ENVIRONMENTAL AND SOCIAL BASELINE REPORT Public Disclosure Authorized AND IMPACT ASSESSMENT FOR THE PNG AGRICULTURE COMMERCIALIZATION AND Public Disclosure Authorized DIVERSIFICATION PROJECT (PACD) Public Disclosure Authorized Prepared for the Department of Agriculture and Livestock March 2019 Public Disclosure Authorized 1 TABLE OF CONTENTS A. Introduction ................................................................................................................... 4 A.1 Methodology .......................................................................................................... 4 A.2 Project Description ................................................................................................ 5 A.3 Geographical coverage .......................................................................................... 6 PART ONE: BASELINE REPORT ......................................................................................... 7 B. Country Profile .............................................................................................................. 7 B.1 System of Government .......................................................................................... 8 National .............................................................................................................................. 8 Provincial ........................................................................................................................... 9 District.............................................................................................................................. 10 Local ................................................................................................................................ 10 Wards ............................................................................................................................... 11 C. Environmental Factors ................................................................................................ 12 C.1 Physical ............................................................................................................... 12 Highlands Provinces ........................................................................................................ 12 Coastal Provinces ............................................................................................................. 13 C.2 Biodiversity .......................................................................................................... 14 C.3 Climatic................................................................................................................ 15 Natural Hazards ............................................................................................................... 16 Effect of disaster events on livelihoods ........................................................................... 17 C.4 Agriculture ........................................................................................................... 18 Cocoa Sector .................................................................................................................... 18 Coffee Sector ................................................................................................................... 19 Coconut Sector ................................................................................................................. 20 Livestock Sector............................................................................................................... 21 Spices & Apiculture Sector .............................................................................................. 22 Chemical use in agriculture ............................................................................................. 23 D. Socio-economic Factors .............................................................................................. 24 D.1 Ethnic and Linguistic Diversity ............................................................................. 24 D.2 Demographics ..................................................................................................... 26 Provincial data ................................................................................................................. 26 D.3 Governance ......................................................................................................... 27 Ward and Village Governance ......................................................................................... 27 Autonomous Region of Bougainville .............................................................................. 27 D.4 Health, water, sanitation and nutrition .................................................................. 27 Health Status .................................................................................................................... 27 Access to health services ................................................................................................. 28 Water and Sanitation ........................................................................................................ 29 Nutrition and Food Security............................................................................................. 29 D.5 Education ............................................................................................................ 30 D.6 Gender ................................................................................................................ 31 Gender-based Violence .................................................................................................... 31 Highlands ......................................................................................................................... 32 Coastal Provinces ............................................................................................................. 32 Agriculture ....................................................................................................................... 32 D.7 Employment and Household Economics .............................................................. 33 Cocoa sector ..................................................................................................................... 33 Coffee sector .................................................................................................................... 33 D.8 Land and Resource Ownership ........................................................................... 35 Customary Rights............................................................................................................. 35 Alienated land .................................................................................................................. 36 Coffee sector .................................................................................................................... 36 Cocoa sector ..................................................................................................................... 36 Part Two ............................................................................................................................. 37 E. Impact Assessment ..................................................................................................... 37 E.1 Potential Impacts and Mitigation .......................................................................... 37 F. References .................................................................................................................. 42 Appendix 1 Protected Areas in PNG ............................................................................... 45 Appendix 2 Provincial Demographic Profiles ................................................................. 48 3 A. INTRODUCTION This report is the second part of the Environmental and Social Framework (ESMF) for the Agriculture Commercialisation and Diversification (PACD) Project funded by the World Bank (WB) and delivered by the Department of Agriculture and Livestock (DAL) in Papua New Guinea (PNG). This report will largely focus upon the rural population, whom are heavily engaged in, and reliant upon, commercial and subsistence agriculture. Part One comprises baseline data at the national, regional, provincial and household level. Part Two comprises a high-level environmental and social impact assessment due to widespread nature of project activities across the country. A.1 Methodology A study team was engaged by the Project Coordination Unit (PPAP) to develop this report and subsequent safeguard instruments. There were three phases to the scope of work: • Phase One comprised an effectiveness review of safeguards issues and management, which included o a desktop review of relevant PPAP documents o consultation with PMU Cocoa in Kokopo and the PMU Coffee in Goroka o workshops with Lead Partners o participation in farmer gender workshop in Goroka o focus group discussions (FGDs) with farmer groups. • Phase Two comprised field work in Madang, Lae and the Autonomous Region of Bougainville (ARB), which included o focus group discussions with farmer groups o key informant interviews with government officials and industry partners. • Phase Three comprised data consolidation and write up. The field work took place between December 2018 and February 2019. Desktop Review PPAP documentation review Stakeholder Identify relevant stakeholders per location Mapping Consultation Semi-structured interviews with PPAP PMU staff, Lead Partners (coffee,