The Asian Development Bank (ADB) said Tuesday it approved a $400-million loan to the Philippines to help reduce hunger, food insecurity and poor nutrition as the nation faces escalating climate and disaster risks.
The project, called the “Reducing Food Insecurity and Undernutrition with Electronic Vouchers,” will support the government’s new flagship social assistance initiative, the Walang Gutom (Zero Hunger) Food Stamp Program.
The project will help finance monthly electronic food vouchers for 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 Pavit Ramachandran, ADB deputy director general for Southeast Asia and concurrent country director for the Philippines.
“This project reflects ADB’s commitment to improving food security and nutrition so that all Filipinos can thrive,” said Ramachandran.
The Philippines’ high vulnerability to disasters further compounds the risk of food insecurity and malnutrition. The country is in the Pacific Ring of Fire and Western Pacific typhoon belt, making it prone to frequent earthquakes, tropical cyclones, flooding, and landslides, which are projected to intensify with climate change.
Poverty and food insecurity contribute to undernutrition, with nearly 30 percent of Filipino children under the age of five stunted. Childhood undernutrition is estimated to cost the economy $8.5 billion annually, according to the ADB.
ADB said that aside from receiving electronic food vouchers, beneficiaries would attend monthly sessions aimed at promoting positive nutrition-related behaviors. The project also seeks to strengthen the government’s implementation capacity and systems for shock-responsive social protection.
The Agence Française de Développement (AFD) is cofinancing the project with a 200-million-euro ($220 million) loan, while the OPEC Fund for International Development is providing a $150-million loan.
ADB said it provided technical assistance to the Department of Social Welfare and Development for a pilot program that delivered electronic vouchers in five locations from December 2023 to July 2024. The insights from that pilot informed the project’s 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).
ADB is a multilateral development bank founded in 1966 and is owned by 69 members.
 has approved a $400 million loan to the Philippines to reduce hunger and poor nutrition by funding a new electronic food voucher program for 750,000 households.%%excerpt%%){kind=link}