ASIATODAY.ID, MANILA – Asian Development Bank (ADB) President Masatsugu Asakawa and World Bank President Ajay Banga signed a groundbreaking Full Mutual Reliance Framework (FMRF) agreement today to deepen collaboration on cofinanced sovereign projects. This innovative model aims to streamline project preparation, reduce duplication, and deliver faster and more effective support to member countries facing urgent development challenges.
Approved by the Boards of both organizations on 28 January, the FMRF designates one institution as the Lead Lender—responsible for project preparation, appraisal, and supervision—so borrowers engage with a single operational policy framework. This approach simplifies processes and reduces transaction costs while maintaining rigorous policy standards.
“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 Mr. Asakawa, February 20, 2025.
“By leveraging our respective strengths, we can enhance efficiency, scale impact, and provide a strong platform for sustainable and inclusive growth.”
“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 Mr. 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.”
The FMRF aligns with the G20 Leaders’ call for multilateral development banks (MDBs) to work more cohesively as a system to maximize impact and address escalating development challenges. Borrowers will benefit from reduced project processing times and simplified engagement with the Lead Lender. Both institutions anticipate gains in operational efficiency and policy alignment.
The framework will initially apply to a select number of sovereign projects during a 4-year pilot phase, starting in 2025, to refine operational approaches and assess outcomes. Building on earlier cofinancing efforts, such as the Procurement Framework Agreement of 2018, the FMRF incorporates lessons learned from extensive consultations with civil society organizations and other stakeholders.
The FMRF is expected to serve as a model for deeper collaboration among MDBs and help address urgent development needs while fostering knowledge sharing and innovation.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region. (AT Network)
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