sÃo tome and principe international conference for

2030 TRANSFORMATION AGENDA

SÃO TOME AND PRINCIPE

INTERNATIONAL CONFERENCE

FOR

DEVELOPMENT PARTNERS

15TH OCTOBER 2015. Londres

1

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS ................................................................................. 3 INTRODUCTION .................................................................................................................... 3

1.SUMMARY PRESENTATION OF THE COUNTRY ...................................................... 5

1.1 Geographical, climate and population ................................................................. 5 1.2 Histoire ..................................................................................................................... 7 1.3. Political Developments ............................................................................................. 7

2. EVOLUTION OF ECONOMIC AND SOCIAL DEVELOPMENT .................................. 9

2.1. Recent economic development ............................................................................ 9 2.1 Recent developments in key social indicators ................................................. 12

3. MAJOR CHALLENGES FACING THE ECONOMIC AND SOCIAL DEVELOPMENT

OF STP .................................................................................................................................. 15

4. OUTLINES OF THE TRANSFORMATION AGENDA AND THE IMPLEMENTING

REFORMS ............................................................................................................................. 17 4.1 Outlines of the Transformation Agenda ............................................................ 17 4.2. Key-Reforms ............................................................................................................ 18

4.2.1 Accelerating and sustaining growth through the creating-employment ........ 18 4.2.1 Strengthening social cohesion and external credibility ........................... 20

5. ARTICULATING THE SUSTAINABLE DEVELOPMENT GOALS (SDG) ............... 25

6.PORTFOLIO OF PRIORITY PROJECTS FOR THE IMPLEMENTATION OF THE STP AGENDA FOR TRANSFORMATION BY 2030 ................................................................................................................... 28

6.1 Structuring public-private partnership projects .............................................................. 29 6.2. Priority Public Investment Programme, 2016-2019 .............................................................. 29

7. 2030-VISION’S RISKS AND ITS FIRST IMPLEMENTING PLAN, SEQUENCING

AND TRACKING .......................................................................................................... 31 7.1 Risks ....................................................................................................................... 31 7.2. Sequencing ............................................................................................................ 32 7.3. Monitoring .............................................................................................................. 33

CONCLUSION ...................................................................................................................... 34

PROJECT LIST ..................................................................................................................... 35

3

ACRONYMS AND ABBREVIATIONS

AGR : Income-generating activities ODA : Official development assistance BAD : African Development Bank EPC : Cost of basic needs DHD : Sustainable human development EX : Exports FEC : Extended credit facility IMF : International monetary fund MDRI : Multilateral debt relief Initiative FDI : Foreign direct investment HDI : Human development index IM : imports INE : Establishes national statistics IOF : Survey on household living conditions Km : Kilometer M : Million UN : United Nations SDG : Sustainable Development Goals MDG : Millennium Development Goals United Nations: Organization of United Nations PAP : Priority action Plan SIDS : Small Island developing States GDP : Product gross domestic PIP : Public investment Programme LDC : Least developed countries UNDP : United Nations Development Programme HIPC : Heavily indebted poor countries TFP : Technical and financial partners STD : Dobras (currency of São Tomé) STP : Sao Tome and Principe TNS : Net enrolment rate EU : European Union USD : $ of the United States of America VAN : Net present value HIV/AIDS : The Human Immunodeficiency Virus / Acquired

Immunodeficiency Syndrome

INTRODUCTION

All the prospective specialists agree that Africa is, by excellence, the “Continent of

the future” and that it should contribute substantially to global growth in the coming

decades.

4

Within this active Africa, the Gulf of Guinea countries (Angola, Benin, Cameroon,

Côte d'Ivoire, Gabon, Ghana, Equatorial Guinea, Nigeria, Republic of the Congo,

Democratic Republic of the Congo, Sao Tome and Principe and Togo) play a

leading role, due to their considerable natural resources: almost 5% of global oil

reserves proved in 2012 and important potentials in off-shore, resources in gas,

rubber, cocoa, timber, coffee, bauxite, cobalt, copper, diamond, gold,... their

important demographic weight, makes it a huge market over 350 million

consumers, and the youthfulness of their population (more than 60% of under 25s)

1.

This role should be more accurate for these countries, the most part of them having

recently make progress both in terms of the political and social stability and

regional integration as well as fighting against maritime piracy, and improving

economic and financial governance and the environment business. They also

provided ongoing efforts for the promotion of the social sectors, including

education, health and social protection, which contribute mainly to the construction

of younger generations enabling them to face the various challenges of

development.

Sao Tome and Principe aims to leverage comparative gain from this sub-regional

dynamics, breaking definitively with attitudes that prevailed in the past and

leveraging, optimally, the strengths and comparative advantages. It should be a

paradigm shift for a new development strategy that will make the country, by 2030,

an emerging State that offers its citizens a dignified and decent life conditions,

which will be a focus of economic dynamism in the sub-region and the continent.

To this end, Government of STP developed, as part of a consultation process

which has mobilized citizens and all stakeholders in development of the country, an

ambitious and realistic Vision, by 2030. This vision must respond to the aspirations

of citizens, through the transformation of the country into a hub of maritime and air

services, but also financial, health services, education and tourism for the Gulf

of Guinea. This transformation will be operated through the realization of a port

of trans-shipment in deep water and a large airport, the construction of a free

zone and the use of opportunities to caring ICT infrastructure performance. The

vision will be available in multi-year development programmes’ basis.

To share this vision, and the outline of its first implementing multi-year

programme, with potential investors and development partners of the country,

the STP Government organizes, on 14 and 15 October 2015, in London, the

1 In 2013, the sub-region, except Equatorial Guinea, had exported the 160 billion USD (i.e.: petroleum 23, gas 20, rubber 6, cocoa beans 5). Source: Trading Economics, 2013; atlas.media.eu, quoted by McKinsey & Company.

5

first International Conference of Investors and partners of Sao Tome and

Principe, STeP IN 2015.

Keeping in mind this aware, the present document is structured around seven

parts:

The first part made a summary presentation of the country;

The second describes, briefly, its recently economic and social

developments recent;

The third part lists the major challenges facing the country;

The fourth recalls the outline of the strategic vision by 2030, or

Transformation Agenda and highlights the reforms already initiated or in

preparation, whose implementation will, progressively, these challenges;

The fifth part is the articulation between the Transformation Agenda and

the Sustainable Development Goal (SDG), adopted by the international

community in September 2015, within the Post-2015’Agenda;

The VI part presents the first outline of the projects priority portfolio 2016-

2018, representing the financial translation of the first plan of the

implementing Transformation Agenda. Its inception Outcome should be

strong and determined to boost the process of transformation of the

country. The mobilization of external financing will translate the

commitment of the country’ partners community in order to mitigate

these risks, breaking definitively with the fragility and stand,

permanently, on the trail of the economic emergence, as the guarantor

of social cohesion, political stability and the achievement of the SDG;

Finally, the 7th part enumerates the risks associated to the Vision and its

first implementing plan, recalls the measures, initiated or to be launched

by the Government to prevent the occurrence of these risks or mitigate,

maximum effects and presents the sequencing of the implementing

Transformation Country Agenda and its monitoring and evaluation

system.

1. SUMMARY PRESENTATION OF THE COUNTRY

1.1 Geography, climate and population

The Democratic Republic of Sao Tome and Principe is an archipelago in the

heart of the Gulf of Guinea, formed by two main islands, volcanic and

mountainous, and located on the Equator, about 300 km west of Gabon, in

6

West Africa. It is one of the smallest countries in Africa, with an area of 1001

km2.

As a tropical country, São Tomé and Príncipe, the climate is hot and humid. The

rainy season is eight (8) months, from October to May.

According to the official data of the national Institute of statistics (INE), the total

population of the country would be 194.006 by 2015. Slightly more than 50% of

the population are female, and those less than 25 years old represent about

62%. The rate of natural increase of the population was 2.76% in 2014. Chart 1

below shows the pyramid of the population by sex and age groups.

Source : Evolution of population of the Democratic Republic of São Tomé and Príncipe, 1950-2050, Idrissa Sanoussi, UNDP, São Tomé, 2015

7

1.2 History

São Tomé Island was discovered on December 21, 1470 by two Portuguese

navigators, Pedro Escobar and João de Santarém, at the service of a wealthy

merchant, João Gomes.

Until then uninhabited, its population begun in 1493 by convicted Portuguese,

apparently sent to have a chance of redemption, but actually to get rid of them

and have docile labor on these new lands. The populations of the coastal areas

of the Gulf of Guinea, reduced to slavery, are also transferred to the island, as

well as 2,000 Spanish orphaned Jewish children whose parents had fled the

Spain during the inquisition. Portuguese and settlers soldiers came,

subsequently, and added to these three population groups.

In the middle of the 16th century, São Tomé was one of the world's leading

producers of sugar cane, operating as a step in the traffic of slaves between

Africa and the Brazil. During the two following centuries, particularly in 1585, the

islands faced to many revolts of slaves, diseases in plantations, and piracy, due

to the emigration of most settlers to Brazil.

Whith the independence of Brazil in 1822, many Portuguese settlers left the

Brazil to join Sao Tome and Principe, motivated by the large plantations

activities. They brought with them the riches of the new world and the cocoa

plants as Ornamentals.

In the middle of the 20th century, revolts broke out, followed by repression, and

the plantations rust quickly.

São Tomé and Príncipe was proclaimed it’s independence on July 12th, 1975.

1.3. Political Development

During the first fifteen years of the independance, the country has experienced

a political system of Marxist obedience, system backed by a single party that

drew its legitimacy from its struggle for independence.

On September 10, 1990, and with the favor of the winds of democratization

blowing on Africa and the world, a new constitution, inspired by the Portuguese

system and enshrining the multiparty and a semi-presidential system in which

the Prime Minister is the head of Government was enacted. Since then, the

country knows regularly peaceful alternation in power, often with, the

parliamentary coalitions and periods of cohabitation at the top of the Executive.

8

This quarter of a century of rooting and consolidation of the democratic system

has helped Sao Tome and Principe to be one of the few African countries

ranked according to the index of freedom and political governance. Thus,

according to the ranking 2015 of the Freedom House, the country had, in 2014,

an index of 2, and an overall score of 34/40, while the classification, in the same

year, from the Mo Ibrahim Foundation, put it in 12th place out of 52 African

countries.

The Government resulting from the elections of 12 October 2014, backed by a

parliamentary majority of 60% of the seats is determined, under the leadership

of the Prime Minister, Mr. Patrice Emery Trovoada, to build on this very

favorable political context and on the real opportunities of internationalization of

the economy, a process of transformation of saotomean economy guaranteeing

social progress of population in a sustainable way.

9

2 EVOLUTION OF ECONOMIC AND SOCIAL DEVELOPMENT

2.1. Recent economic development

Saotomean economy, as for those Small Island Developing States (SIDS), is

strongly constrained by the insular nature of the country, its fragility, as well as

by the resources’ constraints and the weakness of the absorption capacity. This

results in an extreme vulnerability to external shocks and a strong dependence

on official assistance (ODA), which funds more than 90% of investment

spending (averaging 93.6% over the period 2012-2015). Tertiary sector, largely

informal, represents nearly 60% of GDP, and employs 60% of the active

population, while the primary and secondary sectors contribute, each in the

amount of 20% of GDP, according to the most recent data.

ODA oscillates seesaw from 2010 to 2013. In 2011, the country has received an

estimated $ 72.4 million total of ODA. After a decline in 2012, the level

increased slightly to 52 million in 2013. (See table below). Table 1: Net ODA received by São Tomé and Principe between 2010 and 2013 in millions of US dollars

2010 2011 2012 2013 STP 49,3 72,4 48,8 51,8

Source : Site Web OCDE 2015

Since the achievement of the completion point of the HIPC Initiative in

December 2007, saotomean authorities are implementing with the support of

their development partners, policies aimed to stabilizing the macroeconomic

framework, promoting growth and reducing poverty.

Economically, these policies have given pretty good results having allowed the

country to climb, from 2010, in the lower tranche of middle-income countries,

with a per capita income estimated 1,410 USD in 2014. They enabled the

country conclude, last July, a three-year program with the IMF, supported by

easy Credit extended (FEC) of more than-, 2 M USD.

Over the period 2010-2014, the growth was sustained, with a 4.5% average

annual rate, driven particularly by increase in foreign direct investment, the

launch of new projects funded by donors and the improvement of the tourism

receipts. Thanks to the pegging of national currency to the Euro, the inflation

has been progressively controlled, being its rate reduced by 13% in 2010 to

10

6.4% in 2014. By 2015, the rate of growth and inflation should settle

respectively 4% and 5.8%, according to the IMF projections.

Despite the significant progress made in recent years in terms of the

containment of expenditure, the overall fiscal balance, core commitments, has

deteriorated, falling from a surplus of 14.2% of GDP in 2008 to a deficit of

17.4% in 2011 and 10.9% in 2012. After an improvement in 2013 (surplus of

1.9% of GDP), deficit balance still maintains (5.5% of GDP in 2014 and a

projection of 8.8% in 2015, according to the IMF data). This is particularly due to

the weakness of the capacity of tax services, translated into a potential tax

mobilization, both in terms of expansion of the base and tax collection.

The low diversification of the saotomean economy and its high sensitivity to the

demand and the global prices for cocoa make the balance of the current

account, excluding official transfers, structurally deficit. It remains fairly

consistent, even if it experiences a slight and almost steady decline (-43,6% of

GDP in 2010,-39,7 in 2012, - 36.6% in 2014). By 2015, it is projected to 28.5%,

according to the most recent data from the IMF.

Meanwhile, the capital expenditures decreased by 27% of the GDP in 2012 to

12.4% in 2013 and 12.7% in 2014. This decrease is explained by the low

absorptive capacity of the country (the implementation rate of public investment

expenditure was only 35% in 2014 and varied significantly according to

ministerial departments, due to the structural weaknesses of most

administrations in charge of the planning and monitoring of projects at the

sectoral level. According to the IMF projections, they should increase

significantly by 2015 to 21.7% of GDP under the combined effect of an increase

of public investment and those from the private sector.

The chart below traces the evolution of FDI over the period of 2000-2013. It can

be observed that these FDI grew at an average annual rate of 15.5% between

these two years, but irregularly. Thus, between 2000 and 2004 the level of FDI

remained rather modest, fluctuating between 3 and 4 million USD, and it was

until 2005 it accelerated, reaching an optimum of 79 million USD in 2008. This

optimum can be explained by inculding investment in tourism, with the

construction of the Pestana. In 2009, the level of FDI fell less than 20 million

USD, before increasing to more than double to reach nearly 51 million USD in

2010 and down in 32 million USD in 2011 then 23 million USD in 2012 in 2012.

11

Source: UNCTAD site Web 2015

The external debt of the country, which was unsustainable - with a NAV

representing 349% of GDP in 2002 - was quite significantly reduced after the

HIPC and MDRI Initiatives. In 2014, according to IMF data, the GDP was

estimated up to 31.5% of and 5% for exports of goods and non-factor services.

Domestic debt, for its part, represented, at December 31, 2014, a little more

than 35 billions of STD, around 0.6% of GDP.

The international gross reservations of exchange remained relatively modest

and covering, in 2014, 3.9 months of imports of goods and non factor services

(3.5 and 3.4 months respectively in 2012 and 2013 and 4 months in 2015),

according to data from the IMF.

Table 2: Evolution of the main economic indicators between 2010 and 2015

2010 2011 2012 2013 2014 2015*

Growth rate (in %) 4,5 4,9 4,5 4 4,5 5

Rate of Inflation (in %) 12,9 11,9 10,6 8,1 7 5,8

Overall fiscal balance (in % of GDP) -11 -17,4 -10,9 1,9 -5,5 -6

Balance of current payments (in % of GDP) -43,6 -42,5 -39,4 -38,3 -36,6 -28,5

VAN external debt (in % of GDP) 33,7 33,6 30,7 27 30,1 32,5

Servicing the external debt (in % EX) 6,6 8 7,3 9,5 5 4,8

International Exchange Reserves (in

months of IM) 4,5 4,8 3,5 3,4 3,9 4 Source : IMF Country Report No. 15/196, July 2015, Press Release No. 13/533, December 19,2013 and World Back database.

* : Projections

Due to its fragility and the high incidence of the poverty, São Tome and Principe

continues to benefit from substantial external assistance, both multilateral

(World Bank, ADB, EU, IMF, agencies of the UN system) and bilateral

12

(Portugal, Taiwan, Brazil, Nigeria, and Angola including), as much more than

the hopes aroused by the discovery, in the 2000s, of oilfields are taking too long

to materialize, resulting in a growing disappointment of the population who

aspires, legitimately, to better conditions of life.

2.1 Recent developments in key social indicators

The social situation in Sao Tome and Principe remains quite worrying with

regard to most of the different indicators of human development. Thus, the

country was ranked on 144th place out of 187 countries, in 2014, in the category

of countries with a low HDI.

The poverty Profile published in December 2012 by the UNDP and the national

Institute of statistics (INE) and developed on the basis of the Survey on the

living conditions of households (IOF), the most recent benchmark survey,

established on 66.2% the rate of prevalence of poverty in Sao Tome and

Principe. The poverty line retained was set at a per-head spending less than

approximately 30.071 STD, or approximately € 1.22, in accordance with the

new approach, called absolute approach, used to measure the impact of

poverty and based on the methodology of the cost of basic needs (EPC), which

are vital food and non-food needs.

Poverty affects relatively more women (71.3%) than males (63.4%), and seems

negatively correlated with the level of education. It is also highly correlated with

the situation in employment, its prevalence being far more modest among the

employed than in the inactive and the unemployed, the latter constituting the

poorest socio-economic group. In employment, the workers the most vulnerable

to poverty are independent agricultural private sector workers (68.4%) and non-

agricultural private (67.7%), while other workers recorded poverty rates below

60% and the workers of the services and the processing sector are less

exposed to poverty. The average size of poor households is 5.3 individuals,

while that of non-poor households is only 3.3 people.

The analysis of inequality index shows that the poorest 20 per cent accumulate

nothing more than 7.9% of the national total income while the richest 20%

account for 41% of this income.

In 2010, the net participation rate was estimated at 77.3% and unemployment,

although relatively not very reliable because of the preponderance of service

sector - largely informal and where prevail the logic of solidarity and mutual

assistance that mask underemployment and very precarious and non-decent

employment -, was established at 11.1 % for those more than 15 years old. It

13

was estimated at 23% for youth aged 15 to 24 and was significantly greater in

girls (25.3%) than boys (21.4%).

The chart 3 below shows unemployment rate by age, sex and poverty status.

Chart 3: Unemployment rates (%) of individuals 15 years and over by age

groups according to gender and the status of poverty in 2010

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

15 - 19 a

ns

20 - 24 a

ns

25 - 29 a

ns

30 - 34 a

ns

35 - 39 a

ns

40 - 44 a

ns

45 - 49 a

ns

50 - 54 a

ns

55 - 59 a

ns

60 - 64 a

ns

65 - 69 a

ns

>= 70 a

ns

Groupes d'âges

Taux

de

chôm

age

(%)

Pauvres Non pauvres Homme Femme

Source : IOF 2010, INE São Tome et Principe

According to the IOF, the net rate of school enrolment in primary education (NER)

was 87.5% in 2010, with a slight advantage for boys (88.7%, compared to 86.5%

for girls), whereas that of completion of this cycle was 98%. The literacy rate of

individuals 15 years of age was estimated at 87.7% (93.8% of men compared to

only 82.1% among women), while 93.7% of the population had a level not

exceeding the primary instruction and barely 6%, a secondary or higher level of

education. There was no clear discrimination between men and women, but this

discrimination was very remarkable between poor and non-poor, and this

discrimination is seen at all levels of education (primary, secondary, tertiary).

According to the same survey, in 2010 the morbidity rate was estimated at 19.7%

at the national level (18.3% for men compared to 21.1% in women). Respiratory

diseases constitute the first cause of morbidity and affected 31.6% of the total

population. Malaria was the second most common disease with prevalence

estimated at 10.8% at the national level. It affected much more individuals from

poor households (21.1%), than those from non-poor households (15.4%).

The maternal mortality rate was 76% per hundred thousand live births, while infant

mortality was 38 thousand in 2014.

Health consultation rate of 85.6% in 2010, and the IOF have concluded that "total

health coverage in the country seems to be globally good and meets the

expectation of people based on the estimated rates of satisfaction.

14

According to the data available in 2014, 94% of the population had access to

drinking water, among them 70% by connection to the water supply, and 42% to

hygienic sanitation. The rate of households connected to the public electricity

network is about 60%, the same year.

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3 MAJOR ECONOMIC AND SOCIAL DEVELOPMENT’S CALLENGES

FACING SÃO TOME E PRINCIPE

Like most of the small island developing States (SIDS), Sao Tome and Principe

will not reach to achieve, by the end of 2015, the MDGs to which it had freely

acceded. This situation is due to the fact that the country, as already pointed

out, is strongly constrained by its insular character and the authorities are aware

of the challenges they will have overcome to succeed the Transformation

Agenda and the 2030 Vision.

The first challenge lies in the expansion of the productive base of the economy

and the diversification of the sources of growth and employment for, on one

hand, to reduce the high rate of unemployment, particularly among young

people (23% among those aged 14-24 years), and, on the other hand,

substitute imports with local products and alleviate the high external constraint.

The second challenge lies in the capacity of the saotomean administration.

Indeed, the strong budget constraint limits human resources and the means of

the various ministerial departments, which translates into a modest quality of

policies design for economic and social development, their implementation and

their monitoring and evaluation, as well as on business climate.

The lack of infrastructure to support growth (energy, roads, ports, airports,

water) is a third major challenge. The low volume of the investment and the

immensity of the needs since independence, as well as the high cost of these

factors of production penalize the public finances, companies and households

and discourage potential investors.

Another major challenge in this area is related to the low accumulation of capital

stock. The investment on own resources is being almost non-existent, whilst the

external funding are increasingly constrained by the international economic

crisis and the proliferation of hotbeds of tension in the world. As a result, the

classic ODA is, somewhat, ousted by emergency situations. Therefore, the

predominance of the services sector, largely informal and quite capitalistical,

reinforces substantially this weakness.

Due to this situation, the country may be considered as being in a trap of

fragility, which the exit requires a vigorously and simultaneously actions, so that

these challenges could be gradually surmounted.

16

Thus, new challenges of the Transformation Agenda Objective are declined

below:

- Poverty reduction in rural and coastal areas;

- To promote the employment of young people through education and

training;

- Strengthening the health system;

- Strengthen public and administrative management tool;

- Promote transparency and accountability in public affairs;

- Strengthen homeland security, public safety and coastal security;

- Simplify the legislation and improve the business climate;

- To implement programs of infrastructure to support growth; and

- Ensure the protection of the environment and the control of the

operators.

17

4 OUTLINES OF THE TRANSFORMATION AGENDA AND THE

IMPLEMENTING REFORMS

The Country Transformation Agenda is built on the Vision "São Tomé e

Príncipe 2030: the country we need to build". It is founded on a solid based-

knowledge foundation of our related region and the economic and social

endogenous data, and, finally developed following a broad consultations

involving all the forces of the country, partners in development and economic

private actors at first rang.

This vision has the major objective to transform the country in a way that the

“Sao-tomeans live decently in a stable, democratic and solidarity’s country, by

modernizing and offering high level quality services, at the region and at the

global levels". To this end, it defines nine aspirations which are:

1. The Political stability

2. The economic growth;

3. A quality Education for all;

4. A strong and modern State and a stronger democracy;

5. An adequate infrastructure for the promotion of the national

development;

6. A national covered health system;

7. The decent work;

8. A functional and accessible Justice for all;

9. A food and nutritional security.

4.1 Outlines of the Transformation Agenda In order to be responsive, these nine legitimated aspirations of the citizens, (whose today doubt of the effectiveness of public action for development), are based on four complementary axes of the Vision that mutually act as a support to the achievement of a rapid national economic emergence. The first axe aims to consolidate the rule of law and further deepen democracy and the second one expects a sustainable growth, whilst the third seeks to promote human development, and the fourth to develop and owner values and behaviors that promote, in all components of the STP society, the rooting of a virtuous process conducive to the success of development policies. The Program of the 16th Constitutional Government, issuing from the elections of October 2014, streamlines these axes and groups them into two pillars. The first pillar is the acceleration of sustainable growth, employment-creating and

18

reducing poverty and promoting food security, articulated into four axes or strategic directions. The second pillar aims to strengthen social cohesion the external credibility of the country, focusing towards five areas. The Agenda of Transformation is built on three pillars.

4.2. Key-Reforms

4.2.1 Accelerating and sustaining growth through the creating-employment

The accelerating and sustainable growth, through the creating-employment and

poverty reduction, will be achieved in line to the related implementing programs’

investment and in-depth reforms aiming:

(i) The diversification of the country's economy and the enlargement of its

productive base in order to multiply the opportunities of creation of

wealth

(ii) Improving the management of public finances;

(iii) The modernization of economic and social infrastructure; and

(iv) Improving the management of land and the preservation of the

environment.

4.2.1.1 Diversifying the economy and creating new wealth

It should be a way to enabling conditions in view to optimize the exploitation of

the potential traditional sectors of STP economy such as agriculture, fishing and

tourism that can create opportunities for employment for young and less young.

For the first two sectors, it should contribute to the improvement of the country

food security and reducing its dependence towards the rest of the world. In

addition, oil exploration will be continued and intensified.

It will also generate new wealthy opportunities, particularly in the services sector

and ICTs offers, through vigorous specific measures, by:

Improving the affairs’ environment and the attractiveness of the IDE;

Promoting entrepreneurship; and

Better mainstreaming approach of regional and global trade

4.2.1.2 Improving the strategic development management and finances

19

The diversification of the economy and the creation of new wealth require an in-

depth reform of the public administration enabling a genuine impulsive force to

the development.

In this context, the improvement of the strategic management of development

will be the cornerstone of the transformation’s process of the country, unless it

would be unable to raise substantially the capacity of resources mobilization

and its absorption. It will be achieved through a net strengthening of national

capacity in design, planning and monitoring and evaluation of policies,

programmes and development projects. To this end, particular attention should

be given to:

The rationalization of administrative structures;

Development of Capacity, including formulation, development and

implementation of a national plan for capacity building and the related

issues and technical assistance enabling the know-transfer in all projects

funded by the TFP, and;

The optimization of the human resources, through a redeployment of

staff and training, as well as the financial resources.

The public finance management, which has recorded notable progress over the

past years, will be strengthened by the implementation of several reforms

agreed within the programme supported by the FEC-IMF, aiming to:

Maintain the stability of the macroeconomic framework;

Increase, without prejudice of the attractive investments, internal

resources including tax;

Control of the State Performance Delivery, by reducing systematically

the lifestyle track of unjustified expenses or convenience (phone,

travel,...); and

Ensure better effectiveness and efficiency of public delivery.

4.2.1.3 Modernizing economic and social infrastructure

It is not realistic to envisage a strong and sustainable economic growth without

modernizing and intensifying the network of economic and social infrastructure.

An ambitious forthcoming development programme for port, airport and energy

infrastructures has been developed and some progress has already achieved at

funding mobilization level, according to public-private partnership toolkit. By this

20

ways, STP aims to become a hub of air and marine services for the countries of

the Gulf of Guinea.

This program will also accelerate the process of diversification of the country

productive basis and new wealth creation, particularly in the service sector

where it expected to develop a high-quality financial services, health, education

and leisure, based on the attractive incentives for the installation of enterprises

and the development of high ICT quality infrastructure.

The infrastructures of the land transport, water and telecommunications and ICT

will take also advantage of this public investment.

4.2.1.3 Improving the management of land and the preservation of the

environment

Due to its geographical size insular nature, the country has to adopt a strategy

of land management which should be in line with the requirement in order to

meet expectations of current needs of the populations without compromising

the prospects of development for future generations.

Therefore, this strategy should be designed and implemented under a

guaranteed and rational use of the land, such as for the habitat purpose or for

economic activities. In any case, we should ensure scrupulously the

preservation of the environment that could affect the quality of life of citizens

and the tourism products. In this context, a review of the land law is underway.

4.2.1 Strengthening social cohesion and external credibility São Tomé and Príncipe still pursuing its strategy by strengthening the social

cohesion and the external credibility through the responsive-action policies

form:

(i) Strengthening human capital and governance;

(ii) Youth promotion, consolidation of the family and protecting the

vulnerable groups;

(iii) Enhancing national culture, supporting inclusive development including

the diaspora;

(iv) Reinforcing the pools of local development and promoting

decentralization; and

(v) Consolidating the international cooperation and the preservation of

national sovereignty.

21

4.2.2.1 Strengthening human capital and governance

The guarantee of a sustainable growth and social and equitable distribution is

deeply aligned to the Human Capital of a country. By this way it will be possible

to contributing to the strengthening of cohesion social and, consequently, to the

country's political stability and its external credibility. The development of this

capital depends strongly on the quality of governance of a country.

STP authorities are concern about the development and the implementation of

an effective development policy of the educational system that guarantees to

every child a skills training enabling them to be prepared for active life. The

focus of this policy will be the improvement of the quality of education, at all

levels, and the intensification and adaptation of the vocational and technical

training toolkit. Thus, it could be monitored by domestic economic changes and

by the new and more stringent requirements of the labor market.

They are also determined to promote, throughout the territory and accessible to

all, a health care of quality, through the replication of equipped infrastructures

with qualified staff, modern equipment and medicines in quantity and in quality.

Health insurance will be extended to allow all citizens access to health care.

Specific financial mechanisms will be set up for this purpose. All of them, as

well as the solidarity devices for vulnerable social groups, including women

heads of households, persons with disabilities and the unemployed, are called

to enabling a regular income (AGR and other modalities).

Justice is the cornerstone of any democracy and its reliability is one of the

necessary conditions for the growth of wealth creation in a liberal economy. The

implementing strategy, through deep institutional and legislative reforms and

ambitious programs of investment, is expected to drill-down and dock at

Protective Justice Basis, at impartial and diligent way:

Capacity-building for magistrates and judicial officers and their

working conditions, including their remuneration and their statutory

guarantees of independence from the Chancery;

Legal texts redesign to be in line with the current standards

Strengthening of the institutions of control and inspection; and

Construction and equipment of tribunals and courts, as part of a

vast operation scenario among judicial formations.

Priorities will be done to public and private media, awakening people vector and

culture rooting, in order to contribute to the improvement of the overall

governance of the country and promotion of its brand image.

22

Necessary reforms should be carried-out, including legislative, institutional and

regulation, contributing to provide adequate support and guidance in order to

ensure the quality of public service and the development of a private national

information and communication services: responsible, professional and quality.

4.2.2.2 Promoting Youth, consolidating family and protecting vulnerable

groups

Usually, the youth is the future of the nation. A complementary policies

designed to ensure its development and its full participation should be set-out

and implemented. Policies and programmes that promote the emergence of

talent and the release of the creative energies of young people, including

policies and programs should be emphasized, namely:

Education and training;

Employment and insertion;

Entrepreneurship;

Communication and ICT;

Sport; and

Culture.

An ambitious policy of housing will be developed, as participatory and

collaborative approach. It will expect to provide (i) responsive current imperative

solutions-crisis housing, through a healthy political development of the territory;

(ii), the safeguarding and preservation of the environment, in a context of the

scarcity of land.

A harmonious set of complementary measures, legal, institutional, economic

and social, will be implemented to strengthen the family. This arrangement aims

to protect the family against the risk of bursting, violence, school drop, social

deprivation... The action of the public authorities in this area will be coordinated

with civil society organisations, which develop advocacy actions in the field of

family, women and child rights.

4.2.2.3 Optimizing the National and Sports Culture and Diaspora Mainstreaming

A treatment approach will be booked to focus the identity, culture and national

cohesion, through:

Preservation and enhancement of the historical and artistic heritage;

Promotion of cultural production;

23

Management and dissemination of artistic creations and cultural

property, at internal and abroad level.

The sport constitutes, undoubtedly, another factor of cohesion and social

integration. It also allows a better quality of life, a greater self-esteem and a

significant contribution to national pride. The authorities will ensure the growth

of team sports to feeding the national solidarity and cohesion. The school sports

will be revitalized and multi-year plans of development of sports infrastructure

will be developed and implemented, taking into account the growing volume of

resources, and as long as the budget constraint will reduced. Individual

competitive sports will be encouraged and will receive a multiform support.

Since independence, the diaspora has playing an important role in the

development of the country. This role should be further strengthened so that the

process of emergence of Sao Tome and Principe will take advantage of the

expertise accumulated by our expatriated citizens, their dynamism in the

business and the financial resources they could drain to the country. Therefore,

a set of institutional, legal, fiscal and diplomatic agenda and communication

measures will be implemented by the authorities, including:

The safeguarding of the interests of our citizens in their host countries;

The strengthening of their links with the country; and

The facilitation and the incentive arrangements for their return and/or

promotion of local economic activities.

4.2.2.4 Strengthening the pools of the local development and

decentralization

The comprehensive decentralization and the full participation of local

communities in the management of the daily life of citizens and the shaping

future are a factor of reduction of the costs of intermediation in the

implementation of public development policies, improvement of the quality of

public services and the culture of accountability at public decision-makers. They

are also a vehicle for consolidation of democracy in our country.

Therefore, the local governments intend to promote the emergence and local

development poles by:

Revising the tax legislation in order to increase the resources of the

regions and municipalities;

Strengthening coordination between the central and decentralized

regions;

24

Know-transfer of skills and related resources; and

Building-capacities of local communities.

4.2.2.5 Consolidating international cooperation and national sovereignty

As a fragile and small country, São Tomé and Príncipe must weave a solid

network and a diversified international cooperation relationship enabling it to

take advantage of ODA and preserve its national sovereignty.

The authorities intend to pursue its special relationship policy with the maximum

of countries in the world, in order to promote the ideals of international peace,

security, stability and solidarity. Therefore, a particular fare to the strengthening

of ties of integration in the Gulf of Guinea sub-region will be enhanced, so that it

gradually becomes a zone of peace, security, harmony, solidarity and

cooperation, at the service of sustainable human development, as the citizens’

aspirations.

25

5 ALIGNING THE SUSTAINABLE DEVELOPMENT GOALS (SDG)

WITH THE STP TRANSFORMATION AGENDA, BY 2030

Since the SIDS which STP is concerned, are called to facing a future presenting

other certainty than change, beset problems and difficulties in their market

should be entailed as a way of life and sustainable development.

The action of the international community must be rooted in a vision of

economic, inclusive and sustainable growth in order to help SIDS to boost their

new vision and new commitments. The challenge is to strengthen capacity,

gateways and networks, enabling carrier operations solutions and mobilizing all

key international cooperation partners to produce a dynamic and a real impact.

The STP Agenda of Transformation aligns with the Sustainable Development

Goals by 2030, as adopted by the international community, September 25,

2015 and is expected to take advantage of the momentum enabled by the

Millennium Development Goals, particularly:

Goal 1, which aims to eradicate poverty in all its forms, overall in the

world, will be articulated with one of the 2030 SDG, by eliminating the

extreme poverty in the world. It will be put in place systems and

measures of social protection for all, adapted at the national context,

including bases of social protection, and to ensure that, by 2030, a large

proportion of the poor and vulnerable people will benefit;

Goal 8, aiming to promote sustained economic growth, a full and

productive employment and decent work for all will be maintained as a

sustained economic growth rate and a high level of economic productivity

through diversification, technological upgrading and innovation

achievement, including sectors with high added-value and intensive

labor;

Goal 9, which aims to build a resilient infrastructure, promoting a

sustainable industrialization and boosting innovation. Long-term

investment in infrastructure and innovation is a key to economic growth

and development vector.

Goal 14, which aims to maintaining and operating in a sustainable way

the oceans, seas and marine resources, by 2030 SDG, will take

advantage of the economic benefits of sustainable exploitation of marine

resources, particularly through sustainable management of fisheries,

26

aquaculture and tourism for SIDS and the Least Developed Countries

(LDCs).

In general, the above matrix presents the articulation of the SDG with the

Country Transformation Agenda- 2030:

SDG Matrix articulation with the STP Transformation Agenda-2030

DOMAIN SUSTAINABLE DEVELOPMENT GOALS

TRANSFORMATION AGENDA

PEOPLE

1, 2, 3, 4, 5

Poverty Reduction in rural and coastal regions

Promotion of youth employment of through education and training

Strengthening the health system PLANET

6, 12, 13, 14, 15

Environmental protection and Collateral damage growth control due to the growth

PROSPERITY

7, 8, 9, 10, 11

Promoting of transparency and accountability in public affairs

Infrastructure to support growth programs

Simplification of the legislation/business Environment

PEACE

16

Strengthening homeland security, public safety, and coastal security

However, the Government is aware of the need for sustaining targeting effective

national ownership of the SDG and their ownership into public policies, both at the

national and local communities’ level. Without this ownership, we are unable to

mobilise financial resources and technical assistance from our partners to finance

and implement programmes and projects which contribute to the achievement of

these SDGs. For this purpose, the role of advocacy of the United Nations System

will be crucial and should make it possible to mobilize, as soon as possible, the

appropriated resources to develop a strategy for further implementation of the

SDG and to define, target and set indicators, for transposition arrangements of

these SDG towards the Transformation Agenda of the country.

The development partner’s support to the SDGs accomplishment, as committed at

WSSD Summit, September 2015, will allow certainly Sao Tome and Principe to

27

reach 4 of the 8 MDGs 2 , and to accomplish by the year 2030, the SDG

commitments.

The Government expects to receive a supportive assistance from its bilateral

and multilateral partners in order to be able to pace reforms enabling it to

achieve the objectives of its Transformation Agenda, in harmony with the SDG.

2 Universal education, Reduction of child mortality, reducing maternal mortality and (iv) significant Reduction of the

prevalence of major endemic diseases. For this last objective, it was noted that the rate of mortality due to malaria

was reduced to zero on the island of São Tomé in 2014 and a few years ago on the island of principle, then the prevalence of HIV/AIDS decreased by two thirds between 2009 and 2015, 1.5% at 0.5%.

28

6 PORTFOLIO OF PRIORITY PROJECTS FOR THE IMPLEMENTATION OF THE STP AGENDA FOR TRANSFORMATION BY 2030

The first portfolio of priority projects for the implementation of the Agenda for

Transformation aims to lay the foundations for the transformation of the country,

through two important projects to be carried out according to public-private

partnership standard and to a priority public investment program.

These projects and programmes must pave the way for a new dynamic national

and foreign private initiative, the economic ownership, particularly in the sectors

of tourism, logistics, port and airport, high value-added agricultural, fishery and

the related economic activities of the sea.

Therefore, the State will set aside two large areas of the national territory, called

New Frontier Park, dedicated to the settlement of economic operators with

special features and substantial incentives. The New Frontier Park I will be

dedicated to the industry and trade, as well as to the business tourism, whilst

the New Frontier Park II would be aligned to the Eco-friendly initiatives in the

field of tourism, agriculture and innovation.

The Public Investment will focus on the following elements:

- Rural development, especially those areas that contribute to increase the

productivity of crops and the insertion of markets, by best paths;

- Poverty Reduction in coastal area, by combining these populations to the

touristic activities and the sea;

- Quality of care of health;

- Improvement of the quality of all levels of education and vocational

training;

- Production and the implementation of reform texts and the introduction of

e-governance;

- Strengthening the capacity to absorb investment and official

development assistance; and

- Preserving and protecting the environment and the coherence of the land

development.

29

6.1 Structuring public-private partnership projects

These projects aims to building a Deep-water Transshipping Port and a high

performant international airport throughout the country will become a functional

hub logistic services in the sub-region of the Gulf of Guinea.

For the first phase of this transshipment deep-water port project, estimated up

to 500 -550 million USD, (35% already secured contractually until April 30,

2016), its Phase 1 of the construction must be completed current 2018 and

commissioning intervene in 2019.

The airport will be created by gradual extension of current international airport

of Sao Tome, according to a well-studied phasing, for which the work should

begin during the first quarter of 2016, under PPP arrangements.

A guarantee fund for private investment initiatives in hydropower, for an

estimated amount of US $ 60 million, is also envisaged, aiming to cover, by

2019, 50% of the country electricity needs, by this source of clean and

renewable energy.

6.2. Priority Public Investment Programme, 2016-2019

The Priority Public Investment Programme (PIP) aims to address the challenges

listed in the concept Note on the preparation of STeP IN 2015. It overlaps,

jointly with those outlined in part 3 above, the major of the first causes.

These challenges are considered as the constraints to be raised over the next

four years so that the country could be able to take advantage of the

opportunities offered at the end of this period i.e. the new deep water port and

the new international airport that will make Sao Tome and Principe a maritime

and air hub and a service platform for the countries of the Gulf of Guinea.

Priority PIP takes into consideration the following four aspects:

The level of 2015 expenditures on capital (71 M USD, programming) is

increasing by more than 65% over those realized in 2014 (43 million

USD). We can assume that this level could be maintained on the period

of 2016-2018. Therefore, the partners should provide their commitment

30

in terms of volume of funding and the authorities should be aware that

the absorption capacity of the country must be improved substantially.

The implementation of the reforms announced by the Government, in its

General Policy Statement, as well as the settlement of several agencies,

under the Transformation Agenda, are expected to promote the

improvement of the country absorption capacity for the period 2016-

2018;

The reasonable disbursements increase is excepted on the second year,

since the first year will focus on the implementation teams, procurement

procedures and inception arrangements or on deepening of reforms

enabling the improvement of the absorption capacity;

Taking into account that the Government Development Projects will be

completed in 2019, it is more reasonable to propose a four-year program.

The selected scenario is called to sustain the evolution of expenditures on

capital, slightly more optimistic than the 2015 scenario, and to assume 7.5%

further capital delivery growth on the period 2016-2019, both on own resources

and external funding, on annual average basis.

This growth should result from the combined effect of tax reforms (expansion of

the base, improvement of the roofing and introduction of VAT), the

effectiveness of the measures of improvement of the absorption capacity

(reforms of public procurement, strengthening of the capacity of the

administration...) and largest financial accompaniment of the MFP. I will be

assumed to reach an exchange rate, as that proposed by the IMF.

With this scenario, it will be assumed that the accumulation of capital will

amount to 305 million USD over the expenditure period.

The following table shows the distribution of total public expenditure on the

period 2016-2019, according to new nine challenges.

31

7. 2030-VISION’S RISKS AND ITS FIRST IMPLEMENTING

PLAN, SEQUENCING AND TRACKING

7.1 Risks

Sao-Tomeans authorities are aware that Vision and its first implementation

program face several risks:

Firstly, the ambitiousness of the Vision, based especially on the construction of

a port of transshipment deep-water and an international airport of capacities,

assuming that will make the country a hub of logistics services in the sub region

of the Gulf of Guinea.

However, the size of the country and the weight of the other States of the sub-

region and their ambitions for the development of port and airport infrastructure,

should be considered, despite playing the natural conditions of a volcanic island

that has unique sites meeting the needs of the next generation ships, both in

technical and operational terms.

Following factors translate this ambition: the privileged location of São Tomé

and Príncipe, its political stability and social cohesion, coupled with the good

economic performance of the past years, the programme of reforms in the

process of implementation or inception, as well as the prospects for

development of the sub region. In addition, none of the ports in the sub-region

fulfils the requirements to become a transshipment port, leaving this role of

logistical support to the port of São Tomé.

The airport is justified by a tourist regional and international single offer. In fact,

there is a continuous growth market and should be understood as a lock to lift

for the development of the country.

The second risk is associated to the resources mobilization for development in

PPP projects and priority public investment program 2016-2019. This risk is

mitigated by the fact that the projects are sufficiently well studied, offering good

prospects for profitability, and representing the main support axes for the

development of other income generating enterprises and jobs, thus increasing

tax revenues.

STeP IN London 2015 makes this private investor’s mobilization one of its main

objectives. Several of them, including some of the largest worldwide, have

confirmed their interest to examine these projects. Funding of the deep water

32

port project, which is the most important in terms of cost (500 to 550 M USD), is

already secured and discussions for the modernisation of the airport, being

finalized.

With regard to the priority PIP 2016-2019, the Government has retained a

scenario for which the external mobilization resources for 305 M USD, or 131 M

more than arrested with the IMF in July. However, this gap was over a period of

3 years, while the Government is counting on a four-year plan with a strong

commitment to bilateral partners and new funding modalities including

mitigation of risk and specialized funds. It is understood that this scenario will be

thoroughly reviewed with key partners of the country, including the IMF.

A third risk is the absorption capacity of the country and the capacity of its

Administration; the Government is determined to implement without delay the

necessary reforms, as described in section 4.2.1 above, to substantially

improve these abilities.

There is also a risk for the stability of the macroeconomic framework of the

country if significant increase in private investment (PPP infrastructure projects,

notably) and public is expected. The Government is quite aware and will take, in

consultation with its partners, including the IMF, the necessary steps to

preserve this stability.

Finally, it cannot obscure the risk policy which, coupled with weak legal services

of the State, can be expressed by delays in the development and promulgation

of important laws for the improvement of the business environment and respect

for the pace of implementing reforms, agreed in the context of the triennial

programme supported by an FEC of the IMF. The Government supported by a

comfortable parliamentary majority will take any useful measure, in consultation

with the legislature, to mitigate this risk and ensure the implementation and

accountability of the laws of the Republic.

7.2. Sequencing

The STP Transformation Agenda will be implemented sequentially, in

quadrennial multiannual programmes. It will take account of the urgent need to

respond to the aspirations of the citizens and to achieve the development goals

as defined in the Agenda post 2015 adopted by the United Nations on

September 25.

The first sequence of this implementation is described in sections 4 and 5

above (reforms and program priority projects). The Government is aware that

this is the decisive sequence for the success of the transformation process of

33

the country. He is committed to accelerate the pace of reforms. It expects from

its partner’s development the necessary accompaniment, both in terms of

financial resources and in terms of technical assistance, so that this phase has

all the chances of success. It is how the country will be able to get out of the

trap of fragility where it is and that it will respond to the aspirations of its citizens

and will carry out the objectives of development post 2015.

7.3. Monitoring

As already pointed out, the administration in São Tomé and Príncipe is

characterized by a notorious weakness of the development strategic

management capacity, resulting in a lack of statistical data reliable and a low

monitoring implementation of public policies.

The Government is determined to implement, without delay, an efficient system

of monitoring of the Transformation Agenda of the country. This system, whose

architecture will be defined with precision in the next few weeks, will be

articulated around a Joint Committee monitoring and a first review of mid-term

in late June 2016.

This implementation will be facilitated by a combination of factors which

including:

- The size of the country;

- The reform of public administration, the establishment of e-governance,

the implementation of a national programme of capacity-building with use

of foreign technical assistance;

- The establishment of specialized agencies, which may have recourse to

outside expertise, including Diaspora, excited to the work for national

transformation;

- The widespread use of ICTs.

34

CONCLUSION

Sao Tome and Principe is now at the crossroads: (i) the country resigned to remain a State assisted by the international community; either (ii) it decides to take its destiny in hand and to stand, finally and irreversibly, on the path of sustainable and inclusive growth, enabling offer of employment to its youth, reducing and ultimately eradicating poverty, and met hopes, long, of citizens who aspire legitimately, the conditions for a decent life. The Government, issued from October 12, 2014 elections and supported by an absolute parliamentary majority, made the second choice, without any hesitation. It is his ambition to Sao Tome and Principe. The country has objectively all the necessary assets to achieve this ambition. We are aware that the way to achieve the objectives of our Transformation Agenda, which overlap the SDG domains, will be long and difficult. However, we are confident because recent history teaches us that when the political will is real, the popular support is solid, the pace accelerated reforms and the support of the international community are effective, countries, even their small size, can initiate a sustainable virtuous process of transformation and meet the aspirations of their citizens. Our political determination is strong and will be translated into a net improvement of the mode of governance of the country, enabling the most transparent, efficient and effective actions. That is how we will be able to raise definitively the level of popular requirement in terms of good governance. The popular expectation in terms of reforms is strong and our fellow citizens clearly expressed it during the consultations leading to the development of the Vision "São Tomé e Príncipe 2030: the countries we must build”. The Government is strongly aware of this political will and popular demand. It will lead an accelerated pace of reforms, supported by a revitalization/restructuring and rigors’ public administration, involving all stakeholders in the country's development, and a regular communication. The support of our partners, that we were never lacking, is today crucial, both in terms of financial resources volume and in terms of technical assistance. The first sequence of the Transformation Agenda will be successful as well as the further ones. Thus, the achievement of the SDG by 2030 and the related further transformations will contribute to the social and economic development of the sub-region of the Gulf of Guinea and the African continent, in general. São Tomé and

35

Príncipe, as an emerging country will finally offer its citizens a dignified life and a full

development conditions.

PROJECT LIST

Issues Monitoring Project

Description Responsible Departments

and Ministries Project Id

Challenge I: Fighting against poverty in rural communities

Technical and Financial Agricultural Community-Assistance

Support to vulnerable families

Ministry of Employment and Social Affairs FP11

Non-Contributory Social Pension’s Assistance

Ministry of Employment and Social Affairs FP12

Rural credit institutionalization’ Support

Ministry of Finance and Public Administration FP21

Support to Dry Beans Row Development in STP

Ministry of Agricultural and Rural Development FP55

Support to the Development of Poultry Production


Support to Fruit and Vegetable Development Center


Solutions for irrigation Needs

Construction and/or rehabilitation of irrigation system and dams for water retention


Commodities, Access and Marketing of agricultural products

Improving access for agricultural products and marketing


36

National Rural Extension Program


Rural Tracks Rehabilitation

Ministry of Agricultural and Rural Development FP65,FP67

Conservation, Storage and add-value Agricultural Products

Capacity-Building of Agricultural Research and Technology Center (CIAT)


Over-Production Marketing Control - Guidance, Quality Control and other related Control

Comprehensive Rural Development


Sustainable Development of Agro-Livestock Production


Capacity-building for rural development actors


Promoting the Development of African Food in STP


Challenge II: Fighting against Poverty at Coastal Communities

Technical and Financial Fishing Community Assistance

Promoting the Industrial Fishing

Ministry of Economy and International Cooperation FP25

Youth Education and Training in “Sailor and Sea Men”

Security and Coastal Patrols for Safety and Rescue Activities

Erosion Control and Tides’ Protection

Coastal Protection and Relocation of Fishing Communities

Ministry of Infrastructure ; Autonomous region of Principe FP91

37

Challenge III: Development of Human Resources – Capacity Building for Young

Children School Bus Solutions for All

Reducing the number of children in schools through the Improvement of Teacher-student Ratio

School Expansion Management Network in STP

Ministry of Education, Culture and Science FP48

Construction of a regional high school


Lunch Meal Approach – Fighting against Malnutrition and Boosting for School Attendance

Development of National Food and School Health


Replenishment Facilities & ICT Inception

Technology Development in Classrooms


Vocational and Technical Education on Language Laboratories for Young – Introduction of new disciplines

Technical Education Development Project and Recurrent Professional School


Strengthening institutional capacity of the University of São Tomé and Príncipe


Strengthening institutional capacities and Teaching Skills


Literacy and vocational qualification for young and adults people


38

Development of Teacher-training and Teaching Approach

Improvement of Education Quality System (PROMEQSE)

Ministry of Education, Culture and Science

FP49

Challenge IV: Development of Health Care at Municipal and Central Level

Urgent improvement of the Emergency Facilities and Trauma Care

Support to the Alcoholism Combat

Ministry of Health

Development of Road Safety Project

Ministry of Internal Affairs

Rehabilitation Physiotherapy Infrastructure

Ministry of Health FP07

Hospitalar Acquisitions and Planned Medicines Management (Reagents, Expendable and Hospital Equipment)

Software Development and Management Infrastructure


Development of Image Diagnostics Tools


Hospital Dr. Ayres de Menezes: Reestructuration of Oxygen Center; Reorganization and Hospital Tools

Ministry of Health

FP05

FP08

Development of the Sterilization Center


Hospital Dr. Dias da Graça: Expansion; Equipment; and Expertise

Autonomous region of Principe

FP88

39

Eradication of Transmissible Diseases

Prevention, Management & Control

Tackling against Endemic and non-Endemic Diseases


Challenges V: Responsive Challenges on Public Safety, Homeland Security and Airports and Coastal Safety

Oriented-Police Training on Internal Control Framework (Operating

Procedures; International Standards Requirements; Awareness, including drugs and terrorism).

Municipal Secondary Schools Survey on Psychotropic Substances Prevalence and other Drugs (i.e. Água Grande; Mé-Zóchi and Lembá)

Ministry of Justice and Human Rights

FP36

Training and Requalification of Army and Security Staff

Ministry of defense and the sea; Ministry of Internal Affairs

FP98

Updating Surveillance & Protection Equipment (Shields and bulletproof vests, guns and ammunition included)

Training and Provision of Required Equipment for Airports and Coastal Security Operations

Development of Maritime Legal Framework

Formulation of the Maritime Law

Ministry of defense and the sea

FP99

Challenge VI: Legal & Judicial Capacity Reform

Inspection and Laws Revision: Corporate, Commercial and Business Laws. Revision of the Civil Code.

Creation of the National School of Administration and Judicial Studies of STP (ENEJA)


FP35

40

Promoting best practices and technologies on Speed-up Disputes

Resolution, Judicial and arbitration processes

Mutual Legislative Production


Development of an Integrated Management System for Legal Processes


FP37

Challenges VI: Promoting National and Social Cohesion

Preventing Domestic violence, Improving Parental responsibility Behavior amongst Young-single mothers/couples, Promoting Parents-School Relationship and Developing Post-school Centers

Promoting Inclusive Educational System (i.e. children with special needs)

Ministry of education, culture and science

FP47

Development of Kindergarten Amazinhas - National Institute for the promotion of Gender Equality


FP54

Promotion of Sustainable and integrated Growth

Min. of Foreign Affairs and communities

FP94

Construction of a Elderly day-care Center

Reg. Aut. The Prince FP83

Public access to the Internet and e-TV

Development of e-TVS Worldly Project

Ministry of the Presidency FP68

41

Development of citizen's Shops, eGovernance and based-people Programs approach. Voice to People for Public Government Police Scrutin

e-shop/citizen Government

Ministry of the Presidency FP70

e-Governance Ministry of the Presidency FP71 Strengthening

capacity for Supervision and Oversight Activities

Ministry of finance and Public Administration

FP20

Construction of a pilot Public Administration building

Autonomous Region of Principe

FP84

Strengthening National Diplomatic Negotiation Skills

Ministry of Foreign Affairs and communities

Fp95 and

Development of Institutional Sports and Facilities

Construction of a Sports CPLP-Games Center

Ministry of youth and sports FP103

Construction of Sports medicine-Center

Ministry of youth and sports FP105

Construction of a Gim-Sports Pavilion

Autonomous Region of Principe FP89

Culture and Cultural Products Development

On-line Library

Ministry of education, culture and science FP42

Rehabilitation of the STP History File

Ministry of education, culture and science FP43

Development of STP- More Culture, More Citizenship


FP44 Rehabilitation of

buildings holding the Library and Historical Archives


FP76 Rehabilitation of the

House of culture Autonomous Region of Principe FP77

42

Challenges VIII: Sustainable Development through Environmental preservation and Collateral damage Control

Development of renewable energy; Hydropower and Solar energy

Photovoltaic Solar Center

Ministry of Economy; EMAE Project FP33

Construction of 5 mini-hydric stations


FP86

Development and management of landfills and waste management

Construction of Incineration Structures

Ministry of health FP03

Laundry Services Operations at Hospital Dr. Ayres de Menezes

Ministry of health FP06

Landfill Service Operations

Ministry of infrastructures, Natural and environment Rec.

FP14

Barges Debris removal Operations


FP96

Marine waste removal Operations


FP97

Construction of a landfill


Fp75

Territorial GIS Planning & other related Projects

Development of Digital Cartography


Strategy for Conservation of nature and Biodiversity


FP90

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Challenge IX: Development of Economic and Infrastructural Growth

Rehabilitation of Roads, Pavements, Sea walls Protection and other related Infrastructures

Rehabilitation of streets in the Capital of the Country

Ministry of infrastructures, Natural and environment Rec. FP15

Pavement rehabilitation and Coastal Protection; EN1 (Lobata and Lembá)

Ministry of infrastructures, Natural and environment Rec. Fp16

Rehabilitation and construction of asphalted roads

Autonomous Region of Principe FP80

Rehabilitation of Bridges over Rivers

Rehabilitation of the 06 Bridges over the river Água Grande


FP17

Rehabilitation of the bridges over the rivers Lembá e Contador


FP18

Construction of the bridge Barreto


FP81

Other Public Infrastructures Development

Certification of São Tomé International Airport (National Company of Airport Security-ENASA)

Ministry of Economy and International Cooperation

FP23

Construction of the port of Ponta Mina


FP82

Communities water supply


FP74

Development of Public Community Works Project

Ministry of employment and Social Affairs

FP13

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Oriented-based Rehabilitation of Generation, Transmission and Elecricity

Distribution

Development of Central-Power Electricity

Ministry of Economy; EMAE Project

FP29

Development of the Electricity GPL Center


FP30

Development of Grand Central, 11.5 MW


FP31

Rehabilitation of the BT-Water & Electricity Networks


FP34

Construction of infrastructures for of Fuels Storage


FP92

Transport and distribution of energy for rural communities


FP93

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Challenges X: Implementing Agencies for the Strategy and Policies Implementation

International Cooperation Agency (ICA) The Authority's Public works and Development (PWDA) Brands, image & communications Management Body (BICMC) Investment Promotion Authority (IPA) Environmental Authority of São Tomé and Príncipe (STPEA)

Funding I: National Agency Fund

Institutional capacity building for Oriented-economic Growth (focused on Independent agencies)

The Government will create special independent bodies to guide and implement the vision and related policies. Five agencies that will be created are: 1. International Cooperation Agency (ICA) 2. The Authority's public works and development (PWDA) 3. Governing Council for Brands, image & communications Management (BICMC) 4. Investment Promotion Authority (IPA) 5. Environmental Authority of São Tomé and Príncipe (STPEA) Each agency will hire an Executive Manager, Director, Senior and Junior Staffs The Fund will be non-profit-Disbursement Fund under a Central Treasury.

Ministry of Finance and Public Administration

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Fund II: National Education Fund

1. Comprehensive Infrastructural Investments in Education (Orienting all the investments for Educational infrastructures);

2. Educational Abroad Fund (Providing Loans for students wishing to pursue studies in renowned institutions

abroad)

The Fund will invest in private projects operating in infrastructure for education. These facilities will be rented or purchased by educational institutions and the Fund will earn their investments back. The Fund will education loans to students who wish to study abroad. Mechanisms will be put in place to ensure non a very low number of off-track

Ministry of education, culture and science; Ministry of Finance and Public Administration An Independent Governing Board will be created. Each founded participating partner will appoint an Executive Director to ensure a strict governance. An international team and highly qualified managers will be hired to operate the Fund.

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Fund III: National Fund for Renewable Energy

The Government is committed to generate at least 50% of the STP energy requirements through renewable sources in the next 5 years. This Fund will provide access to finance the related projects

The fund will focus on: renewable energy generation projects (hydro, solar energy) which have secured a power purchase agreement with the Government. Structuring options: 1. the Fund is structured as a deposit with the central bank with a very low interest rate. Additional 1-2% will be led by the Bank to cover the administrative costs. 2. The Fund may invest directly in projects through Net Worth.

Ministry of infrastructures, Natural Resources and Environment; Ministry of Finance and Public Administration. An Independent Governing Board will be created. Each founded participating partner will appoint an Executive Director to ensure a strict governance An international team and highly qualified managers will be hired to operate the Fund. A technical team will be hired to guide the implementation of the projects.

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Fund IV: National Fund for Land and Housing Development

Real-estate Development including offices, residential units, industrial warehouses, hotels and resorts, and entertainment venues.

Private Equity model to real-estate investments. Features: 1. The participation of the Government in the development of the island is ensured by its contributions and commitments to the Fund 2. The Fund will be actively marketed to private investors 3. All participants will earn their investments back 4. The Fund will be guaranteed by the Government. Structuring plan: The Fund will be structured as a Private Equity firm with 2/20 structure.

Ministry of infrastructures, Natural Resources and Environment; Ministry of Finance and Public Administration An Independent Governing Board will be created. Each founded participating partner will appoint an Executive director to ensure a strict governance. An international team and highly qualified managers will be hired to operate the Fund. A technical team will be hired to guide the implementation of the projects.

sÃo tome and principe international conference for

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