Partnership Framework Arrangements

Cofinancing Agreements on Streamlined Development Initiatives

Partnership framework arrangements—also expressed as framework cofinancing arrangements, memoranda of understanding, and similar terms—facilitate better strategic collaboration, cooperation, and complementarity.

Partnership framework arrangements (PFAs) are agreements between ADB and a development partner to support a specific region, country, or focus under a streamlined approach. Also called cofinancing framework agreement (CFA), framework cofinancing agreement (FCA), memorandum of understanding (MOU), and similar terms, the PFAs facilitate better strategic collaboration, cooperation, and complementarity.

The PFAs have a funding envelope covering a broad range of planned and coordinated cofinancing activities. ADB has active PFAs with 11 financing partners, with a total funding envelope of at least $24 billion.

Abu Dhabi Fund for Development

Memorandum of Understanding

2015 to 2020

Cumulative Commitment for Projects

$30 million for 1 project

ADB and the Abu Dhabi Fund for Development (ADFD) signed their MOU on Establishing Cooperation Arrangements in February 2012. They extended it in September 2015 to cover collaboration from 2015 until 2020. Under this arrangement, the ADFD provided $30 million to cofinance an ongoing transport project signed in 2019, the South Asia Subregional Economic Cooperation Road Connectivity Project in Bangladesh.

The arrangement between ADB and the ADFD provides a general framework for both institutions to develop and undertake collaborative work to pursue common objectives more strategically and effectively. Their priority sectors of cooperation are education, energy, finance, health, regional initiatives, trade, transport, and urban services.

Agence Française de Développement

Partnership Framework Arrangement

$4 billion (2016 to 2022)

Cumulative Commitment for Projects

$3.4 billion for 45 projects

The ongoing PFA between ADB and Agence Française de Développement (AFD) runs from 2016 to 2022. The PFA details the two organizations’ arrangements on enhancing institutional, research, and knowledge cooperation. It also reflects how they will pursue their operational cooperation in the form of cofinancing, joint research and development of knowledge products, a staff exchange program, and regular policy dialogue in the spirit of the Paris Declaration on Aid Effectiveness.

Under this arrangement, six projects were committed for cofinancing in 2020. These projects include the Railway Sector Development Program, Agricultural Value Chain Competitiveness and Safety Enhancement, Emergency Assistance for Fighting the COVID-19 Pandemic, Skills for Competitiveness, Karachi Bus Rapid Transit Red Line, and Power Sector Reform Program (Subprogram 1).

Asian Infrastructure Investment Bank

Cofinancing Framework Agreement

2019 to 2022

Cumulative Commitment for Projects

$4.3 billion for 13 projects

ADB and the Asian Infrastructure Investment Bank (AIIB) signed their CFA in March 2019. This new agreement guides the two organizations’ collaboration going forward and builds on their previous MOU on Strengthening Cooperation, which they signed in May 2016. Their agreement focuses on sustainable growth, climate change mitigation, and adaptation, and promoting regional cooperation and partnership towards a more innovative, inclusive, and integrated Asia.

In 2020, 12 sovereign projects were committed for cofinancing with the AIIB. These include initiatives addressing the pandemic, namely, the COVID-19 pandemic response option programs for Bangladesh, Cook Islands, India, Indonesia, Kazakhstan, Mongolia, Pakistan, and the Philippines; a COVID-19 Emergency Response in Uzbekistan; and a policy-based loan in Fiji. The AIIB also cofinanced two investment projects, the Karachi Bus Rapid Transit Red Line and the Greater Malé Waste-to-Energy.

Eurasian Development Bank

Framework Cofinancing Agreement

$1 billion (2016 to 2021)

Cumulative Commitment for Projects

$395 million for 4 projects

The current FCA between ADB and the Eurasian Development Bank was signed in 2016. It covers the period 2016 to 2021. This agreement intends to expand their cofinancing activities in Armenia, Kazakhstan, the Kyrgyz Republic, and Tajikistan. It facilitates both parties’ collaboration in the agriculture, energy, public service, and transport sectors.

International Fund for Agricultural Development

Framework Cofinancing Agreement

2018 to 2023

Cumulative Commitment for Projects

$160 million for 4 projects

ADB and the International Fund for Agricultural Development’s ongoing FCA was first signed in 2004 and was amended in 2018 to extend through 2023. This agreement helps both institutes identify different financing modes that can be used to support agricultural projects and activities in priority countries. It also enables them to work together in ensuring agricultural development and food security in select countries in Asia and the Pacific. One project was cofinanced under this agreement in 2020, the Arghandab Integrated Water Resources Development.

Islamic Development Bank

Framework Cofinancing Agreement

$2 billion (2018 to 2022)

Cumulative Commitment for Projects

$1.8 billion for 11 projects

The ongoing FCA between ADB and the Islamic Development Bank (IsDB) was signed in 2017 and covers the period 2018 to 2022. Under this agreement, ADB committed $3 billion and IsDB committed $2 billion. This arrangement builds on previous FCAs between the two, the first of which was signed in 2008.

ADB and the IsDB focus on initiatives that hasten economic growth and improve the quality of life in their common member countries. Their projects have provided key infrastructure in Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, the Kyrgyz Republic, Maldives, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. Although most of their projects focus on power and transport connectivity, they also prioritize projects in the fields of education, urban development, agriculture, health, regional cooperation, private sector development, and public–private partnership.

Japan International Cooperation Agency

Memorandum of Understanding

$10 billion (2015 to 2020)

Cumulative Commitment for Projects

$4.2 billion for 9 projects

ADB and the Japan International Cooperation Agency (JICA) signed in 2015 an MOU for Strategic Partnership for Sustainable and Inclusive Development through the Promotion of Quality Infrastructure Investment in Asia and the Pacific. Under this MOU, both agreed to provide about $10 billion in combined cofinancing to sovereign borrowers from 2016 to 2020. The agreement focuses on projects that promote resilience against natural disasters, reduction in environmental burdens and social costs, economic efficiency, safety in use and operation, and development of local human resources. In 2020, JICA cofinanced the Second Greater Mekong Subregion Highway Modernization.

Also, under this partnership, ADB and JICA established the Leading Asia’s Private Sector Infrastructure Fund (LEAP) in 2016, with equity of $1.5 billion. LEAP aims to stimulate investment in quality and sustainable private sector infrastructure in Asia and the Pacific, including through public–private partnerships.

In May 2017, ADB and JICA also signed an MOU for Strategic Partnership for Sustainable, Resilient, and Inclusive Development through Strengthening Health Security and Promotion of Universal Health Coverage in Asia and the Pacific.


Memorandum of Understanding

$6 billion (2014 TO 2023)

Cumulative Commitment for Projects

$5 billion for 22 projects

ADB and KfW’s current MOU was signed in November 2019 and runs from 2020 to 2023. Their sectors of common interest include renewable energy and energy efficiency, urban infrastructure including urban mobility and climate finance, small and medium-sized enterprises financing and financial inclusion, health, vocational training, and regional integration.

Under this partnership, the KfW cofinanced three projects with ADB in 2020. Two of these were in Indonesia, the COVID-19 Active Response and Expenditure Support Program and Promoting Innovative Financial Inclusion Program (Subprogram 1). One was a project in the People’s Republic of China, the Anhui Huangshan Xin’an River Ecological Protection and Green Development.

Nordic Development Fund

Memorandum of Understanding

2011 onwards

Cumulative Commitment for Projects

$52.3 million for 20 projects

The longstanding collaboration between ADB and the Nordic Development Fund (NDF) is under an MOU signed in January 2011. This agreement specified the type of initiatives the fund supports, which includes projects on climate change mitigation and adaptation. To date, 20 projects were cofinanced under this MOU.

ADB and the NDF work on projects in the energy, infrastructure, and natural resources sectors. NDF projects are currently concentrated in Bangladesh, Cambodia, the Lao People’s Democratic Republic, Nepal, Sri Lanka, and Viet Nam.

OPEC Fund for International Development

Framework Cofinancing Agreement

$600 million (2016 to 2021)

Cumulative Commitment for Projects

$356 million for 13 projects

The ongoing collaboration between ADB and The OPEC Fund for International Development’s (OPEC Fund) is through an FCA signed in August 2016 that runs through to 2021. This FCA provided $600 million in cofinancing for projects from 2016 to 2021 and expands the previous MOU they both signed in April 2015.

ADB and OPEC Fund support projects focused on energy (renewable energy and energy efficiency), transport, agriculture, water supply and sanitation, education, and health. In 2020, two projects were cofinanced under this arrangement. These were the COVID-19 Active Response and Expenditure Support Programs for Bangladesh and Pakistan.

Republic of Korea (Ministry of Economy and Finance)

Memorandum of Understanding

$650 million (2018 to 2021)

Cumulative Commitment for Projects

$1.8 billion for 20 projects

The current partnership of ADB and the Republic of Korea’s Ministry of Economy and Finance is under an MOU signed in May 2018. This agreement builds on the gains of their two previous MOUs signed in 2011 and 2015, and their original framework cooperation agreement signed in 2008.

The 2018 MOU runs until 2021 and details Korea’s commitment to provide $650 million of concessional loans to cofinance ADB projects and programs. Projects under this MOU focus on transport, energy, environment, health, public governance, and education. The MOU also prioritizes projects based on information and communication technology.

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