THE Coffee Industry Corporation (CIC) is the custodian of all industry rehabilitation efforts being carried out by Productive Partnerships in Agricultural Project (PPAP), explains Project Manager Potaisa Hombunaka.
He says the World Bank (WB) and the International Fund for Agricultural Development (IFAD) are financing the project which is being implemented by a Project Management Unit (PMU) operating under CIC as the regulating agency. 
“It is a World Bank and IFAD funded project through a loan facility provided to the PNG Government, therefore effectively Government of PNG is funding this project.”
“This must be understood because at the end of the day our children and grand-children will pay back this loan.”
Mr Hombunaka clarified this confusion when speaking to PPAP coffee Leader Partners and farmers during the 10th World Bank Implementation Support Mission visit to Goroka and Mt Hagen last month.
This mix-up has given a different connotation to industry partners including farmers.
Mr Hombunaka says the integration of CIC and PPAP was his first effort since taking office as project manager in September 2015 where PMU officers are now wearing CIC uniforms.
“Today there is no CIC and PPAP farmers. That nonsense has stopped. The project is here to serve our coffee farmers.”
Mr Hombunaka urged all partners in the coffee rehabilitation work to put in an honest effort to increase coffee production and quality for farmers to get a better price.
“If we do not perform well, government will get money from other sources to repay the loan and this will be a burden for our children and grandchildren.”
The PPAP is a coffee rehabilitation project of Coffee Industry Corporation (CIC) funded by a loan facility from World Bank IDA (International Development Association) and IFAD (International Fund for Agriculture Development) with counter-funding from GoPNG.


George Nomino, Coordinator of CDA Goroka, a Lead Partner of PPAP (coffee) introducing members of 10th World Bank Implementation Support Mission (L-R) Jonas Bautista (World Bank-Safeguards), Allan Oliver (World Bank) and Dan Vadnjal (IFAD) during a meeting with coffee farmers at his Miruma Village in the Upper Asaro area of Eastern Highlands Province.

Approved for release:

 

 

Potaisa H. Hombunaka (Mr)
Project Manager
PPAP – CIC

THE funding to rehabilitate coffee industry in Papua New Guinea is not “free money” for people to misuse, warns Ian Mopafi, chairman of Industry Coordination Committee (ICC) for Productive Partnerships in Agriculture Project (PPAP).
“Those who have run away, we will come after you. This is not a free handout.”
Mr Mopafi issued these challenging statements in a meeting with potential Lead Partners under Call 4 on Tuesday 26 April at Bird of Paradise Hotel, Goroka. The two-day meeting with 22 potential partners which has been screened from 60 applicants ended Wednesday 27.
Mr Mopafi while welcoming the interested partners also urged them to become genuine stakeholders in the coffee value chain to use the loan funding from World Bank and IFAD (International Fund for Agriculture Development) under improved stringent guidelines.
“You must have the financial manpower and capacity to become a partner to increase coffee production and quality. 
“Some have already been arrested and charged so the onus is on you.
“This is not another free money for people to get like the NADP where so far no persons had been trialled for misuse of these public money,” said Mr Mopafi.
Project Manager Potaisa Hombunaka reiterated the call for transparency and accountability in the use of funds allocated under PPAP.
The new PPAP manager who took office in September 2015 said many lessons have been learned under Call 1 and 2 and PPAP is tightening up the loose ends to ensure effective reporting to measure actual progress of coffee rehabilitation efforts.
“Many nurseries have been set up by Lead Partners but I want to know have the seedlings been actually planted.
“PPAP consultants and CIC officers will actually go out to check.
“In three years’ time our efforts must contribute to increasing export as required by the government. Otherwise I will go to the government and advise them to stop funding this project because our grandchildren will repay this loan,” said Mr Hombunaka.
“Therefore we must be genuine in our desire to help grow the coffee industry by improving farming practices to increase coffee production and quality hence livelihood of our growers.
“If you do not have this thinking and want to use this money for the coming 2017 general election, then you’re in the wrong place. We will not consider you,” said Mr Hombunaka.
A total of 60 applications were received under Call 4. The applicants have been screened to 22 who will be further screened after this meeting. 
One purpose of the meeting is for Lead Partners to become aware of the problems under call 1 and 2 and to improve in their reporting system. The other is for new potential partners to know of the process and procedures in putting together a business plan for consideration towards the final screening stages.
The PPAP is a coffee rehabilitation project of Coffee Industry Corporation (CIC) funded by a loan facility from World Bank IDA (International Development Association) and IFAD (International Fund for Agriculture Development) with counter-funding from GoPNG.

 

Approved for release:

 

Potaisa H. Hombunaka (Mr)
Project Manager
PPAP – CIC

FUNDS provided by the World Bank, IFAD and GoPNG to rehabilitate coffee industry is not for people to misuse and enrich themselves, says Potaisa Hombunaka, Project Manager for Productive Partnerships in Agriculture Project (coffee component).

Mr Hombunaka issued this statement following the arrest of a Lead Partner (named) for World Bank, IFAD and GoPNG funded coffee rehabilitation project. The Lead Partner has been charged by Goroka police for alleged misappropriation of close to K150,000 of public funds intended to help smallholder coffee growers of Goroka District.

The new PPAP Manager who took office in September last year said he is also suspicious about few other Lead Partners who could have also misappropriated funds and investigation will be conducted.

“This is to put on notice our Lead Partners that we must be genuine and honest about our resolve to grow the industry by using the PPAP funds prudently.

“This is not another NADP for people to milk where so far no persons had been trialled and convicted for misuse of the failed NADP funds,” said Mr Hombunaka.

The Lead Partner was formally arrested by police on March 16, 2016 and charged for Misappropriation of Funds under the Criminal Code Act. He appeared before the Goroka District Court on the same day and was remanded at Bihute Correctional Services for further mention and proceedings in criminal court. He is now out on bail.

His arrest and initial court appearance follows a complaint of misappropriation by smallholder growers who were supposed to be recipients of the coffee development funds. The case was reported and registered with the Eastern Highlands Provincial Fraud Unit for alleged misused of public funds allocated to the Lead Partner in 2013 to engage smallholder growers/farmers in coffee rehabilitation activities.

According to police report, the Lead Partner is alleged to have misused K142,000 of K250,000 allocated under the coffee rehabilitation partnership agreement to his firm.

The allegation was that his acquittal report of the funds for the project was not proper and incorrect.

The funds were allocated to his firm under a coffee rehabilitation partnership agreement under first call for proposals to engage some 330 smallholder farmers in Goroka District.

The objective of the partnership is to improve livelihoods of smallholder coffee producers through improved performance and foster sustainability through partnership development.

The Lead Partner was engaged to rehabilitate existing coffee farms to increase production, improve quality for maximum return and develop capacity of smallholder farmers by conducting trainings.

The case is under inquiry in the committal court of law.

The PPAP funding is part of a loan facility from the World Bank and IFAD (International Fund for Agriculture Development) to rehabilitate coffee industry in PNG.

Approved for release:

 

Potaisa H. Hombunaka (Mr)
Project Manager
PPAP – CIC

THE Western Highlands-based CIC substation has been extended and installed with new office furniture, thanks to the Productive Partnerships in Agriculture Project (PPAP).
The Coffee Industry Corporation building located at Panga now has 6 office space with a fully-furnished conference room that can take up to 30 personnel at one time for all kinds of meetings and training sessions. 
The substation was also supplied with 35 chairs, 6 tables and support facilities for an overhead projector for the conference room. 
The extension work cost around K270,000 in total and was funded by the World Bank and IFAD (International Fund for Agriculture Development) loan facility with counter-part funding from GoPNG. A total of K230,000 was spent on extension work carried out by Niugini Builders Ltd and K40,000 was paid to Lae Theodist for supply of office furniture.
Project Manager for PPAP Potaisa Hombunaka said the spending comes under component 1 of PPAP development objective aimed at improving the capacity of CIC to effectively and efficiently service all stakeholders in the coffee value chain including growers and producers.
Another contract for K65,000 was also signed with Keith Builders last week to renovate the old office occupied by the CIC officers. This is financed from GoPNG funding component of the project.
Senior Procurement officer for PPAP Ms Theresa Witi said both contractors were engaged under stringent World Bank procurement guidelines.
Also, the PPAP is in the process of procuring a 30KVA generator for the Western Highlands facility because continuous power outage in the province has been affecting the operations of the officers there. This follows on from a 65KVA generator funded and installed at the CIC head office in Goroka recently.
The acting Chief Executive Officer for CIC Charles Dambui welcome the changes and urges PPAP consultants and CIC staff to use the facilities to serve better the growers and producers in Jiwaka, Western Highlands, Enga and Southern Highlands provinces under PPAP.

The new look conference room at Western Highlands substation which can take up to 30 personnel at one time for any kinds of meeting and training sessions.

Approved for release:

 

Potaisa H. Hombunaka (Mr)
Project Manager
PPAP – CIC

 

A Lead Partner for World Bank, IFAD and GoPNG funded Productive Partnerships in Agriculture Project has been arrested and charged by Goroka police for alleged misappropriation of close to K150,000 of public funds intended to help smallholder coffee growers of Goroka District.

The Lead Partner was formally arrested by police on March 16, 2016 and charged for Misappropriation of Funds under the Criminal Code Act. He appeared before the Goroka District Court on the same day and was remanded at Bihute Correctional Services for further mention and proceedings in criminal court. He is now out on bail.

His arrest and initial court appearance follows a complaint of misappropriation by smallholder growers who were supposed to be recipients of the coffee development funds. The case was reported and registered with the Eastern Highlands Provincial Fraud Unit for alleged misused of public funds allocated to the Lead Partner in 2013 to engage smallholder growers/farmers in coffee rehabilitation activities.

According to police report, the Lead Partner is alleged to have misused K142,000 of K250,000 allocated under the coffee rehabilitation partnership agreement to his firm.

The allegation was that his acquittal report of the funds for the project was not proper and incorrect.

The funds were allocated to his firm under a coffee rehabilitation partnership agreement under first call for proposals to engage some 330 smallholder farmers in Goroka District.

The new PPAP Manager Potaisa Hombunaka who took office in September last year said he is also suspicious about few other Lead Partners who could have also misappropriated funds and investigation will be conducted.

“This is to put on notice our Lead Partners that we must be genuine and honest about our resolve to grow the industry by using the PPAP funds prudently.

“This is not another NADP for people to milk where so far no persons had been trialled and convicted for misuse of the failed NADP funds,” said Mr Hombunaka.

The objective of the partnership is to improve livelihoods of smallholder coffee producers through improved performance and foster sustainability through partnership development.

The Lead Partner was engaged to rehabilitate existing coffee farms to increase production, improve quality for maximum return and develop capacity of smallholder farmers by conducting trainings.

The case is under inquiry in the committal court of law.

The PPAP funding is part of a loan facility from the World Bank IDA (International Development Association) and IFAD (International Fund for Agriculture Development) to rehabilitate coffee industry in PNG.

Approved for release:

Potaisa H. Hombunaka (Mr)
Project Manager
PPAP – CIC