K65mil projects launched

By ZACHERY PER - The National

PRIME Minister James Marape launched several development projects worth over K65 million in Goroka on Friday.
The main projects include the Nokondi civil works, Rumbia coffee export, Goroka agro project, Eastern Highlands rice and juncao mushroom under the JUNCAO Technology and other road plans in the province.
Marape said Eastern Highlands was blessed with the perfect climate for garden crops and coffee that the Government is promoting agriculture as one of its top priorities.
“We have millions of people around the world needing food every day, we want to make PNG become an agriculture country to export food crops to countries like China where they have huge population to feed,” he said.
Marape acknowledged Eastern Highlands Governor Peter Numu’s initiative to grow the economy through agro-projects that is in line with the Government’s vision to grow the economy and make Papua New Guineans become industrious citizens.
He said the Government has made available K200 million in the 2020 budget to be parked in the Bank of South Pacific, Kina Bank and National Development Bank to facilitate low cost borrowings.

Go to this link for more: https://www.thenational.com.pg/k65mil-projects-launched/

K340 million EU grant to benefit East, West Sepik farmers

By CLARISSA MOI - The National

THE rural farmers of East and West Sepik will benefit from a K340 million (€85 million) support grant from the European Union for agriculture development in the area.
Prime Minister James Marape, while acknowledging the European Union (EU) for the support during the launch of the grant to the greater Sepik region programme in Wewak yesterday, said this would extend to other parts of the country.
“The K340 million to the country is not easy and I thank the EU ambassador, Ioannis Giokrakis Argyropoulus, and (his) staff for working very hard to ensure we received this grant,” he said.
“This is the first of its kind and it’s coming into the East and West Sepik and will extend to Madang, Morobe, Western and other parts of the country – places where agriculture can grow well.”
The prime minister said cocoa production would benefit from the grant and vanilla, coffee, copra, palm oil, livestock and the rest of the agriculture sector would follow.
He acknowledged the former O’Neill-government for the input in securing the grant.
Argyropoulus said it was an investment for the benefit of all the people of PNG.
He said the grant was money from 500 million citizens of Europe and was one of the largest and biggest investments not only in PNG but the Pacific region.
Opposition Leader and Aitape-Lumi MP Patrick Pruaitch said the EU’s recognition of the agriculture potential of the Sepik region was a strategic helping hand.
“The agriculture sector has been and will continue to be the backbone of our developing economy and our society as it accounts for up to 40 per cent of gross domestic products (GDP),” he said.
“The resource sector driven primarily by mining and petroleum, currently brings in a greater portion of our export earnings but can we agree that agriculture is still and will continue to be the main source of employment, disposable income and livelihoods for most of our people.”
Pruaitch thanked the EU for the generous and timely support to the people of Sepik and the country.
East Sepik Governor Allan Bird also acknowledged EU’s support and asked the people of Sepik region to work towards ensuring the programme bore fruit.

Go to this link for more: https://www.thenational.com.pg/k340mil-eu-grant-to-benefit-east-west-sepik-farmers/

Looking beyond PPAP with new K140mil initiative

Posted on The National

A NEW US$40 million (K140 million) World Bank funding project – PNG Agriculture Commercialisation Project (PACD) – is mooted to replace the PPAP that is ending on Dec 31.
According to a PPAP report, the Government has requested the World Bank for continued support in the agriculture sector in January 2016.
The World Bank has followed up the request with pre-identification missions in 2017 and early 2018.
During the technical missions and discussions, it was also agreed that the project should continue to support coffee and cocoa, with more emphasis on supporting farmers’ cooperatives, consolidating volumes aimed for direct export backed by consistent production and supply.
This will strengthen the sustainability of the service delivery model and the industry.
It was also agreed that the new project should consider additional value chains of small livestock (chicken and pigs), coconut and spices so as to integrate smallholder farmers into effective supply/value-chains and linking them to markets, a Government priority.
The development objective of this new project is to facilitate the development of competitive and diversified value chains in targeted provinces of PNG.
The interventions to strengthen value chains are as follows:

• COFFEE and cocoa will continue to focus on productivity related activities for new partnership projects. The PPAP partnerships will be upgraded to focus on exporting to specialty markets, hence priority to be given to supply of processing equipment to enable consolidation of volumes and marketing;
• SMALL livestock – the value chain study identified activities related to feed production, chicken hatcheries and slaughterhouses as areas of support;
• SPICES – supply of agriculture materials to increase production;
• COCONUT – 50% of the trees are too old and an extensive replanting programme is needed. Demand for high value coconut products (virgin coconut oil, soap and body lotions) has been identified; and
• PACD to be implemented in 12 provinces: Eastern Highlands, Chimbu, Western Highlands, Jiwaka, Enga and Southern Highlands (where 90% of PNG coffee is produced and exported), East New Britain, West New Britain, New Ireland, Bougainville, Morobe and Madang (where cocoa is produced and exported). Spices, coconut and small livestock will be introduced as a diversification to coffee and cocoa as a farming system.

The key criteria for the selection of provinces include:

• LINK to ‘economic corridors; as defined in the MTDP (Medium Term Development Plan) III;
• SUCCESSFUL implementation of PPAP activities now need to be consolidated industry-wide to develop critical mass;
• COFFEE Industry Corporation (CIC) and Cocoa Board (CB)’s as successful imlementing agencies under PPAP; and
• STRONG interest by the private sector and smallholder farmers in the provinces.

Based on PPAP costing experience, it is envisaged that there will be a financing gap of between US$2 and US$5 million (K6.8 million and K16.9 million).
The current implementation structure of PPAP will be maintained.
A project coordination unit is to be set up for PNG Agriculture and Diversification Projects’ programme of activities, including cross-cutting issues, and two project management units, hosted by the CIC and CB, for implementation activities.
Department of Agriculture and Livestock will provide oversight while the regional DAL offices will be tasked to support the implementation of activities related to spices and small livestock.
Memorandums-of-agreement will be signed between commodity boards for implementation of certain activities, where required.

Go to this link for more: https://www.thenational.com.pg/looking-beyond-ppap-with-new-k140mil-initiative/

K318 mil PPAP to be completed by Dec 31

Posted by The National

The US$94 million (K318 million) World Bank Productive in Agriculture Project (PPAP) Phase I and II project is scheduled for completion on Dec 31 this year. 
The National’s Senior Writer MALUM NALU spent three days (July 11 to 13) in the bush to check how the project has impacted the lives of coffee communities.

The PPAP was approved on April 29, 2010, and signed on Aug 9, 2010, i.e about nine years ago.
The PPAP’s K318 million total loan financing for Phase I (US$39 million/K132 million) and II (US$55 million/K186 million) project is scheduled for completion end of this year.
The project development is targeted to improve the livelihoods of smallholder cocoa and coffee producers by implementing:
INDUSTRY coordination and policy development programmes and policies;
PRODUCTIVE partnerships; and
MARKET access.
The coffee-producing provinces currently benefitting from PPAP are Eastern Highlands, Chimbu, Jiwaka, Western Highlands, Enga, Southern Highlands, Morobe, Madang, East Sepik and East New Britain.

Left: Stephanie Wambi

Wambi … more farmers want to participate in PPAP but they are turned down due to limited funds
PPAP Coffee Partnership Project Coordinator for Southern Highlands Stephanie Wambi says coffee growing has taken off extensively in the province.
Wambi, 27, an agriculture graduate of the University of Technology, said: “The project was launched in December 2016 when I got involved as a fresh graduate.
“The project covers three districts – Kagua-Erave, Nipa-Kutubu and Imbonggu. Each of the districts have three registered cooperatives.
“We have 810 registered farmers, 729 of whom are men, and 81 women.”
Wambi said the project supplied pulper machines, fertilisers, farming tools and services such as training in the various aspects of coffee growing.
“Seven nursery sites had already been set up in Nipa-Kutubu (four) and Imbonggu (three), with each having a capacity of 20,000 seedlings.
“We have a target of 216,000 seedlings but some did not grow well,” she added.
“We have, to date, produced 165,000 seedlings, 119,000 have been distributed to farmers.
“We are short of coffee seedlings, so sourced some 18,000 seedlings from Mt Hagen for distribution to farmers,” Wambi said.
She said one of the project’s main challenge was transportation, given that “we cover three districts, over a wide terrain”.
“More farmers want to participate in the project but we have to turn them down due to limited funds. That is another problem,” she added.
PPAP manager Potaisa Hombunaka says the coffee industry needs improved road network to grow.
“That is why we are building Works Department-standard roads in coffee-growing areas,” he said during a visit to the Avi Block in the Waghi Valley of Jiwaka, a prominent coffee-growing area.
“Coffee production had declined in the valley because of poor road access. We don’t only talk about coffee rehabilitation. Market access is key to growth and sustainability.
“Without market access, there’s no point for coffee rehabilitation,” he added.
Hombunaka said PPAP was a proven World Bank model in other countries using an integrated approach to agriculture development.
“If we really want to add value to agriculture in this country, we have to overcome market access, which is the biggest obstacle.
“If you ask a farmer what is their No. 1 need, they will tell you they want to wake up tomorrow, and drive a two-wheel vehicle from where they are to town and back.
“They are saying, ‘build us a road and forget about us’. That’s what the farmer badly wants,” he added.
PPAP lead partner in Southern Highlands’ Pangia Daniel Piopo says the coffee industry is growing significantly many programmes being implemented.
Piopo’s company, Kori Coffee, comes under the PPAP programme and “it is looking after 660 farmers”.
“I want to call on the Government, on behalf of my farmers, to consolidate the PPAP project as it touches the little people in the villages.
“Coffee in Southern Highlands was dead and neglected until the World Bank, through PPAP, intervened.,” he added.
Farmer Wanpis Wapoka of Weriko Village in South Wiru said the PPAP had indeed been a game changer in Pangia.
“My coffee garden was covered in bush, with wild animals roaming around, until Piopo taught me how to look after my garden, budget my finances and other matters.
“He supplied me with everything that was need for the garden. I have three coffee gardens and they are now all growing very well. I now have regular income and have even helped to build a church with my coffee money.
“I am also able to pay the school fees for my children. My life has turned for the better,” Wapoka said.

Go to this link for more: https://www.thenational.com.pg/k318-mil-ppap-to-be-completed-by-dec-31/

Oct launch for K2 bil agri-industrial park

Posted by The National

Agriculture and Livestock Minister John Simon met with China Railway International (CRI) and Chinese Embassy officials on the ambitious US$600 million (K2.03 billion) Papua New Guinea-China Integrated Agriculture Industrial Park Project (PNG-CIAIPP) last Thursday. The National’s senior writer MALUM NALU was there to get the updates.

JOHN Simon says development work on the US$600 million (K2.03 billion) PNG-CIAIPP in Eastern Highlands’ Korofeigu and Western Highlands’ Highlands Agriculture Training Institute (HATI) is likely to be launched in October.
He told The National that the proposed project paper would be submitted in September for Prime Minister James Marape’s approval in October. Simon said this after a meeting with China Railway International (CRI) officials, the PNG-CIAIPP investors, in Port Moresby on Thursday.
“It is a private investment project that will benefit Papua New Guineans and the country. It is not a loan, it is not going to cost the PNG Government anything.
“It is a mega investment that the company will commit in PNG. All they want from us is to provide them with land and they can export our agriculture produce.
“We have no problem with that because it will mean reliable and sustainable income for both farmers and PNG,” he added.
Simon said there was huge demand in China for organic agriculture produce which PNG-CIAIPP would process and pack for exports.
“We have engaged National Agriculture Sector Plan 2019-2028 team leader, Valentine Kambori, a former Director-General of National Agriculture Research Institute and Secretary for National Planning and Monitoring, to fast track the project proposal and paper.
“Then I will take to the Cabinet by August or September, so that the agreement can be approved and signed by Marape in October to kick off PNG-CIAIPP,” Simon said.
“We are working according to schedule, and the investors have been told that the project would be limited to State land.
“We will give them State land to set up their offices and godowns for shipping agriculture produce and products to China. My advice to them is to go into a partnership with the local people to help develop Small-Medium Enterprises (SMEs) and micro SMEs.
“They (CRI) have also been told that only 3% of the land in PNG is owned by the State. So, they should go into partnership with local landowners for future operation expansion plans,” he added.
On reviving PNG’s livestock industry, Simon said the first heads of cattle would be brought in from Cairns, Australia, by September.
“We are looking at bringing in more than 20,000 cattle, 5,000 every month. We are also planning to import 10,000 goats and 10,000 sheep as well.
“This is our bid to revive the Agriculture and Livestock Industry, which is now cynically dubbed by critics as ‘Agriculture and Deadstock’.
“After September, we should have enough livestock to distribute to budding entrepreneurs to get the livestock industry kicking and rise to our past heydays.
“Farmers can then start breeding in ranches and in their residential surroundings for meat consumption and sale,” he added.Waii … we are here to create wealth for the people of PNG
PNG-CIAIPP team leader Brian “Mushroom” Waii says the Government, through Simon, wants the project to begin as soon as possible.
“A directive, in no uncertain terms (from Simon), was that this project must be expedited,” Waii said.
“This includes getting the National Executive Council (NEC) approval, then we will progress immediately to the next stage, that is mobilising development operations.
“It is also heartening to note that Simon, and the Department of Agriculture and Livestock (DAL) acting secretary Daniel Kombuk, are fast-tracking the proposed project.
“It gives us much confidence that a veteran of agriculture, and a former secretary for National Planning Valentine Kambori and Director-General of National Agriculture Research Institute, Valentine Kambori, are working closely with the minister on the official approval of the project.
“The important thing, moving forward, is to start rolling out the project strategy and implementation in the provinces. There’ll be slight changes from the initial plan, but all in all, the focus of development is still the same,” he said.
“We are here to create wealth for the people of PNG,” he added.
Waii said the delay since November 2017, when the project was initially signed in Port Moresby, did not deter the investor, CRI.
“That shows CRI is genuine in wanting the PNG-CIAIPP to succeed for the benefit of all. CRI is a genuine and determined investor.
“In most cases, when an investor is here to spend its own money to develop an important sector like agriculture, delays would dissuade them.
“They then to pull out and go elsewhere. In this case, CRI has demonstrated its genuineness by remaining committed to the project potential,” he added.

Left: Brian “Mushroom” Waii

Waii said the project could not come at a better time, especially with the formation of a new Government, and the focus of Marape on agriculture to drive the economy.
“The way forward is that as soon as NEC gives the approval, we can start construction work on the parks, and also subsidiary parks nationwide.
“The subsidiary parks will be located in areas with high value crops. CRI is prepared to stay here for the long haul, whether it be for 99 years or 1,000 years.
“This is not like any civil construction work, where the contractor leaves after completion of the project. This is a long-term agriculture project.
“We will now work closely with the DAL and technical adviser Kambori to expedite the project, and complete the NEC submission and required protocol.
“We hope that the government will provide suitable land and policy environment for us. We will provide all the technical expertise, all the planning and design, and most importantly, the financing,” he added.

Go to this link for more: https://www.thenational.com.pg/oct-launch-for-k2-bil-agri-industrial-park/

The bumpy road to realise multi-billion-kina agri park project

Posted by The National

THE K2.03 billion PNG-CIAIP project Memorandum-of-Agreement (MoA) was signed on Nov 20, 2017.
It was initially estimated to cost K1.1 billion but the delay in launching the project has resulted in rising costs.
The projects in Western and Eastern Highlands are part of a massive US$4.46 billion (K15 billion) worth of impact projects to be funded by China.
The three projects are the US$4.1 billion (K13.8 billion) High Priority Economic Road Project, PNG-CIAIPP projects in Western and Eastern Highlands, and US$32 million (K108 million) Goroka Town Water Supply Upgrade Project.
“In 1997, then Agriculture Minister Tukape Masani launched what was known as the Juncao Mushroom Project in Lufa. The project grew and Lufa mushrooms were very popular in shops and markets.
“However, the project was short-lived due to various reasons (including politics),” said PNG-CIAIPP team leader Brian “Mushroom” Waii who spearheaded the Juncao Mushroom Project.
Waii recalled: “In 1995, I was accepted to study in the Fujian Agriculture and Forestry University, and at that time Chinese President Xi Jinping was Governor of Fujian province.
“I happened to be was one of the first students to take on mushroomology. At the graduation, we made a commitment to industrialise and popularise this technology all over the world.
“I negotiated for this project to be transferred to Eastern Highlands and in 1997, we got it implemented. The project ran well, with Chinese experts coming in, and we had full budget support from the late Mathias Karani (former Lufa MP) and then Governor Peti Lafanama.
“We opened up markets in Port Moresby, with high-profile clients including the late Sir Brian Bell and former Governor-General Sir Paulias Matane, and we were doing well until some political changes forced the project closure,” he added.
Waii said when former Eastern Highlands Governor Julie Soso was elected in 2012, she tried to initiate discussions on the project, but failed.
“I then had talks with the Chinese Embassy in Port Moresby, as well as Fujian province, and the consensus was that the project should be resurrected on a commercial basis.
“We were looking for a commercial vehicle and CRI was already in PNG. So, we went into agreement and had further discussions with Eastern and Western Highlands provincial governments, as well as the DAL.
“The agreement was signed and the project was ready to take off. The initial plan was for Xi to visit Eastern Highlands during the 2018 Asean Pacific Economic Cooperation (Apec) Summit and endorse the project but this was delayed again by unforeseen circumstances,” he added.Numu … timing right for agri parks
One of the main reasons for Eastern Highlands Governor Peter Numu’s joining the Opposition in January was the delay in the PNG-CIAIPP, part of which is to be located in Korofeigu in his province.
He had been waiting, since November 2017, for the project to be launched.

Left: Eastern Highlands Governor Peter Numu

Numu said Eastern Highlands was a province not well endowed with mineral wealth, dependent largely on agriculture and tourism to drive its domestic economy.
“As the Governor, I know that coffee is the future of my people. It will create employment opportunities and help them to become financially independent.
“The Chinese have an established market. All they wanted was just freshly-produced coffee which my people could cultivate and supply abundantly. But since the signing (in November 2017), nothing has happened. We have not even received any coffee derivation grants, functional grants, projects funds and many other funding.
“Water is a big problem, especially in Goroka Town. Under the PNG-CIAIPP, we are thankful to the Chinese government for taking the initiative to set up the water supply project in Goroka.
“This will relieve the provincial government of the burden. It is a big project and we will be looking at good people, with management skills and technical knowhow, to look after the water project,” he said.
Numu said the “timing is right” for the agriculture industrial park as it is in line with one of my provincial government’s priority to raise the level of the agriculture sector.
“The PNG-CIAIPP will no doubt trigger agricultural activities, bringing in more rewards in terms of revenue to farmers,” he added.

Go to this link for more: https://www.thenational.com.pg/the-bumpy-road-to-realise-multi-billion-kina-agri-park-project/