PACD Project Objective

Our goal is to support the growth of competitive and diversified agriculture value chains for selected commodities:

  • Coffee
  • Cocoa
  • Coconut
  • Spices
  • Small livestock

Focus Areas:

  • Eastern Highlands
  • Morobe
  • Chimbu
  • Western Highlands
  • Jiwaka
  • East New Britain
  • Bougainville

How We Achieve This:

  • Strengthening institutions to better support farmers and businesses.
  • Improving feeder roads and essential infrastructure for better access and logistics.
  • Enhancing skills across various stages of the agricultural value chains.
  • Providing vocational and business development training to boost productivity and sustainability.
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Development Objective

Facilitate the development of competitive and diversified agriculture value chains for selected commodities in targeted provinces.

Component 1: Institutional Capacity Building


This component focuses on strengthening institutional capacity at both central and decentralized levels to enhance service delivery in the agriculture sector.

Central Level

Institutions Involved:

  • Department of Agriculture and Livestock (DAL)
  • Commodity boards:
    • Cocoa Board
    • Coffee Industry Corporation
    • Spices Industry Board
    • Kokonas Indastri Koporesen
    • Livestock Development Corporation

Decentralized Level

Provincial and District Capacity Building:

  • Improving the ability to deliver extension, advisory, and veterinary services.
  • Enhancing access to inputs through support for regional DAL offices.

Sub-Components

  • Subcomponent 1.1: Department of Agriculture and Livestock (DAL)
  • Subcomponent 1.2: Commodity Boards (Cocoa Board, Coffee Industry Corporation)

17,696+

Project Beneficiaries

26.98 km

Feeder Road

42

Partnerships

%

Increase in Yield

Component 2: Agriculture Feeder Roads


The objective of this component is to improve the condition of feeder roads, which represent a major bottleneck for farmers’ capacity to access more lucrative value chains.

Key Issues:

  • High levels of poverty in the project area are linked to limited access to markets due to poor infrastructure.
  • Deteriorated feeder roads reduce farm-gate prices, lead to significant product losses, lower product quality, and limit access to economic and social services.
  • Poor transport infrastructure is associated with higher law-and-order issues and weakens connections between farmers and the private sector.

Benefits of Improving Feeder Roads:

  • Better access to markets for farmers by reducing transport time and cost.
  • Improved product quality during transportation.
  • Enhanced opportunities for economic growth and social services within communities.
  • Strengthened linkages between farmers and the private sector.

When combined with the productive investments under Component 3, the feeder roads will create lasting positive impacts for the local communities, driving agricultural growth and improving livelihoods.

6

Feeder Roads

26.98 km

Total Road Length

0+

Feeder Road Beneficiaries

0.00

Total Contract Value

Component 3: Productive Partnerships


The objective of this component is to increase the integration of smallholder producers, Producer Organizations (POs), and Micro, Small, and Medium Enterprises (MSMEs) into high-performing and remunerative value chains.

Subcomponents:

  • Subcomponent 3.1: On Farm and Post-Harvest Productivity, and Formation of Producer Organizations

    • This subcomponent addresses two major constraints: limited aggregation of smallholder produce and low productivity and quality. The project will provide partnership grants to legal entities in the private sector and civil society already engaged with smallholders. These grants will support efforts to increase commodity output, improve farming practices, and enhance post-harvest handling. The focus will be on promoting climate-smart agriculture, rejuvenating farming systems, and facilitating the formation of POs to better manage services such as marketing and processing.

  • Subcomponent 3.2: Aggregation, Value-Addition, and Marketing

    • This subcomponent tackles the lack of knowledge and access to finance among POs and MSMEs, as well as the limited value addition to products. Matching grants will be offered to selected POs and MSMEs to co-finance business plans aimed at increasing their competitiveness. The focus will be on activities such as aggregation, logistics, processing, and marketing, with priority given to investments that support climate change adaptation and benefit smallholder producers. Business skills development, particularly for women entrepreneurs, will also be a key area of support.

42

3.1 Partnerships

0

3.2 Contracts

17696+

Famrers Reached

40,132,367.44

Total Contract Value

Component 4: Project Management and Monitoring & Evaluation


This component will provide technical and operational assistance to support the project management, implementation, monitoring and evaluation (M&E), financial management (FM), environmental and social safeguards, and communications functions of the Project Coordination Unit (PCU) and the two Project Management Units (PMUs).

Key Areas of Support:

  • Training and capacity building for effective project management and implementation.
  • Support for M&E activities to track project progress and outcomes.
  • Management of financial resources, including procurement of goods and services funded by IDA.
  • Compliance with environmental and social safeguard mitigation measures.
  • Provision of consultant staff to ensure efficient project management and successful implementation of PACD.

The component will ensure that the necessary resources and staff are in place throughout the project duration to maintain smooth operations and adherence to IDA requirements, as outlined in the project’s implementation arrangements.