ADB Approves $400M Loan to Boost Food Security and Nutrition in the Philippines

The Asian Development Bank (ADB) has approved a $400 million loan to help the Philippines tackle hunger, food insecurity, and undernutrition, challenges that have been deepened by escalating climate and disaster risks. The funding will support the expansion of the government’s new flagship social assistance initiative, the Walang Gutom (Zero Hunger) Food Stamp Program, a nationwide effort to ensure that the poorest households can afford adequate and nutritious food.

Expanding Access to Nutritious Food

Under the Reducing Food Insecurity and Undernutrition with Electronic Vouchers Project, the government will provide monthly electronic food vouchers to 750,000 food-insecure households across the country. These vouchers will enable recipients to purchase healthy and diverse food items, aiming to reduce malnutrition rates and promote better long-term health outcomes.

According to ADB Deputy Director General for Southeast Asia and Country Director for the Philippines Pavit Ramachandran, nearly half of the country’s population currently cannot afford a healthy diet.

“Food vouchers are essential to help poor and vulnerable households meet their nutritional needs. This project reflects ADB’s commitment to improving food security and nutrition so that all Filipinos can thrive,” Ramachandran said.

The Urgency of Addressing Undernutrition

Poverty and limited access to nutritious food have left almost 30% of Filipino children under the age of five stunted. Stunting—caused by chronic malnutrition—impairs cognitive development, weakens immunity, and limits productivity in adulthood. The economic cost of childhood undernutrition in the Philippines is estimated at $8.5 billion annually due to lost productivity and higher healthcare costs.

Climate and Disaster Risks Intensifying Food Insecurity

The Philippines ranks among the most disaster-prone countries in the world, situated along the Pacific Ring of Fire and within the Western Pacific typhoon belt. It faces frequent earthquakes, tropical cyclones, flooding, and landslides—hazards expected to worsen with climate change. Disasters frequently disrupt food production, supply chains, and household incomes, further increasing the risk of hunger and malnutrition.

To address this, the project will also strengthen shock-responsive social protection systems, enabling the government to provide timely assistance during natural disasters and economic shocks.

Beyond Food Assistance: Education and Capacity-Building

In addition to vouchers, beneficiary households will attend monthly educational sessions aimed at promoting positive nutrition-related behaviors. These sessions will help bridge knowledge gaps about balanced diets, food preparation, and healthy lifestyles, complementing the financial support to achieve long-term nutritional improvements.

The project will also invest in enhancing government capacity to implement and manage large-scale, shock-responsive social assistance programs, ensuring that the benefits are sustainable and equitable.

Strong International Support

The initiative is being cofinanced by major development partners:

• Agence Française de Développement (AFD): €200 million ($220 million) loan

• OPEC Fund for International Development: $150 million loan

ADB worked closely with the Department of Social Welfare and Development (DSWD) to pilot the electronic food voucher system between December 2023 and July 2024 in five locations, in partnership with the World Food Programme. The pilot’s impact evaluation informed the project’s final design, ensuring it is data-driven and context-appropriate.

Building on a Track Record in Social Protection

The project builds on ADB’s 15+ years of support for the Philippines’ Pantawid Pamilyang Pilipino Program (4Ps), a conditional cash transfer scheme that has improved health and education outcomes for millions of poor households. Lessons from other ADB-backed initiatives, such as Mongolia’s Food Stamp Program, have also shaped the program’s design.

Founded in 1966, ADB has 69 member countries—50 from Asia and the Pacific—and plays a leading role in advancing inclusive, resilient, and sustainable development across the region. Through partnerships, innovative financing, and capacity building, ADB works with governments to tackle urgent challenges, from poverty reduction to climate change adaptation.

With the launch of this project, the Philippines is taking a major step toward reducing hunger, improving child nutrition, and building resilience against future crises, ensuring that no Filipino is left behind in the fight against food insecurity.