The objective of Component 2 is to increase the integration of smallholder producers in performing and remunerative value chains, by developing and implementing productive partnerships between smallholders and the private sector in the project areas. The PMUs in the CB are responsible for implementing Component 2, with support from a Technical Appraisal Committee (TAC).

Call 3 targets Momase Provinces,(ESP,WSP, Madang and Morobe). Nine (9) Partnership were approved and commencement in July 2016. Five (5) projects are in the Sepik plains (ESP/WSP), Three (3) in Madang Province and One (1) in the Morobe Province.

The Lead Partner and Joint Partners cannot receive PPAP funds for their own businesses or operations – only for costs directly related to implementing the PPAP proposal

The Cocoa Board and Cocoa and Coconut Institute cannot be Lead Partners due to potential Conflict of Interest, farming household may participate in only one PPAP project.

The Cocoa PMU will screen partnerships for eligibility. The farming group should ensure that the Lead Partner that they choose is fully eligible otherwise their proposal will be rejected.

Lead Partner eligibility: a Lead Partner MUST BE:

  1. a registered legal entity (registered as a company, association or cooperative society with the PNG IPA or Cooperative Societies of PNG for at least the last two years – a business name registration alone is not sufficient)
  2. able to demonstrate reliability – have good financial accounts for at least the last two years (clean audit opinion in recent accounts, no defaults, respected reputation)
  3. Experienced in the sector and have experience in doing similar work with smallholder cocoa or coffee farmers.

Farmer eligibility: farmers MUST BE:

  1. Smallholder farmers, defined as those with less than 5 hectares of cocoa per household or less than 5 hectares of coffee per household.
  2. The farmers must be organized into an identified group

In the second stage, each partnership prepares a detailed business plan and implementation plan, with details of all the activities that they will implement and when, what they will cost and the information that will be collected to monitor progress. A TAC comprising four experts has been established by the PPAP to appraise the stage 2 plans.

The TAC makes recommendations to the ICC; the ICC also screens the proposals and recommends to the PPAP which partnerships should receive funding in a ranked list. The PMU draws up a partnership agreement or contract for the successful partnerships to sign.

Component 2 is a competitive grant scheme with limited funding. There is not enough money to fund every eligible proposal received by the Cocoa and Coffee PMUs. Only the best proposals received, based on the Call Guidelines supplied, will be successful.

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