THE Coffee Industry Corporation’s has signed a K5 million partnership agreement with two Lead Partners to service 1700 households in the province.
The deal was signed between CIC’s Productive Partnerships in Agriculture Project (PPAP) and partners, CDA Gumini (K2.9m) and Tribal Aromas Ltd (K2.1m) in Kundiawa on Tuesday 1 November, 2016.
Copartners representing the farmers were also parties to the agreement committing themselves to take part in coffee rehabilitation work which includes improving their rundown coffee gardens, setting up nurseries to raise coffee seedlings and improving post-harvest practices in cluster groups.
The LPs will facilitate farmer training in selected topics like in group management, farm book/record keeping, and carry out HIVAIDS and gender equality training with farmers and their families.
Under the contract deal CIC-PPAP will fund CDA Gumini with K2m and Tribal Aromas Ltd with K1.5m on work schedule basis for a three-year period.
Project Manager Potaisa Hombunaka explained that CIC-PPAP funds 70 percent of the cost while 30 percent is the sweat equity contribution from the farmers.
“It is not a one-off funding as with other projects resulting in abuse and misuse.
He also said the CIC-PPAP funding is allocated on tranches as per agreed work schedule that will be undertaken by the Lead Partners and their farmers until June 2019.
“Do not think I’m coming here with a cheque to give all the money to the Lead Partners. It doesn’t work this way,” said Mr Hombunaka.
Over 500 farmers including traditional dancers witnessed the signing ceremony.
Upper Lower LLG Council President from Kerowagi District and Deputy Governor James Kendeyagl also officiated at the ceremony and welcomed the financiers of the CIC-PPAP project namely World Bank, IFAD (International Fund for Agricultural Development) and PNG Government.
He welcomed the coffee rehabilitation work saying it will boost rural development initiatives already started by the provincial administration.
“Coffee is our lifeline in Simbu. This kind of agriculture initiative with stringent rules in the use of funds will support our Going Rural policy.”
The Deputy Governor referred to the coming 2017 National Elections and urged his people to refrain from free handout mentality.
“Don’t go to Port Moresby or follow intending candidates and politicians for free easy money.
“It shows one thing, you’re are lazy person.
“I urge you to return to your coffee gardens to live a sustainable and honest life,” says Governor Kendeyagl.
Of the two Lead Partners, CDA Gumini is an existing Lead Partner from call 2 proposals who started with an initial 300 households covering 150 hectares. CDA Gumini is one of two NGOs tested to service rural farmers. Their successful implementation has led to upscaling with 1000 households under call 4 covering 500 hectares in the Gumini District.
Tribal Aromas is a new Lead Partner under Call 4. The company will service 700 households covering 350 hectares in the Kup LLG in Kerowagi District. Their farmers operate under three cooperatives namely Bandi, Kumai and Enduga.
The PPAP coffee component is a CIC project through the Department of Agriculture & Livestock financed by a loan facility from World Bank (IDA) and IFAD (International Fund for Agricultural Development) with support from PNG Government.
(L-R) Deputy Governor James Kendeyagl and Project Manager Potaisa Hombunaka being led to the grand stand by traditional dancers.
Approved for release:
Potaisa H. Hombunaka (Mr)
PPAP – CIC