Europe’s MDBs Unite to Fast-Track Global Projects with Procurement Agreement

In a major step toward transforming how global development finance is delivered, three of Europe's leading multilateral development banks—the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB)—have signed a landmark Mutual Reliance Agreement to streamline procurement in jointly financed public sector projects outside the European Union.

The agreement, unveiled during the World Bank Group–IMF Spring Meetings in Washington, D.C., is being hailed as a practical breakthrough in reducing bureaucracy, accelerating project delivery, and enhancing the effectiveness of international development financing.

A Shift Toward System-Wide Cooperation

The tripartite agreement builds on existing bilateral arrangements but goes further by embedding a system-wide approach to cooperation, aligned with the G20 Roadmap for Better, Bigger and More Effective Multilateral Development Banks (MDBs).

At its core, the agreement addresses a long-standing challenge in development finance: fragmentation and duplication when multiple institutions co-finance the same project.

"This marks a concrete step toward MDBs working more effectively as a system," said CEB Governor Carlo Monticelli.

One Lead, Less Red Tape

A key innovation of the framework is the introduction of a "lead financier" model, where one institution takes primary responsibility for procurement and safeguards on a given project.

Under this model:

• One MDB acts as the lead, managing procurement processes

• Partner MDBs rely on the lead's systems and procedures

• Duplicate reviews and parallel compliance checks are eliminated

This approach is expected to significantly reduce administrative delays, which have often slowed down critical infrastructure and public sector projects in developing regions.

Faster Access, Lower Costs for Partner Countries

For governments and project developers outside the EU, the agreement promises tangible benefits:

• Simplified procedures and documentation

• Faster approval and implementation timelines

• Reduced transaction costs

• Easier access to combined financing and technical expertise

"By streamlining procurement, we help partner countries deliver projects faster and at lower cost," said EIB Vice-President Ambroise Fayolle.

Maintaining High Standards Through Shared Integrity Framework

While simplifying processes, the agreement also reinforces transparency and accountability through a newly introduced joint Covenant of Integrity.

This unified framework ensures that all co-financed projects adhere to:

• High anti-corruption standards

• Transparent procurement practices

• Robust environmental and social safeguards

Importantly, each institution retains its policy independence and decision-making autonomy, ensuring that efficiency gains do not come at the expense of governance standards.

Responding to Global Development Pressures

The agreement comes at a time when demand for development finance is surging, driven by:

• Infrastructure deficits in emerging economies

• Climate change adaptation needs

• Post-pandemic recovery pressures

• Rising geopolitical and economic fragmentation

Experts have increasingly called for MDBs to work more cohesively to maximise impact, leverage resources, and avoid inefficiencies.

A Model for Future Multilateral Collaboration

The CEB–EBRD–EIB agreement is seen as a potential blueprint for broader cooperation across the global development finance system.

Fatoumata Bouaré, EBRD Vice President and Chief Risk Officer, emphasised the operational impact:

"By strengthening our partnership, we can make our processes far more efficient and improve the service we offer our clients."

The move aligns with a wider trend among MDBs to:

• Pool resources

• Harmonise procedures

• Deliver larger, faster, and more impactful projects

From Policy to Practice: Delivering Results on the Ground

Ultimately, the success of the agreement will be measured by its ability to translate institutional cooperation into real-world outcomes—from faster infrastructure delivery to improved public services in partner countries.

By cutting through red tape while maintaining high standards, the three banks aim to demonstrate that multilateralism can be both efficient and effective.

"This is MDBs working together with a focus on real results," Fayolle said.

As global development challenges grow more complex, such collaborative frameworks may become essential tools in ensuring that financing reaches where it is needed—faster, smarter, and with greater impact.