Philippines : Dali Modern Food Retail Expansion Project
ADB will subscribe to common equity shares in HDPM as part of the company Series C capital raise. ADB will invest up to $15,000,000 from its ordinary capital resources. ADB will co-invest alongside Creador and Navegar in the Series C investment round.
Project Details
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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. |
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| Country / Economy | Philippines |
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| Location | Nation-wide | |||||
| Type or Modality of Assistance |
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| 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 |
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| Sector / Subsector | Agriculture, natural resources and rural development / Agro-industry, marketing, and trade |
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| Gender | Effective gender mainstreaming | |||||
| Responsible ADB Department | Private Sector Operations Department | |||||
| Responsible ADB Division | Office of the Director General, PSOD | |||||
| Responsible ADB Officer | Noorullah | |||||
| Project Sponsor(s) | ||||||
| Description | ADB will subscribe to common equity shares in HDPM as part of the company Series C capital raise. ADB will invest up to $15,000,000 from its ordinary capital resources. ADB will co-invest alongside Creador and Navegar in the Series C investment round. | |||||
| 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. |
| Timetable for assistance design, processing and implementation | |
|---|---|
| Concept Clearance | - |
| Credit Committee Meeting | - |
| Approval | 06 Mar 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.
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| 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.
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.