Report and Recommendation of the President

to the Board of Directors

Project Number: 52257-001

May 2020

Proposed Loan
Republic of the Philippines: Expanded Social
Assistance Project

Distribution of this document is restricted until it has been approved by the Board of Director.
Following such approval, ADB will disclose the document to the public in accordance with ADB’s
Access to Information Policy.
 CURRENCY EQUIVALENTS
(as of 14 April 2020)

Currency unit = peso/s (₱)

₱1.00 = $0.0198
$1.00 = ₱50.6100

ABBREVIATIONS

4Ps – Pantawid Pamilyang Pilipino Program

ADB – Asian Development Bank
AF – additional financing
CCT – conditional cash transfer
COVID-19 – coronavirus disease
DepEd – Department of Education
DILG – Department of the Interior and Local Government
DOH – Department of Health
DSWD – Department of Social Welfare and Development
EIRR – economic internal rate of return
ESAP – Expanded Social Assistance Project
FDS – family development session
GDP – gross domestic product
IEC – information, education, and communication
i-ClinicSys – Integrated Clinic Information System
LBP – Land Bank of the Philippines
LIS – Learner Information System
NPMO – National Program Management Office
SDG – Sustainable Development Goal
SPSP – Social Protection Support Project
TA – technical assistance
YDS – youth development session

NOTES

(i) The fiscal year (FY) of the Government of the Philippines and its agencies ends
on 31 December. “FY” before a calendar year denotes the year in which the fiscal
year ends, e.g., FY2019 ends on 31 December 2019.

(ii) In this report, “$” refers to United States dollars unless otherwise stated.
 Vice-President Ahmed M. Saeed, Operations 2
Director General Ramesh Subramaniam, Southeast Asia Department (SERD)
Directors Kelly Bird, Philippines Country Office (PHCO), SERD
Ayako Inagaki, Human and Social Development Division (SEHS),
SERD

Team leaders Shamit Chakravarti, Principal Social Sector Specialist, SEHS, SERD
Yukiko Ito, Senior Social Development Specialist, Social Development
Thematic Group, Sustainable Development and Climate Change
Department (SDCC)
Team members Baurzhan Konysbayev, Principal Counsel, Office of the General
Counsel
Anne Mendoza, Senior Financial Management Officer, Public
Management, Financial Sector, & Trade Division, SERD
David Raitzer, Economist, Economic Analysis and Operational
Support Division, Economic Research and Regional Cooperation
Department
Michiko Suga, Senior Social Development Specialist, PHCO, SERD
Ruchel Villaroman-Roque, Project Analyst, SEHS, SERD
Shekinah Wenceslao, Senior Operations Assistant, SEHS, SERD
Seok Yong Yoon, Principal Public Management Specialist, Digital
Technology for Development Unit, SDCC
Peer reviewer Joel Mangahas, Principal Planning and Policy Economist, Strategy,
Policy, and Business Process Division, Strategy, Policy, and
Partnerships Department

In preparing any country program or strategy, financing any project, or by making any designation
of or reference to a particular territory or geographic area in this document, the Asian
Development Bank does not intend to make any judgments as to the legal or other status of any
territory or area.
 CONTENTS

Page
PROJECT AT A GLANCE
I. THE PROPOSAL 1
II. THE PROJECT 1
A. Rationale 1
B. Project Description 7
C. Value Added by ADB 8
D. Summary Cost Estimates and Financing Plan 9
E. Implementation Arrangements 10
III. DUE DILIGENCE 11
A. Economic and Financial Viability 11
B. Sustainability 11
C. Governance 12
D. Poverty, Social, and Gender 12
E. Safeguards 13
F. Summary of Risk Assessment and Risk Management Plan 13
IV. ASSURANCES 14
V. RECOMMENDATION 14

APPENDIXES
1. Design and Monitoring Framework 15
2. List of Linked Documents 18
 Project Classification Information Status: Complete

PROJECT AT A GLANCE

1. Basic Data Project Number: 52257-001

Project Name Expanded Social Assistance Project Department/Division SERD/SEHS
Country Philippines Executing Agency Department of Social
Borrower Republic of the Philippines Welfare and
Development
Country Economic https://www.adb.org/Documents/LinkedDocs/
Indicators ?id=52257-001-CEI
Portfolio at a Glance https://www.adb.org/Documents/LinkedDocs/
?id=52257-001-PortAtaGlance

2. Sector Subsector(s) ADB Financing ($ million)

Education Education sector development - social protection initiatives 250.00
Health Mother and child health care 250.00
Total 500.00
3. Operational Priorities Climate Change Information
Addressing remaining poverty and reducing inequalities Climate Change impact on the Low
Accelerating progress in gender equality Project
Strengthening governance and institutional capacity
Sustainable Development Goals Gender Equity and Mainstreaming
SDG 1.5, 1.b Gender Equity (GEN)
SDG 2.2
SDG 3.7 Poverty Targeting
SDG 4.7 Household Targeting
SDG 5.1
SDG 10.2

4. Risk Categorization: Complex

.

5. Safeguard Categorization Environment: C Involuntary Resettlement: C Indigenous Peoples: B

.

6. Financing
Modality and Sources Amount ($ million)
ADB 500.00
Sovereign Project (Regular Loan): Ordinary capital resources 500.00
Cofinancing 300.00
World Bank - Project Loan (Not ADB Administered) 300.00
Counterpart 7,506.60
Government 7,506.60
Total 8,306.60

Currency of ADB Financing: US Dollar

Source: Asian Development Bank

This document must only be generated in eOps. 05052020103315325369 Generated Date: 08-May-2020 11:56:20 AM
 I. THE PROPOSAL

1. I submit for your approval the following report and recommendation on a proposed loan to
the Republic of the Philippines for the Expanded Social Assistance Project (ESAP).

2. The proposed project will support the Government of the Philippines’ Pantawid Pamilyang
Pilipino Program (4Ps) by financing a portion of the education and health conditional cash
transfers (CCTs) provided to poor households; strengthening compliance verification, payroll, and
grievance redress systems of the Department of Social Welfare and Development (DSWD);
building linkages with complementary social programs; and improving project management,
monitoring, and impact evaluation. The ESAP will build on the ongoing support of the Asian
Development Bank (ADB) for the 4Ps CCT program since 2010.1 It will support the DSWD in
fulfilling its vision of “all Filipinos free from hunger and poverty, having equal access to
opportunities, enabled by a fair, just, and peaceful society.”2 While the ESAP had been planned
as part of the Country Partnership Strategy 2018–2023 and included in the Country Operations
Business Plan 2020–2022, well before the Philippines was hit by the coronavirus disease
(COVID-19), it will benefit the poor and vulnerable 4Ps households even more in the post COVID-
19 situation given the significant adverse health, social, and economic impact of the pandemic.3

II. THE PROJECT

A. Rationale

3. Economic performance until COVID-19. The Philippines grew at an average annual rate
of 6.5% in 2012–2019. Unemployment fell from 7.0% in 2012 to 5.3% in 2018. The quality of jobs
improved, with the share of wage and salary workers growing from 57.2% in 2012 to 63.8% in
2018. The poverty rate declined from 25.2% in 2012 to 23.3% in 2015 and to 16.6% in 2018,
which translates to 17.6 million people living below the poverty line.4 The National Economic and
Development Authority (NEDA) attributed the increase in the income of the poorest 30% to,
among other things, the implementation and expansion of the government’s social assistance
programs, especially the 4Ps.5 The annual budget for the 4Ps grew from $422.31 million in 2011
to $1.77 billion in 2019. The number of target beneficiary households increased from 2.30 million
to 4.25 million over this period. Unfortunately, owing to the adverse effects of COVID-19 pandemic
and the community quarantines imposed across the country, the economy—and therefore, poor
households including the 4Ps—have been hit badly. Projections show that gross domestic product
(GDP) growth may potentially fall to -1% in 2020 (footnote 3).

4. Development problem. Despite the steady economic performance between 2012–2019,

levels of poverty and inequality in the Philippines remain high. Approximately 14.2 million people

1 ADB. 2010. Republic of the Philippines: Social Protection Support Project. Manila; ADB. 2015. Republic of the
Philippines: Social Protection Support Project (Additional Financing). Manila.
2 Department of Social Welfare and Development.
3 ADB’s $200 million emergency assistance loan for making unconditional cash transfers to 4Ps households (having
cash cards) was approved on 27 April 2020. ADB. 2020. Republic of the Philippines: Social Protection Support
Project (Second Additional Financing). Manila; ADB’s countercyclical support for COVID-19 in the amount of $1.5
billion was approved on 23 April 2020. ADB. 2020. Republic of the Philippines: COVID-19 Active Response and
Expenditure Support Program. Manila.
4 Philippine Statistics Authority. National Income Accounts, Labor Force Survey, and Poverty Statistics. Manila (various
years).
5 Government of the Philippines, National Economic and Development Authority (NEDA). 2019. Statement on the
Poverty Statistics for the first half of 2018. Pasig City.
2

live just above the line and are vulnerable to sliding back into poverty.6 Vulnerability can be caused
by employment shocks (e.g., seasonality of employment, job loss, and decline in wages); health
shocks (e.g., serious illness, death of a breadwinner, catastrophic health expenses, and unwanted
pregnancies); price shocks (e.g., food price spikes); and natural hazards that result in the loss of
life, assets, and livelihoods.7 The consumption-based Gini coefficient is higher in the Philippines
(0.40 in 2015) than in Thailand (0.38 in 2013) and Viet Nam (0.35 in 2014).8 The COVID-19
pandemic is worsening these different types of shocks and the underlying levels of inequality
further. An estimated 5.5 million Filipinos are expected to fall into poverty, which will increase the
poverty incidence from 16.6% in 2018 to 20.7% in 2020. (footnote 3).

5. 4Ps design and conditionalities. The 4Ps was launched by the government in 2008 to
help poor households improve the education and health of their children so that they can escape
poverty. Initially, only households below the poverty line, with children younger than 14 years
and/or with pregnant women, as identified by the National Household Targeting System for
Poverty Reduction in 2009 (Listahanan 1), were included under the 4Ps.9 With the launch of the
Kindergarten to Grade 12 Program in 2013, which extended schooling from grade 10 to grade 12,
the 4Ps raised the age cap of children from 14 to 18 years to enable them to complete senior high
school. In 2008, the conditional cash grants were set as follows:10

(i) For the education grant, 4Ps households would receive ₱300 per month for 10
months annually for children in day care, elementary school, and junior high school
(i.e., up to grade 10) provided they are enrolled in school and attend at least 85%
of the classes each month. Each household could register up to three children for
the education grant. With effect from 2015, 4Ps households started receiving ₱500
per month for 10 months annually for children in senior high school provided their
attendance was at least 85% each month.

(ii) For the health grant, 4Ps households would receive a fixed amount of ₱500 per
month for 12 months (irrespective of the number of children), provided they fulfill
the following conditions:

(a) pregnant women avail themselves of pre- and postnatal care, and are
attended during childbirth by trained health professionals;
(b) parents attend regular family development sessions (FDS);
(c) children 0–5 years old receive regular preventive health checkups and
vaccination; and
(d) children 6–14 years old receive deworming pills twice a year.

6. Households exit from the 4Ps when all their children receiving education grants reach 18
years of age and/or graduate from senior high school, or if they fail to comply with the conditions
despite repeated reminders.

6 PSA. 2018. Poverty Statistics. Manila.

7 J. R. Albert and J. F. Vizmanos. 2018. Vulnerability to Poverty in the Philippines: An Examination of Trends 2003–
2015. Philippine Institute for Development Studies Discussion Paper. Series no. 2018-10. Quezon City.
8 ADB. 2018. Key Indicators for Asia and the Pacific 2018. Mandaluyong City; and World Bank. World Development

Indicators online (accessed 28 November 2019).

9 A proxy means test–based standardized targeting survey identified poor households. Households with children under

14 years old and/or with pregnant women were selected for the 4Ps.
10 The cash grants were not indexed to inflation. According to the DSWD, the real value of the cash grant declined from

about 23% of the poverty line in 2008 to about 9% by 2018.

 3

7. 4Ps expansion since 2008. The coverage of active households under the 4Ps increased
from 337,418 in 2008 to 2.30 million in 2011, 4.00 million in 2014, and 4.25 million in 2019. The
4Ps covers 17 regions, 80 provinces, 145 cities, 1,482 municipalities, and 41,539 barangays. 11
As of 29 February 2020, 4.28 million households nationwide were eligible for 4Ps.12 About 85.3%
of these are headed by female grantees. Currently, 643,414 households of indigenous people
(15.0% of total 4Ps households) are covered. Approximately, 7.88 million children, 3–18 years
old (51.7% females), are registered under the 4Ps. About 52.9% are between 6–14 years old.
School attendance of 5,493,415 children is being monitored. More than 94% of these children
maintain at least 85% attendance. Of all children under 5 years who are monitored for health
(212,000 in 2020 out of total 298,516 children under 5 years), about 97% avail themselves of
growth monitoring and regular health checkups. As of 29 February 2020, 86.4% of the 4P
households had cash cards, while the rest relied on over-the-counter payments. The Land Bank
of the Philippines (LBP) aims to distribute cash cards to all 4Ps households by the end of 2020.

8. Support services provided under the 4Ps. The 4Ps also supports community education
and empowerment through monthly FDSs. Topics include gender equity, family planning and birth
spacing, protection of women and children against all forms of violence and exploitation, pre- and
postnatal care, and recognition of the rights and respect for the culture and beliefs of indigenous
peoples.13 The FDSs include modules on responsible parenthood, early childhood care and
development, prevention of child sexual abuse, teenage pregnancy, and drug abuse, food and
nutrition, sanitation, disaster preparedness, financial literacy, and active citizenship among
others. Youth development sessions (YDS) are conducted for adolescent youth to help develop
and enhance their life coping skills, offer positive perspectives on life, and nurture their character
towards individual growth and personality development.14

9. Impact on poverty. Transfers from government social programs contributed about 25%
of poverty reduction in 2006–2015.15 The 4Ps expanded rapidly during this period and became
the largest social assistance program in the Philippines. Estimates show that the 4Ps helped
reduce the national poverty rate by up to 1.5 percentage points, lifted 1.5 million people out of
poverty, and reduced national income inequality by 0.6 percentage points. The 4Ps households
benefit from short-term (provision of cash grant) and long-term (investment in education and
health) interventions. Spending on social assistance and social safety nets has had a greater
impact in the Philippines than in other countries even though the quantum of such spending
relative to GDP at 0.67% is lower than the global average of 1.5% during 2013–2014.16 While the
COVID-19 pandemic will erode some of the gains made in terms of reducing poverty, by
supporting the 4Ps, the ESAP will help to address some of these losses.

11 A barangay is the smallest administrative unit in the Philippines. There are currently 42,046 barangays as of 31
March 2020.
12 The number of poor households that the 4Ps can cover is capped at 4.4 million. Coverage increased steadily from
2008 and reached the cap by 2017. The number of households covered in February 2020 is lower owing to the exit
of households whose children (receiving education grants) turned 18 years old and/or graduated from senior high
school, as required under the 4Ps.
13 Including discussions on gender marginalization, subordination, multiple burdens, gender stereotyping, violence
against women, and domestic violence. The 4Ps case management and referral pathways manual guides project
implementers in handling child protection and gender-based violence.
14
Topics include physical and cognitive development, social and emotional development, mental health, changes
during the teenage years, sexuality, and adolescent sexual reproductive health (including menstruation, pregnancy,
and birth control).
15 World Bank. 2018. Making Growth Work for the Poor. Washington, DC.
16 World Bank. 2018. State of the Social Safety Nets. April 2018. Washington, DC.
4

10. Third impact evaluation. The Philippine Institute for Development Studies completed the
third impact evaluation of the 4Ps in January 2020. It used data from household surveys
conducted in November–December 2017.17 Additional ADB analysis confirms that the 4Ps
increases utilization of health services, improves key educational outcomes, enhances children’s
socioemotional skills, and raises household consumption.18 Around 83% of 4Ps households have
at least four prenatal checkups as compared to 74% of non-4Ps households. The enrollment rate
for children aged 16–17 years in 4Ps households (88%) is significantly higher than that for children
in non-4Ps households (70%). Improvement is greater for girls (31%) than boys (15%). Grit or
determination, a key socioemotional skill, is higher among children of 4Ps households.
Employment and labor force participation outcomes are not lowered, which implies that the 4Ps
does not induce dependency. The 4Ps households spend significantly more on food and school-
supplies. The incidence of hunger is lower for 4Ps households. However, ADB analysis finds that
the gains are confined to children being monitored for compliance with conditionalities, and that
there are adverse effects on children who are not monitored. Administrative data show that the
number of children aged 0–5 years being monitored for health conditionalities fell from 2 million
in 2013 to 212,000 by February 2020. The reasons for this decline need to be analyzed and
registration and monitoring of newborn children strengthened.19

11. 4Ps institutionalization. To reinforce its efforts to reduce poverty, vulnerability, and
income inequality, the government signed the Pantawid Pamilyang Pilipino Program Act (Republic
Act 11310) into law on 17 April 2019.20 The law raises the grant amounts set in 2008.21 This
underscores the government’s continued commitment to support the 4Ps. The law will ensure
sustainability through adequate budget allocation and other government support.

12. ADB’s past engagement. The design of the ESAP draws on ADB’s decade-long
experience of supporting the 4Ps (footnote 1). It incorporates the findings of the joint review
missions held twice each year with development partners, including Australia’s Department of
Foreign Affairs and Trade, the United Nations International Children’s Emergency Fund, and the
World Bank. The $400 million Social Protection Support Project (SPSP) helped to establish the
national poverty targeting system and supported the 4Ps implementation and evaluation (footnote
1). It closed in June 2017. The SPSP-Additional Financing (SPSP-AF), which was approved in
2016, funded a share of the cash grants for education and health to more than 4 million
households nationwide (footnote 1). It disbursed the entire $400 million by January 2020 and was
expected to close in June 2020. However, at the government’s request, a second additional
financing loan for $200 million has been processed to provide unconditional emergency cash
assistance of between ₱5,000–₱8,000 per month for 2 months to approximately 3.67 million 4Ps
households (having cash cards) to help them cope with the adverse economic impact of the
COVID-19 pandemic (footnote 3). To date, ADB has provided cumulative technical assistance
(TA) support of $4.7 million to support capacity development, implementation, gender
mainstreaming, and other reforms.

17 Philippine Institute for Development Studies and DSWD. Pantawid Pamilyang Pilipino Program. Third Wave Impact
Evaluation Reports—Regression Discontinuity Report and RCT Cohort Analysis Report. Manila.
18 D. Raitzer et al. Forthcoming. Intrahousehold Responses to Imbalanced Human Capital Subsidies: Evidence from

the Philippine Conditional Cash Transfer Program. Manila.

19 Sector Assessment (Summary): Public Sector Management (Social Protection Initiatives); and Impact Evaluation of

the Pantawid Pamilyang Pilipino Program (both accessible from the list of linked documents in Appendix 2).
20
Accessible at https://www.officialgazette.gov.ph/downloads/2019/04apr/20190417-RA-11310-RRD.pdf
21 With effect from December 2019, health and nutrition grants have been increased from ₱500 to ₱750 per month for

12 months. The education grant per child (for a maximum of 10 months per year) enrolled in day care and elementary
school programs will remain at ₱300 per month. The grant for junior high school students has been increased from
₱300 to ₱500 per month, and that for senior high school students from ₱500 to ₱700 per month.
 5

13. Lessons learned. Key lessons from ADB engagement include the following:

(i) Update the list of beneficiaries. The 4Ps continues to be based on the list of
poor households identified in 2009 by the Listahanan 1. Since the list of eligible
households is 10 years old, it reduces the credibility of the targeting. It is timely
that the National Household Targeting Office of the DSWD is undertaking a
national survey (from October 2019 to August 2020) of nearly 16.1 million
households, based on a new standardized targeting test (Listahanan 3) to update
the list of poor and near-poor (1.1 times the poverty line) households.22 This survey
will cover all rural barangays and the pockets of poverty in urban barangays. The
final list of poor households is expected to be available by the end of 2020.
Thereafter, the DSWD’s National Program Management Office (NPMO) will
identify households eligible for the 4Ps, i.e., poor households with children aged
0–18 years old and/or with women pregnant at the time of registration. The
transition to the updated list of households eligible for the 4Ps is expected to be
completed by January 2022. ADB will support this process as requested.

(ii) Expand payment options. The LBP has been the main payment partner of the
4Ps since 2008. While the number of 4Ps households has grown rapidly over the
years, the LBP has not been able to keep pace with the demand for additional
branches and automated teller machines (ATMs).23 Owing to the 4Ps’ near-total
reliance on the LBP and its conduits, payments to 4Ps households are often
delayed. When beneficiaries try to withdraw from ATMs of other banks or from
points of sale, they are charged ₱30–₱50 per transaction. The DSWD must
continue discussions with the Bangko Sentral ng Pilipinas (Central Bank of the
Philippines) and the Department of Finance on how to expand payment options for
beneficiaries and tap financial technology solutions to make timely payments.

(iii) Use IT solutions to reduce burden of implementation. The DSWD requires the
support of the Department of Health (DOH), the Department of Interior and Local
Government (DILG), and the Department of Education (DepEd) to implement a
complex and multifaceted program such as the 4Ps effectively.24 Given the
expansion in the number of beneficiaries since 2009 and the need to draw on data
from thousands of partner schools and health facilities, the burden of 4Ps
implementation has grown significantly. Every two months, DSWD field staff visit
hundreds of households, collect records from dozens of schools and clinics, and
update the information manually. The process is tedious and prone to errors. ADB
will provide TA to help modernize the DSWD’s information technology systems and
strengthen linkages with the IT systems of DepEd and DOH (para. 18[i]).

14. Strategic alignment. The Philippine Development Plan 2017–2022 aims to reduce
poverty to 14% by 2022. It emphasizes the need to accelerate human capital development and
reduce vulnerability to various risks. The 4Ps is a critical part of the government’s strategy to
achieve universal and transformative social protection. The ESAP will support the development

22 ADB provided inputs for the design of the proxy means testing model, which was accepted by the DSWD and the
National Technical Advisory Board as the basis of Listahanan 3.
23 The LBP has only 396 main branches, 49 sub-branches, 10 mobiles, and 1,969 ATMs, compared with more than
12,000 branches nationwide operated by other banks (including private banks).
24 The DOH, in partnership with local government units, ensures the availability of supplies and services for the health
and nutrition components. The DepEd is responsible for running the schools and providing school supplies, facilities,
and trained teachers. The DILG helps local government units provide health and nutrition services.
6

plan’s goals of inclusive growth, human development, and resilient individuals and communities.
The project will help achieve the Sustainable Development Goals (SDGs), including no poverty
(SDG1), good health and well-being (SDG3), gender equality (SDG5), and reduced inequalities
(SDG10). The project is aligned with the third pillar of ADB’s Philippines country partnership
strategy, 2018–2023 which emphasizes investing in people by focusing on human development,
social protection, financial inclusion, and social innovation.25 Table 1 provides the linkage between
the ESAP and ADB’s Strategy 2030.26

Table 1: Alignment with Strategy 2030

Strategy 2030 Priorities Project
Addressing remaining The project will fund part of the CCTs to at least 4.25 million poor households,
poverty and reducing thereby improving the education and health of their children and helping them
inequalities to escape poverty. Family and youth development sessions will help to
empower poor households and raise awareness.
Accelerating progress in The project will improve the health and nutrition of children and pregnant
gender equality women and include gender and indigenous peoples’ issues in family and youth
development sessions.
Strengthening governance Information technology reforms supported through ADB technical assistance
and institutional capacity (para. 18 [i]) will strengthen the DSWD’s governance and institutional capacity
by streamlining business processes, modernizing its management information
systems, and improving data sharing with government agencies.
ADB = Asian Development Bank, CCT = conditional cash transfers, DSWD = Department of Social Welfare and
Development
Source: Asian Development Bank.

15. Choice of modality. The project loan modality worked well for SPSP and SPSP-AF. The
protocols for tracking overall performance and results through joint review missions involving all
development partners, spot checks, and rigorous impact evaluations are well established. The
World Bank has been using the project modality for its loans for the 4Ps.27 Effective
implementation of a CCT program involves targeting, verification, coordination with multiple
agencies, complex payment systems, and ongoing engagement with millions of households. It
may be difficult to maintain this level of ground-level engagement involving ADB, development
partners, and the DSWD through policy-based loans, which are more “macro” in nature. Results-
based lending is not appropriate since finding distinct disbursement-linked indicators is difficult.
Even though the education and health conditionalities (para. 5) are different, the 4Ps
implementation is holistic. The support provided by the DSWD field staff to households combines
elements of education and health conditionalities and general counselling. These cannot be
separated into distinct disbursement-linked indicators. Since the share of ADB and the World
Bank is smaller (6%–10%) than the government’s total annual expenditures on the 4Ps, project
investment with statement of expenditure-based reimbursements is appropriate.

25 ADB. 2018. Country Partnership Strategy: Philippines, 2018–2023—High and Inclusive Growth. Manila.
26 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific.
Manila.
27 World Bank. Philippines—Social Welfare and Development Reform Project; World Bank. Philippines—Social Welfare

and Development Reform Project: Additional Financing; World Bank. Philippines—Social Welfare Development and
Reform Project II; and World Bank. Philippines—Social Welfare Development and Reform Project II: Additional
Financing.
 7

B. Project Description

16. The proposed ESAP is aligned with the following impact: a universal and transformative
social protection system that builds socioeconomic resilience.28 The project will have the following
outcome: education and health profile of the children of 4Ps households improved. The ESAP will
achieve this outcome by supporting the following output:

17. Conditional cash transfers delivered effectively and on time. The project will finance
a share of the CCT grants to eligible and compliant poor households with children aged 0–18
years and/or with pregnant women. Effective December 2019, 4Ps households have started to
receive grants at the higher rates specified in the 4Ps law (footnote 22).29 By 1 January 2022, the
DSWD is expected to transition to the Listahanan 3 to identify eligible households.

18. The entire $500 million loan proceeds will be used for the above output. To ensure that
cash grants for eligible poor households are transferred in a targeted, efficient, and timely manner,
ADB will provide the following support through the ongoing Strengthening Social Protection
Reforms TA facility:30

(i) CCT delivery systems strengthened (supported by the TA facility). During

each payout period, DSWD staff coordinate with 84,007 education facilities and
23,607 local health facilities to verify compliance with the conditionalities. To
improve coordination with multiple agencies, ADB will help the DSWD to (a)
prepare road maps for IT reforms to improve business processes and streamline
compliance verification, beneficiary data, payroll, and grievance redress systems;
(b) upgrade the DSWD’s Pantawid Pamilyang Information System and link it to
DepEd’s Learner Information System (LIS)31 to automate the verification of
education (attendance) data and to the DOH’s Integrated Clinic Information
System (i-ClinicSys)32 to do the same for health-related compliance data; and (c)
explore innovative technology solutions for government-to-person payments to
support financial inclusion.

(ii) Awareness building, connections with complementary social programs,

project management, and evaluation capacity strengthened (supported by
the TA facility).

(a) FDS and YDS modules updated. Assistance will be provided to review
and improve the FDS Manual and selected modules (e.g., sanitation and
hygiene, teenage pregnancy, drugs, livelihood, and disaster resilience),
incorporate gender and cultural sensitivity in the learning material, and

28 Government of the Philippines, National Economic and Development Authority. 2017. Philippine Development Plan
2017–2022. Pasig City.
29 Since 2017, 4Ps households have been receiving an additional ₱600 per month as rice subsidy along with their
payment for CCTs. The project will finance only the CCT grants for education and health, not the rice subsidy.
30 The TA, Strengthening Social Protection Reforms, in the amount of $1 million was attached to the Social Protection
Support Project-Additional Financing which was approved in 2016. This was converted into a transaction TA facility
(with the same name) in November 2018, with additional funding of $1 million to support the design and
implementation of the ESAP.
31 The LIS is the national online registry of all students enrolled in schools (public and private), state and local
universities and colleges, and higher education institutions offering Kindergarten to Grade 12. It includes personal
data and enrollment history of students and identifies those who are recipients of the 4Ps cash grants.
32 i-ClinicSys is an electronic medical record and health information system to support the functions of primary care
facilities and barangay health stations. It automates service delivery processes to monitor patient care efficiently.
8

translate the updated FDS Manual into three local languages (Filipino,
Ilocano, and Bisaya). The design of information, education and
communication (IEC) material will be improved to raise awareness and
outreach. To ensure effective delivery of the new FDS material, ADB will
support training of facilitators. Assistance will be provided to complete six
volumes of YDS modules.33

(b) Innovative “graduation” approaches developed. Since 2016, ADB has

been undertaking a graduation pilotwith the Department of Labor and
Employment targeting 1,800 4Ps households across 5 municipalities in
Negros Occidental. 34 Based on this pilot, ADB will help the DSWD design
and administer sequenced and time-bound interventions to help up to
3,000 4Ps households in selected sites from regions I, VI, X, and XII
“graduate” out of poverty through sustainable livelihood assistance. This
will form part of the DSWD’s COVID-19 recovery program.

(c) Project management and evaluation capacity strengthened. Support

will be provided to strengthen the DSWD’s project and financial
management capacity as required. ADB will provide inputs for the design
of the fourth impact evaluation scheduled in 2021–2023.

C. Value Added by ADB

19. Improved IT-based business processes. The proposed support for IT reforms and
linking of the management information systems will add value by unlocking significant gains in
operational efficiency and reliability of compliance verification and beneficiary updates. This will
reduce the huge burden of compliance verification on DSWD field staff and free up their time for
case management and outreach. The reforms will also prepare the DSWD for progressive linkage
with the unique foundational identity number, PhilSys, which will help 4Ps households open bank
accounts (by fulfilling know-your-customer requirements) and enable direct benefits transfers to
4Ps households. These reforms will strengthen the governance and institutional capacity of the
DSWD by streamlining its IT-based business processes, harmonizing its management
information systems, and improving coordination and data sharing across agencies.

20. Relevance of ESAP in the context of COVID-19. The ESAP reaches out to around 4.28
million of the poorest households of the Philippines. While their participation in the 4Ps over the
years has improved their education and health profiles, especially of their children, the adverse
impact of COVID-19 may push some of these households to distress and poverty once again.
The ESAP will continue ADB’s support for these households and ensure that the positive
behavioral changes with respect to education and health seeking behavior, instilled over the
years, do not get diluted. The DSWD has designed a special “Enhanced FDS module” to assist
the 4Ps households to cope with the COVID-19 pandemic. Infographics are being disseminated
through social media to reiterate the need for basic hygiene and social distancing, backyard
gardening to supplement household nutrition, responsible use of the CCT as well as the
unconditional emergency cash assistance to safeguard health and other critical expenses, and
coping with mental trauma. ADB will provide TA support to help DSWD develop these initiatives

33 Assessment of Family Development Sessions and Youth Development Sessions (Summary) (accessible from the
linked documents in Appendix 2).
34 The four foundational graduation pillars include social protection to provide immediate relief for basic needs, social
empowerment to promote inclusion and behavioral change, financial inclusion to provide income management and
increase savings, and localized livelihood promotion to develop productive income-generating activities.
 9

further so that after the quarantines are progressively lifted, the FDSs can continue to build the
awareness and capacity of the 4Ps households to deal with the long-term effects of COVID-19
without compromising the health and education of their members, especially of the children. The
proposed support for the update of Listahanan 3, IT reforms, and FINTECH solutions under ESAP
will improve targeting, automate aspects of compliance verification (thereby, reducing the need
for physical contact), and increase the speed and accuracy of the grants payments, which will be
even more relevant in the post-COVID-19 environment.

21. Integrated solutions. While the 4Ps has been effective in improving education and health
of 4Ps households, the long-term impact on human capital development depends on access to
schools and health facilities, and on the quality of teachers, health staff, and facilities. These
aspects fall under the purview of DepEd, the DOH, and the DILG. While the ESAP will focus only
on the DSWD, ADB’s other ongoing support for secondary education and proposed support to
implement the Universal Health Care Act of the Philippines will help improve the supply side and
reinforce the positive effects of 4Ps’ demand-side interventions.35 ADB will tap synergies across
its interventions to meet the multidimensional challenges of human capital development and
poverty reduction, as emphasized in ADB’s Strategy 2030.

D. Summary Cost Estimates and Financing Plan

22. The 4Ps is estimated to cost $8,306.6 million from 2020 to 2023 (Table 2). The
government will finance $7,506.6 million or 90.4% of the total to cover cash grants, salaries,
capacity building, training, social marketing and advocacy, recurrent costs, bank fees,
administrative costs, and monitoring and evaluation, including spot checks. The World Bank has
provided a loan of $300 million as additional financing to its ongoing Second Social Welfare
Development Reform Project, covering the period 2020-2022.

Table 2: Summary Cost Estimates

($ million)
Item Amounta
b
A. Base Cost
1. Cash grants to qualified beneficiaries 7,611.7
2. Incremental operating cost 588.2
3. Monitoring and evaluation 61.4
Subtotal (A) 8,261.3
B. Contingenciesc 10.0
C. Financial Charges during Implementationd 35.3
Total (A+B+C) 8,306.6
a Since 2017, 4Ps households have been receiving ₱600 per month as rice subsidies in addition to CCTs for health
and education. The DSWD’s Fund Category 101: Social Protection Support Program includes rice subsidies and
CCTs. Of the $7.611 billion projected transfers to 4Ps households from January 2020 to December 2023, 31.3% will
be for rice subsidies and 68.7% for education and health CCTs. The entire project loan of $500 million will be used
to finance CCTs for education and health, representing, on average, about 9.56% of government spending on CCTs
from January 2020 to December 2023. Actual disbursement by ADB in any single year may be more or less than
9.56%, depending on the government’s borrowing requirements with respect to CCTs. ADB will continue to support
program activities through TA (para. 18). The government will finance taxes and duties.
b In mid-2019 prices as of August 2019.
c Physical contingencies computed at 5%. Price contingencies computed at 3% of cost items.
d Includes interest and commitment charges financed by the government. Commitment charges for an ADB loan are

0.15% per year on undisbursed loan amount.

Source: Asian Development Bank estimates.

35 ADB. 2014. Republic of the Philippines: Senior High School Support Program. Manila; and ADB. 2019. Republic of
the Philippines: Secondary Education Support Project. Manila.
10

23. The government has requested a regular loan of $500 million from ADB’s ordinary capital
resources to help finance the project. The loan will have a 29-year term, including a grace period
of 8 years; an annual interest rate determined in accordance with ADB’s London interbank offered
rate (LIBOR)-based lending facility; a commitment charge of 0.15% per year and such other terms
and conditions set forth in the loan agreement. Based on the straight-line method, the average
maturity is 18.75 years. The applicable maturity premium is 0.20% payable to ADB.

24. The summary financing plan is in Table 3. Between 2020–2023, ADB will finance about
9.56% of the expenditures on CCTs for education and health delivered effectively and on time.

Table 3: Summary Financing Plan

Amount Share of Total
Source ($ million) (%)
Asian Development Bank
OCR (regular loan)a 500.0 6.0a
World Bank (loan)b 300.0 3.6
Government of the Philippines 7,506.6 90.4
Total 8,306.6 100.0
OCR = ordinary capital resources
a Indicates the Asian Development Bank’s share relative to total spending on the 4Ps (CCT for education and health,

plus expenditure on rice subsidies).

b The World Bank has approved additional financing of $300 million for its Second Social Welfare Development Reform

Project and extended implementation from 2020 to 2022, providing parallel cofinancing for the 4Ps.
Source: Asian Development Bank estimates.

E. Implementation Arrangements

25. Implementation arrangements for ESAP will follow the structure used for ongoing SPSP-
AF. The DSWD will be responsible for implementing the ESAP. It will be accountable for the use
of loan funds, including maintaining records and preparing financial reports. The DSWD’s
Executive Committee, chaired by the secretary, will have oversight responsibility for the 4Ps and
the project. The NPMO of the 4Ps will execute all policies, plans, and activities. An undersecretary
will serve as the national project director and be responsible for guiding project implementation.
The assistant secretary of operations for specialized programs will serve as the deputy national
project director of 4Ps. A full-time national program manager will manage the day-to-day
operations of the NPMO, with the support of a deputy program manager for operations and a
deputy program manager. The regional project management offices (one for each of the 17
regions) will provide support and technical supervision to ensure that provincial, city, and
municipal field offices effectively carry out all their functions and activities.

Table 4: Implementation Arrangements

Aspects Arrangements
Implementation period July 2020–June 2024
Estimated completion date 30 June 2024
Estimated loan closing date 31 December 2024
Management
(i) Oversight body Secretary, DSWD (chair)
Relevant undersecretaries and assistant secretaries (members)
(ii) Executing agency DSWD
(iii) Key implementing agencies Pantawid Pamilyang Pilipino Program NPMO and RPMO
(iv) Implementation unit NPMO (15 managerial staff members) and RPMO (17 managerial staff
members); supported by contractual staff
Procurement Not applicable
Consulting services Not applicable
 11

Aspects Arrangements
Retroactive financing Withdrawals from the loan account may be made to finance eligible
expenditures incurred in connection with the education grants and
health grants with code designation “Fund 101” or such other account
code designation acceptable to ADB under the project before the
effective date, but not earlier than 12 months before the date of the
loan agreement, subject to a maximum amount equivalent to 20% of
the loan amount.
Disbursement The loan proceeds will be disbursed following ADB's Loan
Disbursement Handbook (2017, as amended from time to time) and
detailed arrangements agreed between the government and ADB.
ADB = Asian Development Bank, DSWD = Department of Social Welfare and Development, NPMO = National Program
Management Office, RPMO = Regional Program Management Office.
Source: Asian Development Bank.

III. DUE DILIGENCE

A. Economic and Financial Viability

26. An economic internal rate of return (EIRR) analysis was undertaken to assess the
economic viability of the 4Ps, which will be supported by the ESAP.36 The analysis draws on
estimates of the third impact evaluation of the 4Ps and is based on quantifiable benefits arising
from the 19% increase in enrollment seen for children who are 16–17 years old. The increased
enrollment is expected to help more 4Ps children to complete senior high school, thereby raising
their labor productivity and wages. Benefits such as improved health and nutrition, community
engagement through FDS, and better socioemotional skills are significant but difficult to quantify.
Thus, the EIRR calculated is a lower bound of 4Ps benefits. The economic analysis excludes
CCTs since they are transfer payments, and hence, not considered as economic costs. It treats
4Ps incremental operational costs, assumed at 8% of total grants based on the DSWD’s budget
estimates, as economic costs. For grantees, the costs include opportunity cost of not working
while studying in senior high school, based on estimated wages foregone. The benefits of
increased school enrollment and completion are based on econometric analysis of the association
between wages and the level of schooling using labor force survey data, while controlling for
sample selection bias.37 The EIRR is 9.8%, and the economic net present value is $419.1 million.
Sensitivity analysis shows that the rate of return is robust to variations in the assumptions.
Lowering the high school enrollment rate for beneficiaries from 88% to 80% (i.e., cutting the
enrollment effect of the program nearly in half) decreases the EIRR to 6.8%, while increasing it to
95% raises the EIRR to 11.1%. Doubling the operational cost reduces the EIRR to 6.3%, while
halving it raises the EIRR to 12.5%.

B. Sustainability

27. Spending on the 4Ps grew from 0.57% of the government’s expenditure in 2009 to 2.39%
in 2019. In real terms, spending expanded eleven-fold. The ratio of national government debt to
GDP fell from 52.4% in 2010 to 38.9% in 2019. Recent projections reflecting the impact of COVID-
19 show that the debt-to-GDP ratio is expected to be 41.5% in 2020 before eventually falling to
39.6% by 2024. Thus, there is reasonable fiscal space to finance the 4Ps program despite the
COVID-19 pandemic. The 4Ps is estimated to cost about $8,306.6 million from 2020 to 2023. The
government will finance $7,506.6 million or 90.4%.38 Its commitment to the program is
36 Economic and Financial Analysis (accessible from the list of linked documents in Appendix 2).
37 Rates of Return to Education in the Philippines (accessible from the list of linked documents in Appendix 2).
38 Economic and Financial Analysis; and Philippines: Public Expenditure on Social Protection and Policy Reforms for
Convergence (both accessible from the list of linked documents in Appendix 2).
12

underscored by the enactment of the 4Ps law, which which effectively institutionalizes the
program and guarantees adequate annual budget allocation.

C. Governance

28. The government continues to strengthen its public financial management. Significant
improvement in the Public Expenditure and Financial Accountability Assessment of 2016 were
noted in areas of transparency of budgeting, accounting, and reporting.39 However, budget
reliability and aggregate expenditure outturn have been below par, with obligations falling short
of appropriations. Weak internal controls—updating of records, tracking of compliance, quality of
internal audit, and lack of automation—create risk of funds misuse. Overall performance is
assessed as weak, and associated fiduciary risks rated substantial.40

29. At the 4Ps level, the pre-mitigation financial management risk is rated substantial. The
Commission on Audit issues annual audit opinions on the 4Ps. Most, if not all, observations are
resolved within the fiscal year.41 A consistent audit observation is the delay in liquidation of cash,
caused mainly by the shift to cash cards, delays in replacement of cash cards, and changes in
the addresses of some households. The unliquidated funds remain with the LBP. The DSWD has
a good financial management system, with strong internal controls. It has extensive experience
undertaking large programs and working with multiple development partners. Its overall obligation
rate averaged 87.5% in 2011–2018. ADB is providing technical assistance to further strengthen
the DSWD’s financial management system. With this support, the risk is moderate.

30. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed
with the government and the DSWD. The specific policy requirements and supplementary
measures are described in the project administration manual.42

D. Poverty, Social, and Gender

31. The key causes of poverty in the Philippines include high rates of inequality of income and
opportunities, underinvestment in physical and human capital, and adverse impacts of frequent
natural hazards. Poor families lack adequate access to essential social services, including
education and health, which lowers their investment in human capital and exacerbates
intergenerational transmission of poverty. Therefore, the government expanded the coverage of
the 4Ps to nearly 4.4 million poor households between 2008–2019. The ESAP will support the
4Ps and help break the intergenerational transfer of poverty by financing a portion of the CCT. In
remote areas where most indigenous people live, the 4Ps conditionalities and support packages
have been modified to better reflect people’s cultural preferences, practices, and needs. The
ESAP will act as a cushion against the adverse impact of the COVID-19 pandemic, which has
exacerbated the plight of the poor.

32. The ESAP has a gender equity theme. It will use a gender mainstreaming strategy to
empower women and transform gender relations within households. Key gender issues that will
be addressed under the project include (i) low reporting of new pregnancies or births from
succeeding pregnancies; (ii) non‐compliance with conditions due to gender-based violence and
child protection issues such as early pregnancy, early cohabitation, neglect/abandonment, rape,
39 Government of the Philippines and Development Partners. 2016. Public Expenditure and Financial Accountability.
Manila.
40 ADB. 2015. Governance Risk Assessment. Manila.
41 The observations of the Commission on Audit for FY2015–FY2017 have been fully complied with.
42 Project Administration Manual (accessible from the list of linked documents in Appendix 2).
 13

violence against women and children, undocumented birth/marriage/death, and unemployment

among indigenous peoples women; (iii) aggravation of women’s time poverty because of
compliance with project conditionalities, which may affect women’s economic activities; (iv)
potential reinforcement of women’s traditional roles; and (v) missed project benefits because of
mothers’ migration to seek jobs. The ESAP will (i) support women and children beneficiaries who
are non-compliant due to gender-based violence and child protection cases; (ii) provide
ladderized gender capacity building for the DSWD staff and program implementers, and gender-
responsive FDS and YDS for beneficiary households; (iii) improve reporting of succeeding
pregnancies to monitor mother’s health benefits; (iv) support women with gendered-vulnerabilities
by linking services through referral mechanisms for complementary interventions; and (v)
recognize gender advocate families. The 4Ps’ gender guidelines detail the entry points and
strategies to mainstream gender in every component. The Gender Action Plan also integrates
specific needs and concerns of indigenous women, including developing appropriate IEC
materials for FDS modules that use socially inclusive images and gender-fair language.43

E. Safeguards

33. In compliance with ADB’s Safeguard Policy Statement (2009), the project’s safeguards
categories are as follows:

34. Environment (category C). No civil works or other activity with potential for adverse
environmental impacts will be supported under the project.

35. Involuntary resettlement (category C). No land will be acquired under the project.

36. Indigenous peoples (category B). The project will have a positive impact on indigenous
households by providing them with additional cash income to improve their children’s education,
health, and nutrition, as well as raise awareness of their rights and of government development
programs. The 4Ps has always had a strong focus on indigenous people. 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. The ESAP will employ
culturally appropriate and gender-sensitive consultation processes when engaging with tribal
leaders, indigenous communities, and indigenous peoples’ representatives. The indigenous
peoples plan specifies safeguard provisions to be monitored during project implementation to
ensure that benefits are equally distributed.44 The indigenous peoples plan also provides
guidance for culturally appropriate program implementation for indigenous beneficiaries.

F. Summary of Risk Assessment and Risk Management Plan

37. Significant risks and mitigating measures are summarized in Table 5 and described in
detail in the risk assessment and risk management plan.45

Table 5: Summary of Risks and Mitigating Measures

Risks Mitigation Measures
Continuing supply-side constraints on The National Advisory Council of 4Ps and the NPMO are
access to good schools and health facilities strengthening supply-side assessments. Coordination across
(particularly in the aftermath of the COVID- DSWD, DOH, DepEd, and DILG will be improved to leverage

43 Gender Action Plan (accessible from the list of linked documents in Appendix 2).
44
Indigenous Peoples Plan (accessible from the list of linked documents in Appendix 2).
45 Risk Assessment and Risk Management Plan (accessible from the list of linked documents in Appendix 2).
14

Risks Mitigation Measures

19 pandemic), and weak local government program outcomes and impact. ADB’s ongoing support for
capacity reduce the 4Ps’ effectiveness secondary education reforms and proposed support for health
(para. 21) will help to address supply-side constraints.
Delays in Listahanan 3 and/or gaps in the The DSWD management will ensure the accuracy and efficiency
surveys’ coverage prevent timely and of validation and registration of new list of eligible poor
comprehensive updating of the list of poor households including those in the hard-to-reach IP areas into the
households eligible for the 4Ps 4Ps by second quarter of 2021. ADB and other development
partners will provide the required support to the DSWD.
Continued delays in delivering the CCTs to The DSWD will (i) dialogue with the BSP and DOF to increase
beneficiary households owing to limited the number of authorized government depositories for 4Ps; and
payment options (ii) consider financial technology solutions.
Delay in rollout of a computerized The DSWD will implement computerized accounting in the
accounting system at certain field offices, remaining 11 field offices as required by COA to improve
which impedes preparation, reporting, and accuracy of financial statements. It will reactivate the regular
audit of separate project financial Agency Fund, Fund Category 101: Social Protection Support
statements Program, which will help in the preparation and audit of
separate project financial statements for the ESAP.
Perceived risk of accumulated unpaid, To encourage timeliness and accuracy of data as
unclaimed, and unliquidated cash grants recommended by COA, the review, evaluation, validation and
because of expanded distribution of cash reconciliation of data between FMS-SP, DSWD and LBP will be
cards in areas with limited access to bank strengthened. The memorandum of agreement between the
branches and ATMs and lack of timely DSWD and LBP will be updated to ensure timely and efficient
monitoring of post payroll activities delivery of cash benefits to eligible beneficiary households.
4Ps = Pantawid Pamilyang Pilipino Program, ADB = Asian Development Bank, ATM = automatic teller machine, BSP
= Bangko Sentral ng Pilipinas (Central Bank of the Philippines), CCT = conditional cash transfer, COA = Commission
on Audit, DepEd = Department of Education, DILG = Department of Interior and Local Government, DOF = Department
of Finance, DOH = Department of Health, DSWD = Department of Social Welfare and Development, ESAP = Expanded
Social Assistance Project, FMS-SP = Financial Management Services-Social Protection, IP = Indigenous Peoples, LBP
= Land Bank of the Philippines, NPMO = National Program Management Office.
Source: Asian Development Bank.

IV. ASSURANCES

38. The government and the DSWD have assured ADB that implementation of the project
shall conform to all applicable ADB requirements, including those concerning anticorruption
measures, safeguards, gender, financial management, and disbursement as described in detail
in the project administration manual and loan documents. The government and the DSWD have
agreed with ADB on certain covenants for the project, which are set forth in the draft loan
agreement.

V. RECOMMENDATION

39. I am satisfied that the proposed loan would comply with the Articles of Agreement of the
Asian Development Bank (ADB) and recommend that the Board approve the loan of
$500,000,000 to the Republic of the Philippines for the Expanded Social Assistance Project, from
ADB’s ordinary capital resources, in regular terms, with interest to be determined in accordance
with ADB’s London interbank offered rate (LIBOR)-based lending facility; for a term of 29 years,
including a grace period of 8 years; and such other terms and conditions as are substantially in
accordance with those set forth in the draft loan agreement presented to the Board.

Masatsugu Asakawa
President

18 May 2020
 Appendix 1 15

DESIGN AND MONITORING FRAMEWORK

Impact the Project Is Aligned with

A universal and transformative social protection system that builds socioeconomic resilience (Philippine
Development Plan 2017–2022)a
Data Sources and
Performance Indicators with Targets Reporting
Results Chain and Baselines b Mechanisms Risks
Outcome By 2026:
Education and a. At least 92.0% of eligible children 3–5 a.–c. PPIS Fiscal space for the
health profile of the years old attend preschool or school at 4Ps is reduced
children of 4Ps least 85% of the time (2018 baseline: because of
households Total 86.0%, female 86.3% and male progressive increase
improved 85.7%; indigenous peoples households in the allocation to
84.6%) (RFI 1.1)c local governments

b. At least 92.0% of eligible children 6–14 Continued supply-

years old attend school at least 85% of side constraints on
the time (2018 baseline: Total 84.9%, access to good
female 86.3% and male 83.5%; schools and health
indigenous peoples households 81.9%) facilities, and weak
(RFI 1.1)c local government
capacity reduce the
c. At least 80.0% of eligible children 15– effectiveness of the
18 years old attend school at least 85% of 4Ps
the time (2018 baseline: Total 68.0%,
female 71.4% and male 64.8%;
indigenous people’s households 62.2%)
(RFI 1.1)c

d. At least 84% of pregnant women in 4Ps d. Baseline drawn

households deliver in health facilities from ADB staff
(2018 baseline: 80%) (RFI 1.1)c analysis of the data
collected for the IE3.
Targets will be
tracked under 4IE
Outputs By 2024: Delays in Listahanan
1. CCTs delivered 1a. At least 4,250,000 eligible 4Ps 1a. Listahanan 3 data 3 and/or gaps in the
effectively and on households receive CCTs (2019 baseline: maintained by the surveys’ coverage
time 4,124,088 households) (RFI 1.1)c National Household prevent timely and
Targeting Office, comprehensive
DSWD updating of the list of
poor households
1b. At least 98% of women cash grantees 1b. PPIS eligible for the 4Ps
receive timely cash grants in at least five
of the six reporting periods per year (2019 Households that are
baseline: 97.5%) (RFI 1.1) c new to the 4Ps (i.e.,
included for the first
1c. At least 98% of monitored children 0–5 1c. PPIS time in Listahanan 3)
years old undergo growth monitoring and may have limited
health checks in accordance with DOH exposure to it before
protocol (2018 baseline: Total 93.7%, the fourth impact
female 93.7% and male 93.7%; evaluation
indigenous peoples households 90.6%
and non-indigenous peoples households
93.8%) (RFI 1.1)c

1. 1d. At least 97% monitored households 1d. FDS management

attend monthly FDSs (2019 baseline: information service
93.3%) (RFI 1.1)c
 16 Appendix 1

Data Sources and

Performance Indicators with Targets Reporting
Results Chain and Baselines b Mechanisms Risks
2. (Under TA facility) 2a. Annual gender mapping to identify 2a. Training reports,
3. 2. CCT delivery gender-related issues, including gender- 4Ps annual reports,
systems based violence cases and/or early gender action plan
strengthened marriage and/or pregnancy expanded to monitoring reports,
340 sites (2019 baseline: 13 sites) (RFI and PPIS
1.1)c

2b. At least five modules (e.g., on 2b. Updated FDS

livelihoods, disaster resilience, and modules on these
adolescent pregnancies) updated and topics
used in the FDS (2019 baseline: 0) (RFI
1.1)c

2c. At least 95% of monitored children 6– 2c. National Program

18 years old in 4Ps households are Management Office’s
assigned a DepEd Learner Reference monitoring reports
Number in the PPIS (2019 baseline: 58%)
(RFI 1.1)c 2d. Baseline drawn
from the third impact
2d. Registration increased to cover at evaluation. Target
least 95% of all children to expand coverage will be
monitoring for health and education based on Listahanan
compliance in 4Ps households (2018 3 data
baseline: 67%) (RFI 1.1)c

4. (Under TA facility) 3a. List of eligible households for 4Ps is 3a.–b. DSWD
3. Awareness updated and progressively linked to Listahanan database
building, Listahanan 3 by 1 January 2022 (2019 maintained by NHTO
connections with baseline: List of 4Ps-eligible households is and PPIS reports
complementary not updated and is based on Listahanan
social programs, 1) (RFI 1.1)c
project
management, and 3b. DSWD-led graduationd approach
evaluation capacity launched in three sites by 2022 (2019
strengthened baseline: None) (RFI 1.1)c

3c. The fourth impact evaluation 3c. Report submitted

completed before June 2023 (2019 by the Philippine
baseline: Three rounds of impact Institute for
evaluation completed) (RFI 1.1)c Development Studies

3d. Culture-sensitivity and gender- 3d. Gender and

responsive case management guidelines Development
included in the project operations manual Monitoring Report
(2019 baseline: 0) (RFI 1.1)c plus revised
operations manual
Key Activities with Milestones
1. Conditional cash transfers delivered effectively and on time
1.1 Verify new household registry based on Listahanan 3 and integrate into PPIS (by Q2 2021).
1.2 Identify, enroll, and distribute cash cards to new beneficiaries (from Q2 2021).
1.3 Prepare and transmit updated beneficiary payrolls to the Land Bank of the Philippines (from Q2 2020).
2. CCT delivery system strengthened
2.1 The DSWD to sign agreements with partner agencies (DepEd, DOH, Philippine Statistics Authority) for data
sharing (by Q2 2020).
2.2 Design IT reform road map to streamline business processes and upgrade program systems covering registry,
beneficiary update, compliance verification, grievance, and payment (by Q1 2021).
2.3 Integrate PPIS with the Learner Information System of DepEd and Integrated Clinic Information System of the
DOH (by Q3 2021).
 Appendix 1 17

2.4 Prepare new modules for FDS and youth development sessions (by Q4 2021).
3. Awareness building, connections with complementary social programs, project management, and
evaluation capacity strengthened
3.1 Update gender-responsive and culturally sensitive training materials and methodologies for FDSs and youth
development sessions (by Q2 2021).
3.2 Provide inputs for the design of the fourth impact evaluation (Q4 2020).
3.3 Develop options for graduation strategy through livelihood, technical and vocational education and training, and
other interventions (Q4 2020).
Project Management Activities
Indigenous peoples plan rollout of key activities (Q4 2022); gender action plan rollout of key activities (Q4 2020);
communications plan rollout (Q1 2021); annual, midterm (Q3 2022), and project completion (Q4 2024) reviews.
Inputs
ADB: $500.0 million (loan); $1.0 million (TA)
Government of the Philippines: $7,506.6 million
Assumptions for Partner Financing
The World Bank is providing parallel funding support to strengthen project implementation, monitoring, and
evaluation procedures, including the upgrade of the CCT program management information system, payment
systems, and grievance redress system. The World Bank parallel cofinancing will be on a joint collaborative basis
and not administered by ADB.
4Ps = Pantawid Pamilyang Pilipino Program, ADB = Asian Development Bank, CCT = conditional cash transfer, DepEd
= Department of Education, DOH = Department of Health, DSWD = Department of Social Welfare and Development,
FDS = family development sessions, Listahanan = National Household Targeting System for Poverty Reduction, PPIS
= Pantawid Program Information System, Q = quarter, TA = technical assistance.
a Government of the Philippines, National Economic and Development Authority. 2017. Philippine Development Plan

2017–2022. Pasig City.

b The baselines may change after Listahanan 3 since it will take time for new households to comply satisfactorily with

the conditionalities and to show the level of behavioral changes exhibited by households that were covered by the
4Ps for several years.
Contribution results framework:
c RFI 1.1: At least 4,250,000 households benefiting from improved health services, education services, or social

protection.
d The graduation programs will be informed by a comprehensive support package, including technical skills training,

transfer of productive assets, regular home visits for life skills training and coaching, enterprise development support,
financial literacy training and savings promotion, and access to health care or health information as “cash plus” or
“productive inclusion” programs, based on the specific needs of the targeted households.
Source: Asian Development Bank.
18 Appendix 2

LIST OF LINKED DOCUMENTS

http://www.adb.org/Documents/RRPs/?id=52257-001-3

1. Loan Agreement
2. Project Administration Manual
3. Sector Assessment (Summary): Public Sector Management (Social Protection)
4. Economic and Financial Analysis
5. Summary Poverty Reduction and Social Strategy
6. Risk Assessment and Risk Management Plan
7. Gender Action Plan
8. Indigenous Peoples Plan

Supplementary Documents
9. Gender Analysis
10. Impact Evaluation of the Pantawid Pamilyang Pilipino Program
11. Assessment of Family Development Sessions and Youth Development Sessions
(Summary)
12. Philippines: Public Expenditure on Social Protection and Policy Reforms for Convergence
13. Rates of Return to Education in the Philippines