‘Zero Hunger’ program gets $400M from ADB

The Asian Development Bank (ADB) has approved a $400-million loan to the Philippines to help finance a flagship welfare program aimed at reducing hunger and malnutrition among the country’s poorest households.

The financing will support the government’s “Walang Gutom” (Zero Hunger) Food Stamp Program, which provides monthly electronic food vouchers to 750,000 poorest households, a population increasingly vulnerable to the mounting risks of climate change.

Beneficiaries will also take part in monthly sessions to promote healthier eating habits and address knowledge gaps that perpetuate malnutrition and poverty.

The Manila-based lender said the Philippines’ high exposure to disasters—including storms that are expected to grow more destructive as the planet warms—is compounding food insecurity and undernutrition.

Data showed that nearly 30 percent of Filipino children under five are stunted, a sign of chronic nutritional deficiencies that hinder learning, health and long-term economic productivity. The cost to the economy is estimated at $8.5 billion a year.

The project also aims to bolster the government’s capacity to respond quickly to disasters and economic shocks, ensuring food aid reaches vulnerable households when it is most needed.

Cofunders

The Agence Française de Développement will cofinance the program with a $220-million loan, and the OPEC Fund for International Development will contribute $150 million.

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While the new ADB loan will add to the country’s record-high debt of P17.27 trillion pesos as of June, it comes with concessional rates and more favorable terms than commercial borrowing.

“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,” Pavit Ramachandran, ADB’s country director for the Philippines, said in a statement.

“This project reflects ADB’s commitment to improving food security and nutrition so that all Filipinos can thrive,” he added.