Project Name Social Protection Support Project
Project Number 43407-013
Country Philippines
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2662-PHI: Social Protection Support Project
Ordinary capital resources US$ 400.00 million
TA 7586-PHI: Capacity Development for Social Protection
Technical Assistance Special Fund US$ 800,000.00
TA 7587-PHI: Strengthened Gender Impacts of Social Protection
Gender and Development Cooperation Fund US$ 300,000.00
TA 9079-PHI: Strengthening Social Protection Reforms
Technical Assistance Special Fund US$ 1.00 million
Loan 3369-PHI: Social Protection Support Project (Additional Financing)
Ordinary capital resources US$ 400.00 million
Loan: Social Protection Support Project (Additional Financing)
World Bank US$ 450.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Education - Pre-primary and primary - social protection initiatives

Health - Mother and child health care

Public sector management - Social protection initiatives

Gender Equity and Mainstreaming Gender equity
Description The project supports the Government of the Philippines in implementing and expanding its social protection agenda, especially the conditional cash transfer (CCT) program Pantawid Pamilyang Pilipino Program (4Ps) and the Listahanan national household targeting system for poverty reduction (NHTS-PR). The associated TAs will support capacity development and institutional strengthening of the government for efficient implementation of the social protection agenda.
Project Rationale and Linkage to Country/Regional Strategy

Despite high economic growth over the past 6 years, poverty incidence in the Philippines increased from 30% in 2003 to 33% in 2006. Key causes of poverty include high inequality and chronic underinvestment in physical and human capital, especially health and education. As a result, the Philippines is lagging on progress in meeting the Millennium Development Goal (MDG) targets for universal primary education, maternal mortality, and access to reproductive health services. Net enrollment in elementary school declined from 99.1% in 1990 to 83.2% in 2007. Only 70% of students who enter grade 1 stay until grade 6, and one in five children 6 11 years old are not in school. Universal immunization against measles has not yet been achieved and malnutrition remains a major concern, with only 64% of children meeting normal weight-for-age standards. Maternal mortality rates remain high at 162 per 100,000 live births in 2006.

Government estimates indicate that about 45% of Filipinos are vulnerable to falling into poverty if confronted by external shocks such as family health problems and deaths, loss of employment, natural disasters, and price increases. In 2007 2008, escalating food prices contributed to a 9.45% reduction in the average standard of living and an increase of more than 50% in the severity of poverty. In the absence of appropriate safety nets, households have developed coping mechanisms to external shocks that tend to erode human capital and perpetuate poverty, such as increasing working hours, changing eating patterns, withdrawing children from school, or foregoing critical health care.

Demand-side constraints, such as financial barriers and lack of awareness of the importance of human capital investment, are key constraints to utilization of health and education services by the poor. Although many public health services are free, health facilities are often located in areas not easily accessible to poor families, leading to high transport costs. The average cost for travel to health facilities is P109 per visit, while outpatient treatment is P1,872 per person. Nearly half of the health care costs are paid out-of-pocket, and 79% of poor households have no insurance coverage. The poor are often unable to afford basic health care since out-of-pocket payments are required at the point of services. For education, demand-side factors are the main determinants of enrollment. Among girls 7 12 years old, the main reasons for being out of school are high associated costs and lack of interest. From 2002 to 2007, the number of out-of-school youth rose markedly for children 13 16 years old, reaching more than 20% in many regions. The leading causes were high cost of education (particularly for girls), lack of personal interest (particularly for boys), and working or looking for work.

Government efforts to address poverty and improve human development outcomes have been compromised by low spending on social sectors, particularly social assistance programs. In 2009, national government spending on social services was only 5.9% of gross domestic product. Spending on social protection was even lower at only 1.2%, although it has increased from an average of 0.8% in 2005 2007. The social protection sector has been characterized by a lack of policy and institutional coordination, with several departments undertaking uncoordinated, and sometimes ineffective, programs. Benefits have been further compromised by weak targeting systems to identify beneficiaries and high leakages to the non-poor.

To respond to these challenges, the government recently increased its focus on reforming and strengthening its social protection system. The reform agenda led by the Department of Social Welfare and Development (DSWD) includes (i) accelerating social protection policy reform; (ii) improving targeting of programs; (iii) expanding the CCT program and strengthening delivery mechanisms, including governance systems and monitoring and evaluation; and (iv) securing adequate and predictable financing for social protection by consolidating programs and gradually expanding overall budget allocation. The reform agenda is well under way and significant government ownership is demonstrated through a doubling of the social protection budget since 2007.

Impact Reduced income poverty and non-income poverty.

Project Outcome

Description of Outcome Increased consumption and utilization of education and health services among poor households and women beneficiaries of 4Ps.
Progress Toward Outcome

Most of the indicators have been achieved and/or exceeded:

Pantawid grants comprise 11% of families' average consumption (World Bank 2014 Benefit Incidence Analysis).

95.7% of Pantawid children aged 12-15 are enrolled in school

(Pantawid 2nd wave impact evaluation final report).

70% of Pantawid mothers delivered in health facilities, compared to the national

average of 60% (Pantawid 2nd wave impact evaluation final report).

At least 80% of births are delivered by skilled health personnel (Pantawid 2nd wave impact evaluation final report).

There are some positive results on the decrease in the share of children 6-14 years old who are working. While there is no significant difference between

Pantawid and non-Pantawid families in terms of the incidence of child labor

(the share of children who are working), Pantawid children work less, on average

7 fewer days, than non-Pantawid children (Pantawid 2nd wave impact evaluation final report).

An additional financing of $400 million was approved in February 2016, mainly to finance conditional cash grants from 2016-2020.

Implementation Progress
Description of Project Outputs

Output 1: National targeting system to select poor households implemented efficiently

Output 2: Conditional health and education cash grants provided to poor households

Output 3: Strengthened capacity for conditional cash transfer program operations

Output 4: Improved systems for monitoring and evaluation of social protection programs

Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1

As of 2011, all poor households nationwide are registered in the Listahanan database. Of the 10.9 million households assessed, 5.2 million found to be poor.

The national poverty rate in 2012 was 4.2 million families (19.7%).

Exclusion and inclusion errors are mostly achieved. The exclusion error in the

National Capital Region (NCR) remains a challenge. The new proxy means test model estimates are 19.3% inclusion error and 10.6% exclusion error in the

NCR, and 6.8% exclusion error and 13.8% inclusion error outside the NCR.

At least 25 national programs using Listahanan for selecting beneficiaries.

100% of the 5.2million poor households are eligible to receive PhilHealth benefits,

and 85% (4.4million) receive the CCT, so these households have access to at least 2 social protection programs.

Output 2

Total poor households/families receiving cash grants (Sets 2 & 3): 615,307

% of women recipients (Sets 2 & 3) : 90.8%

Average of mothers in beneficiary households receiving cash grants regularly and on time 98.6% (based on average of the last 3 pay periods)

Average households/families meeting education conditions regularly : 97.7%

Average households/families meeting health conditions regularly : 94.5%

Average grantees attend monthly family development sessions : 96.3%

Available spatial datasets (local area maps) include Listahanan, health facilities', and schools. Preschools and payment windows do not have GIS tagging yet. It will be possible to add ATMs and Landbank branches, but not off-site/impermanent payment windows. Preschools will be by barangay only. The Information Management Bureau is further developing MapView and GIS-based applications.

Output 3

Central and local project management structures established.

4,669 staff trained on gender sensitivity and 1,470 staff trained on IP sensitivity.

Gender action plan (GAP) being implemented satisfactorily.

10 Municipal GAP pilots were completed by end 2014 (supported by TA 7587).

Output 4

Systems are in place for household information, registration, compliance verification, payments, beneficiary updates, and grievance redress.

About 55% of the grievances received for the first 4 months of 2016 have been resolved.

Independent spot checks A and B were completed in 2013, C and D were completed in 2014. Spot check E has been fielded Q3 of 2016. Contracts for F and G have been signed and are expected to be completed beyond the loan closing date.

Recruitment of impact evaluation firm (data collection) in final stage but likely to be completed beyond loan closing date.

Geographical Location The Project supports a nationwide reform agenda, and directly supports interventions in areas throughout the Philippines.

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects The Project has no expected environmental impact, and does not involve any civil works, etc.
Involuntary Resettlement The Project will not involve involuntary resettlement.
Indigenous Peoples The project is classified as category B for indigenous peoples (and category C for involuntary resettlement and environment), in accordance with the ADB Safeguard Policy Statement (2009). The project includes about 9,000 indigenous peoples household beneficiaries, who are among the poorest and most marginalized households in the Philippines. The project will significantly improve the health, education, and income status of these households. Key measures include (i) information and training provided to indigenous peoples in a form appropriate to their language and cultures; (ii) working with indigenous leaders and local NGOs to mobilize indigenous households to participate in the program; (iii) seeking transport assistance for indigenous peoples through coordination with LGUs or NGOs; (iv) targets of 10% indigenous women and 12% indigenous peoples total for municipal link positions in indigenous areas; and (v) sensitivity training and coaching to all 4Ps staff. Recent reviews in April 2015 indicate that the IPP is on-track, while identified some areas for follow-up and further monitoring. Additionally, related support under linked TA 7586 assisted DSWD to further review IPP-related dimensions and design and assess the viability of a potential modified CCT program specifically targeted at IP communities.
Stakeholder Communication, Participation, and Consultation
During Project Design During project preparation, field consultations were undertaken including for preparing social and poverty analyses. This includes consultations with potential beneficiaries, schools and health facilities, parents groups, project staff and government staff at all levels. Consultations with Non-Government Organizations (NGOs) and other interest groups were also conducted.
During Project Implementation Community participation is a key element of the Pantawid Pamilya CCT program and is integrated into the overall program design. Specific actions to ensure the participation of women, IPs and other vulnerable groups will be included through the preparation of a gender action plan (GAP) and an indigenous peoples assessment and measures. A grievance redress system (GRS) is established, featuring a publicly available grievance database to track and resolve complaints. Linked technical assistance (TA 7586-PHI) supported DSWD to expand engagement of CSOs in GRS, family development sessions, other aspects of CCT, and complementary supply-side intervetions (e.g., literacy and livelihood programs). In coordination with AusAID and World Bank, the TA has supported DSWD's conduct of a 3-part series of national and regional "CSO-DSWD Forums on CCT", successfully completed during September-December 2011.

Business Opportunities

Consulting Services

The Project's original procurement plan indicated loan financing for 57 consultants for the National and Regional Program Management Offices (NPMO and RPMO), with total estimated contract amount of $1.9 million. DSWD mobilized these NPMO and RPMO consultants using GOP funds. During the Midterm Review, DSWD confirmed that it will not seek Loan financing for 56 of these consultants, but requested the Project to finance the National Financial Analyst (included in the original procurement plan) plus 10 new contractual project staff positions who will carry out tasks directly related to the Project. These positions are either being recruited as individual consultants or have been mobilized. Firms will be recruited to undertake monitoring and evaluation studies, using fixed budget selection (FBS). The firm to undertake impact evaluation (data collection) is being recruited using quality and cost based selection (QCBS). The firm to undertake the spot checks is recruited using single source selection of the same firm recruited to undertake the spot checks under Set 1 of the 4Ps. Single source selection is justified on the basis of consistency of technical approach and continuity, which is important for this assignment. The firm to conduct spot checks in Set 1 areas were conducted competitively following World Bank guidelines.

The Consultants will be engaged in accordance with the ADB's Guidelines on the Use of Consultants (April 2010, as amended from time to time). All opportunities must be published through both ADB Consulting Services Recruitment Notices (CSRN) and Philippine Government Electronic Procurement System (PhilGEPS).

Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines.

No international and national competitive bidding envisaged for the Project. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000.

Before the start of any procurement, ADB and the Government will review the public procurement laws of the national and local governments to ensure consistency with ADB's Procurement Guidelines.

Responsible Staff

Responsible ADB Officer Karin Schelzig
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Human and Social Development Division, SERD
Executing Agencies
Department of Social Welfare and Development
Corazon Juliano-Soliman
[email protected]
Constitution Hills, Batasan Pambansa Complex Quezon City Philippines
Municipal Dev'l Fund Office-(Implementing Agency)
Roxas Boulevard corner Pablo Ocampo, Sr.
Street, Manila
1004

Timetable

Concept Clearance 12 Apr 2010
Fact Finding 12 Apr 2010 to 23 Apr 2010
MRM 25 May 2010
Approval 02 Sep 2010
Last Review Mission -
PDS Creation Date 08 Apr 2010
Last PDS Update 28 Sep 2016

Loan 2662-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Sep 2010 14 Sep 2010 12 Jan 2011 31 Mar 2016 31 Jan 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 884.20 Cumulative Contract Awards
ADB 400.00 02 Sep 2010 398.46 0.00 100%
Counterpart 484.20 Cumulative Disbursements
Cofinancing 0.00 02 Sep 2010 398.20 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 3369-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Feb 2016 29 Apr 2016 05 Jul 2016 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6,159.40 Cumulative Contract Awards
ADB 400.00 09 Feb 2016 0.00 0.00 0%
Counterpart 5,309.40 Cumulative Disbursements
Cofinancing 450.00 09 Feb 2016 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 7586-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Sep 2010 12 Oct 2010 12 Oct 2010 31 Aug 2012 31 Aug 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 200,000.00 0.00 0.00 0.00 1,000,000.00 02 Sep 2010 681,418.69
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 7587-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Sep 2010 12 Oct 2010 12 Oct 2010 31 Jan 2013 31 Dec 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 300,000.00 125,000.00 0.00 0.00 0.00 425,000.00 02 Sep 2010 260,076.97
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 9079-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Feb 2016 15 Mar 2016 15 Mar 2016 31 Dec 2019 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 09 Feb 2016 72,619.49
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

 
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