According to bank documents, the objective of the proposed project is to increase access to reliable electricity and facilitate integration of solar power generation in Sao Tome and Principe.

The project has four components:

1. Component 1: Variable Renewable Energy Scale-up through Deployment of Common Infrastructure (US$13 million equivalent, of which IDA US$8 million equivalent) This component aims to finance investments to accommodate grid-connected utility-scale renewable energy projects in STP in order to reduce the average cost of generation by increasing the share of (privately financed) solar PV in the country. The proposed ACRE project will support investments to strengthen the network to facilitate greater integration of the first 10-15 MWp of solar power into the power system, to displace thermal generation, reduce the costs of supply, reduce emissions, and diversify generation sources.

   1. Subcomponent 1.1: Site preparation for utility scale solar park with interconnection lines (US$5.6 million). This subcomponent will finance shared infrastructure for the integration of solar PV plants.

   2. Subcomponent 1.2. Modernization of dispatch center and control systems (US$4.4 million). This subcomponent will finance the modernization of the national dispatch center and the supervisory control and data acquisition (SCADA) system on Sao Tome island.

   3. Subcomponent 1.3. BESS to increase renewable energy generation (US$3 million). This subcomponent will finance battery storage in the Agua Casada Site and across the network to facilitate integration of solar power into the grid.

2. Component 2: Network Reinforcement and Electricity Access Expansion (US$11 million equivalent, of which IDA US$7 million equivalent) This component aims to finance critical electricity network improvements and new electricity connections through the following activities: (i) electricity network reinforcement and access expansion in underserved areas, (ii) on-grid connection payment program to help customers better afford connection costs, (iii) electrification of public facilities to build resilience and to enable the provision of better health and educational services; and (iv) last-mile electricity connections to contribute to the Government’s objectives of closing the energy access gap to foster greater inclusion.

   1. Subcomponent 2.1: Electricity network reinforcement and access expansion (US$8.8 million). This subcomponent will provide access to approximately 9,000 households, small businesses and public facilities (56 percent of current unconnected demand) by upgrading and expanding the 6 kV medium voltage (MV) and 0.4 kV low voltage (LV) distribution network and providing last mile connections in select areas of the country.

   2. Subcomponent 2.2. Electrification of critical public facilities for resilient and inclusive post-COVID recovery (US$2.2 million) This subcomponent will finance both grid and off-grid (using solar systems) electrification for a subset of public schools in Sao Tome that lack access to electricity.

3. Component 3: Improved governance and institutional capacity building (US$9.5 million equivalent, of which IDA US$5 million equivalent) This component will build the capacity of sector institutions, namely MIRN, AGER and EMAE for improved policy formulation, policy implementation, regulation, and system operations in a sector undergoing transformation.

   1. Subcomponent 3.1: Improved Sector Governance (US$ 5.5 million) The actions to be financed under this subcomponent are part of the four-year management improvement plan (MIP) for EMAE

   2. Subcomponent 3.2: Institutional capacity building, technical assistance, and project implementation support (US$ 4 million). This subcomponent will finance implementation of agreed aspects of the National Training Plan for the Energy Sector (2021), technical assistance, additional systems studies, and costs for project implementation. Specific focus will be put on systemizing least cost power system planning in MIRN.

4. Component 4: Contingent Emergency Response Component (US$0 million: capitalized in an emergency). The objective of this component is to support the GoM’s response in an eligible emergency. If an eligible emergency is being declared, the Government may request the World Bank to reallocate project funds to support the response effort. The component could also be utilized for processing additional financing should funding for this become available due to an eligible emergency.

World Bank:
Samuel Kwesi Ewuah Oguah, Laura Wendell Berman
Senior Energy Specialist

Borrower:
Democratic Republic of Sao Tome and Principe

Implementing Agency:
Ministry of Infrastructure and Natural Resources
Osvaldo Abreu
Minister
osvaldo.c.v.abreu.17@gmail.com 

ACCESS TO INFORMATION

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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