PNG AGRICULTURE COMMERCIALIZATION AND DIVERSIFIATION PROJECT INFO
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The PNG Agriculture Commercialization and Diversification or (PACD) is a project based on the GoPNG loan agreement with the World Bank at a monetary value of 40 million US dollars.
The kina value is about K120 million and is a government of PNG project funded by a concessionary loan from the World Bank and counterpart funding from the PNG government.
The basic objective of the project is to facilitate the development of competitive and diversified agriculture valued chains for selected commodities in the targeted provinces. The project is running under the Cocoa Board of PNG.
The project covers coffee in the Highlands region and cocoa at the coastal provinces and the PACD builds on the Productive Partnership in Agriculture Project (PPAP), with the inclusion of three more value chains in addition to cocoa and coffee – coconut, spices and small livestock.
There are total of 6 provinces to benefit from the cocoa component which includes East New Britain, West New Britain, New Ireland, Morobe, Madang and AROB.
The project will benefit a target of 20, 000 households across in PNG. The project has five components. Component 1, is Institutional Capacity Building which aims to improve the performance of sector institutions at national and regional level and enhance industry coordination in cocoa, coffee, coconut, spices and small livestock.
Component 2, Agriculture Feeder Roads, will aim to improve access to value chains and markets for farmers through rehabilitation and maintenance of priority feeder roads, paths, or other small transport infrastructure that provides access to the PACD and PPAP partnership smallholder farmers/out growers.
Component 3, Productive Partnerships, has the objective of increasing the integration of small holder producers, producer organisation (POs) and MSMEs into performing, remunerative and diversified value chains. The first sub- component 3.1, will develop and implement PPAP like productive partnerships between small holders and private sector aimed at improving market links in the project areas, with a focus on increasing on-farm and post- harvest productivity and quality.
The second sub-component, 3.2 will benefit POs and MSMEs that are working directly with farmers in the same commodities to increase their competitiveness with a focus on aggregation, logistics, processing and marketing. This will ensure that the aggregation and processors of smallholder produce can increase their absorption capacity and quality and therefore increase the competitiveness of the value chains.
The two sub-components complement each other to ensure that value chains and their stakeholders become more competitive Component 4, Project Management and Monitoring Evaluation, will provide technical and operational assistance for all aspects of project management and implementation in the Project Coordination Unit and two project Management units. Component 5, is the Contingency Emergency Response Component, which will only be used if any emergency response is required, for example following a natural disaster such as earthquake or severe flooding.
Following an eligible crisis or emergency, a request can be made to relocate uncommitted funds to cover the emergency response. Implementation Arrangements This section contains basic information about the implementation of components 2 and 3. The process to decide where Agriculture Feeder Roads interventions will be located will start when the first partnerships have been selected.
The PMU Road Engineer and Environmental and Social Safeguards officer will consult with each partnership community to get a list of possible roads of other transport infrastructure.
The cost of the necessary works and the money value of the expected benefit will be calculated for each road. There will also be thorough community consultation to find out about possible negative environmental or social impacts for partnership and non-partnership communities and individuals.
The road that gives the greatest benefit compared to cost and has the least negative impacts from the ones each partnerships nominated will be funded. Productive Partnership: Sub-component 3.1 This sub-component will operate in two new provinces, West New Britain and New Ireland, as well as four that were in PPAP – East New Britain, AROB, Morobe and Madang. Applications will only be accepted for cocoa-based partnership in new geographical locations ENB and AROB to PPAP. Farmers previously included in PPAP partnerships are not eligible.
Eligible areas are Buka Island in AROB and Pomio district except for the Sinivit LLG in ENB. Lead partners may be eligible in new geographic locations.
There is no restrictions based on PPAP involvement for diversification value chains (coconut, spices, small livestock). As in PPAP, lead partners must be legal entities (company, association or cooperative) with a record of working with small holder farmers.
Awareness for sub-component 3.1 started in November 2022 and the first call for proposals in late November of early December 2022. Productive Partnerships: Sub-component 3.2 This sub-component will operate in the same provinces as 3.1. the first call for proposals will be open only to producer organizations that participated in the PPAP productive partnership component.
This is to ensure that they are linked to the producers. In late calls, POs and MSMEs that participated in sub-component 3.1 of PACD will be eligible.
The POs and MSMEs that apply for the matching grants must be legally established and procure their raw material from local producers, be active in the selected commodities and be based in the selected provinces.
On Buka island farmers from four constituencies will benefit as their proposals were approved. They are Tsitalato,Tonsu,Hagogohe and Halia.
ENDS
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