The World Bank Report No: ISR2474 Implementation Status & Results Papua New Guinea Public Disclosure Copy PNG-Smallholder Agriculture Development (P079140) Operation Name: PNG-Smallholder Agriculture Development (P079140) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Last Modified Date: 09-Jun-2011 Country: Papua New Guinea Approval FY: 2008 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Oil Palm Industry Corporation (OPIC) Key Dates Board Approval Date 18-Dec-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 30-Jun-2010 Last Archived ISR Date 28-Jun-2010 Effectiveness Date 28-Jan-2009 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 20-Sep-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed project is to increase, in a sustainable manner, the level of involvement of targeted communities in their local development through increasing oil palm revenue and local participation. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Smallholder Productivity Enhancement 18.90 Local Governance and Community Participation 3.00 Project Management and Institutional Support 5.60 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Unsatisfactory Unsatisfactory Overall Risk Rating Implementation Status Overview Progress toward the development objective is limited, mainly due to a long delay in officially starting the project, followed by difficulty initiating key activities during the first years of implementation. However, performance has improved considerably in recent months, and tangible progress on the ground is expected during the coming year. Preparation is already well underway to begin work on improving access roads in the project area that are critical to increasing production efficiency and providing better access to markets and services for smallholders. Infill planting has not yet commenced. Local governance and participation activities are currently on hold while they are being reevaluated. Page 1 of 5 The World Bank Report No: ISR2474 Results Public Disclosure Copy Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Increase in smallholder income (net, with reduction of transport loss K75.1 million net income (based on None yet K21 million over baseline and with material input costs) from oil palm production 2006 smallholder FFB production) Date Date Date 24-May-2010 31-Dec-2012 Type Unit of Measure 14-Jul-2006 Comment Comment Custom Indicator Text Comment Core activities under the project are only estimated to begin in Q4 of 2011 Indicator Baseline Current End Target Indicator Name Value Value Value Increase in the level of funds and resources invested by local Baseline yet to be established None yet To be determined after baseline communities in their local development results are available Date Date 24-May-2010 24-May-2010 Date Type Unit of Measure Comment Comment 31-Dec-2012 Custom Indicator Text Component is currently on hold Comment Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Decrease in FFB losses due to road related collection problems 16 percent loss None yet 3-7 percent loss Date Date Date Public Disclosure Copy 14-Jul-2006 24-May-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text Road works are yet to commence Page 2 of 5 The World Bank Report No: ISR2474 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Increase in smallholder yields 15.2t/ha None yet 15-19 percent increase Date Date Date 14-Jul-2006 24-May-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text Extension activities under the project are only estimated to begin in Q3 of 2011 Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of people in targeted villages satisfied with their level of Yet to be established None yet To be determined after baseline participation in local decision making processes at ward/LLG level results are available Date Date 31-Mar-2009 24-May-2010 Date Type Unit of Measure Comment Comment 31-Mar-2012 Custom Indicator Text A baseline was undertaken for Comment component 2, completed in Nov 2009. The quality of the survey was poor and no quantitative data were collected on this indicator. The study reported that "None of the interviewed households indicated to have had any contact with local government and have no knowledge of existing or future plans and programs for their community." Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of sub-projects commenced, successfully completed and No sub-projects None yet 90 sub-projects maintained Date Date Date 28-Jan-2009 24-May-2011 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text Component 2 is currently on hold Page 3 of 5 The World Bank Report No: ISR2474 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Roads rehabilitated, Rural 0.00 0.00 550.00 Date Date Date 15-Nov-2007 24-May-2011 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Kilometers Road works are yet to commence Upgrading of roads serving oil palm catchment areas. Data on Financial Performance (as of 09-Sep-2010) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P079140 IDA-43740 Effective 18-Dec-2007 09-Jul-2008 28-Jan-2009 31-Dec-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P079140 IDA-43740 Effective XDR 17.70 17.70 0.00 0.67 17.03 4.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Page 4 of 5 The World Bank Report No: ISR2474 The Bank and the government of Papua New Guinea have agreed on the general outline of a restructuring proposal and possible project extension, which will be defined in more detail during a restructuring mission planned for September/October 2011. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects Public Disclosure Copy Page 5 of 5