ADB Joins World Bank–Led PEFA Program to Advance Public Financial Management Standards

The Asian Development Bank has formalized a new partnership with the World Bank by signing an Administrative Agreement to become a partner in the Public Expenditure and Financial Accountability program. The move deepens cooperation between major multilateral institutions at a time when governments face growing pressure to strengthen transparency, accountability, and public trust in fiscal systems.

Through its participation in the PEFA program, ADB will work alongside the World Bank, the International Monetary Fund, the European Commission, and the governments of France, Luxembourg, Norway, the Slovak Republic, and Switzerland. Together, these partners develop global tools, frameworks, and knowledge to assess and improve public financial management practices across countries.

 

Aligning Public Finance Reform with Strategy 2030

 

ADB said the partnership directly supports its Strategy 2030 agenda, which places strong emphasis on governance, institutional capacity, and sustainable development outcomes. By contributing to PEFA assessments and methodologies, ADB aims to help governments across Asia and the Pacific strengthen budget credibility, improve oversight of public spending, and reinforce accountability mechanisms.

Effective public financial management is increasingly viewed as foundational to development outcomes, influencing everything from infrastructure delivery and social services to climate finance and debt sustainability. ADB’s involvement is intended to help translate global standards into practical reforms that build confidence in public institutions and improve the effectiveness of development spending.

 

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Procurement Reform as a Delivery Tool

 

Alongside the PEFA partnership, ADB highlighted ongoing changes to its procurement framework that are intended to improve project quality and local economic impact. From January 1, the bank has begun applying merit point criteria to evaluate all internationally advertised contracts financed by ADB, rather than relying solely on price-based selection.

The revised approach is designed to prioritize quality, durability, and value for money in infrastructure projects, while also encouraging early market engagement and greater local participation. ADB has framed procurement reform as a critical lever for ensuring that development investments deliver long-term benefits rather than short-lived assets.

 

Digital and Partnership-Led Development Priorities

 

ADB also reaffirmed its broader focus on partnerships and digital innovation as part of its development model. Recent work on digital public infrastructure highlights the role of secure digital identity systems, interoperable payment platforms, and data exchange frameworks in enabling inclusive growth. These systems are increasingly seen as enablers of efficient public finance, improved service delivery, and stronger links between governments and citizens.

In parallel, ADB continues to expand private sector partnerships aimed at inclusive economic growth. Initiatives such as its collaboration with TPBank in Viet Nam to support women entrepreneurs reflect the bank’s emphasis on using finance, policy reform, and institutional strengthening to address structural barriers in access to capital.

 

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Building Trust Through Institutions

 

ADB’s decision to join the PEFA partnership underscores a broader shift among development banks toward governance and institutional quality as core development priorities. As fiscal pressures rise and public expectations increase, transparent and accountable financial management is becoming central to economic resilience and social trust.

By aligning its strategy, procurement reforms, and partnerships around stronger public institutions, ADB is positioning itself to play a more active role in shaping how public resources are managed and deployed across Asia and the Pacific in the years ahead.