The Asian Development Bank (ADB) and the World Bank (WB) signed a new groundbreaking Full Mutual Reliance Framework (FMRF) yesterday to deepen their collaboration on co-financed public sector projects.
This first of a kind arrangement between MDBs aims to streamline project processing and implementation and deliver faster and more efficient results to borrowing clients.
Under FMRF, borrowers in WB-ADB co-financings can rely on one set of rules-- using the policies and procedures of either WB or ADB-- on all aspects of project design, preparation, appraisal, supervision, completion and evaluation, said a press release here today.
FMRF is expected to generate efficiencies, time and cost-savings, better outcomes and a closer alignment of policies-- advancing the aims of a more cohesive "Multilateral Development Bank System".
The framework also responds to calls by the international community, including the G20, for multilateral development banks (MDBs) to work more cohesively to maximize impact and address escalating development challenges more efficiently and with better results.
"The Full Mutual Reliance Framework is a significant step in our collaboration with the World Bank and will deliver lasting benefits to communities and economies across Asia and the Pacific," said ADB President Masatsugu Asakawa.
"By leveraging our respective strengths, we can enhance efficiency, scale impact, and provide a strong platform for sustainable and inclusive growth," he added.
"This partnership between the World Bank Group and the Asian Development Bank is a testament to the deep trust and abiding confidence between our institutions," said WB Group President Ajay Banga.
"It reflects a broader shift in development finance-where collaboration, not competition, delivers greater impact. By combining our strengths, we are making it faster, easier, and more cost-effective for countries to access the support they need. More than just an agreement, this is a model for how development banks can work together to drive better outcomes for the people we serve," Banga added.
The framework will initially apply to selected public sector projects during a four-year initial phase, starting in 2025, to refine operational approaches and assess outcomes.
Building on earlier cofinancing efforts between the two institutions, such as the Procurement Framework Agreement of 2018, the FMRF incorporates lessons learned from engagements with civil society organisations, borrower countries and other stakeholders.
The FMRF is expected to serve as a model for deeper collaboration among MDBs and help address pressing development needs while fostering knowledge sharing and innovation.
Source: AFP
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