The Asian Development Bank (ADB) and the World Bank Group have entered into a new co-financing partnership, as announced by ADB President Masatsugu Asakawa and World Bank Group President Ajay Banga. The Full Mutual Reliance Framework (FMRF), described as the first of its kind among multilateral development banks (MDBs), aims to improve efficiency, streamline processes, deliver faster results, and achieve better outcomes for borrowing countries.
This initiative is designed to meet the demands of client countries in the Asia Pacific region for more rapid, efficient, and effective development financing. It also aligns with the G20 Leaders' call for MDBs to function more effectively as a system.
Under this partnership, one institution will take on the role of "Lead Lender," managing all aspects of project design, preparation, appraisal, supervision, and evaluation for both lenders. The other institution will serve as the "Trail Lender," participating in knowledge sharing and providing limited support without taking on decision-making or fiduciary responsibilities. The closely aligned policies between the two lenders enable mutual reliance without compromising standards.
The partnership is expected to set a precedent for deeper collaboration among other MDBs while addressing pressing development needs and fostering knowledge sharing and innovation. As implementation progresses, both institutions will continue engaging with their respective Boards, borrowers, and other stakeholders.