Manila, August 13 (AseanAll)  — The Asian Development Bank (ADB) has approved a $400 million loan to help the Philippines reduce hunger, food insecurity, and poor nutrition amid escalating climate and disaster risks.

The Reducing Food Insecurity and Undernutrition with Electronic Vouchers Project will support the government in expanding its new flagship social assistance initiative, the Walang Gutom (Zero Hunger) Food Stamp Program. The project will help finance the delivery of monthly electronic food vouchers to 750,000 food-insecure households nationwide.

“With nearly half the Philippine population unable to afford a healthy and nutritious diet, food vouchers are essential to help poor and vulnerable households meet their nutritional needs,” said ADB Deputy Director General for Southeast Asia and concurrent Country Director for the Philippines Pavit Ramachandran. “This project reflects ADB’s commitment to improving food security and nutrition so that all Filipinos can thrive.”

Poverty and food insecurity contribute to undernutrition. Nearly 30% of Filipino children under the age of 5 are stunted, reflecting long-term nutritional deficiencies that impair learning, health, and future productivity. Childhood undernutrition is estimated to cost the economy $8.5 billion annually, underscoring the urgent need for targeted multisector solutions.

Compounding the risk of food insecurity and malnutrition is the country’s high vulnerability to disasters. The Philippines is located within the Pacific Ring of Fire and Western Pacific typhoon belt, making it prone to frequent earthquakes, tropical cyclones, flooding, and landslides. Typhoons are projected to intensify with climate change.

In addition to receiving electronic food vouchers, beneficiaries will attend monthly sessions aimed at promoting positive nutrition-related behaviors and addressing knowledge gaps to reduce both malnutrition and poverty. The project also seeks to enhance the government’s implementation capacity and strengthen systems for shock-responsive social protection, ensuring timely assistance to households during disasters and economic shocks.  

Cofinancing the project are the Agence Française de Développement (AFD) with a loan of 200 million euros ($220 million) and the OPEC Fund for International Development with a loan of $150 million.

ADB provided technical assistance to the Department of Social Welfare and Development to pilot the delivery of electronic vouchers in five locations from December 2023 to July 2024 in partnership with the World Food Programme. Insights from a rigorous impact evaluation of the pilot informed the project design.

The project builds on ADB’s long-standing support for social protection in the Philippines, including over 15 years of assistance to the Pantawid Pamilyang Pilipino Program (4Ps). It also draws on lessons from ADB support to social protection in other countries, including Mongolia’s Food Stamp Program.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.