WASHINGTON, July 31, 2024—To safeguard the progress achieved in the education sector against challenges posed by the current financial crisis in São Tomé and Príncipe, the World Bank Board of Directors has approved the Safeguarding Access to Fiscal and Educational Resources Project (SAFER) with a grant of $24 million from the International Development Association (IDA)*.
SAFER is an emergency project to help the government of São Tomé and Príncipe address a fiscal crisis stemming from ongoing challenges in the energy sector and enable the continued delivery of education services, which otherwise face potential disruption in a fiscal crisis. Overall, the project will directly benefit over 80,000 students supporting the continued provision of services in schools and about 4,200 teachers and school administrators through the timely payment of salaries.
“The swift preparation and approval of this project demonstrates the World Bank’s commitment to support São Tomé and Príncipe ensure that the progress made in establishing an accessible and inclusive education system is not lost. It also shows the government’s commitment to implement the key reforms in the energy sector, needed to tackle the fiscal crisis,” said Juan Carlos Alvarez, the World Bank Country Manager for São Tomé and Príncipe.
To address the ongoing fiscal crisis in the country, SAFER will also support key reforms in the energy sector that are critical for its financial and operational sustainability. These activities will help limit its fiscal impacts in the medium to long term. Some of the reforms in the energy sector will include the adoption of a decarbonization plan, the selection of a transaction advisor to assist the government in the process of outsourcing the Water and Electricity Public Company’s (EMAE) commercial functions, and the completion of a technical audit of EMAE's production inputs.
*The World Bank’s International Development Association (IDA), established in 1960, helps the world’s low-income countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve people’s lives. IDA is one of the largest sources of assistance for its 75 client countries, 39 of which are in Africa. Since 1960, IDA has provided $552 billion to 115 countries. Annual commitments have averaged about $36 billion over the last three years (FY21-FY23), with about 75% going to Africa.
Learn more online: https://ida.worldbank.org #IDAworks
