ADB and World Bank sign groundbreaking framework

The Asian Development Bank (ADB) and the World Bank have signed a landmark Framework of Mutual Reliance (FMFR) designed to deepen their collaboration on co-financed public sector projects.

Reportedly, the comprehensive mutual trust framework is the first of its kind among multilateral development banks (MDBs), aimed at simplifying project processing and implementation procedures, and providing faster and more efficient results for borrowing clients. The cooperation between the World Bank and the ADB is in response to the needs of client countries in the Asia-Pacific region, which require faster, more efficient and effective development financing, as well as more seamless coordination between multilateral development banks. Furthermore, it also responds to the call from the Group of Twenty (G20) leaders for multilateral development banks to operate more effectively as a system.

ADB President Masatsugu Asakawa said: "The Comprehensive Mutual Reliance Framework is an important step in our cooperation with the World Bank and will bring lasting benefits to communities and economies in Asia and the Pacific. By leveraging our respective strengths, we can increase efficiency, expand our impact, and provide a strong platform for sustainable and inclusive growth."

World Bank Group President Ajay Banga stated that this partnership between the World Bank and the ADB is a testament to the deep trust and lasting confidence between the institutions. "It reflects a broader shift in the development finance landscape – where collaboration, not competition, delivers greater impact," Banga said in a statement. "By combining our strengths, we are enabling countries to access the support they need faster, easier, and more cost-effectively."

According to a joint World Bank-ADB statement, the framework will initially be applied to selected public sector projects in a four-year initial phase starting this year to refine operational methods and assess outcomes. The statement also said that building on previous co-financing efforts between the two institutions, such as the 2018 procurement framework agreement, the Comprehensive Mutual Reliance Framework incorporates lessons learned from interactions with civil society organizations, borrowing countries and other stakeholders. The Comprehensive Mutual Reliance Framework is expected to serve as a model for deeper cooperation among multilateral development banks and contribute to addressing pressing development needs while promoting knowledge sharing and innovation.