Philippines : Dali Modern Food Retail Expansion Project

Nonsovereign Project | 56313-001

Project Details

  • Project Officer
    Noorullah
    Private Sector Operations Department
    Request for information
  • Approval Date
    6 March 2023
  • Country/Economy
    Philippines
  • Sector
    • Agriculture, natural resources and rural development
Project Name
Dali Modern Food Retail Expansion Project
Project Number
56313-001
Borrower / Company
  • HDPM Sin Pte. Ltd.
Country / Economy
  • Philippines
Location
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
7766 Equity Ordinary capital resources USD 15.00 million Approved
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP5: Promoting rural development and food security
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender
Effective gender mainstreaming
Project Sponsor(s)
    Description
    Objectives and Scope
    The project will finance the expansion of Dali hard discount retail store network and distribution centers (DCs) along with associated working capital requirements. In addition, the project will fund off-grid rooftop solar panels and green building certification for some stores and DCs to support energy cost savings and reduce carbon footprint of the operations. The project will generate additional employment for at least 4,300 workers including 45% women by 2026. The project will provide access to affordable food and non-food products to the population in rural and peri-urban areas in the Philippines. The project is aligned with the Government of the Philippines Development Plan that aims to improve access to value chains for rural suppliers and boost competition in the retail sector including through foreign direct investment. The project is further in line with ADB $14 billion food security response as well as ADB ambition to deliver climate financing to its developing member countries (DMCs) to $100 billion from 2019 to 2030
    Linkage to Country/Regional Strategy

    The project is aligned with Strategy 2030, which calls for ADB to scale up its financing for agribusiness. The project is consistent with Operational Plan 1 (OP1) (addressing remaining poverty and reducing inequalities) which calls for generating quality jobs and OP2 (accelerating progress in gender equality), which seeks to expand operations in support of agribusiness value chains whereby women jobs and entrepreneurship opportunities will be enhanced in higher value-generating activities, and OP3 (tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability), which seeks to support agribusiness projects that are climate adapted. The project is also aligned with ADB Country Partnership Strategy which rests on three strategic pillars: (i) accelerating infrastructure and long-term investments, (ii) promoting local economic development, and (iii) investing in people.

    The project is aligned with Strategy 2030 OP5 (promoting rural development and food security), which calls for direct support to food and agribusiness companies to promote financially sustainable and market oriented solutions. The project is also aligned with the OP for Private Sector Operations, 2019 to 2024, which identifies food brands and food retail as a priority segment because of the potential to drive and structure upstream subsectors (e.g., on quality standards, traceability).

    Safeguard Categories

    Environment
    B
    Involuntary Resettlement
    C
    Indigenous Peoples
    C

    Summary of Environmental and Social Aspects

    Environmental Aspects
    In compliance with ADBs Safeguard Policy Statement (2009), ADB has categorized the investment as category B for environment. Project activities will include construction of new warehouses and shops and expansion of retail operations. To enhance its E&S management, DALI will establish and implement a formal ESMS, enhance its E&S organization and implement ESH and social training programs for employees and contractors
    Involuntary Resettlement
    In compliance with ADBs Safeguard Policy Statement (2009), ADB has categorized the investment as category C for involuntary resettlement. Dali leases land for its facilities from private landowners. The company will ensure that none of its sites to be established will result in involuntary resettlement impacts
    Indigenous Peoples
    In compliance with ADBs Safeguard Policy Statement (2009), ADB has categorized the investment as category C for indigenous peoples. The project is not expected to result in any impact on indigenous peoples as facilities are in areas where no indigenous communities are present
    Stakeholder Communication, Participation, and Consultation
    As part of the development of its ESMS, Dali will strengthen its stakeholder engagement, information disclosure, and consultation procedures.

    Contact

    Responsible ADB Officer
    Noorullah
    Responsible ADB Division
    Office of the Director General, PSOD
    Responsible ADB Department
    Private Sector Operations Department

    Timetable for assistance design, processing, and implementation

    Concept Clearance
    -
    Credit Committee Meeting
    -
    Approval
    06 Mar 2023
    PDS Creation Date
    03 Feb 2023
    Last PDS Update
    06 Mar 2023

    Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

    The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

    The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

    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.

    Title Document Type Document Date
    Dali Modern Food Retail Expansion Project: FAST Report Faster Approach to Small Nonsovereign Transactions Mar 2023
    Dali Modern Food Retail Expansion Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Feb 2023

    Safeguard Documents See also: Safeguards
    Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

    None currently available.


    Evaluation Documents See also: Independent Evaluation

    None currently available.


    Related Publications

    None currently available.


    The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

    Requests for information may also be directed to the InfoUnit.

    • 07 Mar 2023 | News Release

      ADB Invests in Hard Discount Food Retail in the Philippines

      ADB has signed an equity investment of $15 million in DALI Hard Discount Philippines to expand its network of retail stores and distribution centers, including cold chain infrastructure, in the Philippines, creating at least 4,300 new jobs, nearly half of them for women.