PNG Agriculture Commercialization and Diversification Project

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The objective of the Agriculture Commercialization and Diversification Project for Papua New Guinea is to facilitate the development of competitive and diversified agriculture value chains for selected commodities in targeted provinces. The project has five components. (1) Institutional Capacity Building component will improve the performance of sector institutions and to enhance industry coordination in cocoa, coffee, spices, coconuts, and small livestock. (2) Agriculture Feeder Roads component will improve access to value chains and markets for farmers through rehabilitation and maintenance of priority agricultural feeder roads, paths, or other small transport infrastructure that provides access to the PACD and the PPAP partnership smallholder farmers/out-growers. (3) Productive Partnerships component will increase the integration of smallholder producers, POs, and MSMEs into performing, remunerative, and diversified value chains. The first subcomponent will directly benefit smallholder producers as well as develop and implement PPAP-like productive partnerships between smallholders and the private sector aimed at improving market links in the project areas. The focus will be to increase on-farm and postharvest productivity and quality. The second subcomponent will benefit POs and MSMEs that are working directly with farmers in the same commodities to increase their competitiveness with focus on aggregation, logistics, processing, and marketing. This will ensure that aggregators and processors of smallholder produce can increase their absorption capacity and quality and therefore increase the competitiveness of the value chains. The two subcomponents complement each other to ensure that value chains and their stakeholders become more competitive across all segments. (4) Project Management and Monitoring and Evaluation component will provide technical and operational assistance, including carrying out of training, to support the project management, implementation, M&E, FM, environmental and social safeguards, and communications functions of the Project Coordination Unit (PCU) and two PMUs. (5) Contingency Emergency Response Component will only be used in the event that an emergency response is required.