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ABOUT NFA
RURAL COASTAL
FISHERIES DEVELOPMENT PROJECT
A coastal fishery is the main means of providing food and income
for the coastal communities of Papua New Guinea. However, due to
poor infrastructure and markets and lack of credit facilities many
coastal communities merely fish for their own consumption and the
surplus is retailed on an adhoc basis.
To address issues affecting the coastal communities in terms of
food security issues, reduction of dependence on imported foodstuff
and paying special attention to address issues pertaining to the
sustainability management of marine resources, the Government of
PNG identified the Rural Coastal  Fisheries
Development Programme during the National Indicative Programme of
the 8th EDF.
A grant funding of 6 (six) million euros equivalent to K24 million
was allocated with the main objective to contribute to a sustainable
improvement in the welfare of rural coastal fisheries in PNG by
increasing rural families incomes through greater participation
in the sustainable harvesting and improved marketing of marine resources.
Seven provinces; Madang, Morobe, Western, Central, New Ireland and
Bougainville provinces were selected as the project intervention
sites to support small scale fishing enterprises.
The project is implemented by the National Fisheries Authority
and working directly with the seven Provincial Governments of Madang,
Morobe, Central, New Ireland Bougainville and Western Provinces,
Private Sector Partners, and the village communities in the seven
provinces.
Commencing officially in 2003, the project is for duration of five
years but will now end in 2008 after an extension was granted in
2005.
The RCFDP is implementing a number of activities which include:
Infrastructure, Provision of Equipment and Boats, Deployment of
Fish Aggregating Devices (FAD), Training, Private Sector Partners,
Provision of  Finance
through three types of credit loans and Sustainable Resource Management
and Studies.
Apart from the infrastructure development, which is the construction
of four fish markets, the basic aim is to promote development through
private sector initiatives. A line of credit backed by an initial
loan scheme has been established through banks and private financial
institutions to enable small fishing enterprises and groups to purchase
boats, fishing gear, ice plants and establishing fish processing
facilities as well as providing assistance for marine aquaculture.
The project acts as a credit guarantor to communities who do not
have access to capital.
Various training programs are available under the RCFDP to provide
various skills to the people benefiting from the credit facilities
to enable them to fully realize the full benefit of sustainable
managed marine resources. Other training provided is to the boat
beneficiaries to assist them to manage their business and resources
effectively and profitably.
The RCFDP departs from the traditional fisheries project offering
a new and challenging alternative approach to development of the
fisheries sector in PNG. With its unique feature of directing its
support through the private sector, it is providing “access
to success” for small-scale fishermen and in the process creating
a new class of small and medium sized fisheries enterprises to complement
the current growth in commercial and industrial fisheries.
The objective of the project will be achieved through four expected
outcomes:
(1) Increased landings of finfish and other under-exploited
marine resources. Several activities will ensure this output is
achieved and there are as follows;
1.1 Provision of appropriate locally built fishing boats and production
equipment which includes boats, fishing gear, ice boxes, pontoons,
cages with the project acting as the credit provider through the
provision of three credit facilities.
Micro-credit: this loan package is geared to meet the needs for
fishing gear, iceboxes etc. Loans under this package would be a
direct benefit to individual beneficiaries and are managed and run
through either a micro-credit scheme, Savings and Loans Society
or the Rural Development Bank.
Criteria include:
• Have a record of active engagement in fishing and skilled
in capture methods and post harvest care
• Be a member of the Fishermen’s Association and have
the support of the PSP
• Have a selling and buying relationship with a buyer
• Demonstrate a willingness to engage in the project as an
entrepreneur
• Have a viable business plan
Starter Package: for the purchase of production units of boats
and gear; culture units – pontoons, ponds by the target beneficiaries.
Two types of fishing boats (23 foot outboard dory and Ela 82 or
the 27 foot inboard dory), fully fitted with fishing and safety
gears are provided at 0% interest rate. Payment for the boats is
given directly to the building constructor to construct and deliver
to the recipients. Only four provinces benefit from this package;
Madang, Morobe, Central and New Ireland provinces.
Criteria for this package:
• Be a full-time rural fishermen or fish farmer
• Be an incorporated entity
• Have a viable business plan
• Have the support of the Fishing Association and the Provincial
Loans Committee
• Have considerable marine fishing experience
• Be willing to engage full-time in fishing activities
Major Credit Line: this package is designed for indirect inputs
and is for supporting infrastructure development such as ice plants
and fish processing facilities. Loans under this facility are run
through a commercial bank at less than the normal commercial rate.
An initial Major Loans Committee screens applications and if approved
undergo a second screening by the ANZ bank who then makes the ultimate
decision to reject or endorse an application.
Criteria for this package:
• Be a current business operating in the country at the project
intervention site.
• Be willing to take out a loan under the project for the
provision of support service to the project and its clients.
1.2. Deployment of Fish Aggregating Devices (FADs) in three provinces
to assist fishermen to maximise production and the efficiency of
fishing effort.
1.3. Various training in seamanship, fishing skills, fish handling,
small business management, processing and export marketing for fishing
families and PSP
(2) Improve profitability and values of marine products
To improve the profitability and value of marine products, training
is provided through the NFC to improve fish handling, marketing
and distribution. The provision of major credit facility is also
available to allow for business to purchase support equipment such
as ice making machines and fish processing facilities. The RCFDP
will be commissioning studies into cost reduction and operational
efficiency to assist people who are in the fisheries business.
(3) Rational development of coastal resources to facilitate
an increase in sustainable production.
Under this output trainings were conducted for provincial fisheries
officers to develop community resource use plans.
Monitoring and assessment of production data is also obtained from
the logbooks of the boat recipients. A Rural Participatory Assessment
was conducted to obtain socio-economic data to assess the impact
of the project before, during and after the project interventions.
The project is conducting awareness programs on the radios and through
the Solwara Nuis to keep its stakeholders updated on the project
activities and maintain awareness on marine resources management
issues.
(4) Better access to internal and export markets
Under this output the following activities are taking place. This
includes:
4.1. Four simple fish markets will be constructed in Port Moresby,
Buka, Kavieng and Lae to provide retail outlets for fishermen and
their women folk to retail their catches in these clean and safe
outlets. Once completed, private entrepreneurs under management
and maintenance contracts will manage and maintain the markets and
its facilities. These markets will strictly be for the retail of
marine products only.
4.2. A study on improved market and market linkages study was conducted
in 2005. This study is part of the Project’s strategy to pursue
development of capture sector in parallel with infrastructure development
in the post harvest sector. In order to be successful, it is important
that PNG should be able to access export markets as well as providing
marine products to the domestic markets.
The purpose of this study was to conduct a thorough analysis of
opportunities and threats to marine products development in the
country. The study will look at developing a strategy plan for market
development concentrating on the active involvement of the private
sector in fishery sector development; Market demands and trends
were identified through existing literature on export markets and
through various consultations with the main exporters to Europe;
and a transport economic model. The economic model will identify
the current situation and identify needs for types of, and location
of critical facilities and cost-reduction transport strategies.
An analysis of the up and downstream effects of market development
was carried out. For the upstream effects identification of needs
for input supply to the near coast fishery as well as the down stream
effects of improve landing sites, post harvest facilities on land
including simple fish markets etc. The existing legislation was
also looked at with regard to international trade, export and product
standards. The study looked at providing direction at policy level
within areas such as WTO related aspects and implementation of international
valid products standards and quality assurance procedures. EU standards
and procedures as well as the effect of the Cotonou Agreement on
the penetration of PNG Seafood’s products to the EU market
will also be taken into account. Freighting companies were consulted
to look into the existing freight rates structures with a view to
provide recommendations on negotiable strategies. An assessment
will be made on the potential for the development of new seafood
products based on the species identified as having commercial interest.
4.3. Three more studies will be conducted in 2006 focusing on Increased
Market Access, Assist achievement of international quality standards
and promotion and facilitation of private sector investment.
On the whole this project is geared towards the promotion of small
scale artisanal fishing in the rural coastal communities selected
to participate in this project, by generating income-earning opportunities
and at the same time enhancing the private sector partners involved
in fish processing and marketing.
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