SmallHolder Agriculture Development Project

Tok Pisin Version

Project Objectives

This will be achieved by:

  1. Increasing smallholder oil palm sector productivity through capitalising on existing infrastructure and developing sustainable funding mechanisms;
  2. Promoting sustainable local governance and community participation mechanisms;
  3. Addressing underlying environmental, social and land tenure issues which impact upon smallholder productivity.

Project Scope

The Project comprises three components which will be implemented over a five-year period in the West New Britain (Hoskins and Bialla schemes) and Oro Provinces (Oro scheme).

Component 1: Smallholder Productivity Enhancement

This component will support:

  1. Planting additional oil palm blocks, each 2 ha in extent (up to 9,000 ha) along existing provincial access roads through in-filling on land still available within the areas covered by oil palm infrastructure in response to smallholder demand;
  2. The upgrading (reconstruction) of provincial access roads to existing smallholder oil palm blocks (about 550 km), and maintaining all existing and upgraded roads used for Fresh Fruit Bunch (FFB) collection, with the establishment of sustainable financing mechanisms for road maintenance. In addition, 105 km of road accessing existing oil palm blocks will be constructed or reconstructed (these roads were left over from the previous World Bank and PNGIF projects);
  3. Enhancement of smallholder productivity through improved extension services.

Component 2: Local Governance and Community Participation

The objective of this component is to develop and demonstrate sustainable mechanisms for community participation into local development, through the provision of grants to community groups in the Project areas and promoting participatory planning and local accountability at local government and community level.

This component will promote self-reliant local development through:

  1. Community mobilisation, facilitated by local facilitators;
  2. Identification and prioritisation of activities that would provide suitable solutions to local development constraints, through transparent processes at ward or community level;
  3. Participatory planning and budgeting at LLG level;
  4. Provision of small grant funding, with transparent conditions to ensure accountability and effective use of funds by recipient communities;
  5. Design and implementation of planned activities by the communities themselves, with support from district and LLG's, local CBO's, NGOs and service providers;
  6. Capacity-development of CBO's, ward development committees, LLG's and province/district administration.

Component 2 activities will be carried out in two phases. Two LLG's will be selected for Phase One in the Talasea District (WNB) and three LLG's in the Oro Province. During Phase Two all LLG's in the Talasea District and all LLG's in the Oro province will be included.

Component 3: Project Management and Institutional Support

OPIC will take overall responsibility for Project management, coordination and performance of the Project components. Component 1 implementation will be undertaken through OPIC and its field offices with the support of the milling companies and PNGOPRA. Component 2 implementation will be managed by a management agency contracted out by OPIC to: i) set up Local Coordination Teams (LCT) at provincial level; ii) select and contract consultants and service providers to carry out all capacity building activities; iii) carry out M&E activities; and iv) assist OPIC in management and transfer of the grants themselves, and manage the grant accounts at the LLG levels.

Component 3 will strengthen OPIC capacity in improving smallholder productivity through the provision of technical assistance and the establishment of a Monitoring and Evaluation (M&E) system; strengthen OPIC and the institutions involved in assisting rural communities to define their priority needs, and the capacity of service providers to respond to these needs; and through OPIC provide support to and coordinate with existing HIV/AIDS awareness/prevention campaigns in the Project area. The project will also coordinate and provide funding for a review of the FFB Price Formula.

Environmental monitoring will also be supported in close coordination with the Department of Environment and Conservation (DEC). Finally, to ensure a strong community ownership and participation, special attention will be given to incorporate gender-balanced activities in the various Project components as well as consultation mechanisms for various indigenous groups.