ADB and KfW Deepen Strategic Partnership with $2 Billion Boost for Joint Development Projects

The Asian Development Bank (ADB) and KfW, the German state-owned development bank, have taken another significant step in their strategic partnership by signing a new amendment to their cofinancing memorandum of understanding (MOU). The amendment, formalized during ADB’s 58th Annual Meeting held in Milan, Italy, extends their collaboration with a fresh commitment of $2 billion from KfW. This additional funding brings KfW’s total pledge to a remarkable $10 billion in cofinancing for the period 2014–2028.

Strengthening a Decade-Long Partnership

Since the original MOU was signed in 2014, the ADB–KfW partnership has played a pivotal role in driving sustainable development across Asia and the Pacific. Over the past decade, the collaboration has facilitated $18.2 billion in investments in sectors critical to economic growth and social well-being. These include clean energy, urban and social infrastructure, water and sanitation, and climate resilience—areas that are central to addressing the region's multifaceted development challenges.

The current amendment marks the fourth such update to the cofinancing agreement, underscoring the evolving and deepening relationship between the two institutions. With the newly committed funds, the partnership is poised to scale up its impact, delivering transformative projects that align with both institutions’ commitment to inclusive, resilient, and sustainable development.

Leaders Affirm Strategic Importance

“This renewed commitment demonstrates the strength and maturity of our partnership with KfW,” said Fatima Yasmin, ADB Vice-President for Sectors and Themes. “Together, we are scaling up our ability to deliver high-impact development solutions across Asia and the Pacific that support sustainable and resilient growth and improve livelihoods.”

KfW’s Stephan Opitz, Member of the Management Committee for Europe and Asia, echoed this sentiment. “This agreement reinforces our strategic collaboration with ADB in addressing pressing regional challenges,” he said. “We look forward to supporting impactful projects that drive inclusive growth and long-term resilience.”

A Broader Vision for Regional Transformation

Beyond the $2 billion commitment, ADB and KfW aim to explore new avenues for resource mobilization. A key part of their expanded strategy is to attract grants and other complementary financing from international partners such as the European Union. This approach aims to amplify the development impact of cofinanced projects, particularly in regions and communities that are most vulnerable to economic shocks and climate change.

The institutions also aim to incorporate innovative financial instruments and approaches to ensure that the projects they support are not only effective but also scalable and replicable across different countries and contexts.

A Legacy of Development Impact

The partnership between ADB and KfW stands as a model for multilateral cooperation in the development finance space. Their joint efforts have led to the establishment of resilient infrastructure, improved urban systems, enhanced social services, and increased access to clean and renewable energy sources for millions of people across Asia and the Pacific.

With the renewed and expanded commitment, the collaboration is well-positioned to further accelerate progress on the Sustainable Development Goals (SDGs), tackle the dual crises of climate change and inequality, and build a future that is inclusive, prosperous, and sustainable for all.

As Asia and the Pacific continue to navigate an increasingly complex development landscape, the strengthened ADB–KfW alliance is set to be a cornerstone of regional transformation.