Productive Partnerships in Agriculture Project

The Productive Partnerships in Agriculture Project (PPAP) is the single largest government project implemented with loan financing from the World Bank and International Fund for Agriculture Development (IFAD) and government counterpart funding whilst the European Union provided a grant to support the cocoa component of this project.

The project involved rehabilitation of market access (a number of feeder roads) and partnering with the private sector value chain players to provide extension services to its farmers so as to improve quality and increase production and income. The project also supported the implementing agencies to enhance their capacity in the areas of legislation, policy, planning, finance, audit, MIS, infrastructure and communication. The total project cost was US$101 million (or approximately K303 million) which was expanded over a period of ten years.

The provinces of East New Britain, the Autonomous Region of Bougainville, Morobe, Madang and East Sepik were selected for the Cocoa interventions whilst Eastern Highlands, Western Highlands, Simbu, Jiwaka, Enga and Southern Highlands provinces were selected for Coffee interventions. East Sepik, Madang, Morobe and East New Britain provinces also had a coffee partnership each.

Its development objectives are to improve the livelihoods of smallholder coffee and cocoa producers through the improvement of the performance and the sustainability of value chains in cocoa and coffee producing areas the project would cover.

The key outcomes are improvement in smallholders’ income, scaled-up and sustained productive partnership and addressed key infrastructure bottlenecks in the targeted value chains.


There were three components to the project:

Component 1: Institutional Strengthening and Industry Coordination – to improve the performance of sector institutions and to enhance industry coordination in the coffee and cocoa sectors. Existing stakeholder platforms for industry coordination will be consolidated to address short- and long-term issues such as sector governance, skills development in the industry, improvement in extension services, industry strategy on threats to quality and quality promotion, information within the industry, market development and crop diversification.

Component 2:  Productive Partnerships – to increase the integration of smallholder producers in performing and remunerative value chains, by developing and implementing productive alliances between smallholders and the private sector aiming at improving market linkages in the project areas.

Component 3: Market Access Infrastructure – to improve market access for smallholder cocoa and coffee growers in the areas targeted under the project.

The cocoa component is coordinated through the PNG Cocoa Board while the coffee component by the PNG Coffee Industry Corporation with an overall project management unit at DAL.

The project began implementation in July 2011, with a completion date set for June 2016. With additional financing, the project life has been extended to June 2019.


PNG Agricultural Commercialization and Diversification Project

Building on from PPAP, the next phase of this collaboration will continue on cocoa and coffee as well as livestock, spices and coconuts through what will be called the PNG Agricultural Commercialization and Diversification Project (PACD). This project is aimed at institutional reform and capacity building, crop diversification, climate resilience and supporting farmers to shift from subsistence to semi- commercial or commercial farming.


Below are key documents for PACD in PNG: