Heads of major multilateral development banks (MDBs) have agreed to advance a value-for-money procurement approach to enhance the quality and long-term sustainability of projects financed by the institutions, while allowing each bank to refine the framework in line with its own operational context.

The leaders said the procurement approach would help ensure better project outcomes, stronger accountability and more efficient use of development resources across MDB-supported initiatives. They noted that adopting value-for-money principles would also improve consistency in procurement practices, reduce delays and strengthen implementation standards.

The MDB heads also highlighted progress in the use of mutual reliance frameworks, aimed at enabling seamless joint financing of development projects. The frameworks allow participating banks to rely on one another’s policies and procedures in agreed areas, reducing duplication, streamlining approval processes and accelerating project delivery.

Officials said the growing use of mutual reliance mechanisms is expected to support co-financing arrangements, expand development impact and improve coordination among institutions working on large, complex infrastructure and social development projects.

The Heads of MDBs Group comprises the African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank and the World Bank Group. The International Monetary Fund also participates in the Heads’ discussions.