The Asian Development Bank (ADB) and the World Bank Group have unveiled the first two projects under their innovative Full Mutual Reliance Framework, a cofinancing model designed to streamline development finance and maximize impact in the Pacific region. The framework allows countries to work with a single lead lender, either ADB or the World Bank, to oversee all aspects of project design, preparation, supervision, and evaluation, reducing duplication and transaction costs while maintaining high policy standards.
The first projects under the framework include a major health modernization initiative in Fiji and an integrated transport, urban, and water infrastructure investment in Tonga. The $236.5 million Pacific Healthy Islands Transformation (PHIT) project, led by the World Bank, targets non-communicable diseases such as cancer, diabetes, and cardiovascular conditions, which are among the leading causes of death across Pacific Island Countries. The project will modernize primary healthcare networks and support the construction of a state-of-the-art regional hospital, giving Pacific residents improved access to treatment. Financing for the project has already been approved by the World Bank Board, with ADB cofinancing to be considered in early 2026.
The second project, the Tonga Sustainable Economic Corridors and Urban Resilience (SECURE) project, led by ADB and approved by its Board on 20 November 2025, will be Tonga’s largest development partner-financed initiative. With combined grant financing of $120 million from ADB and the World Bank, the project will transform Greater Nuku’alofa’s transport network and urban drainage systems, including the 720-meter Fanga’uta lagoon bridge. The upgrades will reduce traffic congestion, improve market access for rural communities, enhance connectivity to key infrastructure such as the airport and port, and provide secure evacuation routes during disasters, including tsunamis. World Bank cofinancing for SECURE will also be presented to its Board in early 2026.
ADB President Masato Kanda emphasized that the framework makes development finance “simpler, faster, and more effective,” responding directly to client needs for coordinated solutions to complex challenges, from disaster resilience to connectivity. World Bank Group President Ajay Banga highlighted that the initiative reflects a commitment to being better partners, delivering real results for countries and communities in the Pacific. These first projects demonstrate the potential of the Full Mutual Reliance Framework to accelerate development outcomes through streamlined collaboration between major financial institutions.
