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TABLE OF CONTENTS

1 INTRODUCTION 1

2 FOCUS OF PPAP 3

3 ELIGIBILITY CRITERIA AND COST SHARING 4

3.1 Eligible Partners 4

3.2 Cost sharing 4

3.3 Support scales 5

3.4 Eligible activities 5

3.5 Ineligible activities 5

4 ENVIRONMENTAL AND SOCIAL GUIDELINES ON PREPARATION AND SCREENING OF SUBPROJECT PROPOSALS

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5 PROCESS FOR PPAP UPSCALING 7

6 SELECTION CRITERIA 8

7 PARTNERSHIP UPSCALING PLAN COVER PAGE 9

8 STATEMENT FROM THE LEAD PARTNER, JOINT PARTERS AND CO‐PARTNERS 10

9 DESCRIPTION OF PROJECT 13

10 APPENDICES 20

Appendix 1. Partnership Up‐scaling Timeline 20

Appendix 2. Partner Details 21

Appendix 3a. Consultation Meeting Minutes Format 23

Appendix 3b. Partner Agreement Format 24

Appendix 4. Sample Format for Curriculum Vitae 30

Appendix 5a. Guidelines for Environmental and Social Screening 31

Appendix 5b. Proposed Mitigation and Monitoring Measures for Cocoa 39

Appendix 6. Guidelines for an Environmental Plan (EMPs) for sub‐projects under Component 2

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Appendix 7. Procurement Practices to be used by Approved Partnerships 45

Appendix 8. Financial Requirements and Cost Sharing 55

Appendix 9. Draft Partnership Agreement Format 57

Appendix10. Cocoa Component Training Plan and Facilities 135

Appendix11. Code of Conduct for PPAP Personnel and Members of Project Committees

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ACRONYMS

CB Cocoa Board of PNG CFP Call for Proposals CIC Coffee Industry Corporation CPB Cocoa Pod Borer CMF Community/Central Model Farm CV Curriculum Vitae DAL Department of Agriculture and Livestock ESMF Environmental & Social Management Framework ESMP Environmental and Social Management Plan FFS Farmer Field Schools GST Goods and Services Tax HIV Human Immunodeficiency Virus IDA International Development Association IFAD International Fund for Agriculture Development ICC Industry Coordination Committee LLG Local Level Government M&E Monitoring and Evaluation NGO Non‐Government Organization PGK Papua New Guinea Kina PMU Project Management Unit PNG Papua New Guinea PP Project Proposal PPAP Productive Partnerships in Agriculture Project TAC Technical Appraisal Committee TOR Terms of Reference VMF Village/Ward Model Farm

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INTRODUCTION

This document provides guidelines for new partnerships wishing to apply for funding under Up-scaling of Calls 1 and 2 in East New Britain and Autonomous Region of Bougainville. Only Lead Partners managing Partnerships in Calls 1 and 2 are eligible to apply. Partnership Up-scaling is administered by the Project Management Unit of PPAP within the Cocoa Board of PNG, with the support and coordination of the Project Coordination Unit of PPAP within the Department of Agriculture and Livestock. Funding for the Up-scaling is provided by a grant from the European Union and concessionary loans to the PNG Government from the International Development Association (IDA) and the International Fund for Agricultural Development (IFAD). The development objective of the project is:

to improve the livelihoods of smallholder cocoa producers through the improvement of the performance and the sustainability of value chains in cocoa-producing areas.

This would be achieved - through facilitating linkages between smallholder farmers and agribusiness for the provision of technologies and services.

The specific objective of partnership up-scaling is to achieve cost-effective outcomes by significantly increasing the number of smallholder producers participating in performing and remunerative value-chains, by developing and implementing public-private alliances in the project areas.

Project funding would be channelled through partnerships with Lead Partner entities that have demonstrated success in working with smallholders in Calls 1 and 2 of PPAP and are interested in scaling-up these activities. Through the establishment of Partnership Agreements with legal entities in the private and associative sectors, smallholder cocoa and coffee growers would be assisted to improve their productivity, the quality of their products and achieve enhanced sustainability of their cocoa-based farming systems

Key project outcomes are expected to be: • Smallholder farmers adopt efficient, market responsive and sustainable production

practices leading to an improvement in their income; • Demand-driven productive partnerships are scaled-up and sustained.

Proponents of partnership up-scaling need to be very familiar with the requirements that their proposal for up-scaling must satisfy. These guidelines provide sufficient information to help you prepare an application to upscale your existing partnership. You are advised to read these PPAP Application Guidelines to ensure that your application meets all the requirements. You will find here:

• Section 2 provides an overview of the focus of PPAP. • Section 3 covers the eligibility criteria and cost sharing arrangements, defines

eligible partners and activities and show levels of support • Section 4 provides an outline of the environmental considerations that must be

considered for all funded partnership activities • Section 5 describes the stages of consideration of proposals. • Section 6 provides details of the Selection Criteria for Partnerships.

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Please read through Sections 2 to 6 of this document to ensure that you know all the requirements expected by PPAP. Both Lead and Co-partner organisations must agree to the content of the application. The format for the Business and Implementation Plan is set out in these guidelines. You should read these instructions carefully prior to commencing the proposal write-up. An MS Word template will be provided by email for completing the Business and Implementation Plan. The proposal should be limited to eight pages (excluding the cover page, tables and appendices and any other essential attachments), typed in at least a 12 point font. Applications should be prepared and submitted in English; A glossary should be provided at the beginning of the text; Graphs, diagrams and tables should be drawn using black ink, so that they can be photocopied. Photos and other materials that cannot be photocopied should be submitted as a separate appendix; A digital copy of the application must be provided, in addition to the original (hard copy); Pages of the application should be numbered; Failure to follow the instructions may result in a delay in an application being considered; The proposal should consist of: • the Cover Page (Section 7) and • Statement by the Lead Partner, Joint Partner/s and Co-Partners (Section 8),

followed by a Description of the Project as set out in Section 9and the Costs and Scheduling

(Section 3.2 and Annex 3 of Appendix 9 Draft Partnership Agreement Format). Appendices 2, 3a, 3b, 5a and 6 should be completed and submitted as part of the proposal. The Lead Partner shall give prior notice and convene meetings with interested farmer groups and the community in which they live to inform them about the up-scaling call and to determine if they wish to participate in Partnership with the Lead Partner. The meeting records and farmer lists should be sent to the Cocoa PPAP PMU in hard copy (with accompanying soft copy on CD or flash drive) or by email attachment. Give your partnership an appropriate name. A copy of the PPAP Grievance Procedure in both English and Pidgin will be circulated together with these Guidelines.

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FOCUS OF PPAP

Within the cocoa sector, smallholder farmers are faced with several constraints and lack an understanding of the market, thereby limiting their ability to respond to market signals. Generally smallholders have limited impact on prices and are often limited in their performance due to market access problems. With limited or no extension services, smallholder farmers have little access to information, new technologies and improved planting material. Agribusiness enterprises and traders are critical for communicating market demand to producers and establishing value chains that effectively link them to the market. However, building long-term relationships with smallholder farmers involves considerable transaction costs on the part of the agribusiness. These include: identifying producers; reaching them in difficult access areas; establishing farmer groups; obtaining suitable certification and introducing good agricultural practices. The public sector should also play its part in supporting smallholder production capacity, through delivery of better technology transfer and supporting local farmer groups and organizations. Developing relationships along the supply chains by building partnerships between exporter/processors, traders and producers will improve both the productivity and quality of smallholder cocoa production and address serious threats such as the cocoa pod borer. Many such partnerships already exist where processors and exporters have been effectively delivering producer support on a limited basis and so are natural partners to reach producers cost-effectively. Fostering a scaling-up of these market-oriented interventions and developing new partnerships are the means by which PPAP expects to achieve its development objective.

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3 ELIGIBILITY CRITERIA and COST SHARING

3.1 Eligible Partners The requirements for this partnership up-scaling are as follows:

Lead Partners The performance of Lead Partners in implementing existing PPAP partnerships in Calls 1 and 2 will be evaluated by the cocoa PMU and endorsed by Cocoa Industry Coordinating Committee, and this shall be used for ranking and approving the proposals received. Lead Partners in Call 1 and 2 partnerships with any outstanding Ineligible Expenditures will not be considered The Cocoa PMU will invite Lead Partners of Call 1 and 2 Partnerships in East New Britain Province and the Autonomous Region of Bougainville that meet the performance criteria and do not have any outstanding Ineligible Expenditure to apply on behalf of the Up-scaling Partnerships. Lead Partners should respond in writing confirming their interest on behalf of the Up-scaling Partnership. Lead Partners are responsible for carrying out awareness and collecting the names of smallholder farmer names and representatives from organized groups in the areas in which they are operating, as described in Section 5. Joint Partners and Co-Partners The other partners (Joint Partners) and participant farmers (Co-Partners) do not have to be legally registered or incorporated but farmers must be in organized groups with elected representatives.

Eligible activities will generally be restricted to the geographic target areas/communities defined by the Lead Partners through their joint-partner or linked farmer groups. The co-partners will be smallholder cocoa farmers. These are defined as those holding less than 5 ha of cocoa per household. PPAP will not exclude larger farmers when these function as Lead Partners in service delivery such as nucleus estates for technical assistance, provision of improved planting material or processing.

3.2 Cost sharing The PPAP shall provide 70% and the partnership 30% of the total project cost.

Farmers are required to contribute 10% as a Cash Contribution of the cost of Goods supplied to them (e.g. hybrid clones, other planting materials, tools and equipment). Cash contributions MUST be received from farmers within 3 months after project effectiveness. Any farmers who have not paid by then must be promptly informed by the Lead Partner and replaced by farmers who are able and willing to pay. Exceptional cases of extreme poverty can be considered.

The remainder of the partnership contribution can be in cash or ‘in kind’. Co-Partner farmer “sweat equity” contributions may be only for work on their own blocks, not on communal facilities such as model farms, nurseries, budwood gardens and fermentaries– past experiences have shown that sweat equity for communal services rarely works well. The Lead Partner’s in-kind contribution normally would be in the form of office support, senior management and other management costs not specified in the partnership agreement.

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3.3 Support scales: There is no maximum level of project financing per Partnership as the partnership budget shall depend on the number of farmers. An outline list of activities for partnership up-scaling is given in Section 3.2 of Appendix 9.

3.4 Eligible activities The partnerships will implement a standard package of activities that are designed to supply elite supply cocoa clones from commercial nurseries and to provide: specialized training in good farming practices; training of farmers to improve quality and productivity; Post-harvest and processing; training to improve business skills and farm management; capacity building of farmer groups or cooperatives in the skills necessary to operate effectively as associations; Production of improved planting material, where that capacity does not already exist in the partnership area; Diversification of farming systems; innovations, agreed by the partners, that enhance achievement of the objectives of the partnership and the PPAP; innovation activities related to the cocoa farming system selected by the partnership. This could be small scale solar cocoa driers, food crops, alternative cash crops, livestock (such as poultry or goats), cocoa certification, etc. The total innovation activities proposed by the partnership should not normally exceed K100,000.

a) Additional detail of the standard activities is given in the table in Section 3.2 and Annex 3 of Appendix 9.

3.5 Ineligible activities The following is a list of activities which are not eligible for financing from the project:

• Activities focused on large block-holder or plantations, except when they are used as a base to the delivery of extension, processing and marketing services to surrounding smallholders and benefits to smallholders can clearly be established;

• Research activities, except where there is a clear demand from associated smallholders or private partners to directly assist smallholders;

• Subsidy of transportation costs; • Mobile assets such as cell phones, laptops, or motor vehicles. Exceptions may include:

tablets for data collection by extension staffs, motorbikes for extension staffs and long wheelbase trucks for partnership activities such as movement of cocoa clones

• Activities that do not comply with Bank Safeguard Policies: Activities that have a negative social or environmental impact and do not comply with World Bank environmental and social safeguard policies, as described in the project’s Environmental and Social Management Framework (ESMF), (see Section 4 and Appendices 5A, 5B and 6);

• General education activities, apart from the use of schools that serve as a community focal point in target areas for demonstration plots and the like;

• Overhead and management costs of partners which are not directly and exclusively linked to the new activities; and

• Funding of activities through third parties that are not part of the Partnership Agreement or not formally linked with the Lead Partner.

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4 ENVIRONMENTAL and SOCIAL GUIDANCE on Preparation and Screening of Subproject Proposals

The Productive Partnerships in Agriculture Project ( PPAP) will be implemented within the context of the Environment and Social Management Framework (ESMF) so as to ensure that project activities are implemented in such a manner that there are no deleterious environmental or social effects or, if they cannot be avoided, that they are managed and mitigated. A copy of the ESMF for the project is available on the Cocoa Board website, http://www.cocoboard.gov.pg/ppap.html.

This ESMF has been designed so that all investments in the PPAP comply with the Environmental Laws of the Independent State of Papua New Guinea and the Environmental and Social Safeguard Policies of the World Bank. The World Bank Safeguard Policies that are triggered are:

1. Environmental Assessment (OP4.01) 2. Pest Management (OP 4.09) 3. Indigenous Peoples (OP 4.10) 4. Involuntary Resettlement (OP 4.12)

These policies apply to all activities funded under the PPAP irrespective of the source of funding and are explained in greater detail in the ESMF. The World Bank’s official web site http://go.worldbank.org/WTA1ODE7T0lists a complete description of the Bank safeguards and their triggers for applicability. Potential partners should be aware that the Social Safeguards policies include the requirement that there has been Free, Prior, Informed Consultation involving all participants and that there is broad support among them for the partnership and the activities that it will undertake. Evidence of these consultations in the form of records duly signed by representatives of the different groups, will have to be accepted by the Cocoa PMU before the partnership agreement is signed. Consultation meetings should record the date, location, persons present (gender, vulnerable groups), the information provided to participants prior to and during the consultation, issues discussed, any decisions taken and the main local languages used in the consultations. Particular attention shall be paid to the risk of oil palm incursion to PPAP funded farms.

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5 PROCESS FOR PARTNERSHIP UP‐SCALING

The up-scaling is for existing partnerships (Lead Partners) to increase farmer participation in the areas where they are working in calls 1 and 2 in ENBP and ARB for greater project impact and economies of scale. Therefore, partnership eligibility under the Up-scaling financing is restricted to Call 1 and Call 2 Lead Partners who would be invited by the PMU to participate. To ensure objectivity and transparency, the Lead Partners will use the following process to inform communities and enrol farmers:

Promotion and Enrolment of Farmers. The Cocoa PMU will advertise the up-scaling in a national newspaper. Following this, the Lead Partners will advertise community meetings in the targeted area(s), and also in nearby communities (Wards / Village Assemblies) using a format provided by the Cocoa PMU. The advertising should aim to achieve broad community representation at the meetings, including community leaders. In the meetings, community members would be informed about the overall objective of PPAP, the criteria for partnership up-scaling and farmer participation therein, and the package of goods, facilities and training that will be provided to farmers in up-scaling partnerships. It is important that clear information is given on the cash contribution that farmers must pay, equal to 10% of the value of goods provided to them (tools, planting materials such as hybrid cocoa clone seedlings and galip seedlings), and their other obligations under the partnership. The community leaders and members must be asked if they agree to PPAP partnership up-scaling proceeding in their community. If they do not, then the meeting is concluded. If they do agree, then the Lead Partner would invite farmers who wish to participate to provide their names, location, and mobile phone number. The Lead Partner must submit the following information to the Cocoa PMU:

1. When and where the meetings were advertised (notice boards, radio announcements, etc.)

2. Minutes of the meetings using the format in Appendix 3A 3. If the meeting has agreed to partnership up-scaling proceeding in their community,

the signed list of farmers, with their locations and contact mobile number. It is expected that this process will be completed by 28th February 2016. Please contact the Cocoa PMU if you do not expect to have completed all farmer meetings by this date. Eligibility

Partnership eligibility under the up-scaling financing is restricted to all Call 1 and Call 2 Lead Partners, who are invited by the Cocoa PMU to participate.

Confidentiality of information may be a matter of concern to potential partners. The PMU will assure that all information is secured and made available only to the limited staff that is required to review these documents. All PPAP staff and members of the Industry Coordination Committees (ICC) are required to sign and to adhere to a PPAP Code of Conduct, which includes specific requirements for confidentiality. The PPAP Code of Conduct is presented at Appendix 12.

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6 SELECTION CRITERIA

Lead Partner performance in implementing their Call 1 or Call 2 partnership(s) will be considered in deciding whether they will implement up-scaling partnership(s). Partnership performance shall be assessed by the PMU according to implementation targets and achievements as presented in the most recent partnership Quarterly Report. Partnership performance assessment and ranking of partnership performance are presented to and endorsed by the ICC. If the total number of farmers submitted by Lead Partners, and therefore the cost of all partnerships, is more than the available funding, then a selection process will be applied, based on performance in Calls 1 and 2. As a guide, a maximum of approximately one thousand farmers is expected to be available to each partnership deemed to have performed satisfactorily to date in Calls 1 and 2. Those partnerships that have performed very well may be permitted to increase their farmer numbers beyond one thousand depending on funding availability and again will be selected according to the ranked performance list. Consideration shall also be given to increasing farmer numbers in Bougainville beyond the estimated 1,000 target per partnership where opportunities exist due to the issue of limited eligible Lead Partners in Bougainville and hence lower numbers of farmers participating there in Calls 1 and 2 than in ENBP.

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7. PARTNERSHIP UPSCALING PLAN COVER PAGE [This should be filled and attached as the COVER PAGE of your proposal]

Date of submission:

Submission Number (For PPAP use—leave blank)

Title of the partnership proposal

Location of the partnership proposal: province(s), district(s), village(s)

Total duration of the project: Up to 3 years

Proposed Starting Date: the start date should be at least 2 months after the deadline for submission of the project proposal

Proposed Project Completion Date:

Lead Partner (Name and Address)

Joint Partner 1 (Name and Address)



Co‐Partner 1(Group Name and Address)

Co‐Partner 2 (Group Name and Address)

Co‐Partner 3 (Group Name and Address)

Contact details for this partnership: Name and details of the legal representative of the Lead Partner Name

Title/Position

Telephone number:

Fax number:

Email:

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8. STATEMENT OF THE LEAD PARTNER, JOINT PARTNERS AND CO‐PARTNERS (PARTNERS) This project application is submitted by, and has been made with the full agreement of all participating partners that constitute the [insert the partnership name]. All partners involved in implementing an approved partnership Business Plan will be required to sign a Partnership Agreement (see template attached as Appendix 9). All partners submitting this Business Plan should familiarize themselves with the conditions and responsibilities entailed in signing a Grant Agreement with the Project prior to submitting the Business Plan. Information on the Lead Partner, Joint Partners and Co‐Partners should be provided by completingAppendix2in addition to attaching a copy of their registration certificates where applicable. The lead partner and co‐partners’ leaders are responsible for consulting with smallholders that are part of this proposal and ensuring that they have a full understanding of the details of the proposal, their obligations/commitments and that smallholders consent to their involvement as part of this proposal. Consultation with the smallholder farmers should be carried out in the appropriate local language, conducted in a culturally appropriate manner and documented and presented as supporting document (Appendix3a). Include the number of individuals (gender, vulnerable group members) that attended such consultation meetings and indicate the presence of other important members of the communities such as elders, community (e.g. village Councillor) and church leaders (e.g. Priests, Pastors). The lead partner and co‐partners should jointly decide on the requirement for and selection of joint partners. The consensus reached should constitute the Partner Agreement between the lead partner, co‐partner/s and joint partners and be submitted in the format presented in Appendix3b.The lead partner is responsible for coordinating inputs of the co‐partners and joint partners. Farmers may participate in Component 2 of the PPAP as a named individual/head of a household. Farmers can participate and receive benefits in only one Component 2 PPAP partnership project in all Calls. The definition of a household is “an adult male and/or female, wife/partner and all children below 18 years old”. Children or other family members over the age of 18 would be considered as separate entities if they farm cocoa, sell the produce and utilize the majority of the income from it independently of the main household. Farmers strictly may participate in only one Partnership in PPAP. RESPONSIBILITIES: Lead Partner The following person [name of the person] is nominated as the legal representative of the Lead Partner and will be directly responsible for the project implementation, devote necessary time and effort to its effective and efficient implementation, and be the principal contact person for the PPAP PMU.

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Name of Lead Partner: ____________________________________________ Name of Legal Representative of Lead Partner: ___________________________________ Contact Details:_____________________________________________________________ Signature of the legal representative of Lead Partner:_____________________ Date:______________________ Joint Partner1 The following person [name of the person] is nominated as the legal representative of the Joint Partner and will be directly responsible for the provision of specified services, devote necessary time and effort to its effective and efficient delivery, and be the principal contact person for the other partners. Name of Joint Partner: ___________________________________________________ Name of Legal Representative of Joint Partner:________________________________ Contact Details: _________________________________________________________ Signature of the legal representative of Lead Partner:___________________________ Date:______________________ Joint Partner 2 (the same as Joint Partner 1 if required) Co‐Partners The following persons [names of the persons] are nominated as the contact persons of the Co‐Partners and will be directly responsible for the project implementation, devote necessary time and effort to its effective and efficient implementation, and be the principal contact person to liaise with the Lead‐Partner and the other partners. Name of Co‐Partner 1: _______________________________________________________ Name of Representative of Co‐Partner 1: ________________________________________ Contact Details: ____________________________________________________________ Signature of representative of Co‐Partner 1:_____________________

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Date:______________________ Name of Co‐Partner 2: _______________________________________________________ Name of Representative of Co‐Partner 2: ________________________________________ Contact Details: ____________________________________________________________ Signature of the representative of Co‐Partner 2:___________________________________ Date:______________________ Name of Co‐Partner 3: _______________________________________________________ Name of Representative of Co‐Partner 3: ________________________________________ Contact Details: _____________________________________________________________ Signature of the representative of Co‐Partner 3:____________________________________ Date:______________________

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9. DESCRIPTION OF PROJECT [Maximum ‐3pages] The Up‐scaling Partnerships will be based around standard package of activities and goods. The package and unit costs are described in the table in Section 3.2 and Annexes 1, 2 and 3 of Appendix 9. Successful and timely implementation depends on the capacity of the partners and how well they work together. The partnership may wish to propose some eligible innovation activities important to cocoa farming systems in addition to the standard activities. Considerable emphasis shall be placed on the sustainability of the partnership and the essential components of the value chain beyond the lifespan of the project (extension support, planting material availability, processing facilities and cocoa quality, marketing, value chain partnerships, etc.) and this should be clearly articulated in the proposal. A sustainability plan containing this information shall be provided by the partnership to the PMU within 6 months after project effectiveness. 1. Background/Context/Objective This agreement employs a standard set of activities, with the option of some additional innovation activities important to cocoa‐based farming systems nominated by the partnership. Please describe the proposed Innovation Activities, the reasons for them and their objectives.[About 10 lines] 2. Statement of goals and objectives [Objectives should be: specific, measurable, attainable, realistic and time‐bound] [About 5‐8 lines] 3. Management capacity of partners Lead Partner Lead Partners’ capacity to implement partnerships in Call 1 and / or Call 2 has been established. Please confirm that the Lead Partner organization has the management capacity to also engage in this proposed Up‐scaling project in terms of availability of staff in their management structure and resources to provide sufficient supervision and technical support to ensure successful implementation during the PPAP implementation stage and continuity afterwards. The Cocoa PMU will discuss the Lead Partner’s capacity with them and if necessary recommend actions to match capacity to the requirements for implementing the partnership. [About 5‐8 lines] Joint Partner Describe the experience and examples of such experience the joint partner has had in successfully providing services such as the ones proposed in this business plan. Also provide specific details of the capacity of the joint partner in providing the services as proposed in this project in terms of availability of staff in their management structure to ensure successful service delivery as specified in the project implementation plan.

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[About 5 lines for each joint partner] Co‐Partners Qualification, background and experience of the leaders of the co‐partner groups in similar project activities, experience in implementing similar projects, previous experience and results of cooperation with the other co‐partners and the lead‐partner. Also indicate previous involvement with the Lead‐Partner and if not then how was this current partnership arrangement conceived? Provide curriculum vitae/s (CV) of key personnel who will be representing the lead partner, joint partner and the co‐partner group who will be responsible for the purposes of the PPAP using the CV format attached in Appendix4. The Cocoa PMU shall review the CVs of all extension staff and approve their employment before contracts are signed. 4. Farmer Land Occupancy Status Farmers will be required to confirm the occupancy status of the land on which their cocoa farm is located, i.e. whether it is (i) State Lease land to which they hold the title, (ii) State Lease land to which someone else holds the title, or (iii) Customary Land. In the case of (ii), the holder of the State Lease must sign a document stating that they agree to the partnership farmer continuing to occupy the land and using it to cultivate cocoa for at least ten years. In the case of (iii), a Clan Land Use Agreement (CLUA) (Annex 9 of Appendix 9) MUST be completed, stating that the farmer has the right to occupy the land and signed by the recognised leaders of the land‐owning clan. This will be done when the Farmer / Household Database Questionnaire is being completed. If the CLUA cannot be completed and signed, the farmer cannot participate in the partnership. 5. Farmer Declaration All farmers will be required to sign the Farmer Declaration (Annex 10 of Appendix 9) when the Farmer / Household Database Questionnaire is being completed, in which they declare that (i) they have the legal right to farm / grow tree crops on the land that they occupy for a period of at least ten (10) years; (ii) they will continue to manage the cocoa and other plants provided by the PPAP for a minimum period of ten (10) years; and, (iii) they will not sell or otherwise dispose of goods (cocoa clone seedlings, tools, etc.) provided by the PPAP. Farmers who are unable or unwilling to sign this declaration cannot participate in the partnership. 6. Training requirements for “best practice” cocoa management A structured “Learning by Doing’ approach sustained throughout the life of the project is seen to be a key requirement for the training of cocoa farmers in order to successfully manage the debilitating Cocoa Pod Borer pest and re‐vitalise the PNG cocoa industry.

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Training is required that focuses on Model Demonstration Farms using CPB‐tolerant hybrid clones and Cocoa Pod Borer management. Partnership Extension Officers will ensure that the Model Farm (MFs) cocoa blocks are managed to Best Practice standards and to ensure that the right kind of training, mentoring, monitoring and other required support is provided to project farmers. The model farms should include a diversified cocoa block. They will be monitored quarterly. The Partnership Extension Officers will normally live within the partnership community. The cocoa extension staff will be required to undergo a two week Induction course in cocoa Best Practice management at a centre of excellence specified by the cocoa PMU and satisfy the PMU that they are able to provide quality training in a Learning‐by‐Doing approach. The cost of this induction training is included in the project budget. The extension staff will then be in a position to train lead farmers and they both will then train the farmers in clusters at the village level. Farmer reinforcement courses/discussion groups should be held monthly throughout the project duration to embed Best Practice cocoa management. Partnerships should detail the training plan implementation to include the quantity, duration and timing of the formal training and trainer/farmer ratios. Annex 11 of Appendix 9 provides the minimum cocoa training plan requirement for trainers, extension staffs and lead farmers and also lists some specialist courses. The qualifications and experiences of the critical positions of Extension Officers should be provided using the format in Appendix 4 and be supplied to the Cocoa PMU shortly after the Partnership Agreement is signed, or with the shortlist during the procurement process, with the CVs of other key personnel. The above requirements are given in the Quarterly Reporting Format, Table 2b. Your training plan should include all types of capacity building elements listed in the standard activity package. All farmer training and follow‐up contacts with farmers by extension officers and lead farmers must be recorded and reported in quarterly reports. Lead farmers must reside on their own cocoa farm in the partnership location that they will serve, and be willing to maintain their farm as a model of Best Practice Cocoa Management and to use the farm for farmer demonstrations. They will be required to sign an agreement confirming this. The Cocoa PMU will supply a suitable Terms of Reference for Lead Farmers, which will form the basis of the agreement. The Lead farmers will collect data defined in their ToR and provide this to the Extension Officers at least Quarterly in order to receive their allowance. In order to reach as many cocoa farmers as possible, all field‐based demonstrations, for example of Best Practice Cocoa Management, should be open to non‐partnership farmers in the vicinity of the training location. The communities should be informed beforehand of the time and location of the training. The Lead Partner must keep records of participation by partnership and non‐partnership farmers, disaggregated by gender, and report this information in its quarterly reports. 7. Hybrid Cocoa Clone Supply to Partnership Farmers Supply of the high‐yielding, CPB‐tolerant Hybrid Cocoa Clones to partnership farmers is critical to enabling them to restore their livelihoods and is a key component of partnership implementation. Hybrid seedlings are not permitted in this project. It is important that the

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clones are supplied as soon as farmers’ blocks have been prepared and adequate shade established. Accordingly, all clones provided by the project shall be obtained from commercial nurseries and according to the procurement guidelines for “goods”. A nursery and budwood garden may be included in the partnership implementation plan and budget for reason of sustainability beyond the project lifespan but normally only where there are no existing communal nurseries or budwood gardens in the partnership. (All hybrid clone seedlings for planting in farmers’ blocks will be procured from commercial nurseries.) Lead Partners must ensure that partnership extension staffs are physically present to supervise and record all field plantings of hybrid clone seedlings by farmers. They should be supplied and planted as mixtures of at least four clones in either the Large or Small CCI‐designated categories. Extension staff shall keep a record of clones delivered to farm gate and planted. Different clones may differ in productivity depending on local environmental conditions. Partnerships may wish to consider a standard block design and produce a block plan such that clones are planted in identified rows for the farmer. This would assist the farmer identify selections for future cloning and expansion of his/her cocoa farm. Some partnerships, particularly those in remote locations, may be unable to procure the full amount of required cocoa clones at a reasonable cost before the end date of their Agreements. Partnerships that have not procured, committed to procure or established in partnership nurseries all the cocoa clone seedlings in their budget 18 months prior to the end date of the Agreement, they shall utilize all those uncommitted cocoa planting material budgeted funds to procure certified hybrid seeds from CCIL, Tavilo, raise and distribute the seedlings to their farmers. 8. Cocoa Quality Cocoa quality now is a serious issue and the majority of PNG cocoa is not receiving the designated ICCO‐approved 90% premium for fine and flavour cocoa. The main problems are high moisture content, smoke contamination due to fermentary problems and the mixing of under‐ripe beans from CPB infested pods. Very many small fermentaries have leaking kiln pipes and flues and are not licensed by the Cocoa Board. Accordingly, the PPAP will support the construction or renovation of medium‐sized, communally‐owned, centralised fermentaries and their management where this plays an integral part in the sustainability plan of the Co‐partner (farmer) groups. The fermentary design shall be a combined solar/hot air drier, developed and recommended by the CCIL. [If a centralised fermentary is desired by the farmer group then please provide some detail on the number of farmers being serviced by it, GPS location, management, governance and how this will function beyond the project.] 9. Description of the Innovation Activity that will be initiated or scaled‐up under the Partnership [Describe in some detail the Partnership’s Innovation Activities: what they are, how they will be implemented, the number of smallholder farmers that will be involved, the benefits to

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different partners and the number of women smallholder farmers that will benefit and how?[Up to 1 page and complete the relevant section in Annex1 of Appendix 9] 10. Nutrition and Gender These two activities are currently being introduced to the PPAP on agreement between the National Government, World Bank and IFAD. Specialists have been engaged by the PCU to advise on suitable activities. Budget for the activities will be provided to Partnerships as a contract variation once identified. 11. Quarterly Reporting The Lead Partner is responsible for ensuring timely submission of quarterly reports using the format provided by the Cocoa PMU. All information requested in that format must be fully and accurately reported. In addition to implementation progress contributing to outputs, the Lead Partner must ensure that the following information is collected by its extension staff during their farm visits and updated on the database and reported at least every six months (in the 2nd and 4thquarterly reports): cocoa production for each farmer, the condition of cocoa blocks for each farmer, participation in PPAP field trainings and awareness by non‐PPAP farmers by Gender. 12. Social and environmental impacts Briefly summarize both positive and negative social and environmental impacts associated with the proposed partnership activities and outline mitigation measures for any potential negative impacts, as they could occur in your partnership locations. The PMU will provide copies of the PPAP Environmental and Social Management Framework Parts I, II (Integrated Pest Management Plan), and III (Compensation Policy Framework), the Social Mitigation Plan Template for Partnerships, Consultation Framework for Partnerships, Land donation template, and Usufruct Agreement template, to assist partnerships in developing their environmental, social and pest management plans, and drawing up other necessary documentation. Social and environmental screening guidelines provided in Appendices 5a and 5b should be used to screen all activities described in the Project Implementation Plan and participating smallholders should also be considered when undertaking the screening. Appendix5a needs to be completed and submitted with the proposal. Following the social and environmental screening process, an Environmental and Social Management Plan (ESMP) should be developed based on the guidelines provided in Appendix6. Ensure that individual measures are adopted to mitigate adverse impacts and their related costs are included in the table in Section 3.2 and Annex 2 of Appendix 9. [Maximum 1 page] 13. Budget and financing plan The standard budget is in Section 3.2 of Appendix 9. Please use the template provided to provide detail of the budget for transport that will be needed to implement partnership activities.

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You should read and gain a clear understanding of the different procurement practices described in Appendix7. The Cocoa PMU will produce the Procurement Plan Table 6. You should clearly describe any procurement that will be needed for your Innovation Activity. The PMU may assist Partnerships to undertake some procurements where there is potential cost and efficiency savings in doing so.

The financial management requirements of the partnerships and how costs will be shared between the partnerships and PPAP are described in Appendix 8. Partnerships will be paid 15% of the total PPAP contribution as an Advance Payment. Replenishments shall be made according to requests to the Cocoa PMU and should be made normally when 70% of the Advance amount has been spent. The amount specified in the claim must be fully supported by acquittals - tax invoices and receipts, bank statements and reconciliations for the whole period covered by the replenishment claim. Ideally, a replenishment claim should be made at the end of a quarterly reporting period but may be more often if required. There must be no outstanding audits or ineligible expenditures. Evidence must be provided that the goods and services were delivered according to the planned activities.

Implementation of Agreements by partnerships is very variable – some may not utilize all of their funds by the project closure date, 30 June 2019 which is also the closure date of the PPAP. These funds would then be lost to the PPAP. A policy is required by which uncommitted resources at the partnership level can be retrieved if uncommitted twelve (12) months before partnership closing date for use by partnerships performing well. Commitment should be shown in terms of: (i) known management fees until project closure; (ii) committed resources to procurement; and (iii) any other committed resources. 14. Description of cooperation and partnership [Describe in concrete terms the cooperation between the co‐partners, how the partnerships will work together to implement project activities and any contractual arrangements between partners. A management structure/hierarchy set out as an organogram would be beneficial.] [About 10‐15 lines] 15. The relation of the project with other on‐going activities [What have you already done?, who else is working on the issue the project is going to address?, and; how is this proposal different from the work already done/being done by you and/or the others if such a project is or has been carried out?] [About 5‐10 lines] 16. Risks Describe the major risks to successful implementation and completion of the project such as the breakdown in cooperation and trust between the lead partner and target communities, including the environmental and social risks and in such cases what are the proposed mitigation measures by the partnership to address these? Particular attention should be placed on the potential incursion of oil palm in the target area. [Maximum 1/2 page] 17. Sustainability of the project [Maximum 1page]

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Describe each key element of sustainability of the cocoa production and value chain in your partnership and how you will ensure the sustainability of the proposed activities, in technical and financial terms? What will you do in the future after the completion of the project for further development of these activities? Describe how you plan to fund and carry out maintenance of operational infrastructure funded by the project, e.g. cocoa nurseries, fermentaries, etc. after the PPAP funding finishes. A detailed partnership Sustainability Plan is required within 6 months of project effectiveness, as noted earlier.

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10. APPENDICES

Appendix1 PartnershipUp‐scalingTimelineThe table below provides the timeline for Calls 1 and 2 Up-scaling.

Activity Timeline

Promotion: Cocoa PMU conducts awareness on Up-scaling

Minimum of 20 working days (4 weeks)

Cocoa PMU advertises Call for Proposals (Partnership Up-scaling)

Day 1

Lead Partners from Calls 1 and 2 formally advise the Cocoa PMU of their wish to participate in the Up-scaling and advertise and hold community meetings in each targeted area

20 working days (4 weeks)

Partnership proposal prepared and presented to Cocoa PMU

10 working days (2 weeks)

PMU verification Check advertising for community meetings, meeting records and farmer lists; confirm ranked implementation performance of Call 1 and 2 Partnerships; check financial management performance of Call 1 and 2 partnerships (to include any ineligible expenditure); prepare recommendations for ICC consideration .

Up to 10 working days(2 weeks)

ICC consideration of Proposals 5 working days (1 week)

World Bank NOL on draft Agreement Up to 10 working days(2 weeks)

Partnership contractual signatures Up to 10 working days(2 weeks)

Maximum Time from Call for Proposals to Effectiveness

Up to 13 weeks

Subproject Implementation - implementation of project components - monitoring, mentoring and capacity

support - evaluation

Three years from date of Agreement signature but not beyond 30th June 2019

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Appendix 2. Partner Details

Lead Partner ‐ Name of lead organization. ‐ Name and Contact details of the legal representative, responsible to

coordinate links with the PPAP; State current position in lead organization, provide postal and email address, phone and fax numbers.

‐ Name and Contact details of Partnership Coordinator (if different from the contact person). Give name, present position (if currently employed), or indicate if yet to be employed and provide postal and e‐mail address, phone and fax numbers of the person who will be responsible with coordinating activities with other entities in the partnership.

Joint Partner 1

‐ Name of joint partner organization. ‐ Name and contact details of the legal representative, responsible to

coordinate links with the PPAP; State current position in joint partner organization, provide postal and email address, phone and fax numbers.

‐ Provide a capacity statement of the joint partner and list and describe the types of services that will be provided to the smallholder farmers in line with the activities to be implemented in the proposed partnership.

Joint Partner 2

‐ Name of joint partner organization. ‐ Name and contact details of the legal representative, responsible to

coordinate links with the PPAP; State current position in joint partner organization, provide postal and email address, phone and fax numbers.

‐ Provide a capacity statement of the joint partner and list and describe the types of services that will be provided to the smallholder farmers in line with the activities to be implemented in the proposed partnership.

Joint Partner 3 (provide details if required).

Co‐partner 1

‐ Name Group Details:

‐ Names, positions and contact details of their office bearers ‐ CV of who will represent the group for the purpose of the PPAP. ‐ Agreement between members of the group certifying that they have

selected/nominated the spokesperson (Group Leader) for the proposed project.

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‐ Number of registered/participating farmers ‐ Village/geographical area, LLG, District, Province ‐ Other documents that would be required by the PPAP PMU as deemed

appropriate.

Co‐Partner 2 ‐ Name

Group Details: ‐ Names, positions and contact details of their office bearers ‐ CV of who will represent the group for the purpose of the PPAP. ‐ Agreement between members of the group certifying that they have

selected/nominated the spokesperson (Group Leader) for the proposed project.

‐ Number of registered/participating farmers ‐ Village/geographical area, LLG, District, Province ‐ Other documents that would be required by the PPAP PMU as deemed

appropriate.

Co‐Partner 3 (provide details if required)

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Appendix 3a. Consultation Meeting Minutes Format VENUE (Village, Council Ward, LLG): DATE: TOTAL NUMBER OF MEMBERS PRESENT: _______

‐ MALES ______ ‐ FEMALES ______ ‐ OTHERS e.g. Leaders ___________________ (Attach a signed list of attendees showing names, gender and designation (e.g. LLG President, participating farmer, Ward Councillor, etc.)

INITIATOR OF MEETING: Name)____________________ POSITION: __________________________________________ ORGANISATION REPRESENTED: _________________________ POTENTIAL LEAD PARTNER, JOINT PARTNER OR CO‐PARTNER: ____________________________________________________ LANGUAGE SPOKEN; PRINTED INFORMATION DISTRIBUTED: AGENDA ITEMS DISCUSSED: 1. 2. 3. etc., MINUTES OF THE DISCUSSIONS AND CONCLUSIONS REACHED. 1. 2. 3. etc., TIME MEETING ENDED: _____________________ SIGNATURE: _____________________ NAME OF SECRETARY: _____________________

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Appendix 3b. Partner Agreement

AGREEMENT BETWEEN PARTNERS

WANBEL OL POROMAN INSAIT LONG BISNIS I BIN MEKIM NA WOK BUNG WANTAIM NAMEL LONG POROMAN HUSAT I GO PAS NA POROMAN HUSAT I BAI WOK KLOSTU

WANTAIM

[Insert name of Partnership]PARTNERSHIP [Putim nem bilong dispela wok poroman] WOK POROMAN

THIS AGREEMENT (“Agreement”) is entered into this [insert date of agreement] by and between [insert name of Lead Partner] (“the Lead Partner”) having its principal place of business at [insert place of business]

DISPELA WANBEL OL POROMAN INSAIT LONG BISNIS I BIN MEKIM (“Wanbel ol poroman insait long bisnis i bin mekim”) ol poroman i laik wok bung wantaim i tok orait long en long dispela dei [putim dei bilong putim mak long dispela pepa] long na namel long [putim nem bilong poroman husat i go pas] (“Poroman husat I go pas”) nambawan ples bilong wok bilong ol i stap long [putim ples bilong wok]

and / na

[insert name of Co-Partner] (“the Co-Partner”) having its principal office located at [insert Co-Partner’s address].

[Putim nem bilong poroman husat i bai wok klostu wantaim] (“Poroman husat i bai wok klostu wantaim”) nambawan ples bilong wok bilong ol i stap long [putim ples bilong wok bilong poroman husat i bai wok klostu wantaim]

and / na

[insert name of Joint Partner] (“the Joint Partner”) having its principal office located at [insert Joint Partner’s address].

[Putim nem bilong poroman husat i bai wok klostu wantaim] (“Poroman husat i bai wok klostu wantaim”) nambawan ples bilong wok bilong ol i stap long [putim ples bilong wok bilong poroman husat i bai wok klostu wantaim]

[insert paragraphs for other Co-Partners and/or Joint Partners as necessary]

[Putim nem bilong narapela poroman husat i bai wok klostu wantaim (Co-Partner or Joint Partner) nap les bilong wok bilong em].

WHEREAS, the Lead Partner wishes to work in partnership with the Co-Partners and Joint Partners to achieve the outcomes stated in the attached Business Plan and Project Implementation Plan, and

OLSEM Poroman Husat i Go Pas i laik wok bung wantaim Poroman Husat i Bai Wok Klostu Wantaim long kamapim ol mak bilong kaikai ol i makim insait long Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut i stap wantaim dispela wanbel ol poroman insait long bisnis i bin mekim, na

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WHEREAS, the Co-Partner wishes to work in partnership with the Lead Partner and other Co-Partners and Joint Partners to achieve the outcomes stated in the attached Business Plan and Project Implementation Plan,

OLSEM Poroman Husat i Bai Wok Klostu Wantaim i laik wok bung wantaim Poroman Husat i Go Pas na ol narapela Poroman Husat i Bai Wok Klostu Wantaim long kamapim ol mak bilong kaikai ol i makim insait long Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut i stap wantaim dispela wanbel ol poroman insait long bisnis i bin mekim,

WHEREAS, the Joint Partner wishes to work in partnership with the Lead Partner, the Co-Partners and other Partners to achieve the outcomes stated in the attached Business Plan and Project Implementation Plan,

OLSEM Poroman Husat i Bai Wok Klostu Wantaim i laik wok bung wantaim Poroman Husat i Go Pas na ol narapela Poroman Husat i Bai Wok Klostu Wantaim long kamapim ol mak bilong kaikai ol i makim insait long Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut i stap wantaim dispela wanbel ol poroman insait long bisnis i bin mekim,

THE PARTNERS NOW hereby agree as follows:

NAU OL POROMAN i wanbel olsem:

1. The Lead Partner: Poroman husat i go

pas:

(i) Has consulted fully and openly with the Co-Partners in developing the Business Plan and Project Implementation Plan and will continue to consult with them during its implementation;

I bin kivung na toktok tru wantaim Poroman husat i bai wok klostu wantaim long kamapim Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut na bai i wok yet long toksave gut na harim gut tok bilong ol taim ol wok wantaim long kamapim wok long plen;

(ii) Has fully informed the smallholder farmers who are part of this proposal of their obligations and commitments;

I bin tok tru long ol liklik ol fama bisnis husat i stap insait long dispela wok poroman long olgeta samting ol i mas wokim na olgeta samting ol i promis long wokim ananit long Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut;

(iii) Will provide the inputs specified in the Business Plan and Project Implementation Plan as and when specified in the Plan to the best of their ability and will inform the smallholder farmers and other Co-Partners of any variation from the Plan.

Bai i givim olgeta samting Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut i makim long gutpela taim na bai i toksave long ol liklik ol fama bisnis na ol narapela poroman husat i bai wok klostu wantaim sapos i gat senis long plen;

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2. The Co-Partner Poroman husat i bai

wok klostu wantaim

(i) Confirms that all its members have been fully and openly consulted during the preparation of the Business Plan and Project Implementation Plan;

Strongim olsem olgeta memba bilong en i bin kisim gutpela na trupela toksave long taim bilong kamapim Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut;

(ii) Confirms that all its members agree to work with the Lead Partner and other Co-Partners to implement the Business Plan and Project Implementation Plan;

Strongim olsem olgeta memba bilong en i wanbel long wok wantaim Poroman husat i go pas na ol narapela Poroman husat i bai wok klostu wantaim long mekim wok bilong Plen i kamap gut;

(iii) Confirms that all its members fully agree with the contents of the Business Plan and Project Implementation Plan and have committed themselves to making their contributions, and providing the inputs that are their responsibility, as and when specified in the Plan.

Strongim olsem olgeta memba bilong en i wanbel tru wantaim olgeta tok i stap insait long Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut, na olgeta memba i bin givim promis bilong ol long wokim olgeta wok bilong ol na givim olgeta samting ol i mas givim long gutpela olsem i stap long plen;

(iv) Confirms that all its members have been informed of the potential social and environmental impacts of activities proposed in the Partnership’s Business Plan and Project Implementation Plan, associated mitigation and monitoring measures provided in the Partnership’s Environmental Management Plan (EMP), and the respective roles and responsibilities of PPAP partners in adhering to World Bank safeguard policies and PNG requirements.

Strongim olsem olgeta memba bilong en i bin kisim gutpela na trupela toksave long wanem samting ol wok insait long Plen, i gat gutpela o i gat nogut long en long sait bilong sosol o envaironmen, i ken kamapim; wanem samting i stap long Plen bilong Lukautim Envaironmen bilong dispela wanbel ol Poroman insait long bisnis i bin mekim, na wok bilong ol wanwan lain insait long dispela wanbel ol Poroman insait long bisnis i bin mekim long bihainim wol benk sefti polisi na lo bilong PNG.

3. The Joint Partner Poroman husat i bai

wok klostu wantaim

(i) Confirms that it has been fully and openly consulted during the preparation of the Business Plan and Project Implementation Plan;

Strongim olsem em i bin kisim gutpela na trupela toksave long taim bilong kamapim Plen Bilong Bisnis na Plen Bilong

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Mekim Dispela Projek i Kamap na Wok Gut;

(ii) Confirms that it agrees to work with the Lead Partner and all other Co-Partners to implement the Business Plan and Project Implementation Plan;

Strongim olsem em bai i wanbel long wok wantaim olgeta Poroman husat i go pas na ol narapela Poroman husat i bai wok klostu wantaim long mekim wok bilong Plen i kamap gut;

(iii) Confirms that it fully agrees with the contents of the Business Plan and Project Implementation Plan and has committed itself to making its contributions, and providing the inputs that are their responsibility, as and when specified in the Plan.

Strongim olsem em i wanbel tru wantaim olgeta tok i stap insait long Plen Bilong Bisnis na Plen Bilong Mekim Dispela Projek i Kamap na Wok Gut, na olgeta memba i bin givim promis bilong ol long wokim olgeta wok bilong ol na givim olgeta samting ol i mas givim long gutpela olsem i stap long plen;

(iv) Confirms that ithas been informed of the potential social and environmental impacts of activities proposed in the Partnership’s Business Plan and Project Implementation Plan, associated mitigation and monitoring measures provided in the Partnership’s Environmental Management Plan (EMP), and the respective roles and responsibilities of PPAP partners in adhering to World Bank safeguard policies and PNG requirements.

Strongim olsem em i bin kisim gutpela na trupela toksave long wanem samting ol wok insait long Plen, i gat gutpela o i gat nogut long en long sait bilong sosol o envaironmen, i ken kamapim; wanem samting i stap long Plen bilong Lukautim Envaironmen bilong dispela wanbel ol Poroman insait long bisnis i bin mekim, na wok bilong ol wanwan lain insait long dispela wanbel ol Poroman insait long bisnis i bin mekim long bihainim wol benk sefti polisi na lo bilong PNG.

Signed in [insert place where agreement signed] on [insert date] by:

Olgeta mekim kontrak long [putim nem bilong ples we olgeta manmeri putim mak] long [putim de] long:

……………………………………. [Insert name of representative of Lead Partner]

[Putim nem bilong man o meri husat i makim Poroman husat i go pas]

Representative of Lead Partner

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Man o meri husat i makim Poroman husat i go pas

……………………………………. [Insert name of representative of Co-Partner 1]

[Putim nem bilong man o meri husat i makim Poroman husat i bai wok klostu wantaim] Representative of Co-Partner Man o meri husat i makim Poroman husat i bai wok klostu wantaim

……………………………………. [Insert name of representative of Joint Partner 2]

[Putim nem bilong man o meri husat i makim Poroman husat i bai wok klostu wantaim] Representative of Joint Partner Man o meri husat i makim Poroman husat i bai wok klostu wantaim

Name of member of Co-Partner Co-operative, Association, Group

Nem bilong memba bilong Poroman husat i bai wok klostu wantaim, Sosaiti, Assosiasen, Lain

Signature

Han mak

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[The Lead Partner will add rows to the table to accommodate all members of the farmer Co-operative/Association/Group]

[Poroman husat i go pas bai i putim sampela lain gen long tabol, bai em inap long nem nah an mak bilong olgeta memba bilong fama Sosaiti, Assosiasen, Lain

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Appendix 4. Sample format of curriculum vitae of key staff Proposed Position:

Name of Staff:

Profession:

Date of Birth:

Years with Firm/Entity: Nationality:

Detailed Tasks Assigned:

Key Qualifications: [Give an outline of staff member’s experience and training most pertinent to tasks on assignment. Describe degree of responsibility held by staff member on relevant previous assignments and give dates and locations. Use about half a page.]

Education: [Summarize college/university and other specialized education of staff member, giving names of schools, dates attended, and degrees obtained. Use about one quarter of a page.] Employment Record: [Starting with present position, list in reverse order every position held. List all positions held by staff member since graduation, giving dates, names of employing organizations, titles of positions held, and locations of assignments. For experience in last ten years, also give types of activities performed and client references, where appropriate. Use about two pages.] Languages: [For each language indicate proficiency: excellent, good, fair, or poor in speaking, reading, and writing.] Certification: I, the undersigned, certify that to the best of my knowledge and belief, these data correctly describe me, my qualifications, and my experience. Date: [Signature of staff member and authorized representative of the firm] Day/Month/Year Full name of staff member:______________________________________ Full name of authorized representative: ____________________________

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Appendix 5a. Guidelines for Environmental and Social Screening The Screening Process set out below provides a simple mechanism for identifying whether a subproject proposal or an activity poses a risk to:

• the natural environment, its resource values (including its subsistence resources’ values) and / or conservation values; and • the socio‐economic environment, and the social structure, relationships and social values it sustains.

The Screening Process requires simple questions to be answered in relation to each subproject proposal. These questions cover the following areas: • Does the location of the proposed project pose a risk to the environment? • What will the project use or take from the environment and does this pose an environmental risk? • What will the project release or allow to escape into the environment and does this pose an environmental risk? • Is there broad community support for the sub project? • Are there any social risks and how can they be mitigated?

These questions and the appropriate responses to the answers are provided in the table below. Annex 7b provides a list of relevant mitigation measures STEP 1: INITIAL SCREENING FOR PROJECT LOCATION Question: Yes/No If answer is Yes: If answer is No. 1. Will any part of the proposed project or any of its associated activities be

situated in a location where project materials, wastes (including litter), project equipment, project personnel or any domestic animals associated with the project enter or disturb a sensitive environment?

Proceed to, “Initial Screening for Use of Environment”(Step 2)

If the answer is No, then refer to question 2

2. Does the location of the proposed project pose a risk to the environment or to the community? For example, does the proposed project pose a risk to: people’s livelihoods or community social stability? Particular attention should be given to the various groups in the community, e.g. men, women, youth, elderly, clan groups, etc.

Proceed to, “Initial Screening for Use of Environment” (Step 2)

If the answer is No, refer to question 3.

3. What will the project use or take from the environment and does this pose an environmental risk1?


If the answer is No, refer to question 4.

4. What will the project release or allow to escape into the environment and does this pose an environmental risk?


Similarly, if the answer is negative, refer to step 5.

5. Will the project rely on community/village members contributing time and This may require outline in Proceed to, “Initial

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labour to the project? If so, consideration must be given to potential time and labour conflicts that may impact negatively on household subsistence and other economic activities and this should be reflected in the Environmental and Social Management Plan.

detail. Screening for Use of Environment”(Step 2)

6. Will the project/partnership result in increased family labor requirements on the farm and potentially prevent children from attending school?

“Include this issue in the ESMP (Use the Social Mitigation/Management Plan Template for Partnerships). Ensure that Co‐Partner Group adopts and implements a policy of banning members from requiring children to work at the coffee/cocoa garden during school days. The project will not fund Partnerships that result in the hiring of children as wage earner in the farm. Implementation of these measures should be monitored by the Lead Partner.”

Proceed to next item below

7. Does the project require the involuntary taking of land or the resettlement of people for project purposes?

The project cannot be financed under PPAP

8. Does the project require the acquisition of small tracts of land? Go to #8 below. Use the land donation template

9. Have community members/customary landowners offered their land for use? Follow steps outlined in Compensation Policy Framework.

This project cannot be financed by the PPAP

10. Does the establishment of common facilities (or Group owned facilities such as nurseries, demonstration farms, etc.) under the partnership require the destruction of food crops or economic trees on lands not owned by the group?”

Follow steps outlined in Compensation Policy Framework and prepare

Refer to step 10

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compensation Action Plan if there is agreement with asset owners. In most instances, sub‐project beneficiaries would be expected to voluntarily consent to removal of food crops or economic trees on their own land if this is required for them to implement their project activities. This voluntary consent needs to be clearly documented.

11. Will the project/partnership displace or cause destruction of any residential houses, permanent structures and/or community buildings?”?

The project cannot be financed under PPAP

Refer to step 11

12. The project/partnership does not only benefit a particular group (i.e. specific ethnic group, clan, socio‐economic status, etc.) in the community but is open to every smallholder coffee/cocoa growing household in the community?”

Proceed to (Step 2)

Include this issue in the ESMP (Use Social Mitigation/Management Plan Template for Partnerships) and adopt measures to ensure that participation of farmers is not exclusive to a particular ethnic group, members of a clan, or particular socio‐economic class. Ensure that the lead partner, co‐partners etc. do not have or will not adopt any policy limiting membership to a particular ethnic group,

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gender or class during the project implementation

Explanation: Sensitive environments include: • Streams, rivers or other water sources (e.g. natural springs) that are used for water supply; • Wetlands, lakes and ponds; • Shorelines, coastal lagoons and mangroves; • Coral reefs and sea‐grass meadows; • Undisturbed natural forest (forest that has not been cut for fuel or timber or had tracks cut through it, other than footpaths); • Protected areas such as Conservation Areas, Wildlife Management Areas and National Parks; • Sites or natural features of archaeological, historical, traditional or cultural value or importance; • Areas of recognized conservation habitat value (including aquatic and marine habitats). STEP 2: INITIAL SCREENING FOR USE OF THE ENVIRONMENT Question:2a Yes/No If answer is Yes: If answer is No. Will the project use, remove, damage or significantly disturb any materials, plants animals or other resources from the natural environment?

Proceed to 2b, below Proceed to Initial Screening for Releases to Environment (Step 3).

Explanation: This includes: • Taking of water from streams, rivers or other natural water‐bodies; • Damming or diverting streams or rivers; • Removing or using natural vegetation (e.g. harvesting of natural fruits and / or seeds, scrub clearance, timber cutting); Removing and using river stone, gravels or sands for construction purposes Question (2b): Yes/No If answer is Yes: If answer is No. Could the methods and amount of materials / resources used, removed, damaged or disturbed adversely affect to a significant degree: • Water flows downstream (particularly where there is downstream domestic users); • Water quality downstream(particularly where there is downstream domestic users); • Natural vegetation of the area in terms of protection of the soil, the number of

Detailed Environmental Screening is required, or proposal should be modified and resubmitted.

Proceed to Initial Screening for Releases to Environment (Step 3)

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plant species, the range of habitats in the area; • Wildlife (including aquatic and marine species) in terms of the number of species and the size of the species populations in the area; • Stability (and flood protection capacity) of riverbanks and shorelines. STEP 3: INITIAL SCREENING FOR POTENTIAL RELEASES TO THE ENVIRONMENT Question (3a): Yes/No If answer is Yes: If answer is No. Will the project generate any solid or liquid wastes (including storm‐water and wash‐water), litter or noticeable amounts of dust, smoke, gases, odors or noise that could be released or escape into the environment?

Proceed to 3b, below. Proceed to Step 4.

Question (3b): Yes/No If answer is Yes: If answer is No. Does the project proposal describe simple, effective and sustainable measures to contain treat and safely dispose of these wastes, with no risk of damage to or contamination of: • watercourses and other water‐bodies; • water‐table and groundwater; • vegetation; • soils; • subsistence resources, including gardens and traditional hunting / harvesting areas; • and with no risk of damage or disturbance to: people, property and domestic animals; • sites or artifacts of historical, traditional or cultural value.

Proceed to Question 3c, below. Detailed Mitigation measures are required, refer to Table 4b below or proposal should be modified and resubmitted.

Question (3c): Yes/No Has the proponent and the community the technical skills and resources to be able to implement these measures in an effective and sustainable manner?

Question (3d): Yes/No Have realistic costs for implementing these measures been included in the project budget and request for funds?

Proceed to Step 4 Detailed Mitigation measures are required, refer to Tables 4b below or proposal should be modified and resubmitted.

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STEP 4: ENVIRONMENTAL AND SOCIAL SCREENING APPROVAL If the answers to Steps 1, 2, and 3 have led to Step 4 it is highly unlikely that the project poses a risk to the environment or the subsistence resources of an area. Proceed with screening for community support and impact on land use (Step 5) before the proposed project can be granted its environmental and social approval, subject to any other exclusions listed in the Project Implementation Manuals. STEP 5: SCREENING FOR COMMUNITY SUPPORT AND IMPACT ON LAND USE Question Guidance Yes/No Yes No A. Broad Community Support 1. Has the community been consulted on the sub‐project? Specifically have they:

a. Been provided with relevant material? b. Been given information on the nature and impacts of the sub‐project (such as impacts on land use, crops)?

c. Been given an opportunity to provide input to the subproject?

d. Been given an opportunity to accept or reject the subproject?

Compensation Policy Framework Section 3.1, #1 Beneficiaries Participation Framework Consultation Framework for Partnerships

Go to #2 Sub‐project cannot proceed

2. Has community support for the subproject been demonstrated?

Compensation Policy Framework Section 3.1, #4 Beneficiaries Participation Framework and Consultation Framework for Partnerships

Go to # 3 Sub‐project cannot proceed

1. Where community support has been obtained it will be recorded, signed, and filed on site and with the PMU. A. Temporary land use Guidance Yes/No Yes No

1. Will the sub‐project require use of land on a temporary basis?

Go to # 2 No action required

2. Has the land required for temporary use by the sub‐project been voluntarily offered for

Compensation Policy Framework Section 3.1, # 4

Go to # 3 Sub‐project cannot proceed

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use by community members/customary landowners (i.e. no compensation requests have been made)?

3. Are there any outstanding disputes or claims to the land?


Project cannot proceed

Go to # 4

4. Is the land on property that is considered of sacred, religious, or cultural value?


Go to # 5

5. Ensure that any agreements on temporary land use, e.g. clean up, are recorded, signed, and filed on site and with PMU offices. Use the land donation template

c. Permanent land use 1. Will the sub‐project require use of land on a

permanent basis? Go to # 2

2. Has the land required for permanent use by the sub‐project been voluntarily offered for use by community members/customary landowners (i.e. no compensation requests have been made)?


Go to # 3

Sub‐project Cannot proceed

3. Does the Land Investigation Report show that there are disputes or claims to the land?


Sub‐project cannot proceed

Go to # 4

4. Is the land on property that is considered of sacred, religious, or cultural value?


Go to # 5

5. Ensure that agreements on permanent land use, including that no compensation is required or will be paid are recorded, signed, and filed on site and with PMU offices

B. Damage to property and assets 2. Will the sub‐project activities result in Compensation Policy Framework Sub‐project Go to # 2

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damage to housing? Section 3.1, #2 cannot proceed

3. Will the sub‐project activities result in damage to crops and economic trees?

Go to # 3 Continue with preparation

4. In most instances, sub‐project beneficiaries would be expected to voluntarily consent to removal of food crops or economic trees on their own land if this is required for them to implement their project activities as determined by themselves. This voluntary consent needs to be clearly documented. If the activities being implemented result in damage to crops and economic trees of someone other than the sub‐project beneficiary, then their voluntary consent should also be sought and if required, they should be compensated as per a Compensation Action Plan. Refer to the Compensation Policy Framework for guidance on preparing a Compensation Action Plan.

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Appendix 5b. Proposed Monitoring and Mitigation Measures for Cocoa Sub project level impact : Cocoa Proposed Mitigation Measures Nursery establishment, bush clearance; disturbance to habitats; Chemical alteration of ecosystems by application of fertilizer, pesticides or herbicides. Fertilizer/Pesticide/ Herbicides Run off cause changes in the ecosystem and population of organisms.

• Ensure there is minimal clearing of vegetation for nursery sites. All mitigation measures here to be implemented by nursery staff.

• Ensure nurseries are sited away from water ways or creeks. • Have fertilizer and herbicides applied individually with its correct dosage and frequency. • Ensure all fertilizers, pesticides and herbicides are stored in a closed area under a dry roof.

Replacing senescent and/or CPB affected trees. Destroying pest insects’ habitats

•Cutting of old cocoa trees to be heaped in an area where they can dry out and be used as fuel wood. Mitigation measures here by individual block holders.

• Lopping of cocoa trees to be in line with IPDM height recommendation of 3 metres. Waste generated from cocoa pods and sludge, potential impact on the terrestrial environment. Smoke from cocoa dryer onto cocoa beans, detrimental to cocoa quality

• Ensure waste generated from the cocoa “sweating” process is placed back under cocoa trees or in food gardens to allow natural decomposition. No use for this in PNG at the moment, although some have stated it to be used for liquor.

Mitigation measures to be implemented by individual farmers and overseen by PMU. • Ensure kiln and flue pipes are replaced when necessary so that smoke does to taint cocoa beans.

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Appendix 6. Guidelines for an Environmental Management Plan (EMPs) for Subprojects under Component 2

EMP Contents usually are:

• Project Description. • Description of adverse impacts: The anticipated impacts are identified and

summarized. • Description of Mitigation Measures: Each measure is described with reference to the

effects it is intended to deal with. As needed, detailed plans, designs, equipment description, and operating procedures are described.

• Description of monitoring program: Monitoring provides information on the occurrence of impacts. It helps identify how well mitigation measures are working, and where better mitigation may be needed. The monitoring program should identify what information will be collected, how, where and how often. It should also indicate at what level of effect there will be a need for further mitigation. How environmental impacts are monitored is discussed below.

• Responsibilities: The people, groups, or organizations that will carry out the mitigation and monitoring activities are defined, as well as to whom they report and are responsible. There may be a need to train people to carry out these responsibilities, and to provide them with equipment and supplies.

• Implementation Schedule: The timing, frequency and duration of mitigation measures and monitoring are specified in an implementation schedule, and linked to the overall sub project schedule.

• Cost Estimates and Source of Funds: These are specified for the initial sub project investment and for the mitigation and monitoring activities as a sub project is implemented. Funds to implement the EMP will be part of the Partnership budget.

Monitoring methods: Methods for monitoring the implementation of mitigation measures or environmental and social impacts should be as simple as possible, consistent with collecting useful information, so that the sub project implementer/farmer group can apply them. For instance, they could just be regular observations of the sub project activities or sites during construction and then when in use. Are plant/equipment being maintained and damages repaired, does a water source look muddier/cloudier different than it should, if so, why and where is the potential source of contamination. Most observations of inappropriate behavior or adverse impacts should lead to common sense solutions. To aid monitoring, the ESMP should state simple output or outcome indicators, that would be monitored (i) to verify the implementation of the mitigation measures and (ii) to determine whether the mitigation measures are working or not working. For example, these indicators could be: no. of times spraying for pests / weeds control was done, no. of farmers trained in IPM or other methods, average holding times in retention treatment ponds, average dry season flows in streams sourced for water ( e.g. for coffee processing plants), no. of aging trees removed, no. of fertilizer bags etc., etc., One monitoring indicator per mitigation measure would suffice.

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ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN ENVIRONMENTAL MANAGEMENT No ACTIVITIES DESCRIPTION

OF NEGATIVE IMPACTS

MITIGATION MEASURES & RESPONSIBILITY

MONITORING INDICATORS

MONITORING RESPONSIBILITY AND SCHEDULE

COSTS COMMENTS

1 ENVIRONMENTAL IMPACTS

1.1 YIELD IMPROVEMENT

1.2

1.3

1.4

2. QUALITY IMPROVEMENT

2.1

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SOCIAL IMPACT MITIGATION PLAN

[Instruction: Please check the items that apply and ensure that proposed mitigation measures are integrated in the proposed Partnership Activities. Note that issues under Indigenous Policy and Involuntary Resettlement Policy should all apply.]

Social Impact/Issues Mitigation Documentation Requirements/Evidence Responsibility

Indigenous Peoples Policy

Members of the community do not fully understand the proposed partnership

Ensure conduct of free and prior informed consultation to target farming communities

(a) Dated attendance sheets with attendees identified by gender and tribe (Tok) affiliation

and/or

(b) Dated photographs of consultation sessions conducted

and

(c) Summary of issues raised and how they were explained/ addressed

Lead partner and PMU

Members of the community do not support the partnership

Ensure broad community support or broad acceptance of the partnership

(a)Partnership agreement signed by all partner farmers; and,


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(b)Ward Council Certification/ Endorsement (Optional)

Involuntary Resettlement Policy

Lands covered by the partnerships are under dispute

Ensure that lands covered by the project are dispute‐free

Land Investigation Report Lead partner and PMU

Use of land by farmer group/coop society

Ensure that group/cooperative has secured rights to the use of that land

Proof of secured rights such as (lease agreements, deed of donation, deed of sale, waiver or other usufruct agreements) adequate for the intended use

Lead partner

Land owned by individual farmer to be used by partner group/coop society

Ensure that lands are offered voluntarily by the owner to the group

The voluntary nature of all land use agreements between land owner and cooperative society should be validated

Lead partner and co‐partner

Negative Social Impacts

Increase in disposable income is spent on vices and not on basic household needs

Ensure that partnership activities include training on expenses planning and budgeting for both husbands and wives

Farmer group/cooperative adopts a policy of income‐expenditure record keeping

List of activities include training on household budgeting and expenditure

and/or

Cooperative society resolution adopting a policy on record keeping on incomes and

Lead partner and Cooperative Society/Farmer Groups

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expenses by members

Partnership cater only to men’s interest resulting in further marginalization of women

Ensure that women are involved and share the benefits from the project

List of partnership activities include planned activities for Women

Lead partner

Incremental income will worsen existing problems of alcohol abuse and domestic violence

If Alcohol abuse and resulting violence are problems, ensure that partnership activities include awareness and counselling

List of proposed activities include alcohol abuse prevention, counselling etc.

Lead partner

Increase in risky behaviour that could result in higher incidence of HIV/AIDs

Ensure partnership activities include HIV/AIDs awareness and prevention seminars

List of proposed activities include HIV/AIDs awareness and prevention campaigns

Lead partner

Possible exploitation of children in the farms, preventing them from going to school

Ensure farmer groups adopt a policy of not employing children during school days

Resolution from cooperative adopting a policy on employment or children in the farm (ensuring child schooling is not disrupted)


Absence of grievance mechanism Ensure that grievance mechanism is in place and the people are aware of it

(a) Information materials

(b) Grievance boxes installed


Others...<Please add other issues if any>

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Appendix 7. Procurement practices to be used by approved partnerships Procurement of Goods, civil works and services for approved partnerships will be expected to use the procurement practices described below. The PMU shall review the procurement arrangements proposed by the Partners in the Procurement Plan. The Partners should retain all the documents related to the procurement of any of the goods, works or services for a period of 2 (two years) after the closing date of the Agreement. The Cocoa PMU may procure major cost item goods needed by all partnerships, such as hybrid clone seedlings, farmer tools, fermentaries, motorbikes, trucks in bulk, and coordinate trainings to speed up implementation. Such arrangements will be defined in the individual Agreements. 1 GOODS Goods in the context of the productive partnerships refers to materials, tools, machinery, equipment and items to be used in the activities identified by the partnerships and they will be procured following the; Non‐competitive practice (direct contracting), Three Quotes practice and Open Competitive practice.

1.1 Non‐competitive practice (direct contracting) For goods, contracts with a value less than PGK 25,000.00, Non‐competitive practice (single source) may be used provided that the price is reasonable (i.e., in line with the market price).

Steps to be followed:

STEP 1 – Describe what you need List all the items (goods) in the contract identified in the Procurement Plan. Besides the name of the item, a description should be provided (features of the goods) so the Supplier (shop) knows exactly what is required. The forms to be used by the Partners for Non‐competitive practice (direct contracting) will be provided by the PMU before signing the Partnership Agreement.

STEP 2 – Ask Supplier for quote Be sure to provide all the required information to the supplier when you request the quotation.

STEP 3 – Open and Check the Quote Make sure the supplier has offered what is required, on suitable terms.

STEP 4 – Order the Goods

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The Supplier should be advised that its quotation has been accepted.

STEP 5 ‐ Inspect and Receive the Goods A written record of the delivery and acceptance of goods should be kept by the Partnership.

1.2 Procuring of goods, Three Quotes Practice

The three (3) valid quotes practice will be used when the contract value is less than PGK 500,000.00 and the steps to be followed are explained below; For the contracts for goods valued more than PGK 200,000.00, the PMU will assist the Partners by providing prior verification (before Step 2 and Step 4). Before signing of the Partnership Agreement the PMU will provide to the Partners the Prior Verification Checklist which will list the required information in order to authorize the procurement of the goods. For the contracts for goods less than PGK 200,000.00 the PMU may undertake a post verification of the procurement process.

Steps to be followed: STEP 1 – Describe what you need List all the items (goods) in the contract identified in the Procurement Plan. Besides the name of the item from the Procurement Plan, a description should be written (features of the goods) so the Suppliers will know exactly what is required. STEP 2 – Ask at least 3 Suppliers You should get a quote from 3 different suppliers. It is recommended to ask more than 3 suppliers (four or five suppliers) to be sure than you will get at least three (3) quotes. If you can only get 2 quotes you should keep a written record of the reason. Be sure to provide all the required information to the supplier when you request the quotation. STEP 3 – Open the quotes and choose the supplier offering the lowest price quote The Partners will appoint an Evaluation Committee consisting of at least 3 members from the Partners, which will evaluate the quotes. Make sure the quotes are compared on an equal basis. For example with or without GST, same delivery location, transport included or not etc. Providing the items offered are as required (the features from the request to quotation), the contract should be awarded to the supplier offering the lowest priced quote. An evaluation report recording the evaluation of quotes and recommendation of awarding of the contract, signed by the evaluation members, should be prepared and kept. All the quotes should be kept for inspection and auditing. STEP 4 – Order the Goods The successful supplier should be informed about the result of the procurement practice, contract document issued and arrangements made for delivery of the

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goods. The unsuccessful suppliers shall be informed about the result of procurement process. All the Partners should be informed about the result. STEP 5 ‐ Inspect and Receive the Goods A written record of the delivery and acceptance of goods should be kept by the Partnership.

1.3 Open Competitive Bidding This procurement practice is used for the contracts with the value higher than PGK 500,000.00. The Partnership advertises for Bids. For all the contracts for goods under Open Competitive Bidding (more than PGK 500,000.00) the PMU will assist the Partners providing prior verification (before Step 2 and Step 4).. The Standard Bidding Documents to be used by the Partnership for Open Competitive Bidding will be provided by the PMU before signing the Partnership Agreement.


STEP 1 – Describe what you need Prepare the Bidding Documents (Bidding Data Sheet, Contract Conditions, List of the Items, Detailed description of the goods, Schedule of delivery, etc.), including the Invitation for Bids. The Bidding Documents must be verified by PMU before advertising the Invitation for Bids. STEP 2 – Advertise the Invitation for Bids The Invitation for Bids will be advertised in local newspaper. In addition, the Partners may consider advertising on radio. The Invitation for Bids shall provide to the interested Bidders information about the goods to be purchased, schedule of delivery, place of destination, contact details of the Partners, deadline for submission of Bids, etc. STEP 3 – Open the bids, evaluate and chose the lowest one Bids (in envelope) should be opened in the presence of the Bidders representatives and as many members of the Partners as possible. A short written record should be kept of the names of the bidders and their price. The Partners will appoint an Evaluation Committee consisting of at least 3 members from the Partners, which will evaluate the Bids. Make sure the quotes are compared on an equal basis. For example with or without GST, same delivery location, transport included or not etc. Providing that the items offered are as required (the features from the Bidding Documents and contract and commercial conditions), the contract shall be awarded to the supplier offering the lowest priced quote. An evaluation report recording the evaluation of Bids and recommendation of awarding of the contract, signed by the evaluation members, should be prepared and kept.

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All the Bids should be kept for inspection and auditing. STEP 4 – Order the Goods The successful Bidder should be informed about the result of the procurement practice, contract document issued and arrangements made for delivery of the goods. All the other Bidders should be informed about the result of the procurement process. All the Partners should be informed about the result. STEP 5 ‐ Inspect and Receive the Goods A written record of the delivery and acceptance of goods should be kept by the Partnership.

2 Civil Works Works in the context of the productive partnerships refers to any new construction, rehabilitation or reparation of an existing construction on farm works.

2.1 Non‐competitive practice for works (direct contracting)

For the Works contracts with a value less than PGK 125,000.00, Non‐competitive practice (single source) may be used provided that the price is reasonable (in line with the market price).

Steps to be followed: STEP 1 – Describe what you need Identify all necessary work required. The specifications should include a detailed description of the works including basic specifications, drawings and main type of works and related quantities where applicable. STEP 2 – Ask the Contractor for a quote Use the standard forms to request a quote from the Contractor. PMU will provide to the Partners the standard forms before signing the PPAP Partnership Agreement. Give the contractor a reasonable time to put together the quote. STEP 3 – Check the quote A short written record should be kept of the opening and evaluation of the quote. If the quote is satisfactory the Partners should award the contract to the Contractor. STEP 4 – Contract the Works The Contractor should be advised that its quotation has been accepted. STEP 5 ‐ Supervise and Accept the Works The Partners should supervise and monitor the works execution. When the Partners are satisfied that the Works are completed the Contractor should be given a written certificate. The PMU has the right to inspect the Works at its discretion, and the certificate of completion will be issued to the Contractor after PMU inspection of works.

2.2 Procuring of Works 3 Quotes Practice

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The three (3) valid quotes practice will be used when the contract value is less than PGK 500,000.00.and the steps to be followed are below explained. For the contracts for Works more than PGK 200,000.00 the PMU will assist the Partners by providing prior verification of the process (before Step 2 and Step 4). Before signing of the Partnership Agreement the PMU will provide to the Partners the Prior Verification Checklist which will list the required information in order to authorize the procurement of the works. For the contracts for Works less than PGK 200,000.00 the PMU may undertake a post verification of the procurement process.

STEP 1 – Describe what you need Identify all necessary work required. The specifications should include a detailed description of the works including basic specifications, drawings and main type of works and related quantities where applicable. STEP 2 – Invite at least 3 Contractors You should request a quote from at least 3 different qualified Contractors (construction companies) using the standard forms. PMU will provide to the Partners the standard forms before signing the PPAP Partnership Agreement. If you can only get 2 quotes you should keep a written record of the reason. Give the Contractors a reasonable length of time in which to respond. STEP 3 – Choose the Contractor offering the lowest priced quote The Partners will appoint an Evaluation Committee consisting of at least 3 members from the Partners, which will evaluate the quotes. Providing that the items offered are as required in the technical specifications, the contract shall be awarded to the Contractor offering the lowest priced quote. An evaluation report recording the evaluation of quotes and recommendation of awarding of the contract, signed by the evaluation members, should be prepared and kept. All the quotes should be kept for inspection and auditing. STEP 4 – Contract the Works The successful Contractor should be advised, contract issued and arrangements made for the Contractor to gain access to the site. The other Contractors which submitted the Quotes will be informed about the result of procurement process. All the Partners should be informed about the result. STEP 5 ‐ Supervise and Accept the Works The Partners should supervise and monitor the works execution. When the Partners are satisfied that the Works are completed the Contractor should be given a written certificate. The PMU has the right to inspect the Works at its discretion, and the certificate of completion will be issued to the Contractor after PMU inspection of works.

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2.3 Open Competitive Bidding This procurement practice is used for the contracts with the value higher than PGK 500,000.00. The Partnership advertises for Bids. For all the contracts for works under Open Competitive Bidding (more than PGK 500,000.00) the PMU will assist the Partnership providing prior verification (before Step 2 and Step 4). The Standard Bidding Documents to be used by the Partners for Open Competitive Bidding will be provided by the PMU before signing the Partnership Agreement.

Steps to be followed: STEP 1 – Describe what you need Prepare the Bidding Documents (Bidding Data Sheet, Contract Conditions, Detailed description of the Works, Bill of Quantities, Technical Specifications, etc.), including the Invitation for Bid. The Bidding Documents must be verified by PMU before advertising the Invitation to Bids. STEP 2 – Advertise the Invitation for Bids The Invitation for Bids will be advertised in local newspaper. In addition, the Partners may consider advertising on radio. The Invitation for Bids shall provide to the interested Bidders information about the works to be carried out, duration of works, location of works, contact details of the Partners, deadline for submission of Bids, etc. STEP 3 – Open the bids, evaluate and chose the lowest one Bids (in envelope) should be opened in the presence of the Bidders representatives and as many members of the Partners as possible. A short written record should be kept of the names of the bidders and their price. The Partners will appoint an Evaluation Committee consisting of at least 3 members from the Partners, which will evaluate the Bids. Make sure the quotes are compared on an equal basis. Providing that the items offered are as required in the technical specifications, the contract shall be awarded to the Contractor offering the lowest priced quote. An evaluation report recording the evaluation of Bids and recommendation of awarding of the contract, signed by the evaluation members, should be prepared and kept. All the Bids should be kept for inspection and auditing. STEP 4 – Contract the Works The successful Contractor should be advised, contract issued and arrangements made for the Contractor to gain access to the site. The other Contractors which submitted the Quotes will be informed about the result of the procurement process. All the Partners should be informed about the result. STEP 5 ‐ Supervise and Accept the Works The Partners should supervise and monitor the works execution. When the Partners are satisfied that the Works are completed the Contractor should be given a written

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certificate. The PMU has the right to inspect the Works at its discretion, and the certificate of completion will be issued to the Contractor after PMU inspection of works.

3 Consulting Services Consulting services refers to any services of an intellectual nature provided by consultants using their professional skills to study, design, and organize specific projects, advise Partners, conduct training and transfer knowledge. Procurement of Productive Partnership Consulting Services will use the following procurement practices.

A. INDIVIDUAL (expert/specialist) 3.1 Individual Consultant Individual Consultants are contracted where the scope of work does not require the employment of a number of persons, the position does not require professional support and the experience and qualifications of the consultant is paramount Individual Consultant selection may be used.

Steps to be followed: STEP 1 – Describe what you need Identify all necessary consultancy services required. Describe the services that would be necessary and estimate the period within the consulting services should be provided. Define the tasks of the consultants and the reporting obligations drafting the Terms of Reference. The standard forms/templates to be used by Partners will be provided by the PMU before signing the Partnership Agreement. STEP 2 – Identify and contact at least 3 Consultants (specialists/experts) Identify and contact at least 3 potential candidates interested in providing the services. Ask the candidates to provide their Curriculum Vitae/resume (description of their qualification, past experience, academic background, knowledge of local condition). If you can only find two (2) Consultants you should keep a written record of the reason. STEP 3 – Select the most qualified consultant among the 3 consultants The consultant should be selected on the basis of comparison of their qualifications for the assignment. The most qualified consultant will be asked to provide the cost estimate of the services: remuneration (salary/fee) and direct expenses (reimbursable costs covering: the transportation for the location where the services will be provided, equipment and/or materials, accommodation if the services are provided in a different location than the consultant residence, etc.).

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A short written report showing the selection of one of the candidates should be prepared and kept. All the documents should be kept for inspecting and auditing. STEP 4 – Contract the consulting services The successful Consultant (expert/specialist) should be advised, contract issued and arrangements made for the Consultant to be able to provide the services. The other Consultants which submitted the CVs (résumé) will be informed about the result of procurement process. All the Partners should be informed about the result. STEP 5 – Monitor and accept the reports The Partners will monitor the services provided by the consultant and review and approve the reports submitted as per contract obligations.

B. CONSULTING COMPANIES (firms, NGOs, etc.)

3.2 Non‐competitive practice for Consulting Services (single source selection) For the Consulting contracts with a value less than PGK 250,000.00, Non‐competitive practice (single source) may be used provided that the Consultant (firm) is qualified for the services and has experience for the proposed services and the cost of services is reasonable (in line with the market price).

Steps to be followed: STEP 1 – Describe what you need Identify all necessary consultancy services required. Describe the services that would be necessary and estimate the period within the consulting services should be provided. Define the tasks of the consultants and the reporting obligations (Terms of Reference). The standard forms/templates to be used by Partners will be provided by the PMU before signing the Partnership Agreement. STEP 2 – Ask the Consultant for a proposal and the cost estimate of the services Use the standard forms to request a proposal (description of services to be provided) and cost estimate of the services. Give the Consultant a reasonable time to put together the proposal and cost estimate. STEP 3 – Check the Proposal and cost estimate of the services Make sure the Consultant has offered what is required, on suitable terms and within a reasonable price. A short written record should be kept of the opening and evaluation of the proposal and cost estimate. If the proposal and cost estimate are satisfactory the Partners should award the contract to the Consultant. STEP 4 – Contract the consulting services The Consultant should be advised, contract issued and arrangements made for the Consultant to be able to provide the services.

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All the Partners should be informed about the result. STEP 5 – Monitor and accept the reports The Partners will monitor the services provided by the consultant and review and approve the reports submitted as per contract obligations.

3.3 Competitive selection of the consultant For the Consulting contracts with a value more than PGK 250,000.00, Competitive selection of the consultant should be used, provided that the Consultant is qualified for the services and has experience for the proposed services and the cost of services is the lowest among all the Consultants which are qualified and submitted the proposals. For all the contracts for consulting services under Competitive selection of the consultant (more than PGK 250,000.00) the PMU will assist the Partnership providing prior verification (before Step 2 and Step 4). The Standard Request for Proposal to be used by the Partners for Competitive selection of the consultant will be provided by the PMU before signing the Partnership Agreement.


STEP 1 – Describe what you need Identify all necessary consultancy services required. Describe the services that would be necessary and estimate the period when the consulting services should be provided. Define the tasks of the consultants and the reporting obligations (terms of references). Prepare the Request for Proposal. The Request for Proposal must be verified by PMU before starting the procurement process. STEP 2 – Identification of the qualified Consultants The Partners shall identify at least 3 Consultancy companies which will be invited to prepare and submit their proposals and cost estimates for services. Optional, the Partner may advertise a Request for Expression of Interest in newspaper available in the area. In addition, the Partners may consider advertising in radio. The Request for Expression of Interest should provide to the interested Consultants information about the services to be performed, estimated duration, location, contact details of the Partners, deadline for submission of Expression of Interest, etc. The qualified consultants will be selected among of all interested companies which submitted the Expression of Interest. Written report reflecting the selection process of the qualified consultant should be prepared and kept. STEP 3 – Ask the consultants to prepare their Proposals The selected, qualified Consultants will receive from the Partners the documentation needed to prepare their proposals (Request for Proposal). Give the Consultants a reasonable time to put together the proposal and cost estimate.

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STEP 4 – Check the Proposals and Cost estimates submitted by the selected Consultants The proposals describing the approach of the tasks, the proposed work plan and the available staff will be evaluated using the system Pass/Fail. Only the Proposal which were accepted (Passed) will be considered. The Partners will appoint an Evaluation Committee consisting of at least 3 members from the Partners, which will evaluate the Proposals. An evaluation report recording the evaluation of the proposals and the marks/scores obtained by each Consultant will be prepared and submitted to the PMU for approval. STEP 5 – The contract shall be awarded to the Consultant offering the lowest Cost estimate of services. The contract shall be awarded to the Consultant whose Proposal was accepted and offered the lowest Cost estimate of the services. The recommendation of awarding of the contract, signed by the evaluation members, should be prepared and kept. All the Proposals and Cost Estimates should be kept for inspection and auditing. STEP 6 – Monitor and accept the reports The Partners will monitor the services provided by the consultant and review and approve the reports submitted as per contract obligations.

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Appendix 8. Financial requirements and cost sharing Financial requirement Partnerships will need to open a separate bank account, maintain a set of chartered accounts, keep all original receipts, and will need to furnish accounts, bank statements and supporting documentation for payment requests to the PMU. The Lead Partner must ensure that it has adequate capacity to manage and report on the partnership’s finances. Partnerships must operate within their limit of each budget line item. Overspending up to 20% on a budget line item is permitted without prior approval, provided that the partnership has identified savings in other areas that can be used to pay for it. Overspending beyond that amount without prior approval from the Cocoa PMU, by means of a contract variation, is ineligible and must be repaid to the PPAP. Spending on procurement that does not comply with the Procurement Practice for that type and amount of spending is also ineligible. It is the responsibility of partnership management (the Lead Partner) to ensure compliance, which will be verified by the Cocoa PMU as part of its regular monitoring of partnership performance. It is therefore essential that the personnel responsible for implementation as well as financial management are fully familiar with all PPAP requirements. If the Lead Partner does not have this capacity “in‐house”, they must recruit suitable personnel to carry out these functions. The cost of doing this can be included either as part of the Lead Partner’s in‐kind contribution or as part of the partnership personnel, paid from the partnership budget. The Lead Partner will be required to have the accounts reviewed by an approved firm or individual accountant with current CPA‐PNG registration in a timely manner (within 2 months after end of each implementation year) and present the accounts and review report to the PMU within 3 months of year end each year. An advance payment not normally exceeding 15% will be made to the partnership. For this initial payment advance and for all subsequent payments, an invoice must be presented by the Lead Partner to the PMU which details the intended expenditure which should be according to the partnership budget and implementation plan. This invoice must specify the principle amount and GST amount. The Initial Advance Payment to the Partnerships will be made according to the budget, corresponding implementation plan and presentation of the invoice mentioned above. Replenishment requests may be made by the Lead Partner to the PMU normally when 70% or more of the allocated funds have been spent and acquitted. The acquittal must include a financial and an M&E report, using the template in the Quarterly Report Annex 7, that evidences implementation achievement related to the expenditure. On receipt of the payment request, the PMU will undertake an on‐site monitoring visit to verify milestones and progress prior to the release of the next tranche payment. Partnerships are advised to time their replenishment request to coincide with the end of a reporting quarter, to avoid additional reporting. The Lead Partner is responsible for regular, timely and accurate reporting of all aspects of the partnership expenditures including the budgeted farmer activities.

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The Lead Partner must submit the updated Partnership Cash Book, Budget and Expenditure Report and a copy of the statement for the partnership bank account monthly to the Cocoa PMU. The Lead Partner must provide the report and supporting data to the PMU on soft (electronic) copy with each Payment Request. It is essential that the Lead Partner closely monitors actual expenditure against budget for each line item and provides the table for this updated each month to the PMU. This will assist in ensuring no ineligible expenditures occur due to exceeding the allowed limit on budgeted line items. The PMU will monitor the Lead Partner and all Co‐Partners in the Partnership. Cocoa farms and other budgeted activities will be inspected by the PMU to substantiate Payment Requests. Cost sharing Co‐partner farmers are required to contribute 10% of the cost of goods (hybrid cocoa clone seedlings, galip seedlings, tools) to the project in cash, as a sign of good faith and commitment to the project. This payment must be made in the first 3 months of the partnership and farmers and will form part of the total 70:30 counterpart contributions specified in these Guidelines. Farmers must not receive any goods under the partnership until they have paid their cash contribution in full. The Lead Partner should only accept full payment from each farmer – part payments are not permitted. The cash contribution will be required prior to disbursement of the second tranche payment. Farmers who have not paid their cash contributions after three months is disqualified from participating and must be replaced quickly, to avoid delaying disbursement and implementation. Farmers must be clearly informed of these requirements before they become members of the partnership and the requirements should be repeated at farmer meetings when implementation commences. The balance of the partners’ contribution to the partnership can be in kind or as “sweat equity”, but “sweat equity” cannot be used for activities in communal facilities such as nurseries, budwood gardens or fermentaries, where workers must be paid to ensure that tasks are completed in a timely manner.

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58

Independent State of Papua New Guinea intends to apply part of the proceeds of this grant and IDA/IFAD Additional Financing to fund the upscaling of cocoa partnerships in two cocoa producing provinces, East New Britain and the Autonomous Region of Bougainville.

Key outcomes would be that: (i) smallholder farmers adopt efficient, market responsive and sustainable production practices leading to an improvement in their income; (ii) demand-driven productive partnerships are scaled-up and sustained; and (iii) key infrastructure bottlenecks in the targeted value chains are addressed.

Under the second component of the project (Productive Partnerships), the project aims at increasing the integration of smallholder producers in performing and remunerative value chains, by developing and implementing productive alliances between smallholders and the private sector aiming at improving market linkages in the project areas. In each sub-sector, strategic priorities have been identified as follows:

• In the cocoa sector, activities which support CPB management such as training on good farming practices; the production of improved planting material (nurseries and bud-wood gardens) to increase their availability for replanting; the promotion of and support for rotational replanting and cocoa garden rejuvenation; market-driven diversification of cocoa-farming system; management of quality through the adoption of more efficient and environmentally-friendly post-harvest and processing technology; training on activities that promote improved nutrition, financial literacy, HIV/Aids awareness, gender and other cross-cutting issues which are key to improving the livelihoods of the farming households.

• In the coffee sector, activities which support the adoption of sustainability practices and the expansion of the production of differentiated coffees; training on good farming practices; the production of improved planting material to increase their availability for replanting; replanting and coffee garden rejuvenation programs; market-driven diversification of coffee-farming systems; and management of quality through the adoption of more efficient and environmentally-friendly post-harvest and processing technology.

From 6th January 2012 to 27th January 2012 and from 10th August 2012 to 7th September 2012, the Cocoa Board of PNG issued a call for proposals for Productive Partnerships in the cocoa-producing areas of the Autonomous Region of Bougainville and East New Britain Province. The Cocoa PMU invited Lead Partners of Call 1 and Call 2 Partnerships to express their interest in upscaling their partnerships on 2nd October 2014. The Cocoa PMU advertised the Upscaling of Existing Partnerships in a national newspaper on 6 November 2015 and provided a template of a public notice and radio announcement for interested Lead Partners to inform farmers in their target areas of awareness meetings at which the upscaling would be described and interested farmers would give their names and contact details to the Lead Partners. The Lead Partners submitted lists of farmer names to the Cocoa PMU. Following the appraisal and selection process, the Cocoa Industry Coordination Committee approved the proposed support to the [Name of partnership] Upscaling Partnership on18th February 2016, in the amount of K[amount] equivalent to 70 percent of the total investment cost of the proposed Partnership.

This Partnership Agreement describes the approved Upscaling Partnership including the rights and obligations of all parties. The Guidelines for the Upscaling of Partnerships form part and parcel of this Agreement. Where there is conflict between the two documents, the Partnership Agreement prevails.

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1. Objectives of the partnership

1.1. Specific goals of the partnerships and target outcomes/results. The Goal of the [Name of partnership] is to implement cost sharing activities to rejuvenate cocoa in project areas through properly coordinated programs and activities. This will enable increase integration of smallholder producers into performing and remunerative value chains.

The objectives of the partnership are: [insert partnership objectives].

Full details of the outputs, activities, targets, beneficiaries and responsibility for implementation are contained in Annex 1.

1.2. Description of the partnership. The partners are [Name of Lead Partner] (Lead Partner) and [Name of Co-partner] (farmer Co-Partner). [Insert details of farmers to be involved and details of their farming system].

1.3. Location of the partnership. [insert details on location of partners and of their activities].

2. The Partners

2.1. Lead partner [insert name, legal status and details about experience, activities, and who will be the legal representative for the purposes of this Agreement]

Legal representative: [Name of legal representative]

2.2. The smallholder farmer group/association/cooperative: [insert details about the status of smallholder group/association/cooperative, number of farmers. Gender/age, activities, objective of association/cooperative if applicable, land area, who will represent the group(s) for the purposes of this Agreement]

Legal representative: [Name of legal representative]

2.3. [Other partner(s) if applicable]

2.4. Supporting Service Provider [If applicable, insert details about legal status, experience, role]

3. Technical and Economic Aspects

3.1. Business Plan and schedule of Implementation: Details of planned outputs and results are contained in Annex 1. Details of planned inputs and the schedule of activities are contained in Annex 2.

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3.2. Commitments and responsibilities of PPAP and the partners: Detailed description of the contributions (in kind or in cash) of each partner and schedule of contributions.

Detailed Cost Item Units Unit cost

Total Cost

Source of financing Grant Item / Total Grant (%)

Lead Partner

Co – Partner PPAP

Number of farmers ----˃ Goods Farmer tool kit Knapsack sprayer Secateurs Pruning saw Bowsaw Pesticide store (2 or 3 per partnership) Tablets for M&E data entry (GPS capable) Motorbikes for Extension Officers: 150cc Ag Trail @ K3,500 each

Planting material Hybrid clones sourced from commercial nurseries includes transport (200 per farmer)

Galip seedlings (40 per farmer) Nursery & budwood garden Materials for nursery construction (22,000 capacity) Nursery tools & equipment Nursery operational costs (1 cycle, then self-supporting)

Training support for partnership nurseries: Training for 2 at Tokiala @ K3000.00 each, then 2 Tokiala bud-grafters work in partnership nursery for 3 months @ K256/fn

Budwood garden hybrid clones (14 clones x 15 plants/clone)

Safe Pesticide Usage Training Safe Pesticide Training Equipment Kit Works Central fermentary (Combined solar / hot air 5x4 metre bed x 2 units)

Resource Centres Services Project Staff Assistant Project Manager other field supervisory staff (40,000 per year)

Extension officers (1 per 250 farmers, rounded to whole number)

Data entry clerk (10,800 per year) Lead Farmer allowances (per lead farmer per year) Training Training of trainers Hands on best practice cocoa management training Safe Pesticide Usage Training Farmer training Best Practice Cocoa Management (cost per farmer) Old cocoa (to be done by Ext. Officer, logistics from

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Detailed Cost Item Units Unit cost

Total Cost

Source of financing Grant Item / Total Grant (%)

Lead Partner

Co – Partner PPAP

Op. Costs) New cocoa (to be done by Ext. Officer, logistics from Op. Costs)

Sustainable livelihoods (Train Lead Trainer) Sustainable livelihoods Sustainable livelihoods Venue hire & refreshments Basic record and book keeping Basic record and book keeping Venue hire & refreshments

Cocoa Quality (Train Lead Trainer) Cocoa quality & fermentary management ENB (selected farmers)

Cocoa quality & fermentary management Venue hire & refreshments

HIV/AIDS HIV/AIDS awareness (per farmer) Gender awareness Nutrition awareness / response Farmer Group Governance & Management Governance & management training (per training) Cooperative / Group Business Plan Innovation activities In Kind contributions Farmer in-kind labour - block clearing, planting and management, etc.

Operational Expenses Communications Utilities Stationery Transport Costs (Running costs) Mini-baseline survey End of project survey Motor bike running costs @ K3,500 / bike / year x 3 years

Annual Financial Review (Cost per review K3,000 x 3 years)

Final Project Report Overall total EU and IDA

3.3. Quantities, prices and quality. Expected results and targets are shown in Annex 1. In summary, the expected results are as follows:

Objective Outputs/Results Targets Objective 1 Project Management

Output 1 – Steering

• Steering committee established with

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Objective Outputs/Results Targets committee established representatives of all partners and meeting

monthly from month 1 onwards Output 2 - Project staff

recruited • Project staff in place within two weeks of

agreement signature Output 3 – Partnership

office established • Partnership office established within two

weeks of agreement signature Output 4 – Establish bank

account • Partnership bank account open within 3

weeks of agreement signature Output 5 - Accounting

system established • Accounting system set up within 4 weeks of

agreement signature Output 6 – Farmer

database established • Farmer database established and set up for

baseline survey data, quarterly report data, and to produce output tables within four weeks of agreement signature

Output 7 – Report templates set up

• Reporting templates set up within 6 weeks of partnership signature

Output 8 – Invoice Cocoa PMU for advance payment

• Cocoa PMU invoiced within 3 weeks of agreement signature

Output 9 – Train Lead Trainer and Extension Officers

• Key training staff trained within three months of agreement signature

Output 10 Efficient, effective and productive management of the project

• Design and administer a management plan for each component and activity:

• provide directions to field supervisors; • ensure that funds are available for planned

activities Output 11

Progress measured from baseline profile to end of project.

Establish monitoring record for each farmer Establish cluster base periodic monitoring and recording schedules

Output 12 Business / Sustainability Plan

Sustainability Plan completed and presented to PMU within 6 months of project effectiveness

Objective 2 Partnership Baseline databases established for all farmers to include the CLUA and Farmer Declaration

Output 1 Partnership baseline survey completed for all farmers and updated 6-monthly Output 2 All Partnership Smallholder Farm profiles established on a database entry at the Lead Partners’ office. Land ownership / use confirmed (CLUAs collected) Output 3 Collect Farmer Cash Contributions

Survey completed within 2 months of first tranche payment then 6-monthly to 30th June and 31st December each year Survey data submitted to Cocoa PMU within one month of survey completion All Farmer Cash Contributions collected as full payment amounts (part payments from farmers are not to be accepted) within three (3) months of contract and farmers who have not paid are replaced.

Objective 3 Cocoa Training

Output 1 Model farms established

Model farms established within 6 months of

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Objective Outputs/Results Targets Facilities Established with diversified cocoa farm

and pesticide store agreement signature Model farms providing base for farmer training and ongoing technical support

Output 2 Central Model Farm manager / Lead Trainer and Extension Officers trained in “Best Practice” cocoa management at Centre of Excellence Village model farm farmers / VEOs trained in “Best Practice” cocoa management

Lead Trainer / CMF manager and Lead Farmers successfully complete and apply “Best Practice” cocoa management training and train partnership farmers

Output 3 Manage model farms using best practices

Lead Trainer / MF manager and Lead Farmers All partnership farmers

Output 4 Refresher Training in “Best Practice” cocoa management

Lead Trainer, Extension Officers and Village MF farmers successfully complete refresher training

Output 5 Establish Resource Centres

Resource Centres established and in use for farmer group training and meetings

Objective 4 Planting material production

Output 1 Establish Budwood Garden Output 2 Budwood gardens managed to “Best Practice” standards supplying sufficient budwood to nurseries Output 3 Establish central nursery (only if essentially necessary Output 4 Nurseries managed to “Best Practice” standards, meeting quantity and quality targets for cocoa hybrid clone supply

Budwood garden established in accordance with CCIL specifications and certified by CCIL. Budwood gardens managed to “best practice” standards and regularly supplying budwood to nurseries from third year onwards. Nursery/ies established in accordance with CCIL specifications and certified by CCIL. Trained bud-grafters regularly achieve 85% success rate Nurseries supply hybrid clone seedlings

Objective 5 Plant new cocoa clones

200 clone seedlings (0.32ha per farmer) of old cocoa replanted with CPB-tolerant hybrid clones and managed to “Best Practice” standards

Partnership farmers replant 0.32 hectares each with CPB-tolerant hybrid clones by end of Q1 Year 2 Partnership farmers manage CPB-tolerant clones to “Best Practice” standards.

Objective 6 Redevelop (rejuvenate) existing

Confirm number of trees for rehabilitation of old

Partnership farmers rejuvenate up to 1 ha each of existing cocoa to produce 1 tonne of dry

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Objective Outputs/Results Targets mature cocoa trees cocoa for each farmer (up

to 1ha per farmer) of existing cocoa Farmers rejuvenate old cocoa and manage to “Best Practice” standards

bean per ha with CPB infestation less than 10%

Objective 7 Cocoa quality

Output 1 Obtain a minimum of a 20-year land use agreement for communal ownership Construct central fermentary Output 2 Partnership fermentaries consistently produce good quality cocoa.

Output 1 Central fermentary constructed then inspected and registered by the Cocoa Board. Output 2 All fermentary owners trained in “best practice” cocoa fermentation and drying.

Objective 8 Diversified cash crops and cocoa shade tree optimisation

Output 1 Galip trees inter-planted in cocoa block, or selected fruit and nut trees planted, and used as additional cash crop and a permanent shade tree for the cocoa to replace Gliricidea (to prevent over-shading by Gliricidea and hence yield decline)

Galip established as permanent shade, or selected fruit and nut trees planted, and alternative cash crop in cocoa blocks Partnership households trained on galip or fruit and nut tree husbandry, harvesting, post-harvest practices

Objective 9 Sustainable Livelihoods

Farm household members (male, female and youth) are cooperating to plan the use of their resources better and are managing their incomes well

Training of Primary Trainers – these will be skilled professional trainers and partnership extension staff Training of Secondary Trainers. This will normally be the Lead Farmer, his/her partner and a youth/child who train and mentor their cluster group of farmers Better planning by farm households resulting in better use of resources and better management of income. Farm households receive Sustainable livelihoods / personal viability, basic bookkeeping and business management training and apply the skills learned

Objective 10 Cooperative management and governance

Output 1 Corporate management and business training conducted for Directors, Management & Staff Output 2 Directors, Management & Staff are competent in running the Cooperative

Cooperative Society / farmer group competently managed and all members are satisfied with the service provided

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Objective Outputs/Results Targets Society or farmer group

Objective 11 HIV/AIDS & Gender Training of Trainers and Awareness

HIV/AIDS awareness conducted in all wards covered by partnership.

Trainers from farming households in wards identified and trained All households receive awareness on HIV/AIDS and associated social issues and information available on ongoing basis

Objective 12 Innovation Activities

Objective 13 Nutrition

Nutrition awareness conducted in all wards covered by partnership.

Village Health Volunteers from each ward identified and trained as trainers All households receive awareness on Nutrition and information available on ongoing basis

Objective 14 Gender

Gender awareness conducted in all wards covered by partnership in association with the Sustainable Livelihoods activity

Trainers from farming households in wards identified and trained. This will normally be the Lead farmer, his/her partner and a youth/child All households receive awareness on Gender in the cocoa value chain and associated social issues and information available on ongoing basis

Objective 15 Field Days

Community Awareness of PPAP progress and achievements

Both PPAP and non-PPAP farmers

Objective 16 Financial Literacy awareness / training

Financial literacy awareness, bank accounts

PPAP households, both male and female members

Objective 17 Final Project Report

Final Project Report with all acquittals and supporting documents accepted by Cocoa PMU

Completed report submitted within four weeks of partnership closure and accepted by Cocoa PMU

Additional information is contained in Annex 1.

4. Financing Plan for the Partnership 4.1. Contributions to partnership

Items Contribution

When Lead Partner

Co-Partner

Joint Partner

PPAP

A. CASH CONTRIBUTIONS

Planting Material and Farmer Tool Kits (10% of total cost of goods for each farmer)

Within 6 months after partnership

date of effectiveness

Goods, Works and Services Sub-total cash contributions B. IN-KIND CONTRIBUTIONS Farmer cocoa block preparation, Commencing

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Items Contribution

When Lead Partner

Co-Partner

Joint Partner

PPAP

planting and upkeep on date of partnership

effectiveness

Lead Partner in-kind contribution

Commencing on date of

partnership effectiveness

Joint Partner 1 in-kind contribution



Joint Partner 2 in-kind contribution



Sub-total In-Kind Total

The partners’ contribution includes 10% of the cost of Goods provided to them (hybrid clone and other planting materials and tools) in cash from the farmer Co-partners. Any farmer not having paid his/her cash contribution within 3 months of project effectiveness will be automatically removed from the project and replaced by a new farmer by the Lead Partner.

No Goods shall be distributed to a farmer until his/her Cash Contribution has been received in full. Cash contributions shall only be accepted from farmers as full payments.

4.2. Indicative Disbursement Schedule 4.2.1. An amount of 15% of the total PPAP partnership grant shall be advanced to the

partnership’s dedicated bank account. 4.2.2. Replenishments shall be made according to requests by the Partnership to the PMU

and should be made normally when 70% of the Advance amount has been spent. The amount specified in the claim must be fully supported by acquittals - tax invoices and receipts, bank statements and reconciliations for the whole period covered by the replenishment claim. Ideally, a replenishment claim should be made at the end of a quarterly reporting period but may be more often in required. There must be no outstanding audits or ineligible expenditures. Evidence must be provided that the goods and services were delivered according to the planned activities.

4.2.3. Implementation of Agreements by partnerships is very variable – some may not utilize all of their funds by the project closure date, 30 June 2019 which is also the closure date of the PPAP. These funds would then be lost to the PPAP. A policy is required by which uncommitted resources at the partnership level can be retrieved if uncommitted twelve (12) months before partnership closing date for use by partnerships performing well. Commitment should be shown in terms of: (i) known management fees until project closure; (ii) committed resources to procurement; and (iii) any other committed resources.

4.3. Arrangements for payment and reclaim of GST

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4.3.1. The title of the project dedicated bank account and name of the Charts of Accounts must commence with the words “PPAP (Cocoa) followed by the name of the project or abbreviated name of the project”;

4.3.2. All Requests for Quotes, Procurement Orders, Contracts, and other legal documents related to procurement practices as well as Invoices and Receipts must start with the words: “PPAP (Cocoa)” followed by the partnership name.

4.3.3. All original invoices/receipts for all expenditures must be submitted to Cocoa PMU with replenishment claims;

4.3.4. All original invoices/receipts for all expenditures must show the GST number of the supplier and GST amount where the supplier is GST registered;

4.3.5. The Cocoa PMU will seek GST refund for all project partnership expenditures and retain these funds for future use in the PPAP Cocoa Component;

4.3.6. The Partners shall not seek GST refund or claim for any GST expenditures of the Project.

4.4. Financial Management and Reporting 4.4.1. Partnerships may overspend on any individual line item to a maximum of 20% without

Prior Approval from the Cocoa PMU, provided that the total PPAP contribution to the partnership is not increased. The Partnership must inform the Cocoa PMU of the details of the overspending and the underspending that is being used to fund it in the next Quarterly Report.

4.4.2. An updated Partnership Cash Book, copy of bank statement for Partnership bank account and Expenditure by budget line item (Budget and Expenditure Report) will be presented to the Cocoa PMU each month and in the Quarterly Report using the format in Section 4 of Annex 11.

4.5 Procurement

4.5.1 Procurement Plan:

Please refer to the Procurement Plan in Annex 4.

4.5.2 Centralised / Bulk Procurement

The Cocoa PMU will assist Partnerships procure goods, works and services that all partnerships will use as a means to improve efficiency by aggregating spend; price reduction; standardisation; reducing transactional workload, etc. These shall include cocoa and alternate cash crop planting materials, motorbikes, trucks, tools, data recording tablets, resource centres, pesticide storage units and fermentaries/solar driers and some training activities (HIV/AIDS, Pesticide Safety ToT, Basic book-keeping ToT, Cooperative Governance, Cocoa Quality ToT, Sustainable Livelihoods with Gender ToT, Best Practice Cocoa Management ToT). The procurement process coordinated by the PMU would be for the supply of goods with multiple Purchasers, and this will be clearly spelt out in the ITQ/bidding document. The Cocoa Partnerships (Purchasers) agree to participate; to agree on any specifications; to potentially participate in the evaluation/selection process according to World Bank rules regarding evaluation and comparison of bids; to agree to accept the outcome of the

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procurement process; and to agree to enter into contracts and make payments directly to the supplier(s).

The process to be followed by the PMU:

1) Seek confirmation from Partnerships on a bulk procurement item 2) Invite the Suppliers to express their Interest and provide their quotes according to

an Invitation To Quote (ITQ) ; 3) Technical Evaluation Committee (TEC) evaluates the quotes and identifies the

quote with the lowest evaluated cost; 4) Share the information with the Purchasers; and

5) Assist the Purchasers with signing the Contracts.

If Motor bikes, trucks and data tablets are provided they shall remain as assets of the Cocoa Board (PPAP) during the project duration. The vehicles and tablets shall be used strictly for Partnership activities alone. Funds are provided for comprehensive insurance, R&M, operational costs for the vehicles and, for trucks, the hire of a full-time driver. The Lead Partner shall ensure that road tax, safety sticker and comprehensive insurance cover is in place at all times and the safe-keeping of these Cocoa Board (PMU) assets. The truck always must be garaged in a secure location by the Lead Partner and motorbikes by the extension officers. Any damage or misuse of the vehicles not covered by insurance shall be the responsibility/liability of the Lead Partner organization and extension officers for trucks and motorbikes/tablets, respectively.

Motorbikes shall be offered for sale at a salvage price as first priority to the extension officers at the closure of the project. This will normally be a nationally recognised depreciated amount subject to satisfactory performance of the extension officer.

Trucks may be offered for sale at a salvage price as a first priority to the partnership farmer groups at the closure of the project. This normally will be a nationally recognized depreciated amount subject to satisfactory performance of the partnership and where these groups are well-managed, registered Cooperatives or registered Associations.

Permanent works structures such as resource centres and fermentaries/solar driers, also nurseries and budwood gardens, shall be provided for ownership by registered Cooperatives or Associations, not individuals, and only where a minimum of a 20 year legal land-use agreement is in place. PMU prior approval is required for expenditure on these items.

The Cocoa PMU will coordinate procurement for the following training: Hands-on Best Practice Cocoa Management, Sustainable Livelihoods to include a focus on Gender, Nutrition, Basic Record Keeping and Book Keeping, Cocoa Quality, Group Governance and Management, Group Sustainability Plan, HIV/AIDS Awareness, Financial Literacy. The partnerships shall make payment for these procurements directly to the suppliers.

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4.5.3 Procurement Arrangements

The partnership will procure goods, works or services in the Partnership Agreement that are not subject to 4.5.2 above for the Partnership Agreement will be carried out using the Guidelines for Up-scaling of Calls 1 and 2 in East New Britain and the Autonomous Region of Bougainville with the following additions:

(i) The first three procurements of each type (Goods, Civil Works, Services) will be subject to Prior Verification by the Cocoa PMU, irrespective of the value of the procurement. This may be extended if the PMU considers that the partnership requires continued assistance.

(ii) All procurements of any type that involve the purchase of Goods, Civil Works, or Services from a member of the Partnership will be subject to Prior Verification by the Cocoa PMU, irrespective of the value of the procurement. This is to mitigate any potential Conflict of Interest. Failure to comply may result in the procurement being an ineligible expenditure.

(iii) Post Review of partnership procurements will be carried out by the PMU. Partnerships will be sampled from each call quarterly for Post Review.

Subject to the foregoing, procurement of Goods, Civil Works and Services for approved partnerships will be expected to use the following procurement practices:

GOODS

Description of Practice

Thresholds

(max amount in PGK)

Prior/post verification

Non-competitive practice (single quote)

Less than PGK 25,000.00

All the Contracts are subject to post verification conducted by PMU;

Three Quotes Practice


-The Contracts below PGK 200,000.00 are subject to post verification conducted by PMU;

-The Contracts above PGK 200,000.00 are subject to prior verification conducted by PMU;

Open Competitive Competition

More than PGK 500,000.00

All the Contracts are subject to prior verification conducted by PMU;

WORKS


Thresholds (max amount in PGK)


Non-competitive practice (single quote)



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Three Quotes Practice Less than PGK 500,000.00

-The Contracts below PGK 200,000.00 are subject to post verification conducted by PMU;

-The Contracts above PGK 200,000.00 are subject to prior verification conducted by PMU;




CONSULTING SERVICES


Thresholds (max amount in PGK)


Individual (expert/specialist)

Individual Consultants


Consulting companies (firms, NGOs, etc.)

Non-competitive practice (single source)






5. Social and Environmental Aspects

5.1. Social management plan: The partnership has used the Guidelines for Social and Environmental Screening to identify potential social impacts. The Partnership’s Social Management Plan, which describes how each of these impacts will be mitigated and identifies the responsibility of each partner for its implementation, is attached as Annex 5.

5.2. Environmental management plan: The partnership has used the Guidelines for Social and Environmental Screening to identify potential environmental impacts. The Partnership’s Environmental Management Plan, which describes how each of these impacts will be mitigated and identifies the responsibility of each partner for its implementation, is attached as Annex 6.

5.3 Pest management plan: The partnership has used the Guidelines for Social and Environmental Screening to identify potential environmental impacts. The Partnership’s Pest Management Plan, which describes how each of these impacts will

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be mitigated and identifies the responsibility of each partner for its implementation, is attached as Annex 7.

6. Management of the Partnership

Each party to this Partnership Agreement commits to its implementation in line with the provisions of this Agreement, in order to reach the stated objectives.

6.1. Commitments of Lead Partner. The lead partner [Name of Lead Partner] commits to the following:

6.1.1. Implementing the partnership as described in this Agreement in order to fulfil the goals and results described in this Agreement;

6.1.2. Taking necessary actions to ensure that all goals and results described in this Agreement are fully achieved;

6.1.3. Providing all inputs and contributions as described in this Agreement and as per the schedule of implementation of this Agreement;

6.1.4. Allowing and facilitating supervision of the implementation of this Agreement by the Cocoa Board of PNG as well as by the World Bank and IFAD, including the provision of all information related to the execution of this Agreement as periodically requested by those agencies;

6.1.5. The Lead Partner will need to arrange for the following:

• Have the Partnership annual financial statements reviewed by a qualified accountant (i.e. PNG CPA) prior approved by the Cocoa PMU and present to the Cocoa PMU within 2 months after the end of the year;

• If concerns are raised in the review, and if requested by the WB, the financial statements would need to be audited by independent auditors acceptable to IDA in accordance with consistently applied auditing standards.

6.1.6. Jointly monitoring the implementation of this Agreement with other partners and providing reports on the implementation of this Agreement as per the format attached in Annex 7 of the Partnership Upscaling Guidelines every quarter and within 10 working days of the end of the quarter, and a Final Report within 30 working days of the end date of this Agreement;

6.1.7. Operation of a Management Information System (MIS) provided by the PMU for household survey and implementation data collection, management, monitoring and reporting. Conducting the initial survey for the Farmer / Household Database using the format in Annex 8 of the Partnership Upscaling Guidelines within six weeks of commencement of this agreement, providing and electronic copy of the database to the Cocoa PMU and updates of the database every six months and a final survey in the last Quarter of the Agreement period.

6.1.8. Ensuring that CLUAs (Annex 5 of the Partnership Upscaling Guidelines) are signed by all parties for all farmers’ blocks within 6 weeks of commencement of this agreement.

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6.1.9 Ensuring that all farmers sign the Farmer Declaration (Annex 6 of the Partnership Upscaling Guidelines) within 6 weeks of commencement of this agreement.

6.1.10 Ensuring that the ownership of land used for communal partnership assets such as nurseries, budwood gardens, resources centres, pesticide storage units and fermentaries is not disputed and that land use is secured for communal ownership by the partnership by means of a legal agreement for a minimum of 20 years.

6.1.11 Some partnerships, particularly those in remote locations, may be unable to procure the full amount of required cocoa clones at a reasonable cost before the end date of their Agreements. Partnerships that have not procured, committed to procure or established in partnership nurseries all the cocoa clone seedlings in their budget 18 months prior to the end date of the Agreement, they shall utilize all those uncommitted cocoa planting material budgeted funds to procure certified hybrid seeds from CCIL, Tavilo, raise and distribute the seedlings to their farmers.

6.1.12 Keeping records of all documentation related to the implementation of this Agreement for at least two years after the completion of all activities;

6.1.13. Ensuring that the Social Management Plan, Environmental Management Plan, and Pest Management Plan, which are an integral part of this Agreement, are fully implemented;

6.1.14. Reimbursing to the Cocoa Board of PNG, within 45 days, the funding received under this Agreement if activities described above are not completed as per the clauses of this Agreement; and

6.1.15. The Lead Partner will make the cash and in-kind contributions to the partnership shown in 3.2 and 4.1 above.

6.2. Commitments of Smallholder Growers. The [Name of Smallholder Farmer organisation or group] commits to the following:

6.2.1. Implementing the partnership as described in this Agreement in order to fulfill the goals and results described in this Agreement;

6.2.2. Taking necessary actions to ensure that all goals and results described in this Agreement are fully achieved;

6.2.3. Providing all inputs and contributions as described in this Agreement and as per the schedule of implementation of this Agreement;

6.2.4. Allowing and facilitating supervision of the implementation of this Agreement by the Cocoa Board of PNG as well as by the World Bank and IFAD, including the provision of all information related to the execution of this Agreement as periodically requested by those agencies;

6.2.5. Contributing to the monitoring of the implementation of this Agreement;

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6.2.6. Ensuring that the Social Management Plan and Environmental Management Plan, which are an integral part of this Agreement, are fully implemented;

6.2.7. Reimbursing to the Cocoa Board of PNG, within 45 days, the funding received under this Agreement if activities described above are not completed as per the clauses of this Agreement.; and

6.2.8. The Co-Partner will make the cash and in-kind contributions to the partnership shown in 3.2 and 4.1 above.

6.3. Commitments of other Partners to this Agreement [adjust as needed depending on composition of the Partnership].

6.4. Commitments of Cocoa Board of PNG. The Cocoa Board of PNG commits to the following:

6.4.1. Providing all information required by the Partners on the procedures and guidelines applying to this Agreement and providing prompt and clear advice and guidance to all Partners on those procedures and guidelines, throughout the implementation of this Agreement;

6.4.2. Providing technical guidance if requested by the Partners;

6.4.3. Processing all payments under this Agreement in a timely manner, including the first payment within 30 days of the signature of this Agreement by all parties, and subsequent replenishments within 30 days of receipt of the related request supported by adequate documentation;

6.4.4. Supervising the implementation of this Agreement, including all technical, social, environmental, fiduciary and reporting provisions. This would include field visits to the Partnerships on a regular basis, and at least every quarter, as well as before payment of subsequent tranches to the first tranche;

6.4.5. In the event that an unforeseen change to this Agreement becomes necessary, assessing the proposed change and submitting any change request under this Agreement for the approval of the Industry Coordination Committee. Only changes to this Agreement that would not result in a higher contribution from PPAP are allowed.

6.5. Conflict resolution

Any disagreement or conflict between Partners regarding the implementation of this Agreement, which cannot be resolved through consultations between Partners, needs to be brought to the attention of the Cocoa Board of PNG as soon as possible. The Cocoa Board of PNG through its Project Management Unit (PMU) will assess the situation and provide advice on mediation between the Partners in disagreement or conflict in line with the Grievance Procedures of the PPAP.

6.6. Sanctions for non-compliance with this Agreement.

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In the event that the Partners fail to substantially comply with the modalities of this Agreement, such as:

• Failure to comply with good governance practices (i.e. Engagement in Corrupt, Fraudulent, Collusive, Coercive or Obstructive practices);

• Failure to comply with the technical modalities of this Partnership;

• Failure to comply with the Social Management Plan and/or Environmental Management Plan;

• Failure to comply with fiduciary obligations under this Partnership;

• Use of funding provided under this Agreement for purposes and activities other than those described in this Agreement; and

• Failure to comply with the monitoring and reporting requirements under this Agreement,

the Cocoa Board of PNG may seek the approval of the Industry Coordination Committee to take some or all of the following steps, after assessing each case and its gravity:

• Suspension of this Agreement and reimbursement by the Partners of part or all of the funding received from the PPAP, if no remedial action is taken following 30 days of written notice from the Cocoa Board of PNG;

• Exclusion from future support under the PPAP;

• Formal legal action against the Partner(s) involved.

6.7 Project Completion Date

The end date for this project is XXX

Signed in Kokopo, Date, by:

Representative of Lead Partner

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Representative(s) of Co-partner group(s)

Mr Boto Gaupu

CEO of Cocoa Board

A list of all participating farmers with their contact details and signatures (indicating their consent to being part of the Partnership Agreement) needs to be compiled by the co-partners and appended to the Partnership Agreement.

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Annex 1: Project Description

Objective Outputs/Results Activities Targets Beneficiaries Implementation Responsibility

Monitoring Responsibilities

Objective 1 Project Management

Output 1 – Steering committee established

Obtain nominations from each partner Convene meetings Produce and circulate minutes

Steering committee established with representatives of all partners and meeting monthly from month 1 onwards

Participating farmers & other partners

Lead partner

Lead partner Cocoa PMU

Output 2 - Project staff recruited

Recruit staff Sign employment agreement

• Project staff in place within two weeks of agreement signature

Output 3 – Partnership office established

Establish office • Partnership office established within two weeks of agreement signature

Output 4 – Establish bank account

Complete forms & submit to bank

• Partnership bank account open within 3 weeks of agreement signature

Output 5 - Accounting system established

Set up chart of accounts Start entering transaction

• Accounting system set up within 4 weeks of agreement signature

Output 6 – Farmer database established

Set up database • Farmer database established and set up for baseline survey data, quarterly report data, and to

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produce output tables within four weeks of agreement signature

Output 7 – Report templates set up

Set up templates based on PMU design

• Reporting templates set up within 6 weeks of partnership signature

Output 8 – Invoice Cocoa PMU for advance payment

Produce invoice with required details Submit to PMU

• Cocoa PMU invoiced within 3 weeks of agreement signature

Output 9 – Train Lead Trainer and Extension Officers

Register trainees with Tokiala

• Key training staff trained within three months of agreement signature

Output 10 Efficient, effective and productive management of the project

Establish an operations unit, manage the day to day operations, monitor progress and produce reports

• Design and administer a management plan for each component and activity:

• provide directions to field supervisors;

• ensure that funds are available for planned activities

Output 11 Progress measured from baseline profile to end of project.

Review records of each SH and evaluate and quantify progress

Establish monitoring record for each farmer Establish cluster base

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periodic monitoring and recording schedules

Output 12 Business / Sustainability Plan

Group course on Business/Sustainability Planning held by PMU for all Lead Partners and Farmer Reps. Individual Business Plans developed by each Partnership with expert input

Sustainability plan completed and presented to PMU within 6 months of project effectiveness

Cooperative Societies/Farmer groups

PMU, Lead Partners

Objective 2 Partnership Baseline databases established for farmers to include the CLUA and Farmer Declaration

Output 1 Partnership baseline survey completed for all farmers and updated 6- monthly Output 2 All Partnership smallholders Farm profiles established on a database at the Lead Partners’ office. Land ownership / use confirmed (CLUAs collected) Output 3 Commence collecting Farmer Cash Contributions

Copy survey, CLUA and Farmer Declaration forms Recruit and train enumerators Conduct survey and update for every farmer every 6 months Data entry Quality checks Submit dataset to PMU

Survey completed within 2 months of first tranche payment then 6 monthly to 30th June and 31st December each year Survey data submitted to Cocoa PMU within one month of survey completion All Farmer Cash Contributions collected as full payments within 3

All Partnership smallholder farmers The Ward The LLG and District

Lead Partner Cooperative

Lead Partner Cocoa PMU

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months of agreement signature and non-paying farmers replaced

Output 4 Lead Farmers / VEO’s identified

Objective 3 Cocoa Training Facilities Established

Output 1 Model farms established with diversified cocoa farm, and pesticide store. Land use secured for the communal ownership for a minimum of 20 years

1. Farmer meetings to agree suitable model farm locations 2. 2. Site/Block preparations 3. Buy materials 4. Plant cocoa blocks 5. Construct pesticide store 6. Obtain a minimum of a 20 year land use Agreement for communal ownership

Model farms established within 6 months of agreement signature Model farms providing base for farmer training and ongoing technical support

All partnership farmers

Lead Partner, Co-Partner, CMF Manager / Lead Trainer, VMF Lead Farmers. Cocoa PMU (pesticide storage units)

Lead Partner / Cocoa PMU

Output 2 Central Model Farm manager / Lead Trainer and Extension Officers trained in “Best Practice” cocoa management at Tokiala Plantation Village model farmers / VEOs trained in “Best Practice” cocoa management

Arrange training Send personnel for training Training for model farmers / VEOs organised and conducted by Central Model Farm manager / Lead Trainer and

Lead Trainer / CMF manager and Extension Officers successfully complete and apply “Best Practice” cocoa management training and train partnership farmers Model farmers / VEOs successfully complete and apply “Best Practice” cocoa

Lead Trainer / CMF manager and Extension Officers, Lead Farmers All partnership farmers

Lead Partner, Cocoa PMU


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Extension Officers management training and train partnership farmers

Output 3 Manage model farms using best practices

Best practice cocoa farm management

Lead Trainer / CMF manager and Lead Farmers Partnership farmers


Lead partner, CMF Manager / Lead Trainer, VMF Lead Farmers

Lead partner, Cocoa PMU

Output 4 Refresher Training in “best Practice” cocoa management

Service Provider gives refresher training to Lead Trainer, Extension Officers and Village MF farmers / VEOs

Lead Trainer, Extension Officers and Village MF farmers / VEOs successfully complete refresher training


Lead partner, CMF Manager / Lead Trainer


Output 5 Establish Resource Centres

1. Farmer meetings to agree suitable model farm locations 2. Site / Block preparations 3. Buy materials and construct resource centres 4. Obtain a minimum of a 20 year land use Agreement for communal ownership

Resource Centres established and in use for farmer group training and meetings

Partnership farmers

Lead partner, Assistant Project Manager or Lead Trainer, Lead farmers, Cocoa PMU


Objective 4 Planting material production

Output 1 Establish Budwood Garden(s)

1. Farmer meetings to agree suitable location 2. Obtain a minimum of a 20 year land use Agreement for communal ownership3. Site preparations

Budwood garden established in accordance with CCIL specifications and certified by CCIL.

Partnership farmers



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Output 2 Budwood gardens managed to “Best Practice” standards supplying sufficient budwood to nurseries Output 3 Establish nursery/ies Output 4 Nursery managed to “Best Practice” standards, meeting quantity and quality targets for cocoa hybrid clone supply

4. Buy hybrid clone seedlings 5. Plant budwood garden Budwood garden cocoa trees managed to “best practice” standards Trees regularly pruned and producing high quality budwood 1. Farmer meetings to agree suitable location 2. Obtain a minimum of a 20 year land use Agreement for communal ownership3. Site preparations 4. Buy materials 5. Construct nursery Train bud-grafters Plant rootstock seed Bud-graft with budwood from commercial source Produce hybrid clone seedlings

Budwood gardens managed to “best practice” standards and regularly supplying budwood to nurseries from third year onwards. Nursery/ies established in accordance with CCIL specifications and certified by CCIL. Trained bud-grafters regularly achieve 85% success rate Nurseries supply hybrid clone seedlings

Partnership farmers



Objective 5 Plant new cocoa clones

200 clones)0.32 ha per farmer) planted with CPB-tolerant hybrid clones and

Block preparation - clear, line, plant shade trees Procure hybrid clone

Partnership farmers plant 0.32 hectare each with CPB-tolerant hybrid clones

Partnership households

Lead Partner Co-Partner Partnership families, Cocoa PMU


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managed to “Best Practice” standards

seedlings Plant 200 hybrid clones Manage hybrid clones to “Best Practice” Cocoa Management standards

by end of Q1 Year 2 Partnership farmers manage CPB-tolerant clones to “Best Practice” standards.

(centralised procurement of clones)

Objective 6 Redevelop (rejuvenate) existing cocoa trees

Confirm number of trees for rehabilitation of old cocoa for each farmerUp to 1ha per farmer of existing cocoa

Farmers to select block (up to 1 ha) to redevelop Supply farmers with tools and equipment Safe pesticide usage training for all farmers Commence training on Best Practice management of hybrid cocoa, CPB management

Partnership farmers rejuvenate up to 1 ha each of existing cocoa to produce 1 tonne of dry bean per ha with CPB infestation less than 10%

Partnership households

Lead Partner Co-Partner Partnership families


Objective 7 Cocoa quality

Output 1 Obtain a minimum of a 20 year land use Agreement for communal ownership Construct central fermentary Output 2 Partnership fermentaries consistently produce good quality cocoa.

Output 1 Select location for central fermentary and construct Output 2 Train Lead Trainer. Lead Trainer trains fermentary owners in “best practice” fermentation and drying practices.

Output 1 Central fermentary constructed and registered by the Cocoa Board. Output 2 All fermentary owners trained in “best practice” cocoa fermentation and drying.

Co-partner co-operative Partnership households

Lead Partner Co-Partner Partnership families


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Objective 8 Diversified cash crops

Output 1 Galip trees inter-planted in cocoa block, or selected fruit and nut trees planted, and used as additional cash crop

Supply 20 Galip seedlings or selected fruit and nut trees to each farmer Train farm households on galip or fruit and nut tree husbandry, harvesting, post-harvest practices

Galip established as permanent shade and alternative cash crop in cocoa blocks or fruit and nut trees established Partnership households trained on galip or fruit and nut tree husbandry, harvesting, post-harvest practices

Partnership farm households

Lead Partner Farmer Co-Partners, Cocoa PMU (galip seeds procurement)


Objective 9 Farming as a business

Farm households are planning use of their resources better and managing their incomes well

Identify training providers Train Lead Trainer Organise and conduct Sustainable livelihoods / personal viability, basic bookkeeping and business management training for female and male farmers Evaluation and follow-up training

Better planning by farm households resulting in better use of resources and better management of income. Farm households receive Sustainable livelihoods / personal viability, basic bookkeeping and business management training and apply the skills learned

Farm households

Lead Partner, Cooperative Society / Farmer Group


Objective 10 Cooperative management and governance

Output 1 Corporate management and business training conducted for Directors, Management & Staff

Identify training providers Organise and conduct training on corporate governance and business management training

Cooperative Society or farmer group leaders competently managed and all members are satisfied with the service provided

Directors, staff and members of Cooperative Society or farmer group

Lead Partner, Cooperative Society / Farmer Group


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Output 2 Directors, Management & Staff are competent in running the Cooperative Society or farmer group

Evaluation and follow-up training Cooperative Society or farmer group books and accounts are professionally kept and audited Board and Annual General Meetings are held

Objective 11 HIV/AIDS & Gender Training of Trainers and awareness

Output 1 HIV/AIDS awareness, voluntary testing and counselling in all wards covered by partnership.

Identify service provider Carry out awareness and testing Awareness and testing follow-up Monitoring Evaluation

Trainers from farming households in wards identified and trained. All PPAP households and surrounding communities receive awareness on HIV/AIDS and associated social issues; information available on ongoing basis

All partnership households and surrounding communities

Lead Partner Co-Partner


Objective 12 Innovation Activities

Objective 13. Nutrition

Objective 14. Gender

Objective 15 Field Days

Community Awareness of PPAP progress and achievements

Annual Field Days Both PPAP and non-PPAP farmers

Both PPAP and non-PPAP farmers

Lead Partner Lead Partner and PMU

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Objective 16 Financial Literacy awareness/training

Financial literacy awareness, bank accounts

conduct training PPAP households, both male and female

PPAP households, both male and female

Commercial bank With coordination of logistics by Lead Partner

Lead Partner and PMU

Objective 17 Final Project Report

Final Project Report with all acquittals and supporting documents accepted by Cocoa PMU

Collect and summarise data, write report, collate supporting documents, submit report

Completed report submitted within four weeks of partnership closure and accepted by Cocoa PMU

Partnership co-partner entity


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Annex 2: Details of Inputs and Schedule of Activities

Year 1 Year 2 Year 3 Objective Activities Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Objective 1 Project Management Output 1 – Steering committee established X Output 2 - Project staff recruited X Output 3 – Partnership office established X Output 4 – Establish bank account X Output 5 – Accounting system established X Output 6 – Farmer database established X Output 7 – Report templates set up X Output 8 – Invoice Cocoa PMU for advance payment X Output 9 – Train Lead Trainer and Extension Officers X Output 10 – Efficient, effective and productive management of

the project X X X X X X X X X X X X

Output 11 – Progress measured from baseline profile to end of project.

X X X X X X X X X X X X

Output 12 – Business / Sustainability Plan X X Objective 2 Partnership Database and Farmer Cash Contributions 2.1 Baseline survey conducted,– to include block identification,

CLUA and farmer declaration X X

2.2 Farmer database compiled and report presented to Cocoa PMU with CLUAs and Farmer Declarations

X X

2.3 Collection of Farmer Cash Contributions X X Objective 3 Cocoa Training Facilities Established 3.1 1. Select model farm locations and obtain 20 year land use

agreements 2. Block preparations 3. Buy planting material 4. Plant cocoa blocks 5. Construct pesticide store.

X X

X X X

3.2 “Best Practice” cocoa management training for Central Farm

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Year 1 Year 2 Year 3 Objective Activities Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4

Manager and Extension Officers at centre of excellence Arrange training Send personnel for training Central Farm Manager and Extension Officers train Village MF farmers / VEOs

X X

X

3.3 Best practice cocoa farm management Best practice budwood garden management Best practice nursery management Best practice Fermentary management

X X X X X X X X X X X

3.4 Refresher training on in “Best Practice” cocoa management for Central Farm Manager, Extension Officers and Village MF farmers / VEOs

X X

3.5 Establish resource centres Select model farm locations and obtain 20 year land use agreements Site preparations Buy materials and construct

X

X

X

Objective 4 Planting material production 4.1 Establish Budwood Garden(s) 1. Select model farm locations and obtain 20 year land use

agreements 2. Block preparations 3. Buy hybrid clone seedlings 4. Plant budwood garden

4.2 Budwood garden managed to “Best Practice” standards supplying sufficient budwood to nurseries

1. Budwood garden managed to “Best Practice” standards 2. Trees regularly pruned and producing high quality budwood

X

X X

X X

X X

X X

X X

X X

X X

X X

X X

X X

4.3 Establish central nursery (only if essentially necessary) 1. Select location and obtain 20 year land use agreements

2. Site preparations 3. Procure materials

X X X

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4. Construct nursery X X 4.4 Nursery managed to “best practice” standards

Train bud-grafters Plant rootstock seed Bud-graft with budwood from commercial source Produce hybrid clone seedlings for sale within & outside partnership

X X X

X X X

X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

X X X X

Objective 5 Plant new cocoa clones Cut down old cocoa trees or secondary regrowth

Clear, line, plant shade trees Procure hybrid clone seedlings Plant 200 hybrid clones Manage hybrid clones to “Best Practice” Cocoa Management standards

X X

X X X

X X X X

X X X X

X X X

X X

X

X

X

X

X

X

Objective 6 Redevelop (rejuvenate) existing mature cocoa trees (note that many farmers may not have existing cocoa due to CPB) Confirm number of trees for rehabilitation of old cocoa for each

farmers Farmers to select block (up to 1 ha) to redevelop Supply farmers with tool kit Safe pesticide usage training for all farmers Commence training on Best Practice management of hybrid cocoa, CPB management Manage rejuvenated block to Best Practice management standards Monitoring and follow-up training

X X

X X X X

X X X X

X X X

X X X

X X

X X

X X

X X

X X

X X

X X

Objective 7 Cocoa quality improved Output 1

Select site for central fermentary, obtain 20 year land use agreement and complete social safeguards Procure central fermentary construction works and construct Output 2

X

X

X

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Train fermentary owners and central fermentary staff in “best practice” fermentation and drying practices.

X

Objective 8 Diversified cash crops Supply 20 Galip seedlings/selected fruit and nut trees to each

farmer to plant X X

Objective 9 Farming as a Business/Sustainable Livelihoods/Gender Organise and conduct Sustainable livelihoods / personal

viability, basic bookkeeping and business management training with a particular focus on Gender for female and male farmers Identify and conduct training of primary training providers (includes extension staffs) Organise and conduct training of secondary trainers (Lead Farmers) Organise and conduct training and awareness to ppap households Evaluation and follow-up

X

X

X

X

X

Objective 10 Cooperative management and governance Identify training providers

Organise and conduct training on corporate governance and business management training Evaluation and follow-up training

X X

X

X

X

Objective 11 HIV/AIDS Training of Trainers and Awareness HIV/AIDS awareness

Identify service provider Carry out awareness Awareness follow-up Monitoring & Evaluation

X

X

X

X X

X

X X X

X

X X

X X

X X

Objective 12. Innovation Activities

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Year 1 Year 2 Year 3 Objective Activities Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Objective 13Nutrition To be advised Objective 14Gender To be advised Objective 15. Annual Field Days Organise and conduct annual field days X X X Objective 16. Financial Literacy Awareness/Training X X X X X X X X X X Objective 17. Final Project Report Collect and summarise data, write report, collate supporting

documents, submit report X

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Annex 3: Quarterly Cash Flow

Activities Qtr 1 Year 1

Qtr 2 Year 1

Qtr 3 Year 1

Qtr 4 Year 1

Qtr 1 Year 2

Qtr 2 Year 2

Qtr 3 Year 2

Qtr 4 Year 2

Qtr 1 Year 3

Qtr 2 Year 3

Qtr 3 Year 3

Qtr 4 Year 3

[Description of the activity 1] Amount

[Description of the activity 2] Amount

TOTAL

CONTRIBUTIONS

LEAD PARTNER

CO‐ PARTNER 1

CO‐PARTNER 2

JOINT PARTNER 1

JOINT PARTNER 2

PPAP

TOTAL

[Note: (1) For each activity in Table 2 (Implementation Plan) enter the cost into this table. If the activity cost includes items of more than one cost category (refer to Table 4) the items in each category must be entered as separate line items.)

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Annex 4: Procurement Plan

Description of Activity Estimated Costs (currency PGK)

Procurement Method

†Implementation Period (Quarter & Year)

Goods Works Services TOTAL

[Note: The implementation period shown in this table should correspond to the time frame and costs for activities included in Table 2 (Project Implementation Plan) and Table 3 (Cash Flow Budget per Activity per Quarter). All Goods, Works and Services used by the Partnership that are part of the total project cost should be included in this table. The Procurement Plan will be part of the Partnership Agreement. The Partners shall implement the Procurement as in the Partnership Agreement. The Procurement Plan may be revised and up‐dated before signing of the Partnership Agreement.]

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Annex 5: Social Management Plan

Mitigation Plan Monitoring Plan

Activity – Social Impacts

Potential Impacts / Issues

When Impact Occurs

Mitigation Measure

Who When to be applied

Indicator Who When

Indigenous Peoples Policy

Members of the community do not fully understand the proposed partnership

During development of partnership plan

Ensure conduct of free and prior informed consultation to target farming communities

Lead Partner

Before and during development of partnership plan

Signed documentation

Lead partner to provide documentation; PMU to verify

At time of Business & Implementation Plan Verification

Members of the community do not support the partnership

Before and during partnership implementation

Ensure broad community support or broad acceptance of the partnership

Lead partner and co-partner leaders

During partnership preparation



At time of verification

Involuntary Resettlement Policy

Lands covered by the partnerships are under dispute

When attempted use of land

Ensure that ownership of the lands covered by the

Lead partner and co-partner



Lead partner to provide document

At time of Business & Implementation Plan

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When Impact Occurs

Mitigation Measure


Indicator Who When

commences project is clear, and the lands are dispute-free

leaders ation; PMU to verify

Verification and subsequently as necessary

Use of land by farmer group/coop society

When use of land commences

Ensure that group/cooperative has secured rights to the use of that land by means of a legal agreement for a minimum of 20 years. Where the land is under customary ownership, a CLUA (Annex 9) must also be signed before any site





At time of Business & Implementation Plan Verification and subsequently if necessary

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When Impact Occurs

Mitigation Measure


Indicator Who When

preparation work begins

Land owned by individual farmer to be used by partner group/coop society

When use of land commences

Ensure that ownership of the lands is clear and it is free from disputes, the lands are offered voluntarily by the owner to the group; where the land is under customary ownership, a CLUA (Annex 9) must also be signed before any site preparation work begins.





At time of Business & Implementation Plan Verification and subsequently if necessary

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When Impact Occurs

Mitigation Measure


Indicator Who When

Negative Social Impacts

Increase in disposable income is spent on vices and not on basic household needs

When income increases

Training on expenses planning and budgeting for both husbands and wives

Farmer group/cooperative adopts a policy of income-expenditure record keeping

Lead Partner

During Sustainable Livelihoods and Decision Making, Basic Record and Book Keeping, Small Enterprise Planning and Decision Making training in second and third years of project.

Training reports; Lead Partner / Co-Partner leader reports on situation in beneficiary communities

Lead partner and Cooperative Society

Quarterly

Partnership cater only to men’s interest resulting in further marginalization of women

As partnership activities implemented

Ensure that women are involved and share the benefits from the project

Lead Partner / Co-Partner leaders

During implementation of partnership activities

Attendance sheets for partnership activities

Lead Partner

Quarterly

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When Impact Occurs

Mitigation Measure


Indicator Who When

Incremental income will worsen existing problems of alcohol abuse and domestic violence

When income increases

Awareness activities commence in first year of project

Lead Partner / Co-Partner leaders

Commence in first year and ongoing

Records of awareness meetings / counselling;

Lead Partner / Co-Partner leader reports on situation in beneficiary communities

Lead Partner / Co-partner leaders

Quarterly

Increase in risky behaviour that could result in higher incidence of HIV/AIDs

When incomes increase

Ensure partnership activities include HIV/AIDs awareness and prevention seminars

Lead partner, co-partner leaders

Awareness and counselling start in Dec 2012; follow up visits ongoing through project period

Awareness and counselling happening and reported


Quarterly

Possible exploitation of children in the farms, preventing

Project implementation

Ensure farmer groups adopt a policy of not employing

Lead partner, farmer group

Policy adopted in 2012

Record of policy adoption in BCS meeting

Lead partner. Cocoa

Quarterly

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When Impact Occurs

Mitigation Measure


Indicator Who When

them from going to school

children during school days

leaders minutes.

No school age children seen working during monitoring visits

PMU

Absence of grievance mechanism

At any time following commencement of partnership

Ensure that grievance mechanism is in place and the people are aware of it


When partnership commences

Grievance boxes can be seen in appropriate locations

Lead Partner, Cocoa PMU

Monthly, as part of grievance monitoring

Potential Social Impact Management Plan for Partnership Activities

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Annex 6: Environmental Management Plan


Activities Potential Impacts / Issues

When Impact Occurs

Mitigation Measures


Indicator Who When

Potential Environmental Impact Management Plan for Partnership Activities

100

Annex 7: Pest Management Plan


Activities Potential Impacts / Issues

When Impact Occurs

Mitigation Measures


Indicator Who When

Potential Pest Management Impact Management Plan for Partnership Activities

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Annex 8: Farmer / Household Database Kept by Lead Partner

This database must be established for each member of the co-partner groups and updated every 6 months. Baseline information should be collected at the commencement of Partnership activities and then updated every 6 months with implementation progress.

1 COCOA SMALLHOLDER

Date: Name of Interviewer: Position:

Name of organization:

1. General Information Name of Farmer Interviewed: ________________ Province: ________________

Sex: ________________ District: ________________

Name of Partnership with PPAP: ________________ LLG: ________________

Name of Head of Household (if not the farmer interviewed)

________________ Ward: ________________

Village: ________________

2. Household Information No. Head of

Household & Relationship to HH*

Sex 1Male 2Female

Age (years**)

Highest grade (No)completed 0 No grade completed 1‐12 Specify grade (class) 1‐12 13 Trade certificate 14 Other certificate 15 Diploma 16 Bachelor’s degree 17 Postgraduate

Can this person read and write? 1 Reads English 2Writes English 3Reads and writes English 4 Reads Pidgin 5 Writes Pidgin 6 Reads and writes Pidgin 7 All of the above 8 None of the above (Give maximum two responses per household member using the list above)

Does this person have his or her own bank account or a joint account

1 HH

2 Spouse

3

4

5

6

7

102

No. Head of Household & Relationship to HH*

Sex 1Male 2Female

Age (years**)

Highest grade (No)completed 0 No grade completed 1‐12 Specify grade (class) 1‐12 13 Trade certificate 14 Other certificate 15 Diploma 16 Bachelor’s degree 17 Postgraduate

Can this person read and write? 1 Reads English 2Writes English 3Reads and writes English 4 Reads Pidgin 5 Writes Pidgin 6 Reads and writes Pidgin 7 All of the above 8 None of the above (Give maximum two responses per household member using the list above)

Does this person have his or her own bank account or a joint account

8

*Relationship to household head 1 Head, 2 Wife/Husband, 3 Own son/Daughter, 4 Adopted/foster /step child, 5 Grandchild, 6 Niece/Nephew, 7 Parent (Mother/Father), 8 Brother/Sister, 9 Son/daughter in‐law, 10 Brother/Sister in‐law, 11 Grand Mother/Father, 12 Mother/Father in‐law, 13 Other relative, 14 Not related, 15 Hired Labour, 16 Other(specify) **Age at last birthday? (Give an estimate if exact age is not known, if less than 1 year, write ’00’)

3. Farm and Household Assets

Equipment Qty Qty

1 Wheelbarrow ____ 10 Harvest containers/buckets ____

2 Chainsaw ____ 11 Pole pruner ____

3 Knapsack ____ 12 Overalls ____

4 Secateurs ____ 13 Radio ____

5 Bow saw ____ 14 Mobile phones ____

6 Spade ____ 15 Televisions ____

7 Bush knife ____ 16 Other – specify:________________ ____

8 Cocoa bags ____ 17 Other – specify:________________ ____

9 Canvas or drying sheets ____ 18 Vehicle ____

19 Other tools, equipment or safety equipment (specify): ________________

103

4. Particulars of Land Available and Existing Cocoa

Block

No. of

Cocoa Trees

Age Name of Hybrid/ Clone

Approximate Spacing

No. of Trees to

be Infilled*

No. of Trees to be

Replanted**

Block No. 01

Block No. 02

Block No. 03

Block No. 04

* ‐ in less than 3 years old Cocoa

** ‐ at recommended spacing for certified Hybrid Clones

5. Production & Price of Cocoa in 2015

Selling as Dry or Wet Bean? Dry Wet Both

No. of Bags

Average Price/Bag

No. of Kg. Kina/Kg.

Dry Bean

Wet Bean

6. Does the household own a Fermentary Yes/No If yes, License No.

Mobile Phone No.

7. Details of Close ‐ by Fermentaries

No. Identification Name Identification

Location Mobile No.

Distance (Km)

104

7.1 Distance to Nearest Selling Point, Mode of Transport and Transport Cost

Type of Buyer Distance (in Km.)

Mode of Transport

Cost of Transport

(Kina/Bag)

Distance Carrying to nearest Transport Point (Km)

Trader ‐ Wet Bean Buyer # 1

Trader ‐ Wet Bean Buyer # 2

Trader ‐ Dry Bean Buyer # 1

Trader ‐ Dry Bean Buyer # 2

Exporter

Lead Partner

7.2 Do you sell your Cocoa produce individually or in a group?

8. Level of CPB Infestation

Block No. Level of Infestation (%)

9. Food Crops – Production & Income in 2015 & Planned Diversifications

Production & Income in 2015

105

Block Crops Planted

in 2015 For home

consumptionFor sale

How often do you sell food

crops?#

Block No. 01

Block No. 02

Block No. 03

Block No. 04

# 0 = never; 1 = every week; 2 = every fortnight; 3 = every month; 4 = less than once per month.

10. Non‐farm Income and Livestock

Sources of income in 2015 Yes / No Total Income/Value (2015)

Off‐farm employment 1 Yes 2 No _____ Kina

Non‐farm income e.g. trade store, PMV 1 Yes 2 No _____ Kina

Betel nut/daka(mustard)/lime sales 1 Yes 2 No _____ Kina

Livestock sales 1 Yes 2 No _____ Kina

Hunting 1 Yes 2 No _____ Kina

Gifts, remittances 1 Yes 2 No _____ Kina

Customary payments 1 Yes 2 No _____ Kina

Other:______________ 1 Yes 2 No _____ Kina

** 0 = Zero; 1 = less than 25%; 2 = 26 to 50%; 3 = 51=75%; 4 = more than 75%

11. Training and Extension

Have the training needs of the farmers been assessed?

106

Training/Information

types

11.1

Information/training need assessed?

1 Yes

2 No

11.2 Training/extension

delivery mode 1 Lead farmer Hands-on at

Central model farm 2 Farmer Hands-on at

community model farm 3 Group Training; 4 Brochures/leaflets 5 Farmer field school

sessions 6 Famer group discussion

meetings; 7 Other (specify)

11.3. Name of Extension Officer/Trainer

11.4 Date of training or extension provided

1 Best Practice cocoa block management

_____ _____

_____ _____

_____ _____

2. Cocoa pod borer management

_____ _____

_____ _____

_____ _____

3 Processing/quality ____ _____

_____ _____

_____ _____

4 Safe handling, use, storage and disposal of Pesticides

_____ _____

_____ _____

_____ _____

5 Other Crops _____ _____

_____ _____

_____ _____

6. Livestock _____ _____

_____ _____

_____ _____

7. Bookkeeping / record keeping, financial literacy

_____ _____

_____ _____

_____ _____

8. HIV/AIDS

_____ _____

_____ _____

9. Other (specify)

12. GPS coordinates of farmer’s gardens

Garden 1 Garden 2 Garden 3 Garden 4

ELEV. (metres) (metres) (metres) (metres)

Latitude (S) ˚ ’ ” ˚ ’ ” ˚ ’ ” ˚ ’ ”

Longitude (E) ˚ ’ ” ˚ ’ ” ˚ ’ ” ˚ ’ ”

Distance from House (time)

___/___ Hr/min

___/___Hr/min

___/___ Hr/min

___/___Hr/min

107

13. Land Use

Has the land ownership and right of the farmer to use the land been confirmed?

What is the current status of the Clan Land Usage Agreement been signed? Tick only one box

Signed by farmer only

Signed by all parties

No signatures

14. Farmer Declaration

Has the farmer signed the Farmer Declaration? Yes No

108

Annex 9: Clan Land Use Agreement (CLUA)

109

Annex 10: Farmer Declaration

PRODUCTIVE PARTNERSHIPS IN AGRICULTURE PROJECT

[NAME OF PARTNERSHIP]

FARMER DECLARATION

(FOR SAFEGUARDING PPAP CONTRIBUTION)

1. Name: [Insert name of farmer]

2. Location of cocoa farm. Village: Ward: LLG: District: Province: GPS: Elevation: Latitude (S): degrees minutes seconds Longitude: (E) degrees minutes seconds

3. Land status

Customary – complete CLUA

State Lease – nature of occupancy: owner of title deed Relative of owner Other (specify)

Land NOT under dispute

Land under dispute – state the nature of the dispute ………………………………………………

………………………………………………………………………………………………………………………………………………. 4. Declaration

I hereby declare that: 1. I have the legal right to farm / grow tree crops on the above land for a period of at

least ten (10) years. 2. I shall continue to manage the cocoa and other plants provided by the PPAP for a

minimum period of ten (10) years. 3. I shall not sell or otherwise dispose of goods (cocoa clone seedlings, tools, etc.)

provided by the PPAP. Signed: Date: Witnessed: Name of witness: Witness signature:

110

Annex 11 Quarterly Reporting Format Please delete the text in italics before completing this report. A digital copy must be submitted – by email or on CD ROM or Flash drive.

Date of submission:

Reporting period:

Project Number

Name of partnership:

Location of the partnership: province(s), district(s), villages

Total duration of the project: Months

Partner 1 (Lead Partner)

Partner 2 (Joint Partner 1)

Partner 3 (Joint Partner 2)

Partner 4 (Co-Partner 1)



Contact person for the partnership:

Postal address:

Telephone number:

Fax number:

Email:

111

1. Project Progress Summary (Please provide a short description of progress to summarise the current situation in terms of output/activities and achievements for the reporting period.) (2-3 pages plus the Updated Implementation Plan)

● Indicate what Progress has been made during this Period towards accomplishing planned activities. Please be specific in terms of the number of farmers that have been involved in partnership activities during the quarter, broken down by gender where possible and the role and progress made by co-partners.

● Other points worth high-lighting relating to aspects of the project based on the

participation level / results achieved/ social or environmental issues /other challenges faced and how they were resolved (weather/infrastructure/cocoa calendar etc.), any noteworthy accomplishments

● Issues that need follow-up or for which guidance is sought from the PPAP PMU ● Briefly describe any major deviation from the original implementation plan (provide

summation here and append amended implementation plan at the end of the report) ● Lead partners should also report on any changes to their legal or financial status that

has an implication of the project supported activities • Quarterly reports should be submitted to the Cocoa PMU in Kokopo within 10

working days after end of the Quarter. It is suggested that, wherever possible, claims for replenishment coincide with a Quarterly Report to reduce your reporting requirement.

112

2 ACTIVITIES/TASKS PERFORMED TOWARDS ACHIEVING OUTPUTS (Use this table to report progress against targets / milestones for each activity as set out in your implementation plan. Describe activities under the output to which they contribute.)Please do not modify the format. Information on additional outputs should be appended to the table using the same format). Add rows as required Legend: Provide additional information/descriptions if required. 1st Quarter

Achievement 2nd Quarter Achievement

3rd Quarter Achievement

4th Quarter Achievement

Year to date Cumulative

Total Cumulative to date

No. Activity Total Target

Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Actual year to date Achievement

Year to date as a % of Annual Target

Total cumulative to date

Total to date as a % of Total Target

PART A: PARTNERSHIP FARMER MEMBERS OUTPUT 1: RESOURCE BASE – DEVELOPMENT OF COCOA CULTIVATION 1.1 Rejuvenation of Cocoa 1.1.1 No. of Cocoa trees

successfully rejuvenated / rehabilitated

1.1.2 Approximate Extent in Hectares *

1.1.3 No. of Farmers involved in rejuvenating cocoa trees

1.1.4 Rejuvenation Training (pruning)

1.1.4.1 No. training sessions 1.1.4.2 No. males trained 1.1.4.3 No. females trained 1.1.4.4 No. Non‐PPAP farmers

trained ‐ male

1.1.4.5 No. Non‐PPAP farmers trained ‐ female

1.1.4.5 Total No. training days 1.2 Planting of New cocoa 1.2.1 No. of recommended

113

1st Quarter Achievement

2nd Quarter Achievement






Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





Cocoa Hybrid Clones procured‐Commercial Nursery

1.2.2 No. of recommended Cocoa Hybrid Clones planted –Commercial Nursery

1.2.3 No. of recommended Cocoa Hybrid Clones planted‐ Partnership Nursery

1.2.4 Approximate Extent in Hectares *

1.2.5 No. of Farmers that have planted cocoa

1.3 Primary Forest Cleared [1]

1.3.1 Primary Forest area cleared (ha)

1.3.2 Number of farmers who have cleared primary forest‐

[1] PPAP does not fund activities that involve destruction of primary forest. Any PPAP funds spent on these activities will have to be reimbursed by the partnership 1.4 Hybrid Clonal Budwood

Gardens

1.4.1 No. of Hybrid Clonal Budwood Gardens Established

1.4.2 Total number of seedlings planted in budwood gardens

1.4.3 Farmer training on

114








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





management of Budwood Gardens

1.4.3.1 No. of Female Farmers Trained

1.4.3.2 No. of Male Farmers Trained

1.4.3.3 Total number of training days

1.4.4 Number of Budwood gardens managed to best practice

1.5 Hybrid Clone Nurseries 1.5.1 No. of Nurseries

Established

1.5.2 No. of Recommended Cocoa Hybrid Clones Produced & Distributed

1.5.3 Cocoa Propagation Training (bud‐grafting)

1.5.3.1 No. training sessions 1.5.3.2 No. of Females Trained 1.5.3.3 No. of Males Trained 1.5.3.4 Total number of

training days

1.5.4 Nursery Management Training

1.5.4.1 No. of Training sessions 1.5.4.2 No. males trained 1.5.4.3 No. females trained 1.5.5 Total number of

training days

1.5.6 No. of nurseries managed to best

115








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





practice * ‐ Estimation of area has to be based on spacing and number of trees (e.g. Spacing = 4m x 4m, No. of Trees = 200, Therefore, approximate area = 200/[10,000 sq. metre / 16 sq. metre (4x4)] = 0.32 hectares. OUTPUT 2: BEST PRACTICE COCOA MANAGEMENT PACKAGE 2.1 CPB Management &

IPDM Training

2.1.1 No. of females trained 2.1.2 No. of males trained 2.1.3 No. Non‐PPAP farmers

trained – male

2.1.4 No. Non‐PPAP farmers trained ‐ female

2.1.5 Total number of training days

2.1.6 CPB Management to “Best Practice” (80% or more of pods healthy)

2.2 Cocoa block management to “Best Practice”

2.2.1 No. of females trained 2.2.2 No. of males trained 2.2.3 No. Non‐PPAP farmers

trained – male


2.2.5 Cocoa block managed to “best practice” ‐ shade, pruning, IPDM etc. (No.)

2.3 Distribution of Tool Kits

2.3.1 No. of Tool Kits

116








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





procured 2.3.2 No. of Tool Kits

distributed

OUTPUT 3: CROP DIVERSIFICATION 3.1 Perennial Cash Crops 3.1.1 No of perennial cash

crop trees procured

3.1.2 No of perennial cash crop trees planted

3.1.3 No. of farmers planted perennial cash crops

3.2 Annual Cash crops 3.2.1 No. of farmers planted

annual cash crops

3.2.2 Area (ha) under annual cash crops

3.3 Crop Diversification Training to Farmers

3.3.1 No. of sessions held 3.3.2 No. of females trained 3.3.3 No. of males trained 3.3.4 No. non‐PPAP farmers

trained – male



OUTPUT 4: CERTIFICATION 4.1 Issue of Certificates 4.1.1 No. of Certification

programmes in the partnership

117








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





4.1.2 No. of farmers in the certification

4.1.3 Area of cocoa under certification (hectares)

4.1.4 Certification Training (1/2 day)

4.1.4.1 No. males trained 4.1.4.2 No. females trained 4.1.4.3 No. non‐PPAP farmers

trained – male



OUTPUT 5: GENDER DEVELOPMENT 5.1 Entrepreneurship and

Group Formation

5.1.1 No. of women's groups formed

5.1.2 No. of women enrolled in groups

5.2 Gender Training 5.2.1 Training of Trainers 5.2.1.1 No. training sessions 5.2.1.2 No. males trained 5.2.1.3 No. females trained 5.2.1.4 Total number of

training days

5.2.2 Farmer Gender Training

5.2.2 No. of training programmes conducted

118








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





5.2.2.2 No. of female farmers trained

5.22..3 No. of male farmers trained


OUTPUT 6: HIV/AIDS 6.1 HIV/AIDS 6.1..1 Training of Trainers 6.1.1.1 No. training sessions 6.1.1.2 No. males trained 6.1.1.3 No. females trained 6.1.1.4 Total number of

training days

6.1.2 Farmer Training for HIV/AIDS

6.1.2.1 No. of awareness /training conducted for HIV/AIDS

6.1.2.2 No. of female participants

6.1.2.3 No. of male participants 6.1.2.4 No. Non‐PPAP farmers

trained – male


6.1.2.6 Number of voluntary VCCT (male and female combined)

OUTPUT 7: FARMING AS AGRI‐BUSINESS 7.1 Financial Literacy 7.1.1 No. of training sessions

119








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





7.1.2 No. male farmers trained

7.1.3 No. female farmers trained


7.1.5 No. male farmers opened new bank accounts

7.1.6 No. of female farmers opened new bank accounts

7.1.7 No. farmers who opened joint accounts

7.2 Basic Book Keeping 7.2.1 No. of Training sessions

on Basic Book Keeping

7.2.3 No. of female farmers trained

7.2.4 No. of male farmers trained


7.3 Livelihoods Training 7.3.1 No. training sessions

held

7.3.2 No. of female farmers trained



7.4 Business Group

120








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





Development 7.4.1 Business/Sustainability

Plan Developed

7.4.2 Governance Training 7.4.2.1 No. males trained 7.4.2.2 No. females trained 7.4.2.3 Total number of

training days

OUTPUT 8: FERMENTARIES AND COCOA QUALITY 8.1 No. of new

fermentaries built

8.2 No. of fermentaries renovated

8.3 No. fermentaries registered by Cocoa Board

8.4 No. fermentaries managed to “Best Practice” standards

8.5 Cocoa quality training events

8.5.1 No. of training events 8.5.2 No. of female farmers

trained


8.5.4 No. non‐PPAP farmers trained


8.6 Quantity of cocoa dry bean produced –Export grade (FAQ)

121








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





8.7 Quantity of cocoa dry bean produced –Non‐Export grade

8.8 Quantity of cocoa dry bean produced but rejected

PART B: PARTNERSHIP HUMAN RESOURCES AND MODEL FARMS OUTPUT 9: COCOA HUMAN RESOURCES, TRAINING AND TRAINING FACILITIES 9.1 Human Resource

identification / recruitment

9.1.1 Partnership Co‐ordinator (identified and in place)

9.1.2 Data entry clerk for project monitoring (recruited and in place)

9.1.3 Lead Trainer (recruited and in place)

9.1.4 Extension staff (No. staffs for project implementation, farmer training, data collection etc. recruited and in place)

9.1.5 Lead Farmers (No. identified and in place)

9.2 Cocoa Training Facilities Establishment

9.2.1 No. Training facility / hut established

9.2.2 Central / Community Pesticide Store

122








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





9.2.2.1 No. established 9.2.2.2 No. managed to “Best

Practice” standards

9.2.3 Central/Community Model Farm Cocoa Blocks

9.2.3.1 No. Central Model Farm cocoa block established

9.2.3.2 No. managed to “Best Practice” standards

9.2.4 Lead Farmer/VEO Cocoa Model Farm/Block

9.2.4.1 No. established 9.2.4.2 No. managed to “Best

Practice” standards

9.3 Marketing 9.3.1 QTY (tonnes) Wet bean

sold by the Cooperative/ Group

9.3.2 QTY (tonnes) Dry bean sold by the Cooperative/Group

9.4 Training 9.4.1 Training of Trainers.

Induction (2 week Learning by Doing at a centre of excellence): Manager/Lead Trainer and Extension Staff

9.4.1.1 No. males trained 9.4.1.2 No. females trained 9.4.1.3 Total number of

123








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





training days 9.4.2 TOT Refresher Course

after 18 months (1 week)


training days

9.4.3 Learning by Doing: 2 weeks. Lead Farmers trained by Extension Staff


training days

9.4.4 Farmers trained by Lead Farmers/VEOs supported by extension staff

9.4.4.1 No. training sessions 9.4.4.2 No. males trained 9.4.4.3 No. females trained Total number of

training days

9.4.5 No. Quarterly Steering Committee Meetings held and Minutes sent to PMU

9.4.5 Annual Field Days 9.4.5.1 No. locations held 9.4.5.2 No. PPAP farmers

attended

124








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





9.4.5.3 No. non‐PPAP farmers attended

9.4.7 Partnership Innovation Activity No 1


training days

10NUTRITION (to be added) 11 FARMER REQUIREMENTS 11.1 No. Farmer Cash

Contributions received (10% of Goods)

11.2 No. of Farmers Replaced

11.3 No. Cocoa block preparations completed (Farmer Sweat Equity)

11.5 No. Cocoa blocks managed to “Best Practice (6 monthly inspections)

12 LEAD PARTNER REQUIREMENTS 12.1 Project Management:

Facilities, Systems, Databases established

12.2 Business / Sustainability Plan Produced and Presented

12.3 Mini (Farmer) Baseline Survey Completed and reported (to include

125








Annual Target

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress

Target

Actual

% Progress





CLUAs& Farmer Declarations))

12.4 Disbursement Requests 12.5 No. Contract Variations

Sought

12.6 Ineligible expenditure 12.6.1 No. reported 12.6.2 No. detail provided 12.6.3 No. resolved 12.7 Grievances 12.7.1 No. reported 12.7.2 No. resolved

126

3. ACTIVITIES/OUTCOMES/PARTNERSHIP FUNCTIONING

No Activity Achievement

Target next Quarter Problems and Constraints Action Recommended This

Quarter Cumulative

3.1 EXTENSION / INFORMATION DISSEMINATION

3.1.1 Number of individual farmers visited by Lead – Partner

3.1.2 Number of partnership beneficiaries participating in project activities

3.1.3 Number of farmer cluster group training sessions conducted

3.1.4 Number of awareness/information sessions conducted

3.1.5 Number of extension leaflet s/brochures distributed

3.2 Number of Farmers Seeking Information on: This Quarter

Cumulative Remarks / Comments

3.2.1 PPAP

3.2.2 Partnership Operation

3.2.3 Market Price

3.2.4 Technical Advice

3.3 MARKETING INFORMATION (LEAD ‐ PARTNER / PARTICIPATING SMALLHOLDER PRODUCTION)

This Quarter

Cumulative Remarks / Comments

3.3.1 Number of Farmers who sold cocoa to Lead – Partner

3.3.2 Volume of Wet bean Sold (Kgs)

3.3.3 Volume of Dry Bean Sold (63 kg Bags)

3.3.4 Volume of dry bean sold and Paid a Premium Price (63kg Bags)

3.3.5 Estimate of Volume of Cocoa Sold Outside of Partnership (Tonnes of Parchment)

127

4. FINANCIAL REPORTING (Please provide details of expenditure for the reporting period for all cost categories specified in the Partnership Agreement. Note that you must report on budget vs. expenditure for each cost category.The Bank statement for the partnership account has to be appended as well.Insert additional rows as required.) The Partnership Cash Book, Budget and Expenditure Report and a copy of the statement for the partnership bank account must be submitted monthly to the Cocoa PMU

4.1 FINANCIAL SUMMARY REPORT Year to date Summary

World Bank GoPNG Lead Partner Co‐Partners Other Total

Project budget by funding source

Receipts to date

Expenditure to date

Acquitted expenditure to date

Unacquitted expenditure to date

Balance of Contract

Balance of Contract Remaining %

Cash Book Balance

Total unpresented cheques

Bank Account Balance

128

4.2 PARTNERSHIP CASH BOOK

Date Chq no. Voucher no. Supplier Description Funds

Received Expenditure GST Nett

Expenditure Expenditure

Code Balance Opening Balance 0

129

4.3 BUDGET AND EXPENDITURE REPORT Reporting Period Year to Date

Actual to Date

Total Budget (per

Contract) Remaining Budget Code Activity Actual Budget Variance Actual Budget Variance

A B C=B‐A D E F=E‐D G H I=H‐G Total of Activities 0 0 0 0 0 0 0 0 0 GST Grand Total 0 0 0 0 0 0 0 0 0

Notes: Insert activities from quarterly cash flow table in second column; insert additional rows as needed Reporting against activities is excluding GST GST reported at the bottom

130

4.4 RECEIPTS AND EXPENDITURE REPORT Reporting Period Year to Date Total to Date Total PPAP‐WB PPAP‐GST Counterpart Total PPAP‐WB PPAP‐GST Counterpart Total PPAP‐WB PPAP‐GST Counterpart Opening Balance Funds Received Expenditure Balance

Notes: 1. Balance = Opening Balance plus Funds Received less Expenditure. Balance as at end of the reporting period must be reconciled to the bank statement 2. Expenditure total must tally with Budget and Expenditure Report 3. Receipts and expenditure for GST must be actual funds received from GoPNG and actual GST expenditure supported by invoices etc.

131

5. PROCUREMENT REPORTING (Provide details of procurement during the quarter. Insert additional rows as required.)

Type of procurement (as per Procurement

Plan)

Procurement Method

Estimated Amount (as per Procurement

Plan)

Starting date of the procurement

process

ContractIssues / Action

Taken Supplier/

Contractor/ Consultant Name (Note to include

contract number)

Date Actual Value (PGK)

1 GOODS Farmer packs Building Materials Drying Bed materials Nursery Materials 2 WORKS 3 SERVICES Trainings/workshops Visiting Trainers/service providers

Venue hire Administration

132

6. SOCIAL AND ENVIRONMENTAL IMPACT REPORT (Provide details of any positive or negative Social or Environmental impacts as assessed from the Social and Environmental Screening Process. Insert additional rows as required.)

* Registration number should be obtained from PMU

1. Environmental Impacts (EI) Description of Activity

Environment impacts/issues triggered

Mitigation Measure(narrative of how these issues were addressed)

Mitigation Costs incurred

Monitoring Frequency

Monitoring Responsibility

Problems (Un‐mitigated impacts) and Constraints

Action Recommended

2. Social Impacts Description of Activity

Social impacts/issues triggered

Mitigation Measure (narrative of how these issues were addressed)

Mitigation Costs incurred

Monitoring Frequency

Monitoring Responsibility

(Un‐mitigated impacts) and Constraints

Action Recommended

3. Consultations (partners to keep brief minutes of these consultations)Description of Activity

Key issues discussed Number of farmers/participants

Facilitator

Organisation of facilitator

Location of consultation/grievance

Date and Time

4. Grievances Description of Grievance

Name of Complainant

Contact Details

Date Received

Registration No*.

Name of Recorder

Action Officer

Date Actioned

133

7. SIGNATURES Partnership Coordinator: Date: / / Co‐Partner: Date: / / Co‐Partner: Date: / / Co‐Partner: Date: / /

134

Appendix 10: Cocoa Component Training Plan and Facilities

Item Number

1. Extension Staff (full‐time)

2. Lead Farmers (Village Extension Officers) / Number of Farmer Clusters (25 farmers / cluster)

2.1 Male

2.2 Female

3. Farmers: Total

3.1 Male

3.2 Female

4. Model Farms/cocoa blocks

5. Centalised facilities

5.1 Resource Centres

5.2 Budwood Gardens

5.3 Nurseries

5.4 Fermentaries

6. Wards

7. Farmer Cooperatives / Associations / Groups

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Appendix 11. Code of Conduct for PPAP Personnel and Members of Project Committees

This code of conduct sets out what is expected of staff working on PPAP, as well as of those of individuals representing their respective organizations on the Industry Coordinating Committees and those serving on the Technical Appraisal Committee (TAC). The Code sets out the practices and principles of behaviour that PPAP staff and committee members are required to follow throughout all project‐related operations to ensure that the organizations they represent receive and maintain public reputations of the highest order.

Integrity Integrity should be a principle at the forefront of the mind of all. This includes full accountability and transparency in dealings with clients and suppliers. It requires honesty, fairness and truthfulness in all dealings.

Staff should ensure that all PPAP documents and records are completed accurately, truthfully and in a timely manner. The making of false or misleading entries or documentation is strictly prohibited. Any funds provided under the project are expected to be fully acquitted by the required times, with all supporting documents such as receipts and invoices.

Respect for people and non‐discrimination It is the policy of PPAP that all employees are treated with fairness and respect. The project will not tolerate discrimination within the organization based on nationality, ethnic group, clan group, religion, sex, age, marital status, sexual orientation, or disability. Particular attention needs to be given to non‐discrimination against individuals who are HIV positive.

All PPAP staff are expected to treat their colleagues, counterparts and clients with equality and respect at all times.

Commercial Confidentiality PPAP recognizes that commodity dealing for cocoa and coffee is a commercially competitive business and that information, including but not limited to pricing, purchasing arrangements, agreements with local growers and financial dealings, is commercially sensitive.

PPAP wishes to promote private public relationships that benefit all stakeholders and will co‐fund agreed activities. Hence, in all its dealings with private organizations, PPAP will only request sufficient non‐commercial information that will provide the necessary base for the relevant Project Management Unit and its advisers to monitor that any co‐investment in the partnerships will reasonably deliver the agreed outcomes. All PPAP personnel who may receive information during the course of their duties that may be commercially sensitive are required to respect the confidentiality of that information and not divulge it to others.

Conflict of Interest A conflict of interest is any situation in which a staff or committee member may have two or more duties or interests that are not compatible, and may influence that person’s ability to be impartial.

To maintain the highest degree of integrity when conducting project work and to maintain independent judgment, all PPAP staff and committee members must avoid any activity involving personal interest that creates, or has the appearance of creating, a conflict between their interests and the interests of the project.

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Personal interests must be declared on in writing if there is a potential conflict. In these circumstances the work or decision would be delegated to another colleague. The reason for doing this is to avoid any conflict of interest, maintain an open and transparent environment and minimize risks of corrupt practices.

Drugs and alcohol All staff when representing PPAP must be fit for duty and free of drugs and alcohol. This includes legal and illegal drugs. Buai is not to be chewed inside the project offices, which are also smoke free.

Gifts The giving or receiving of gifts, by staff members or by members of their family, can potentially cause problems as such acts may be seen as an attempt to earn certain favours.

Staff members, or their immediate families, may not request, accept or give any gift or payment in connection with their work for the project beyond that of token value. Gifts such as bilums and local handicrafts presented at a formal function are acceptable, but any more expensive gifts should be declared. If there is any uncertainty then the Project Coordinator and/or Chairman of the Project Steering Committee should be consulted. PPAP project staff may not accept or expect payments from clients for the work they do on behalf of the project.

Project Assets It is the responsibility of all project staff to ensure that assets and consumables are used only for PPAP business and are well looked after. Unless given specific permission in special circumstances, Project assets and consumables shall be kept on PPAP premises.

All purchases and contracts by the Project must be made on the basis of the PPAP Project Implementation Manual (Section 5 – Procurement Manual).

Use of Communications resources Project communications resources such as telephones, faxes, e‐mails and the Internet are for official use only.

In addition, all e‐mails and personal files stored on the PPAP IT network are the property of the project. Staff should therefore have no expectation of privacy in connection with these resources.

Media Staff should not speak to the media or release press statements on behalf of the project without clearance through their respective PMU Project Manager and/or the CEO of the CB/CIC (respectively). The preparation and release of material for release to the media will follow a clearly defined process requiring formally signed approvals for the release of the material, usually on the part of the respective industry agency that the PMU represents.

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