects, and educational programs; and
``(D) provide long-term monitoring of water
development programs.
``(3) Geographic limitation.--The President may only
provide assistance under the pilot program under paragraph (1)
to a country based on consultation with Congress.
``(4) Additional criteria.--In making determinations of
eligibility under this subsection, the President should give
preferential consideration to projects sponsored by or
significantly involving United States small businesses or
cooperatives.
``(5) Implementation.--To the extent provided for in
advance in appropriations Acts, the President is authorized to
create such legal mechanisms as may be necessary for the
implementation of its authorities under this subsection. Such
legal mechanisms may be deemed non-Federal borrowers for
purposes of the Federal Credit Reform Act of 1990 (2 U.S.C. 661
et seq.).
``(6) Loan guarantees.--Notwithstanding any other provision
of law, the President is authorized to provide assistance under
the pilot program under paragraph (1) in the form of partial
loan guarantees, provided that such a loan guarantee may not
exceed 75 percent of the total amount of the loan.
``(7) Coordination.--The President is authorized to
coordinate the activities of each agency or department of the
United States to provide to a country assistance for an
activity described in subparagraphs (A) through (D) of
paragraph (2).
``(8) Federal agency responsibilities.--Under the direction
of the President, the head of each agency or department of the
United States is authorized to assign, detail, or otherwise
make available to the Department of State any officer or
employee of such agency or department who possesses expertise
related to an activity described in subparagraphs (A) through
(D) of paragraph (2).
``(9) Report to congress.--The President shall annually
prepare and submit to the Committee on Appropriations, the
Committee on Foreign Relations, and the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee
on Appropriations, the Committee on International Relations,
and the Committee on Energy and Commerce of the House of
Representatives a report concerning the implementation of the
pilot program under this subsection.''.
(b) Effective Date.--The amendment made by subsection (a) shall be
effective during the 5-year period beginning on the date of enactment
of this Act.
SEC. 5. SAFE WATER STRATEGY.
(a) Requirement for Strategy.--The Secretary of State, in close
coordination with the Administrator of the United States Agency for
International Development and in consultation with other appropriate
Federal agencies, appropriate international organizations, foreign
governments, United States nongovernmental organizations, and other
appropriate entities, shall develop and implement a strategy to further
the United States foreign assistance objective to promote economic
development by promoting good health through the provision of
assistance to expand access to safe water and sanitation, to promote
sound water management, and to improve hygiene for people around the
world.
(b) Content.--The strategy required by subsection (a) shall
include--
(1) an assessment of the activities that have been carried
out, or that are planned to be carried out, by the United
States to improve hygiene or access to safe water and
sanitation by underserved rural or urban poor populations, the
countries of sub-Saharan Africa, or in countries that receive
assistance from the United States Agency for International
Development;
(2) methods to achieve long-term sustainability in the
provision of access to safe water and sanitation, the
maintenance of water and sanitation facilities, and effective
promotion of improved hygiene, in the context of appropriate
financial, municipal, health, and water management systems;
(3) methods to use United States assistance to promote
community-based approaches, including the involvement of civil
society, to further the objectives described in subsection (a);
(4) methods to mobilize and leverage the financial,
technical, and managerial expertise of businesses, governments,
nongovernmental, and civil society in the form of public-
private alliances such as the Global Development Alliances of
the Agency which encourage innovation and effective solutions
for improving sustainable access to safe water and sanitation;
(5) goals to further the objectives described in subsection
(a) and methods to measure whether progress is being made to
meet such goals, including indicators to measure progress and
procedures to regularly evaluate and monitor progress;
(6) assessments of the challenges and obstacles that impede
the provision of access to safe water and sanitation, as well
as the improvement of hygiene practices, critical in developing
countries;
(7) assessments of how access to safe water, sanitation,
and hygiene programs, as well as water resource programs,
effectively support the goal of combating the human
immunodeficiency virus (HIV) and the acquired immune deficiency
syndrome (AIDS);
(8) assessments of the roles that other countries or
entities, including international organizations, could play in
furthering such objective and mechanisms to establish
coordination among the United States, foreign countries, and
other entities;
(9) assessments of the level of resources that are needed
each year to further such objective; and
(10) methods to coordinate and integrate programs of the
United States to further such objective with other United
States foreign assistance programs.
(c) Reports to Congress.--
(1) Initial report.--Not later than 180 days after the date
of enactment of this Act, the President shall submit to
Congress a report that describes the strategy required by
subsection (a).
(2) Report.--Not less than once every 2 years after the
submission of the initial report under paragraph (1), the
President shall submit to Congress a report on the status of
the implementation of the strategy and progress made in
achieving the objective described in subsection (a).
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated for each
of the fiscal years 2006 through 2011 such sums as may be necessary to
carry out this Act and the amendments made by this Act.
(b) Other Amounts.--Amounts appropriated pursuant to the
authorization of appropriations in subsection (a) shall be in addition
to the amounts otherwise available to carry out this Act and the
amendments made by this Act.
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