ADB-WB’s FMRF to increase development impact

The Asian Development Bank (ADB) and World Bank (WB) signed a new groundbreaking Full Mutual Reliance Framework (FMRF) on February 20, to deepen their collaboration on cofinanced public sector projects. 
This first of a kind arrangement between multilateral development banks (MDBs) aims to streamline project processing and implementation and deliver faster and more efficient results to borrowing clients.
Under the FMRF, the borrowers in the WB-ADB co-financings can rely on one set of rules – using the policies and procedures of either the WB or ADB– on all aspects of project design, preparation, appraisal, supervision, completion and evaluation. The 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 MDBs to work more cohesively to maximise impact and address the escalating development challenges more efficiently and with better results.
“The FMRF is a significant step in our collaboration with the WB 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.”
“This partnership between the World Bank Group and ADB 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 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.