The Coffee Industry Corporation has signed a K5 million partnership agreement with two Lead Partners to service 1,700 households in the province.
The deal was signed between CIC’s Productive Partnerships in Agriculture Project (PPAP) and partners, CDA Gumini (K2.9m), and Tribal Aromas Ltd (K2.1m), in Kundiawa, Chimbu, on November 1.
Co-partners representing the farmers were also parties to the agreement, committing themselves to take part in coffee rehabilitation work. The activities include improving their rundown coffee gardens, setting up nurseries to raise coffee seedlings and improving post-harvest practices in cluster groups.
The LPs will facilitate farmer training in selected topics like in-group management, farm book/record keeping and carry out HIV/AIDS and gender equality training with farmers and their families.
Under the contract deal, CIC-PPAP will fund CDA Gumini with K2m and Tribal Aromas Ltd with K1.5m on work schedule basis for a three-year period.
Project manager Potaisa Hombunaka explained that CIC-PPAP funds 70 percent of the cost while 30 percent is the sweat equity contribution from the farmers.
“It is not a one-off funding as with other projects resulting in abuse and misuse.”
He also said the CIC-PPAP funding is allocated on tranches as per agreed work schedule that will be undertaken by the Lead Partners and their farmers until June 2019.
“Do not think I’m coming here with a cheque to give all the money to the Lead Partners. It doesn’t work this way,” said Hombunaka.
Over 500 farmers, including traditional dancers, witnessed the signing ceremony.
Upper Lower LLG Council president from Kerowagi District and Deputy Governor, James Kendeyagl, also officiated at the ceremony and welcomed the financiers of the CIC-PPAP project, namely World Bank, IFAD (International Fund for Agricultural Development) and PNG Government.
He welcomed the coffee rehabilitation work saying it will boost rural development initiatives already started by the provincial administration.
The PPAP coffee component is a CIC project through the Department of Agriculture & Livestock. It is financed by a loan facility from World Bank (IDA) and IFAD (International Fund for Agricultural Development), with support from PNG Government.
Picture: (L-R) Deputy Governor James Kendeyagl and project manager Potaisa Hombunaka being led to the grand stand by traditional dancers.