Second Additional Financing of Social Protection Support Project (RRP PHI 43407-017)

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country: Philippines Project Title: Social Protection Support Project –
Second Additional Financing

Lending/Financing Additional financing Department/ Southeast Asia Department/Human and

Modality: Division: Social Development Division

I. POVERTY AND SOCIAL ANALYSIS AND STRATEGY

Poverty targeting: targeted intervention—household
A. Links to the National Poverty Reduction and Inclusive Growth Strategy and Country Partnership Strategy
The Second Additional Financing of Social Protection Support Project (SPSP-AF II) will support the government of
the Philippines in mitigating the adverse impact of coronavirus disease 2019 (COVID-19) pandemic, particularly on
poor and vulnerable households including those covered under the Pantawid Pamilyang Pilipino Program (4Ps).
The support will be provided under the Bayanihan to Heal as One Act, or Republic Act No. 11469 (Bayanihan Law),a
which mandates that emergency cash assistance (ECA) of between ₱5,000–₱8,000 per month for 2 months, will be
paid to around 18 million low-income households/families (including 4Ps households) nationwide. It is closely aligned
with the Philippine Development Plan 2017–2022, Chapter 11, which emphasizes strategies to reduce vulnerabilities
of individuals and families by decreasing their exposure to risks and increasing adaptive capacities. Further, it
provides for a “universal and transformative social protection program for all Filipinos that will build up socioeconomic
resilience.”b The SPSP-AF II will contribute to the achievement of sustainable development goals (SDGs) including
SDG1 (poverty), SDG2 (hunger), SDG3 (health and well-being), SDG5 (gender equality), and SDG10 (inequality).
It supports the third pillar of Asian Development Bank’s (ADB) Philippines Country Partnership Strategy, 2018–
2023,c namely investing in people through human development, social protection, financial inclusion, and social
innovation. It is also aligned with ADB’s Strategy 2030 operational priorities, particularly addressing remaining
poverty and reducing inequalities) of ADB’s Strategy 2030.d
B. Results from the Poverty and Social Analysis during PPTA or Due Diligence
1. Key poverty and social issues. The poverty rate in the Philippines declined from 25.2% in 2012 to 23.3% in
2015, to 16.6% in 2018.e Despite this decline, absolute poverty and the risk of vulnerability remain high. In 2018,
nearly 17.6 million people continue to live under the poverty line and 14.2 million just above the line, who are
vulnerable to sliding back into poverty.e The key causes of poverty and vulnerability include high income inequality,
underinvestment in human capital, catastrophic health expenditure, frequent disasters (natural and human-induced),
adverse effects of climate change, and conflict in certain areas. The COVID-19 pandemic has hit the Philippines
hard. Between 15 March and 28 March 2020, the government progressively imposed community quarantine
measures across the country—initially in the National Capital Region, then expanded to the entire Luzon-island;
while the local governments, including regional economic hubs, in Mindanao and Visayas islands have issued
executive orders replicating the national quarantine measures and social distancing protocols in their localities.
Owing to the shutdown of most economic activities and public transportation, various vulnerable groups – the poor
households covered under the 4Ps and those that are not, and informal sector workers and daily wage laborers--
have lost their livelihoods. Consequently, they and their families are finding it difficult to pay for food, medicines, and
other basic necessities.
2. Beneficiaries. The 4Ps has been one of the main interventions of the government since 2008 to target poor
households, and help them improve the education and health of their children so that they can escape poverty. The
SPSP-AF II will provide emergency cash assistance (ECA) to about 3.67 million 4Ps households who have cash
cards. The 4Ps beneficiaries include poor households with children 0–18 or with pregnant women, homeless street
families, families in need of special protection, and indigenous peoples (IP). As of 29 February 2020, there are
4,280,638 active 4Ps households nationwide. Around 85.3% of these households are headed by female grantees.
Currently, 643,414 indigenous people households (15.0% of the total) are covered. Around 4.7% of households
(202,814) have a person with disability.
3. Impact channels. The provision of ECA to 4Ps households will help them to cope with loss of livelihoods and
income owing to the quarantines that have been announced across most parts of the country. The households will
be able to meet expenses for food, medicine, and other basic necessities, while abiding by social distancing and
other quarantine-related restrictions on movement. Since the majority (85.34% in 2020) of the 4Ps households are
headed by women grantees, the SPSP-AF II is expected to help reduce gender-based inequalities by improving
women’s access to and control of financial resources.
4. Other social and poverty issues. The Department of Social Welfare and Development (DSWD) relies on the
National Targeting Household Targeting System for Poverty Reduction (NHTS-PR or Listahanan) for identifying poor
households.f All 4Ps households are also eligible for the PhilHealth insurance. Around 40% of 4Ps households are
also beneficiaries of the DSWD’s Sustainable Livelihood Program, which provides assistance for micro-enterprise
development to help the poor in adding to their livelihood and generating some savings, and employment facilitation
to help them access jobs.
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5. Design features. The total cost of assistance for all beneficiaries under the Bayanihan to Heal as One Act and
social amelioration program is estimated at $4.3 billion for 2 months. The SPSP-AF II will support ECA of about
₱5,000 and ₱8,000 ($98.30 - $157.30) per month for 2 months to 3.67 million 4Ps households having cash cards.
The specific amount of the ECA per household will depend on the region and the prevailing minimum wage level in
that region. Based on estimates, DSWD will require nearly $726.1 million to provide ECA to all 4Ps households
nationwide for a period of 2 month; of this, $635.2 million will be required for the 3.67 million 4Ps households with
cash cards. ADB will fund $200 million of this amount. ADB’s contribution is approximately 31.5% of assistance
provided to 4Ps beneficiaries.
II. PARTICIPATION AND EMPOWERING THE POOR
1. Participatory approaches and project activities. The extensive participation of households and communities
remains integral to the design and successful implementation of the 4Ps. Beneficiaries are organized into parent
groups with elected parent leaders who are regularly consulted by project implementors. The 4Ps field facilitators
(city and municipal links) work with the parent groups to help raise awareness of the 4Ps households, ensure
compliance with co-responsibilities, update beneficiary information, and facilitate access to the grievance redress
system. During the enforcement of the enhanced community quarantine, the project will devise innovative strategies
to ensure that proper quarantine and social distancing measures are properly observed. The field facilitators/
workers will have to be adequately protected and consult/work with community (local) leaders when conducting
community visits to beneficiary households to track progress, monitor delivery, and provide the required support.
The regular family development sessions, a key feature of 4Ps, will not be conducted during the enhanced
community quarantine period.
2. Civil society organizations. Not applicable.
3. The following forms of civil society organization participation are envisaged during project implementation:
NA Information gathering and sharing NA Consultation NA Collaboration NA Partnership
4. Participation plan. Yes. ☒ No.
III. GENDER AND DEVELOPMENT
Gender mainstreaming category: gender equity theme
A. Key Issues. COVID-19 crisis may potentially aggravate inequality and impact disproportionately on poor people,
especially poor women. Key gender issues include: (i) income loss as many poor women are working in informal
sector as daily wage earners; (ii) increased negative social behaviors including heightened gender-based violence
as a result of anxiety and stress around loss of employment, disease transmission and forced confinement; and (iii)
women will eventually be affected disproportionately by the spread of COVID-19 due to their primary role as
household/family caregiver.
B. Key Actions. The ECA will safeguard women’s access to and control of financial resources even during this
pandemic, thereby help to reduce gender-based inequalities. The Bayanihan Law will be effective for three months
until 23 June 2020, unless extended by the Congress of the Philippines. However, gender relations within the 4Ps
households may worsen, owing to the stresses posed by the pandemic. These gender issues will be addressed
through the proposed $500 million Expanded Social Assistance Projectg and through continuous consultation with
the 4Ps Gender and Development Technical Working Group of DSWD.
Gender action plan ☒ Other actions or measures No action or measure
IV. ADDRESSING SOCIAL SAFEGUARD ISSUES
A. Involuntary Resettlement Safeguard Category: C
1. Key impacts. The project will not involve civil works, and will not lead to any land and assets acquisition. There
will be no physical displacement or temporary involuntary resettlement impacts under the proposed project.
2. Strategy to address the impacts. Not applicable (NA)
3. Plan or other Actions. Combined resettlement and indigenous peoples plan
Resettlement plan Combined resettlement framework and indigenous
Resettlement framework peoples planning framework
Environmental and social management system Social impact matrix
arrangement ☒ No action
B. Indigenous Peoples Safeguard Category: B
Key impacts. The project is expected to have positive impacts on IPs by providing additional cash income that will
help families meet their basic needs. It will lessen possible exposure to COVID-19 by reducing the need to leave
the home for livelihood activities and by promoting community mitigation measures (community quarantine and
social distancing). As of 29 February 2020, 643,414 indigenous households (15.0% of total active households) are
covered under 4Ps. Of these households, 72.6% are from Mindanao, 24.75% from Luzon, and 2.7% from Visayas.
Around 69.6% of these households are headed by female grantees.
Is broad community support triggered? Yes ☒No
2. Strategy to address the impacts. The project has been categorized as B for IPs. An IP plan (IPP) has been
prepared in accordance with the ADB Safeguard Policy Statement (SPS) on indigenous people safeguards. The
plan specifies safeguard provisions to be monitored during project implementation to ensure that indigenous peoples
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can access and receive benefits from project activities. The project will ensure that indigenous peoples are aware
of the additional support provided by the government during the COVID-19 pandemic. It specifies safeguard
provisions to be monitored during project implementation to ensure that indigenous beneficiaries are not excluded
from the list of grantees for additional cash grants and other health services. The IPP provides the guidance to
guarantee that indigenous beneficiaries are consulted and aware of the support provided by the government during
the COVID-19 pandemic. The IPP specifies that indigenous communities will be provided with relevant and
adequate information on how to protect their families from infection. It will ensure a culturally appropriate and gender-
sensitive consultation processes when engaging tribal leaders, indigenous communities, and IP representatives.
4Ps will strengthen institutional structures at the national and regional levels to effectively implement the IPP.
3. Plan or other actions. ☒ Indigenous peoples plan
Indigenous peoples planning framework Combined resettlement plan and indigenous peoples
Environmental and social management system plan
arrangement Combined resettlement framework and indigenous
Social impact matrix peoples planning framework
No action Indigenous peoples plan elements integrated in
project with a summary
V. ADDRESSING OTHER SOCIAL RISKS
A. Risks in the Labor Market
1. Relevance of the project for the country’s or region’s or sector’s labor market: L.
unemployment underemployment retrenchment core labor standards
2. Labor market impact. The project will provide ECA to cushion the poor, the vulnerable, and informal workers and
daily wage earners laborers from the economic shutdown and loss of livelihood resulting from the quarantines which
have been imposed to check the spread of the COVID-19 pandemic.
B. Affordability. Not applicable
C. Communicable Diseases and Other Social Risks:
1. The impact of the following risks are rated as high (H), medium (M), low (L), or not applicable (NA):
H Communicable diseases L Human trafficking Others (please specify) ______________
2. Risks to people in project area.
Rapid spread of COVID-19 is a public health security risk, which may lead to mass infection, serious illnesses and
death, or poverty and hunger leading to social unrest or reduced social cohesion.
VI. MONITORING AND EVALUATION
1. Targets and indicators. Targets and indicators include improved target beneficiaries receive unconditional cash
grants delivered on time and effectively,
2. Required human resources. The DSWD has the appropriate authority, structure, systems and procedures, and
administrative units to facilitate the delivery of social assistance to target beneficiaries in a disaster situation, given
its 11 years’ experience of implementing the 4Ps. It has separate divisions which are responsible for monitoring and
evaluation, compliance verification, grievance redress, payroll, and coordination mechanisms. Additional technical
assistance support will be provided by ADB as required.
3. Information in the project administration manual. The DSWD as executing agency with support from its
implementing units will prepare and submit: (i) quarterly and annual progress report; (ii) semi-annual safeguards
monitoring reports; (iii) a midterm progress report on project outcome and outputs; and (iv) a project completion
report covering achievements, results of project activities, and a preliminary assessment of achieved benefits.
4. Monitoring tools. Monitoring tools include the DSWD’s disaster situation and response updates, project progress
reports, cash grants delivery, performance monitoring system of 4Ps, and spot checks.
a Accessible at https://www.officialgazette.gov.ph/downloads/2020/03mar/20200324-RA-11469-RRD.pdf.
b National Economic and Development Authority (NEDA). 2017. Philippine Development Plan 2017–2022. Chapter 11,

Reducing Vulnerability of Individuals and Families. Pasig City.; NEDA and Department of Social Welfare and
Development. The Philippine Social Protection Framework and Strategy. Forthcoming.
c ADB. 2018. Philippines, 2018–2023 —High and Inclusive Growth. Manila.
d ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific.

Manila.
e Philippine Statistics Authority (PSA). 2018. Poverty Statistics. Manila.
f Targeting Different Vulnerable Segments for Emergency Cash Assistance in Response to COVID-19 (accessible

from the list of linked docs in the report and recommendations of the President to the Board).
g ADB. Forthcoming. Report and Recommendation of the President: Proposed Loan to the Republic of the Philippines

for Expanded Social Assistance Project. Manila. ADB Board consideration is expected in April 2020.
Source: Asian Development Bank.