Island state gets $29m to reform energy system

The Democratic Republic of São Tomé and Príncipe will receive $29 million (£24.7m) to reform its energy system. The island nation’s Minister of Finance, Trade and Blue Economy, Américo Ramos, […]

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By Jonny Bairstow

The Democratic Republic of São Tomé and Príncipe will receive $29 million (£24.7m) to reform its energy system.

The island nation’s Minister of Finance, Trade and Blue Economy, Américo Ramos, has officially announced the Power Sector Recovery Project. It is the first project of its kind in the country, which is situated off the coast of Africa.

The World Bank is contributing $16 million (£13.6m) and the European Investment Bank $13 million (£11m) to fund a five-year programme to rehabilitate and expand the Contador Hydroelectric project and strengthen national utility EMAE.

The money will be used by the utility to strengthen its transmission network and distribution facilities as the first step towards using more hydropower and improving the quality of life of around 90,000 citizens.

The World Bank is also providing support to the government in the form of preparing a least-cost power development plan.

This will define the best way to continue investing in generation capacity in order to meet the challenges of growing demand in a vibrant economy.

Mr Ramos said: “This project will assist in the recovery of the energy sector, to increase the generation of electricity with renewable resources and to improve the reliability of the electricity supply, with a shared vision of sustainable energy supply for all.”

A number of Pacific Island nations will also get a green funding boost for hydropower in a different project.