In a historic move to enhance development impact and streamline operations, the Asian Development Bank (ADB) and the World Bank Group (WB) have signed a groundbreaking agreement known as the Full Mutual Reliance Framework (FMRF). This pioneering framework aims to deepen cooperation between the two multilateral development banks (MDBs) and optimize the delivery of development financing.

A Step Towards Streamlined Development Financing

On February 20, 2025, in Washington, D.C., ADB President Masatsugu Asakawa and World Bank Group President Ajay Banga formalized the FMRF. This innovative partnership is designed to generate efficiencies, streamline implementation, and deliver faster, more effective results for borrowing countries. The framework allows borrowing countries to rely on a unified set of rules for project design, preparation, appraisal, supervision, completion, and evaluation, using either the World Bank's or ADB's policies and procedures.

Enhancing Efficiency and Policy Consistency

The FMRF is expected to significantly enhance efficiency, save time and resources, and achieve better outcomes. It addresses the growing demand from client countries in Asia and the Pacific for more rapid, efficient, and effective development financing. The framework also responds to the G20's call for MDBs to work more effectively as a coordinated system.

Lead and Trail Lender Roles

Under the FMRF, one institution will act as the "Lead Lender," handling all aspects of project design, preparation, appraisal, supervision, and evaluation for both lenders. The other institution, acting as the "Trail Lender," may participate in knowledge sharing and provide limited support without decision-making or fiduciary responsibilities. This alignment allows for mutual reliance without compromising standards.

A Model for Deeper Collaboration

The partnership is expected to serve as a model for deeper collaboration among other MDBs, addressing pressing development needs while fostering knowledge sharing and innovation. The framework builds on previous joint financing efforts, such as the 2018 Procurement Framework Agreement, and leverages the strengths of both institutions.

Perspectives from ADB and World Bank Group

Masatsugu Asakawa, ADB President, emphasized the significance of the FMRF: "This framework is a crucial step in our partnership with the World Bank, bringing lasting benefits to communities and economies in the Asia-Pacific region. By leveraging our respective strengths, we can enhance efficiency and expand our impact, providing a robust platform for sustainable and inclusive growth."

Ajay Banga, World Bank Group President, highlighted the transformative potential of the partnership: "This partnership exemplifies the deep trust and enduring confidence between our institutions, reflecting a broader shift in development finance—where cooperation, not competition, yields greater impact. By integrating our strengths, we can enable countries to access the support they need more quickly, easily, and cost-effectively. This is not just an agreement; it is a model for how development banks can work together to achieve better outcomes for the people we serve."

Implementation and Future Prospects

The FMRF will initially be applied to selected public sector projects over a four-year pilot phase starting in 2025. The institutions will continue to engage with their respective boards, borrowers, and other stakeholders as they move towards implementation.