The Board of Directors of the African Development Bank (AfDB) has approved the Mutual Reliance Agreement (MRA), called Procedural framework, between the Bank and the European Investment Bank (EIB).
In a statement, the lender said the approval of the agreement indicates that the board affirms cognizance of the strategic role of sustainable procurement and governance.
According to the statement: “The objective of the Mutual Reliance Agreement (MRA) between the Bank and the European Investment Bank (EIB) is to delegate procurement-related tasks in project preparation, implementation and monitoring to the maximum possible extent to the institution that is subsequently assuming the responsibility as Lead financier. Within the overall framework, and recognizing differences across regions, it is envisaged that AfDB and EIB will play a balanced role as Lead financiers.”
It further stated that the agreement will facilitate joint co-financing of investment projects thereby responding to the objective of the Bank Group’s Ten Year Strategy, which aims to expand the sources of financing for Africa, including through co-financing arrangements with partner development institutions.
“AfDB and EIB share the same public procurement principles of economy, efficiency, transparency and accountability and have been actively participating in the MDBs’ procurement harmonization efforts within the MDBs’ Heads of Procurement group. The MRA has been developed for procurement and integrity issues under public sector projects that are co-financed on a joint basis,” the statement said.
Commenting on the collaboration, the AfDB’s Group Officer in Charge of the Fiduciary Services and Inspection Department, Eric Yoboué, underscored the relevance of the agreement, noting that it would particularly contribute to a better division of labour between financiers and would also increase the coherence and development impact of joint financing operations and activities to the benefit of the Bank’s Regional Member Countries.
“The MRA will contribute to the success of larger-scale development projects and programmes, in particular in situations where a single financier is not able to manage the project or work, due to limited financial, risk bearing and/or project management capacity,” he said.
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