Fresh Food Marketing System Project-FMRF (ADB-59206-001)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Papua New Guinea
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Papua New Guinea - Department of Agriculture and Livestock, Vunadidar
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 21, 2026

Disclosed by Bank Sep 15, 2025


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project aims to improve food and nutritional security of the rural and urban population in Papua New Guinea by improving the fresh food marketing system. It will adopt and finance climate-resilient and sustainable agricultural practices, improve fresh food marketing and connectivity, promote nutritious fresh produce consumption, and strengthen institutional capacity supportive of fresh food sector.

Papua New Guinea's (PNG) economy, poverty and agriculture. The agriculture sector plays an important role in PNG economy. On average, the sector contributes 28.1% to the country's gross domestic product (GDP) and employs approximately 85% of the population. The sector is characterised by three main production systems, namely, subsistence, semi-subsistence, and the plantation or estate systems. However, most of the sector is subsistence-farming based characterised by low productivity, low quality of produce due unsuitable farming practices, limited access to quality inputs, low productivity due to limited market access, and small farm sizes. About 80% of PNG's population live in rural areas and rely mostly on agriculture as their source of livelihood. However, only about 25% of the land has been classified as arable with varying agricultural potential. As of 2022, 40% of PNG's population lives below the poverty line for basic needs.

Food and nutrition security. PNG's huge potential in agriculture is overcome by the lack of efficiency in its agrifood system which leads to high food import dependency and poor nutrition security outcomes. Among the challenges faced by the agrifood system include weak coordination within the value chain, high postharvest losses, and limited value-adding development. Weak coordination within the value chain is best illustrated by the limited access to seeds and seasonal planning, which leads to farmers producing the same type of produce at the same time. This leads to oversupply and huge postharvest losses as the market is unable to absorb the volume of produce available. Land tenure challenges also limit economic growth, contribute to persistent poverty, and constrain agricultural development by restricting access to land for investment and a persistent uncertainty over land rights which limits long-term planning and sustainable use of land. Chronic malnutrition (stunting) in children and obesity among adults is alarmingly high. The government's Demographic and Health Survey (DHS) of 20162018 reveal that almost half of the children under five years in PNG were stunted (very high category) and have remained unchanged since 1983. On the other hand, obesity among adults has increased to 53% in 2016.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Environment: B
Involuntary Resettlement: B
Indigenous Peoples: C

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The financing amount is $40,000,000, which will be financed on a loan basis by ADB’s Concessional ordinary capital resources lending.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works