PNG Agriculture Commercialization and Diversification Project Phase 2 (WB-P515452)

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
  • World Bank (WB)
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
A
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."
Voting Date
Dec 16, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Papua New Guinea - Department of Treasury; Department of Agriculture and Livestock
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Law and Government
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)
$ 100.00 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.
Project Cost (USD)
$ 220.00 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ WB website

Updated in EWS Aug 25, 2026

Disclosed by Bank Mar 3, 2026

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 proposed PDO is “to increase productivity, commercialization, and job creation in targeted agriculture value chains in PNG”.

The proposed PNG Agriculture Commercialization and Transformation Project (PACT) seeks to boost productivity, commercialization, and job creation across targeted agriculture value chains nationwide by scaling proven approaches from Phase 1 and expanding coverage from 12 to all 22 provinces. Core activities will: (i) strengthen productive partnerships among smallholder farmers, farmer organizations, and agribusinesses, including improved access to finance; (ii) develop climate-resilient productive infrastructure such as feeder roads and post-harvest logistics hubs; and (iii) enhance institutional capacity of public agencies and commodity boards. The project will focus on coffee, cocoa, spices, horticulture, and livestock, targeting smallholders, farmer groups, and agribusinesses. Financing will be led by IDA with co-financing from AIIB and collaboration with IFC and MIGA. Implementation will be managed by the Department of Agriculture and Livestock through the existing Project Coordination Unit. Expected results include higher yields and sales, mobilized private capital, and creation of new and better jobs with strong inclusion of women and youth.

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.

PACD2 presents Substantial environmental and social risks given its nationwide expansion across 22 provinces, diverse ecological zones, and complex customary land systems. Environmental risks relate to feeder road rehabilitation, small-scale irrigation, processing upgrades, increased use of agricultural chemicals, waste generation, and potential impacts on water, soil, and biodiversity. The geographic spread and remote locations heighten oversight challenges, especially where institutional capacity is limited. Social risks are similarly Substantial due to land access and economic displacement risks within customary tenure, legacy disputes, inclusion challenges for diverse Indigenous groups, labor risks for contractors and community workers, hazardous child labor, SEA/SH risks, and potential tensions from inequitable benefit-sharing. Expanding agricultural activities and financial products may amplify these risks if not managed carefully.

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

IDA Credit: US$ 100.00 million
Total Project Cost: US$ 220.00 million


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.

CONTACT POINT - World Bank

Task Team Leader: Abimbola Adubi
Title: Senior Agriculture Specialist
Email: aadubi@worldbank.org

TTL Contact: Allan Tobalbal Oliver
Job Title: Senior Agricultural Specialist
Email: aoliver1@worldbank.org

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works