93513 Papua New Guinea Additional Financing for the Productive Partnerships in Agriculture Project Improving rural incomes and livelihoods in Papua New Guinea. Smallholder farmers will adopt Background improved farming practices. The majority of Papua New Guinea’s population lives in rural areas, largely dependent on agriculture for Net incomes of smallholder their livelihoods. Coffee and cocoa are the main cash crops, with half of the country’s total workforce households will be increased. involved in their production, processing, and sale. Despite its importance, the quality and productivity of Papua New Guinea’s coffee has been declining, largely due to a lack of replanting, limited incentives Number of beneficiaries segregated for smallholder farmers, and poor access to markets. The cocoa industry has been experiencing similar by gender to be measured. issues in addition to the threat posed by the cocoa pod borer. The Productive Partnerships in Agriculture Project (PPAP) aims to combat these problems in order to improve the livelihoods of smallholder cocoa and coffee producers, and promote rural development and poverty reduction more broadly. About the Project The PPAP's primary aim is to improve the livelihoods of smallholder cocoa and coffee producers supported by the project. This will be achieved through the implementation of three main project components, designed to: Location: East New Britain Province, the • Strengthen industry coordination and institutions; Autonomous Region of Bougainville, Eastern Highlands Province, Western • Facilitate links between smallholder farmers and agribusiness, through productive partnerships, for Highlands Province, Jiwaka Province ,and easier access to markets, technologies, and services; and Simbu Province. A review of possible • Improve critical infrastructure for market access. expansion to other provinces will be conducted during the second year of the project, and again during the fourth year. The project will support improved quality in the coffee and cocoa industries and promote the adoption of certified sustainability practices (such as organic, fair trade, Rainforest Alliance, Utz or quality certification Project Approval Date: 30 April 2010 schemes). Under the productive partnerships component, funding will support partnerships in the private Closing Date: 30 June 2019 sector and civil society. Often these groups are already engaged with smallholders to increase output, productivity, quality and sustainability and are now interested in scaling up those activities. Additional Financing (AF): approved 28 February 2014, US $73 million In the cocoa sector, activities will include support for cocoa pod borer management, improved planting Total Project Cost: US$119.3 million materials, and promotion of rotational planting. In the coffee sector, activities will include the adoption of Donors: World Bank (International sustainable practices, replanting and coffee garden rejuvenation programs, and training on good farming Development Association) — US$55 practices. Further, PPAP will identify and fund important maintenance and upgrades to local million; International Fund for infrastructure such as roads and wharfs. Agricultural Development — US$36 million; European Union — US$6.4 million; Government of Papua New Partnerships will also be encouraged with smallholder farmers in disadvantaged areas — such as more Guinea — US$6 million; private sector, remote areas in the Highlands or cocoa-dependent areas affected by the cocoa pod borer — and including smallholder growers — partnerships which support vulnerable groups such as women and young farmers. Community US$15.9 million. consultations will continue to take place throughout the project. Implementing Agencies: Department of Agriculture and Livestock; Coffee Industry Corporation & Cocoa Board Contact: World Bank Task Team Leader www.worldbank.org/pg Kofi Nouve, Senior Rural Development Specialist, knouve@worldbank.org