40 production sharing contracts with the government for blocks 5, 11 and 12. To ensure this social investment obligation results in real benefit to the people of São Tomé and Príncipe, Kosmos has engaged with the government to understand its national development priorities and formulate a strategic plan for the education sector. São Tomé and Príncipe has high levels of literacy compared to many other developing countries. However, the country’s young demographic – over 60% of the population is under the age of 24 – presents significant challenges in the education sector which the government is eager to address. According to recent government data, the key challenges are: • Class size: an average of 80 students per classroom • Pace of development: Inadequate use of technology due to lack of infrastructure and training • Instruction: Insufficient number of teachers, many of whom lack necessary training Thus, the goals of the education initiative include improving access to quality education, reducing the average number of students per classroom, and preparing students for the future labor market. Kosmos has agreed to build two new secondary schools and associated facilities (in Santana and Monte Café) and add classrooms to two existing schools in Neves and São Marçal. Once these projects are completed, the Ministry of Education, Culture, and Science will take responsibility for staffing the schools with qualified teachers or teachers-in-training, as well as the maintenance and repair of the classrooms and facilities. Kosmos has also procured two mini- buses that are now used to transport teachers to remote schools in Porto Alegre and Santa Catarina. This initiative is being overseen and monitored by a steering committee comprised of Kosmos, the Ministry of Education, Culture and Science, and ANP-STP. Groundbreaking for the school construction is expected in the first half of 2018. Kosmos is currently working with the Ministry of Education, Culture, and Science and ANP-STP to move the project forward and ensure high standards for construction. In addition to the education projects on São Tomé island, Kosmos intends to implement social investment projects on Príncipe island in the coming year. In 2017, we conducted an assessment and partner analysis on Príncipe. Based on the results of this assessment, we plan to focus our social investment efforts on Príncipe around biodiversity and conservation, access to water supply, and innovation in local enterprises. Photo: Maique Madeira The island of Príncipe is home to approximately 7,000 people and has a rich biodiversity, including many endemic species. In 2018, Kosmos plans to initiate several social and environmental projects on Príncipe to ensure benefits reach both islands in the country. In partnership with the government of São Tomé and Príncipe, Kosmos is building schools and classrooms in four locations on São Tomé for children such as the two boys pictured playing here.