The Government of São Tomé and Príncipe (GoSTP), with funding from the World Bank, aims to reduce the cost, increase reliability, and reduce emissions from electricity generation in Sao Tome and Principle (STP). The Project Fiduciary and Administrative Agency (AFAP), under the Access to Clean Resilient Electricity Project (ACRE), engaged K&M to conduct a two-phased study to assess the technical and economic feasibility of different LNG-based power generation concepts and, based on that assessment, help GoSTP implement the identified recommendations.

Phase I concluded that LNG-based power generation is technically feasible and economically competitive with diesel-based generation in STP. On that basis, GoSTP decided to proceed with Phase II, which involves competitively procuring a strategic partner to enter into a Joint Development Agreement with GoSTP and advance the project from its current conceptual stage to an agreed project configuration, site, commercial structure, and binding price.

K&M’s services under Phase II are organized into four principal activities supporting GoSTP from project initiation through the procurement of a Strategic Partner under a Joint Development Agreement (JDA). K&M will conduct an on-site kick-off meeting and inception mission to review the Phase I findings, confirm the preferred project approach, and finalize the work plan; support project structuring through legal and regulatory review, development of indicative functional specifications, commercial and financial structuring, market sounding, financial modeling, and preparation of the procurement strategy; and implement the competitive procurement process, including preparing procurement documents, engaging with and evaluating bidders, building the capacity of GoSTP counterparts, and supporting negotiation of the JDA. K&M will conclude the assignment by preparing a Final Report documenting the procurement process, key decisions, and Phase II outcomes.