Papua New Guinea: Smallholder Support Services Pilot Project
This performance evaluation report assesses the performance and impact of the project and generates a series of findings, lessons and recommendations to contribute in the future design and implementation of similar ADB projects.
Agriculture in Papua New Guinea is the main source of household livelihood and income for 70% of the population. The country exports cocoa, coffee, coconut rubber, and oil palm, and has an active domestic market for other agricultural products. Most of the export crops are grown in smallholder plots but with increasing focus on outgrower schemes and cooperative farmer production and marketing. The pilot project was designed to test the viability of increasing private sector approaches to technical assistance support for smallholder agriculture in Papua New Guinea. The pilot project became effective on 21 December 1999 and closed on 30 April 2009. The estimated project cost was $11.49 million, including a $7.6 million ADB loan from ordinary capital resources.
Overall, the project is rated successful. It was assessed as being relevant, effective, and efficient. It was also rated likely sustainable and led to moderate institutional development and other impacts. The performance of ADB and the borrower was rated satisfactory. The government planned to replicate the pilot project approach through its National Agriculture Development Plan, 2006-2011 but the evaluation found that the resources allocated were diverted for other priorities. Nevertheless, within the scope of the pilot project and with the adoption of pilot project approaches in other projects, the project has been rated sustainable.
Important lessons were also generated regarding private sector contracting by the government; local planning in decentralization; and the value of combined product, financial, and life skills packages. More could have been done to capture the learning from the pilot activities and extend them nationwide. The government may wish to consider whether to take a strategic approach to private sector involvement in agriculture through adopting the approach of the pilot project in all provinces and districts, or whether the lessons learned will remain within the pilot provinces.
- Design and Implementation
- Performance Assessment
- Other Assessments
- Issues, Lessons and Follow-up Actions