POWER SECTOR RECOVERY PROJECT SAO TOME ISLAND

The project comprises multiple schemes concerning power infrastructure and provides technical assistance for implementation, capacity-building and sector reforms. The project aims to increase renewable capacity and reduce losses in the network while improving overall system security and safety of supply. This will be done by rehabilitating an existing 1.9 MW hydropower plant, upgrading the low and medium-voltage distribution network, and installing electricity meters.

The project is the first step to support the Government of Sao Tome & Principe in improving and expanding affordable, reliable and sustainable energy services for households and businesses. The project will enable the country to improve the quality and reliability of electricity supply, connect new users and reduce losses. The project is in line with the national poverty reduction strategy for Sao Tome & Principe, which stresses the importance of introducing reforms in the energy sector.

If located inside the EU, the project would fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU, requiring a screening decision by the competent authority. Given the nature and characteristics of the project activities, no significant negative environmental impact is foreseen for the project. However, the implementing agency and the promoter have developed and published an environmental and social management framework (ESMF) to be applied to the project.

The Bank will require the implementing agency and the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

The project will contribute to several Sustainable Development Goals (SDGs), notably poverty reduction (SDG 1) and inclusive economic growth (SDG 8) by facilitating access to affordable, reliable, sustainable and modern energy services (SDG 7), a pre-condition for making growth sustainable. The project also supports the first objective of the Sustainable Energy for All (SE4All) initiative, which aims to ensure universal access to modern energy services by 2030. The project contributes to climate change mitigation by supporting renewable energy expansion.