Philippines : Dali Private Label Supplier Network Expansion Project

Nonsovereign Project | 56313-002

Project Details

  • Project Officer
    Noorullah
    Private Sector Operations Department
    Request for information
  • Approval Date
    20 May 2024
  • Country/Economy
    Philippines
  • Sector
    • Agriculture, natural resources and rural development

Related Projects

Project Name
Dali Private Label Supplier Network Expansion Project
Project Number
56313-002
Borrower / Company
  • HDPM Sin Pte. Ltd.
Country / Economy
  • Philippines
Location
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
7834 Equity Ordinary capital resources USD 10.00 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 network of hard discount retail stores and distribution centers, and procurement from local private label suppliers. The project will also fund off-grid rooftop solar panels and green building certifications for some stores and distribution centers to support energy cost savings and reduce the carbon footprint of Dali operations.

    This is the second Asian Development Bank (ADB) project with Dali. This project, together with the earlier transaction, will generate employment for 6,000 workers, including 45% women, by 2027.

    Linkage to Country/Regional Strategy
    The project is aligned with the Government of the Philippines Development Plan, which 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 also in line with ADB $14 billion food security response as well as ADB ambition to deliver $100 billion in climate financing to its developing member countries from 2019 to 2030.

    Safeguard Categories

    Environment
    B
    Involuntary Resettlement
    C
    Indigenous Peoples
    C

    Summary of Environmental and Social Aspects

    Environmental Aspects

    ADB conducted an E&S audit, including site visits, with a view to evaluating the implementation of DALI ESMS. ADB determined that DALI ESMS will require updating to ensure its principles and procedures are practical, streamlined, and embedded in DALI day-to-day operations. Specifically, DALI must (i) integrate its E&S screening into its expansion process, (ii) update and finalise its legal compliance register to capture all the standard legal permits and approval required for the expansion of its distribution centers and stores, (iii) develop a standard E&S management plan to be used for each expansion project, (iv) develop a waste management procedure, and (v) strengthen its contractor and supplier management plans.

    Considering the company existing operations and the planned expansions which will include construction of new stores in the Philippines, ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category B for environment.

    Involuntary Resettlement
    ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category C for involuntary resettlement. The project will finance the expansion of Dali network of stores, distribution centers, rooftop solarization program, and local private labels. As confirmed in the ESDD for the investment, Dali leases land for its stores and distribution centers from private owners and ensures the selected properties meet Dali's criteria. Dali ensures proper ownership documents and no possession issues, including informal settlers. Involuntary resettlement impacts are not anticipated.
    Indigenous Peoples
    ADB has categorized the investment in compliance with ADB Safeguard Policy Statement (2009) as category C for indigenous peoples. As confirmed in the ESDD for the investment, Dali facilities are in urban, semi-urban, industrial or commercial areas where no known indigenous communities are present. Impacts on Indigenous Peoples are not anticipated.
    Stakeholder Communication, Participation, and Consultation

    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
    20 May 2024
    PDS Creation Date
    17 May 2024
    Last PDS Update
    20 May 2024

    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 Private Label Supplier Network Expansion Project: Preliminary Poverty and Social Analysis Initial Poverty and Social Analysis May 2024

    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.