The proposed operation is a grant of UA 5 million to the Democratic Republic of Sao Tome and Principe to finance the Economic Reform and Power Sector Support Program- Phase I (ERPSSP-I). This is the first phase of a program-based budget support operation covering fiscal years 2019, 2020 and 2021, with an overall indicative financing of UA 10 million. ERPSSP supports the government’s reform efforts critical to guaranteeing macroeconomic stability and laying the foundations for sustainable and inclusive economic growth. The Bank is supporting both the country’s fiscal consolidation efforts to address short-term macroeconomic risks, and its strategic reform program to set the basis for sustainable and inclusive economic growth and poverty reduction. ERPSSP-I presents the multi-annual framework of the program and provides a list of reform measures considered as indicative triggers for the second phase and third phases (ERPSSP-II and ERPSSP-III). The operation is in response to a request submitted by the Sao Tome and Principe authorities in February 2019. Designed using a complementary approach with other Bank operations (PAGEF, ETISP) as well as with the operations of other TFPs while ensuring full ownership by the authorities and considering the country’s challenges, ERPSSP is based on two components: (i) Strengthening public financial management and the business climate; (ii) Promoting sustainable electricity supply. The program will also be implemented concurrently with a recently approved IMF 3-year Extended Credit Facility (ECF) program and a World Bank budget support operation.

Sao Tome and Principe

African Development Bank Group

Africa

Construction Energy-Power and Electrical Computer Hardwares and Consumables

07.01.2020

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