IDB, World Bank Unveil New Framework to Speed Development Projects

The Full Mutual Reliance Framework (FMRF) introduces a new approach that allows both institutions to rely on each other's operational policies when supporting eligible cofinanced projects.

The Inter-American Development Bank (IDB) and the World Bank have approved a new cooperation framework that will make it easier to jointly finance development projects across Latin America and the Caribbean, reducing administrative hurdles and helping countries access funding more efficiently.

The Full Mutual Reliance Framework (FMRF) introduces a new approach that allows both institutions to rely on each other's operational policies when supporting eligible cofinanced projects. The move is expected to shorten project preparation timelines, reduce duplication of work and improve the delivery of development investments across the region.

Framework cuts costs and strengthens collaboration

The new arrangement responds to a longstanding request from shareholders for multilateral development banks to work more closely together and deliver greater development impact. By sharing operational responsibilities where appropriate, the IDB and the World Bank will be able to combine their financing, technical expertise and institutional knowledge to support larger and more effective projects.

The framework is expected to lower transaction costs for borrowing countries while simplifying project implementation. It will apply to sovereign-guaranteed operations across a wide range of sectors, with projects selected individually based on country priorities, strategic importance and opportunities to achieve stronger development outcomes.

Transparency and accountability remain central

During the development of the framework, both institutions consulted accountability mechanism specialists and civil society organisations to ensure strong oversight remains in place. The agreement preserves access to each institution's accountability mechanisms and establishes coordination procedures for handling complaints related to jointly financed projects.

Projects approved under the Full Mutual Reliance Framework will be publicly disclosed on both the IDB and World Bank websites in line with each institution's access to information policies, providing transparency throughout the project lifecycle.

The approval of the FMRF marks a significant step toward deeper cooperation among multilateral development banks, creating a more efficient financing system that can deliver faster and more coordinated support for countries and communities across Latin America and the Caribbean.