Multilateral Cooperation Center for Development Finance (MCDF)

Introduction to the MCDF
The Multilateral Cooperation Center for Development Finance (MCDF) is a multilateral initiative to increase high-quality infrastructure and connectivity investments in developing countries in compliance with International Financial Institution (IFI) standards, including by encouraging other investors and financial institutions to adopt such standards.

The MCDF is designed to reinforce the numerous existing global, regional and sectoral initiatives established in response to the need for more connectivity infrastructure in the world. It will support implementation of the G20 Quality Infrastructure Principles, the UN Agenda 2030 and its Sustainable Development Goals (SDGs), as well as the Paris Climate Agreement. With its goal of working in cooperation with existing channels and mechanisms, the MCDF will aim to contribute positively to a better-connected world built on high quality, sustainable infrastructure.
Addressing the Need
Trade in goods and services, the movement of people and communication and information transfers within and between countries are all expected to continue expanding rapidly across the globe. These will continue being critical drivers of growth and prosperity. Underpinning such growth will require large and high-quality investments in infrastructure connectivity, financed from private and public sources—both domestic and/or foreign—including multilateral as well as bilateral financiers.

These investments need to be: (1) sustainable in terms of their social, environmental and fiscal impacts, and (2) climate friendly, meeting good practices regarding fossil fuel investments. They also need to follow good fiduciary and governance standards and transparency.

This can be especially challenging in developing countries that lack access to capital and expertise to design and implement projects according to high standards. Establishing a multilateral initiative dedicated to addressing this gap for high-quality connectivity infrastructure in the developing world will have a positive impact on development outcomes and economic growth.

The MCDF will coordinate with IFIs and other entities dedicated to improving connectivity in the world. It will work with them to build the capacity of their clients and other partners to implement the Quality Infrastructure Principles of the G20 and, in particular, by financing project preparation activities for high-quality investments consistent with those principles through the MCDF Finance Facility.
The MCDF comprises:
  1. An MCDF Collaboration Platform to promote communication and collaboration among the IFIs and other development partners regarding plans and activities relating to infrastructure and connectivity investments;
  2. An MCDF Finance Facility to provide grant resources to fund information sharing, capacity building and project preparation activities;
  3. An Administrator to provide administrative and financial services to the MCDF, including the establishment and hosting of the MCDF Secretariat; and
  4. An MCDF Secretariat to support the day to day operations of the MCDF. The Asian Infrastructure Investment Bank (AIIB) serves as the Administrator of the MCDF and host of the Secretariat with effect from June 30, 2020.
MCDF Participants
IFIs and Implementing Partners: Interested IFIs will be Implementing Partners of the MCDF if they have been accredited as a technical partner of the Global Infrastructure Facility or are accredited in accordance with a process and criteria to be approved by the Governing Committee in concurrence with the Administrator.

Contributors of Finance Facility: Any sovereign member of an accredited IFI Implementing Partner can contribute to the Finance Facility. Any other entity that shares the mission and the approach of the MCDF, including private sector entities, can also contribute, subject to approval by the Governing Committee of the Finance Facility and the Administrator.

Beneficiary Countries: MCDF-financed activities will provide financing for activities that promote the economic development and welfare of low- and middle-income countries. Financing can also be provided for the benefit of countries that have an active country program with an IFI Implementing Partner.

New Partners: Financial institutions as well as investors, state-owned or private, that are not currently generally applying accredited IFI standards, and are based in recipient countries of the IFI Implementing Partners.
Additional information can be found in the Governance Instrument or the Frequently Asked Questions document. The MCDF Secretariat can be contacted at