SECOND AGRIC CREDIT

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The Second Agricultural Credit Project will finance over a period of three years a share of PNGDB's planned agricultural lending and also support the expansion of related agricultural services. The project has two principal components: (a) field development of coffee, cocoa, oil palms and rubber, and piggery and poultry enterprises through sub-loans made by PNGDB; and (b) expansion of hybrid coconut planting materials supplies, and of other support services to agriculture, such as crop development teams, consultants and studies. Planned field development is made on the most promising investments based on current investor familiarity and interest, available management, and favorable marketing prospects. To encourage new development the Government will contribute up to K 3,000 / subproject towards the development costs. During implementation, it is proposed that lending for other crops also be included if it is established to the satisfaction of PNGDB and Government that such lending is justified. The proposed project is expected to bring about technological, managerial and institution building benefits to the country. It should also improve the standard of living of beneficiary farmers, raise productivity, increase production and exports and promote import substitution.