The World Bank Report No: ISR13752 Implementation Status & Results Papua New Guinea PNG Productive Partnerships in Agriculture (P110959) Public Disclosure Copy Operation Name: PNG Productive Partnerships in Agriculture (P110959) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 20-Apr-2014 Country: Papua New Guinea Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 29-Apr-2010 Original Closing Date 30-Jun-2016 Planned Mid Term Review Date 28-Oct-2013 Last Archived ISR Date 10-Aug-2013 Effectiveness Date 07-Feb-2011 Revised Closing Date 30-Jun-2019 Actual Mid Term Review Date 12-Nov-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve the livelihoods of smallholder cocoa and coffee producers through the improvementofthe performance and the sustainability of value chains in cocoa - and coffee - producing areas. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Institutional Strengthening and Industry Corporation 5.70 Productive Partnerships 9.20 Market Access Infrastructure 10.10 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Implementation Status Overview Progress towards the achievement of the Project's Development Objective remains Satisfactory and the Project is expected to meet its Development Objective by the closing date on June 30, 2016. The overall progress of the project at mid-term is considered Moderately Satisfactory. Despite initial delays in the start-up phase of implementation, significant progress has been made in implementing the PPAP by MTR, particularly in developing partnerships involving smallholders and agribusiness for the provision of market access, technologies and services. More than 18,000 smallholder coffee and cocoa farmers (participating in 25 approved partnerships) have benefited from various activities supported under the Project. The number of farms adopting improved farming practices is estimated at 3,600. This number is expected to increase significantly once all farmers currently engaged in Page 1 of 5 The World Bank Report No: ISR13752 partnerships start making improvements on their farms. The project has achieved a number of outputs, relating to enhancing productivity and quality in the two supply chains. The mission observed emerging signs of improvements in household income, assets, food security, nutrition, and the health and wellbeing of women. /Additional Financing (AF) to the Project, in the amount of US$30 million, has been approved by the Board of Directors on February 28, 2014. The AF would scale-up the impact and Public Disclosure Copy development effectiveness of PPAP through continued support to sustainable improvement in the livelihoods of cocoa and coffee farmers, and the overall improvement of market access and value chain coordination capacities of the country’s cocoa and coffee industries. The AF would contribute to the twin goals of ending extreme poverty and enhancing shared prosperity. Additional specific activities will enhance the poverty and gender focus of the project as well as expand activities in other regions of the country, including in the Bougainville Autonomous Region, an area of the country experiencing fragility in a post-conflict situation. /A Level 1 restructuring has also been approved along with the AF. The restructuring introduced the following changes to the original Project: (i) revision of the Project Development Objective (PDO) to better align it with the scale and coverage of the Project; (ii) revision of the Results Framework to strengthen the links between activities and indicators; (iii) revision to project Component 2 (Productive Partnerships) to explicitly highlight increased support to functional literacy and numeracy as well as to nutrition enhancement activities; and (iv) revision of implementation arrangements through an increased number of field offices commensurate with the increased size of the project. Locations Country First Administrative Division Location Planned Actual Pap. New Guinea Western Highlands Province Western Highlands Province Pap. New Guinea National Capital District Port Moresby Pap. New Guinea Bougainville Bougainville Pap. New Guinea East New Britain Province Kokopo Pap. New Guinea Eastern Highlands Province Goroka Pap. New Guinea East New Britain Province East New Britain Province Pap. New Guinea Eastern Highlands Province Eastern Highlands Province Pap. New Guinea Chimbu Province Chimbu Province Pap. New Guinea East New Britain Province Buka Public Disclosure Copy Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of farms adopting improved farming Number Value 0.00 18000.00 24000.00 practices Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 Comments Page 2 of 5 The World Bank Report No: ISR13752 Number & coverage of partnerships Number Value 0.00 25.00 50.00 implemented and/or scaled-up and likely to be Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 sustained Comments 25 partnerships involving Public Disclosure Copy 17,504 farmers have been approved and are have commenced implementation of project activities. 14 partnerships have been recently approved. Net income of smallholder coffee growers Amount(USD) Value 2000.00 2500.00 2500.00 Date 30-Jun-2012 31-Dec-2013 30-Jun-2016 Comments Net income varies by Target will be set at MTR province. The average net income for coffee growers was K4,900 as per the baseline survey Net income of smallholder cocoa growers Amount(USD) Value 1200.00 1200.00 Date 30-Jun-2012 31-Dec-2013 30-Jun-2016 Comments Net income varies by Target will be set at MTR province. The average net income for cocoa growers in ENB and ARB was K4,900 as per the baseline survey Percentage of export price and quality Percentage Value 70.00 premiums received by famers Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 Comments Not yet established. Export prices are proprietary information, and exporter may not disclose them. This indicator will be dropped under additional financing arrangements. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of hectares of cocoa replanted or Number Value 0.00 1000.00 13000.00 rejuvenated with improved planting material Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 Comments Slow progress is being made Number of hectares of coffee rejuvenated Number Value 0.00 1500.00 10500.00 Page 3 of 5 The World Bank Report No: ISR13752 Date 29-Apr-2010 31-May-2013 30-Jun-2016 Comments Slow progress is being made Cocoa Pod Borer losses are limited to 10 Percentage Value 50.00 10.00 Public Disclosure Copy percent of cocoa in project areas of ENBP and Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 ABR Comments In the future, reduced losses to be measured via yield increases, therefore this indicator will be dropped. Percentage of differentiated coffees exported Percentage Value 5.00 20.00 by PNG by value Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 Comments Export prices are proprietary information, and exporters may not disclose them. Indicator to be dropped under additional financing. Number of Km of roads rehabilitated and Number Value 0.00 0.00 100.00 maintained as per Maintenance Agreements Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 Comments Works are not expected to commence before Q3, 2014 (1) Number of women in farming Number Value 3.00 17.00 40.00 households reporting increased access to, and Date 29-Apr-2010 31-Dec-2013 30-Jun-2016 use of, information on improved farming Comments Baseline survey revealed that There are currently 18,000 practices, processing and marketing only about 3% of women in project beneficiaries, of which cocoa households in ENB and 3,000 are female ARB received any training on cocoa production. Percentage of women in coffee farming Percentage Value 13.00 households reporting increase access to , and Sub Type use of, information on improved farming Supplemental practices, processing and marketing Public Disclosure Copy Data on Financial Performance (as of 17-Mar-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P110959 IDA-47160 Effective 29-Apr-2010 09-Aug-2010 07-Feb-2011 30-Jun-2016 30-Jun-2016 P110959 IDA-54110 Not Effective 28-Feb-2014 30-Jun-2019 30-Jun-2019 Disbursements (in Millions) Page 4 of 5 The World Bank Report No: ISR13752 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P110959 IDA-47160 Effective XDR 16.40 16.40 0.00 4.68 11.72 29.00 P110959 IDA-54110 Not Effective XDR 19.60 19.60 0.00 0.00 19.60 0.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation The next implementation support mission will be in May 2014. The additional financing (AF) in the amount of US$30 million has been approved by the Board of Directors of the Word Bank on February 28, 2014. Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects P146003-ADDITIONAL FINANCING FOR PRODUCTIVE PARTNERSHIPS IN AGRICULTURE Page 5 of 5