ADB And World Bank Group Partner On Full Mutual Reliance Framework To Increase Development Impact

Monday, 24 February 2025, 7:07 pm
Press Release: World Bank Group

WASHINGTON, DC, February 21, 2025 –
The Asian Development Bank (ADB) and the World Bank
(WB) signed a new groundbreaking Full Mutual Reliance
Framework (FMRF) today to deepen their collaboration on
cofinanced 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. 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.”

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“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
World Bank 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.”

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 organizations,
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.

Statement by heads of Asian Development
Bank and World Bank Group:

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