The World Bank Report No: ISR12858 Implementation Status & Results Papua New Guinea PNG-Smallholder Agriculture Development (P079140) Public Disclosure Copy Operation Name: PNG-Smallholder Agriculture Development (P079140) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 30-Dec-2013 Country: Papua New Guinea Approval FY: 2008 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): OPIC Key Dates Board Approval Date 18-Dec-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 20-Sep-2010 Last Archived ISR Date 15-May-2013 Effectiveness Date 28-Jan-2009 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 07-Oct-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed project is to increase, in a sustainable manner, the level of involvement of targeted communities in their local development through increasing oil palm revenue and local participation. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Smallholder Productivity Enhancement 28.80 Local Governance and Community Participation 0.00 Project Management and Institutional Support 11.40 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview The Project will only partially meet its development objective by the closing date of December 31, 2013. The scope of the Project was significantly scaled back and the completion date was extended by one year during the restructuring of the Project in June 2012.The restructuring was required as a result of long delays in implementation and limitations surrounding OPIC's capacity to implement the Project. Many of the project targets have been met and exceeded. Smallholder income increased from K75.1 million in July 2006 to K204 million in September 2012, compared to the end Page 1 of 4 The World Bank Report No: ISR12858 target of K96 million. While some of this increase was due to favorable price, the improvement to smallholder incomes was also due to the infill program and improved extension support. Smallholder yields have increased by 25.7 percent, which surpasses the 15 percent target for the project. Hundred percent of the targets for road rehabilitation and upgrades have been met (190 km); however, some of the rehabilitated roads were of a lesser quality (compared to initial design) due to increased rehabilitation costs. While there has been good progress with roads and other works, achievements under the infill planting program fell short of the revised 2,500 ha target, with only a total of 1,140 ha planted (about Public Disclosure Copy 46%). The Road Maintenance Trust Fund study has been completed. Any new road maintenance arrangements emerging from this study is expected to be implemented following the Project completion. The Fresh Fruit Bunch (FFB) Price formula review is underway, with the first report issued in December 2013. The study will continue after the Project closes on December 31, 2013, and OPIC has made arrangements with the Institute of National Affairs (INA) which will ensure quality control over this complex study. Locations Country First Administrative Division Location Planned Actual Pap. New Guinea West New Britain Province West New Britain Province Pap. New Guinea Northern Province Northern Province Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in smallholder income from oil palm Text Value K75.1 million K204 million K96 million production Date 14-Jul-2006 31-Dec-2013 31-Dec-2013 Comments Based on net income, after Smallholder income increased costs. from K75.1 million in July 2006 to K204 million in September 2012, compared to the end target of K96 million. The final target has been exceeded by a substantial margin. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in smallholder yields Text Value 15.2t/ha 19.4 t/ha 15 percent Date 14-Jul-2006 31-Dec-2013 31-Dec-2013 Comments Measures crop delivered to This is an increase of 25.7% mills from mature harvested The final target has been plants . exceeded by a substantial margin. Kilometers of road rehabilitated/upgraded Kilometers Value 0.00 190.00 190.00 Page 2 of 4 The World Bank Report No: ISR12858 Date 14-Jul-2006 12-Dec-2013 31-Dec-2013 Comments All contracts relevant to the roads reconstruction program Public Disclosure Copy are complete. Social and Environmental Audits Completed Text Value The 2nd Environment and 2nd Audit Report Completed Social Audit for SADP has been completed. Date 14-Jul-2006 12-Dec-2013 31-Dec-2013 Comments The report indicates that compliance is moderately satisfactory. Number of growers trained in sustainable Number Value 472.00 2500.00 production practices Date 14-Jul-2006 22-Feb-2013 31-Dec-2013 Comments 472 as of end October 2012. Days of training provided Days Value 0.00 472.00 2500.00 Sub Type Supplemental Data on Financial Performance (as of 02-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P079140 IDA-43740 Effective 18-Dec-2007 09-Jul-2008 28-Jan-2009 31-Dec-2012 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P079140 IDA-43740 Effective XDR 17.70 17.70 0.00 13.88 3.82 78.00 Disbursement Graph Public Disclosure Copy Page 3 of 4 The World Bank Report No: ISR12858 Public Disclosure Copy Key Decisions Regarding Implementation The project is scheduled to be completed on December 31, 2013. An ICR field mission was undertaken in PNG from December 2 - 11, 2013. Restructuring History Level two Approved on 14-Jun-2012 Related Projects There are no related projects. Public Disclosure Copy Page 4 of 4