The Coffee Industry Corporation's PNG Agriculture Commercialization & Diversification (CICPACD) Project has commenced the signing of partnership agreements with successful lead partners that have been selected through a stringent and lengthy process.
CIC-PACD Project Manager Potaisa Hombunaka explained that the whole process of finally having the successful lead partners to formally sign their agreements with CIC-PACD was not an easy task.
He stated, “It took almost a year to complete all the processes to ensure those selected were genuine partners to implement the project.
“It has taken the Project Management Unit (PMU) of coffee 12 months and now into the process of signing the final 24 productive partnerships to the tune of K20 million.”
“If the projects were awarded overnight, there will not be any sustainability in the project. We went through a tedious process in the last 12 months to identify the potential lead partners from the 63 proponents who had initially applied and we have come down to 24 lead partners,” he added.
Productive Partnerships Coordinator Alphy Semy, said with the signing of the first 18 of the 24 partnerships commencing this week and last week, the project will be reaching out to over 10, 000 households at the tune of K20 million. Semy said the funds drawn down by the lead partners will be under three components; Goods, Services and Operations.
“The amount you see on the banners now will come in three different support categories. Do not think you will receive a brown envelope (cash) from the lead partners, but this will be translated to goods and services to assist you (coffee farmers) in the respective partnerships.”
Provinces who will be benefiting from these partnership agreement signing include Eastern Highlands, Simbu, Jiwaka, Western Highlands and Morobe.
Under the goods category, farmers under these partnerships will be receiving coffee pulpers, bow saws, secateurs, bush knives, coffee film rolls, and mesh wire for coffee drying on raised beds. The beneficiary farmers will contribute a five-percent cash equity under the Goods Component as a guarantee for farmers to take ownership and good care of the items received. Coffee wet mills and mini hullers will also be provided. Resource centers and storage sheds will be constructed for aggregation of parchment coffee for group marketing.
Hombunaka said under PACD it is envisaged, two lead partners will graduate to become coffee exporters. He added that under the predecessor project Productive Partnership in Agriculture Project (PPAP), four nationally owned companies became coffee exporters.
He further highlighted that three coffee plantations, one each in Eastern Highlands, Jiwaka and Western Highlands will also be funded using the PPAP Modality to rehabilitate the plantations using only around K1m each per plantation.
Meanwhile, the signing of the partnership agreements commenced in Eastern Highlands on Monday 4th December and continued to Simbu, Western Highlands and Jiwaka and ends in Morobe on Thursday 14th December. The remainder of the partnerships will be signed in the second week of January 2024.
The Matching Grant component for coffee and partnerships for the other value chains such as small livestock and spices will be finalized and signed during the first quarter of next year.
The PACD Project is funded through GoPNG loan funding from the World Bank. The Department of Agriculture & Livestock is responsible for the project with Coffee Industry Corporation and Cocoa Board as implementing agencies.