| Project Detail |
The Fiscal Sustainability and Economic Resilience Program (FSERP) is designed as a programmatic series of two consecutive General Budget Support (GBS) operations. This support will enable the Democratic Republic of São Tomé and Príncipe to strengthen fiscal sustainability and economic resilience by improving Public Financial Management (PFM) systems and efficiency in the energy sector. The programme will support the Government in its efforts to implement reforms to accelerate economic growth by creating a more conducive environment for the private sector, enhancing transparency and accountability, and boosting governance in the energy sector while building climate resilience. The set of reforms under the proposed program is organized around two mutually reinforcing and complementary components. Component 1, Improving fiscal transparency and sustainability, will support enhancing domestic revenue, improving public expenditure efficiency, and enhancing debt transparency and sustainability. Component 2, Improving energy sector governance and transition to renewable energy, will support reforms in the energy sector and help in transitioning to green energy.
Project Objectives
The objective of the program is to improve fiscal sustainability and energy sector governance through strengthened energy sector reforms of Public Financial Management (PFM) systems.
Beneficiaries
The direct beneficiaries of the program are the Ministry of Planning, Finance and the Blue Economy (MPFEA), through the provision of resources to the Treasury for the execution of the national budget. The resources will be used to reduce the budget deficit and increase foreign exchange reserves. Increased foreign exchange reserves are essential for importing essential goods and improving the performance of the energy sector. The program will indirectly benefit all STP citizens, insofar as a more favorable business environment will translate into growth and job creation; improved fiscal transparency will enable the provision of more and better public services. In addition, strengthening energy and climate resilience will create more job opportunities and make housing safer. |
