DSWD thanks ADB for $400-M 'Pantawid' loan

The Department of Social Welfare and Development (DSWD) thanked the Asian Development Bank (ADB) for approving a $400-million loan for the government's conditional cash transfer program, known as the "Pantawid Pamilyang Pilipino Program" (4P). A "conditional cash transfer" is a welfare program wherein persons will be allowed to receive loans only if they comply with the government's conditions, such as: keeping their children in school or seeking regular health check-ups. In an article on its website Thursday, the DSWD said the Pantawid welfare program will provide direct financial support for 582,000 of the Philippines’ poorest families. “We are thankful for the ADB’s approval of a $400-million loan for the expansion of the Pantawid Pamilyang Pilipino Program," said Social Welfare Secretary Corazon Soliman on the DSWD website. "This is very timely as the DSWD will increase the number of families receiving monthly cash grants to 2.3 million by the end of 2011. The additional funding will go a long way in expanding the reach and coverage of the program," Soliman added. She noted that the program, unlike traditional welfare programs, allows cash grants only for families who keep their children in school and ensure that children and pregnant women get regular health checkups. Almost one in five children in the Philippines do not attend primary school. Of those who do, three out of every ten children drop out, the DSWD said. The DSWD added that many of these children never receive preventative healthcare. Two types of cash transfers Under the ADB-supported project, there are two types of cash transfers: child and maternal healthcare, and school enrollment and attendance. Poor mothers and pregnant women are eligible for cash grants based on the following conditions: (1) young children must receive regular health checkups and immunizations; (2) pregnant women must receive prenatal and postnatal care, and (3) parents must attend monthly family development sessions. Families can also receive an additional grant if: (1) their children are enrolled in primary or secondary school, and (2) schoolchildren will maintain a class attendance rate of at least 85% every month. The Pantawid project supports the government’s "National Household Targeting System for Poverty Reduction (NHTS-PR) program. The NHTS-PR aims to establish a database of the socio-economic variables of households by identifying where and who are the "poorest of the poor." The government designs poverty reduction programs based on the information gathered on the characteristics of the poor. Financial barriers are a major reason why children and pregnant women from poor families do not regularly seek preventative healthcare. Similarly, costs associated with education – as well as the poor households’ need for additional income – are leading factors that keep children out of school, the DSWD website said. The cash transfer project is expected to addresses this problem by giving an average impoverished family a 20% boost in annual income. The initial results of the Philippines’ conditional cash transfer program, launched in 2007, showed significant increases in school enrolment, child immunization, and prenatal medical care. Investing in children The loan will be sourced from ADB’s Ordinary Capital Resources (OCR). It will have a 25-year term, including a grace period of 5 years. The loan will have a commitment charge of 0.15% per year and an annual interest rate specified by ADB’s London interbank offered rate-based lending facility. “This project will help families escape poverty while ensuring young people have better opportunities for advancement," said Camilla Holmemo, Poverty Reduction Specialist of ADB’s Southeast Asia Department. “There is no better investment in a country’s future than an investment in its children," she added. “Conditional cash transfer programs have proven to be an effective way of keeping children healthier and in school. These programs help families break free from the cycle of poverty," said Holmemo. The ADB, based in Manila, aims to reduce poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, the ADB is owned by 67 member countries. The DSWD, on the other hand, is the primary government agency that provides social protection. It also promotes the rights and welfare of the poor, vulnerable and disadvantaged persons. –VVP, GMANews.TV