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The Citizen
21 hours ago
- Business
- The Citizen
How SA's Lesotho water project costs ballooned from R8bn to R53bn
More than R20 billion was due to inflation linked to the delays. The cost of the second phase of the Lesotho Highlands Water Project (LHWP) to deliver water to South Africa's industrial heartland and generate hydropower for Lesotho has increased by R45 billion. In 2008, phase 2 was projected to cost R8 billion. By 2022, this had ballooned to R42 billion. It now stands at R53 billion, raising questions about governance, oversight and accountability. 'Despite Minister [Pemmy Majodina]'s public acknowledgement that a probe into the escalating costs of Phase 2 of the LHWP would be conducted, no further details have been shared with Parliament or the public,' Democratic Alliance (DA) deputy spokesperson on water and sanitation Stephen Moore noted in a statement issued by the party last week. Moore has now filed a Promotion of Access to Information Act (PAIA) application to the Department of Water and Sanitation (DWS). ALSO READ: Here's how many millions SA sends to Lesotho each month for water This follows two unanswered letters, the first sent on 8 May. DWS spokesperson Wisane Mavasa said the May letter was not sent directly to the minister or director general. 'Unfortunately, the letter was not acted upon by the officials that it was sent to,' she said, adding that the minister would respond 'shortly'. DWS says the price escalation is the result of various factors, including years of delays, treaty complications and market fluctuations. Regarding the DA's PAIA application, Mavasa said the department has 30 calendar days to respond, and it would do so within the legal timeframe. Oversight gaps The South African Portfolio Committee on Water and Sanitation raised concerns about the cost of the project with the Auditor-General of South Africa (AGSA) at a sitting on 6 May, chaired by the DA's Leonard Basson. The meeting flagged weaknesses in governance created by the dual-implementation model between the Trans-Caledon Tunnel Authority (TCTA) and the Lesotho Highlands Development Authority (LHDA). Delays have pushed completion from 2019 to 2028, affecting the delivery schedule and future phases of the project. The committee also noted constraints stemming from the 1986 treaty preventing AGSA from auditing LHDA directly, 'leaving South Africa reliant on Lesotho's audit structures'. But, says Mavasa, the Lesotho Highlands Water Commission (LHWC), has equal representation from both governments, had 'full access to the cost records of the LHDA', and had received detailed information about the delays. The committee also criticised the royalty arrangement, which it said obliges South Africa to continue payments to Lesotho even when water deliveries are interrupted. READ MORE: Completion date for R53 billion Lesotho Highlands Water Project postponed again Other concerns included limited local procurement, dominance of foreign contractors, and opaque financial flows. Some MPs went as far as calling for an immediate funding suspension, citing mismanagement and treaty flaws. However, AGSA cautioned against such a drastic move, warning of legal consequences. It recommended treaty reforms, including joint audits, instead. Mavasa says South Africa and Lesotho have agreed to review the treaty, but the 'matters for review' have yet to be decided. She said South Africa has already set up its review team. Submission of the Lesotho government's team is awaited. Lesotho's Finance Minister Retšelisitsoe Matlanyane told Parliament in February that the government intended to pursue 'the overdue review of the treaty' to negotiate a better deal for Lesotho. How R8 billion became R53 billion Mavasa outlined the project's financial journey in detail. The original 2008 feasibility study produced a preliminary R8 billion estimate – excluding inflation, currency shifts, contingency allowances, and modern environmental and social safeguards. Construction of the main works was expected to start in 2013 and deliver water to Gauteng by 2019. However, she said the main contracts were only awarded in 2022 because negotiations with Lesotho took longer than expected. The situation worsened with years of administrative and procedural delays. 'The Phase 2 agreement was signed in August 2011. 'It then took 14 months for the RSA Parliament to ratify the Phase 2 agreement and a further seven months for the Lesotho Parliament to ratify the agreement after the ratification by the SA Parliament,' said Mavasa. READ MORE: Municipal water crisis 'nothing to do with bulk water supply', says minster at LHWP reopening After Lesotho's 2013 change of government, the agreement was subjected to fresh scrutiny, adding further delays, according to Mavasa, who also pointed out that between 2013 and 2022, the DWS had five different ministers and 11 director-generals, a turnover that slowed decision-making. There were also financing complications. Funders raised concerns over procurement processes for the main contracts and requested that they be tendered afresh. The covid pandemic also disrupted preparatory work, pushing back the award of main contracts. In October 2022, the LHDA projected a R42 billion completion cost – incorporating contract prices, social and environmental programmes, foreign exchange effects, and administrative cost of managing the project. More than R20 billion was due to inflation linked to the delays, said Mavasa. In October 2024, the figure rose to R53 billion. The department attributed this to: R4.2 billion from boosting the contingency provision in line with international good practice from R3.3 billion in 2022 to R7.5 billion in 2024. R5.4 billion for additional social obligations requested by Lesotho, such as rural water supply and road infrastructure – not yet approved by the LHWC but included in the LHDA's projections. R1.7 billion in price escalations, design changes, and contractor claims linked to delays, including work-permit issues. Governance fixes and audits According to Mavasa, the project cost and time overruns have been a major concern for DWS and Minister Majodina. She said LHDA has developed a plan to minimise any further delays and cost overruns. She said LHWC will appoint a multidisciplinary team of experts to conduct management audits of contracts. Although the project is about 50% complete, she said two primary contracts are behind schedule. 'However, the LHDA is executing a turnaround plan to avoid further delays and recover lost time.' READ MORE: Trump gunning for Lesotho: SA sees opportunity for 'closer collaboration' In 2024, Mavasa said the department had established a governance committee comprising the department, the TCTA, and the South Africa delegation to the LHWC, which meets monthly to review progress. Mavasa said the DWS director-general and the principal secretary of the relevant department in Lesotho hold ad-hoc and quarterly meetings to address issues arising from the project. Unresolved issues are escalated to the ministers. Lesotho Minister of Natural Resources Mohlomi Moleko said he could only respond next week as he is outside the country. This article was republished from GroundUp under a Creative Commons license. Read the original article here.
IOL News
16-07-2025
- IOL News
From hills to hope, water project drives development in Lesotho
This aerial drone photo taken on July 7, 2025, shows the construction site of the Tunnel Boring Machine Access Adit for Polihali Transfer Tunnel in Mokhotlong District, eastern Lesotho. Image: Xinhua / Yang Guang As night falls over the northern highlands of Lesotho in early July, winter's chill sets in. Yet the Polihali Transfer Tunnel construction site remains a hive of activity. "We have deployed round-the-clock operations with three rotating shifts," said Julius Topo, site manager for the tunnel excavation. A worker monitors the operation of a rock drilling rig at the Tunnel Boring Machine(TBM) Access Adit construction site, in Mokhotlong District, eastern Lesotho, on July 6, 2025. Image: Xinhua / Yang Guang Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The Polihali Transfer Tunnel is the second phase of the multi-phased Lesotho Highlands Water Project (LHWP). Designed to supply water from Lesotho to the Gauteng region and surrounding areas in South Africa, the project marks a flagship for this landlocked country and its neighbour. The 38-km tunnel will be excavated using two hard-rock shielded tunnel boring machines (TBM), operating simultaneously from Polihali and Katse. Guests cut the ribbon during the Tunnel Boring Machine (TBM) Arrival Ceremony at the Caledonspoort Border Post in Butha-Buthe District, northern Lesotho, on July 5, 2025. Image: Xinhua / Yang Guang The first TBM began boring from the Katse site earlier this year. On July 5, a launch ceremony was held for the second TBM at the Caledonspoort Border Post in Butha-Buthe, Lesotho. This China-manufactured machine was shipped to Durban Port and will be assembled at the Polihali site. It is expected to significantly speed up the excavation process to meet the slated 2028 completion date. Speaking at the ceremony, South Africa's High Commissioner to Lesotho Constance Seoposengwe said she believed the new machine would give further impetus to the already ongoing work on the project. "The Lesotho Highlands Water Project is more than just a water project," she said. "Local jobs have been created, and new roads have been built in the Kingdom." Lesotho children watch a convoy of trucks transporting components of a China-manufactured hard-rock shielded tunnel boring machine (TBM) on a hillside near Pitseng, in Leribe District, northern Lesotho, on July 6, 2025. Image: Xinhua / Yang Guang Constructed by Kopano Ke Matla (KKM), a joint venture between China's Yellow River Company, Sinohydro Bureau 3, and South Africa's Unik Civil Engineering, the tunnel is the largest ongoing infrastructure project between the two countries. Its very name, KKM, meaning "unity is strength" in the Sesotho language, one of the official languages of Lesotho, reflects the diversity and inclusiveness of the workforce. Topo, a veteran of the LHWP's first phase in the 1990s, underpinned the importance of passing on experience. "TBMs were used in Phase I, but 30 years have passed. Now it is time for me to share my knowledge with local colleagues to enhance site organisation," he said. "Managing a multicultural team has many challenges, but I am learning from the Chinese and sharing what I know. We are getting along," he added. Liu Xiaolan (2nd R), a civil engineer of the Kopano Ke Matla Joint Venture, speaks with workers at the Segment Factory of the Polihali Transfer Tunnel Project, in Mokhotlong District, eastern Lesotho, on July 7, 2025. Polihali Transfer Tunnel is part of Phase II of the multi-phased Lesotho Highlands Water Project (LHWP). Image: Xinhua / Yang Guang According to Xu Xishuai, the commercial manager of KKM, more than 99 percent of the skilled workforce is locally hired, creating over 1,800 jobs since the company's involvement. "The project has improved local infrastructure, provided employment, and passed on essential vocational skills. It is more than just tunnel construction," Xu said. While the project is still underway, its benefits are already evident. Regional transport services have expanded. A significant portion of engineers, subcontractors and suppliers are local. And the use of local construction materials and catering services has kept spending within the community, reinforcing the project's positive community impact. Born in the nearby village of Bafali, tunnel engineer Montso Lebitsa has witnessed the changes firsthand. "Traveling from Mapholaneng to Katse used to take more than eight hours due to poor traffic. Now, it takes less than two, thanks to the new road built for the project," Lebitsa recalled with a smile. Health support has also improved. "The Chinese medical team comes here from time to time to provide free health services to workers and residents. We are in remote areas where clinics or health facilities are far from the communities," said Maseqhoang Sechaba, the project's community liaison officer. Masiphola Sekonyela, chief of Tloha Re Bue, one of the areas near the Polihali site, praised the project's contributions. "When I heard the Chinese would lead this project, I was excited. They work hard and know how to get the job done," he said. "Our people rely on farming and herding, but now they have jobs, better access to goods, and more options for the future." Workers of the Kopano Ke Matla Joint Venture take part in a training session at the Skills Training Center for the Polihali Transfer Tunnel Project, in Mokhotlong District, eastern Lesotho, on July 7, 2025. Image: Xinhua / Yang Guang Pride Mudzingwa, chief executive officer of Tashie Training and Business Solutions, is overseeing the vocational training effort for KKM. "We have categorised participants as unskilled, semi-skilled and skilled so we can tailor classes accordingly," Mudzingwa said. Class sizes have been reduced from 20-25 people to 10-15 for better outcomes. Courses range from five-day workshops to three-year programs and cover plumbing, fixing, quality assurance, and more. With an investment of more than 44 million Lesotho lotis (2.47 million US dollars), the program aims to train more than 6,000 skilled workers over three years. So far, more than 500 have completed training and returned to work. "We issue certificates recognised across Southern African countries, which means workers can stay employed or even be promoted after the project ends," said Rethabile Letsoalo, community/client liaison officer of Tashie Training and Business Solutions. "This could be a once-in-a-lifetime opportunity for many, and we are grateful that our Chinese partners are giving it for free," Letsoalo said. Trucks transport components of a China-manufactured hard-rock shielded tunnel boring machine (TBM) along a mountain road in Thaba-Tseka District, eastern Lesotho, on July 8, 2025. Image: Xinhua / Yang Guang For Mpoi Elizabeth Rankhethoa, a translator at the Katse site who graduated last year from the Central University of Finance and Economics in China on a full scholarship, returning home to work on this project has been eye-opening. "We rarely have a project of this scale in Lesotho, and it truly means a lot," Rankhethoa said. "It is not the first time China and Lesotho have worked together, and it certainly won't be the last." Xinhua
Mail & Guardian
05-07-2025
- Politics
- Mail & Guardian
Lesotho Highlands Water Project: Centre local voices in the climate change, conflict and peacebuilding nexus
The Lesotho Highlands Water Project (LHWP), established by the 1986 treaty signed by the governments of Lesotho and South Africa, is a multi-phased project that generates hydroelectricity through a system of several large dams and tunnels in Lesotho for domestic use and supplies water to the Vaal River System in South Africa for its economic hub, Gauteng. The rise of conflicts in societies has been attributed to a multitude of factors ranging from political, socio-economic grievances to ethnic and religious hostilities. Poverty, land and food insecurity are worsened by conflict and climate change. What seems to be missing in the discourse is the interplay between climate, conflict and peace. The rise of resource conflicts, increasing climate-related security risks and the process to foster peace by resolving conflict in nonviolent ways demonstrate that climate change and peacebuilding are interconnected. But there is a tendency to deal with climate change and peacebuilding at high level decision-making structures led by governments and international actors such as the United Nations, marginalising those affected by climate change and conflict, thus failing to sustain peace in local communities. Top-down approaches to peacebuilding apply universal approaches and local contexts and perspectives are either not acknowledged or neglected in conflict-affected societies. Because local communities disproportionately experience water scarcity, land disputes, livelihood disruptions, climate-induced displacements, the influence of climate change on conflict is more pronounced at local levels compared to national and international levels. These issues highlight the need to explore how climate change is reshaping the concept of peace at the local level and how such changes can be integrated into peacebuilding efforts. Local practices and approaches to conflict resolution such as community-led dialogue and local adaptation strategies should be strengthened to help mitigate the risks of climate-related conflicts while promoting local ownership and sustainable peace. The local turn legitimises local norms of building peace and mitigates the effects of climate change, empowers ecologically aligned ontologies and environmentally sustainable practices in many communities while rethinking our understanding of conflict, peace and the causes and consequences of climate change. The Lesotho Highlands Water Project case The The LHWP is often hailed as a model for transboundary water management. Yet beneath this success story lies a complex web of power asymmetries, governance challenges and contested development narratives. The LHWP has had severe effects on the livelihoods and socioeconomic standing of local people, neglecting to compensate those affected by financial and ecological expenses associated with dams, tunnels and power plants. The stability of the LHWP is threatened by climate change due to the system of river flows feeding into the dams. Increased intensity of rainfall can lead to soil erosion and sedimentation in dams, decreasing water quality and reservoir capacity. These environmental changes pose risks not only to the water supply but also to downstream ecosystems and local agricultural productivity. As Phase II is under way, a construction company had to suspend operations because acidic and oily wastewater was dumped in rivers and the Katse reservoir, while the wastewater was discharged near the Polihali Dam where animals drink water and women do laundry at the Sekoai River. People often express frustration over limited participation in decision-making processes, leading to feelings of exclusion and mistrust. Local populations possess local knowledge related to land, water and weather patterns, using their own forecasting methods, crop diversification and soil conservation techniques to cope with climatic variability. Integrating this knowledge with scientific data can enhance climate resilience. Environmental degradation and political, economic and social instability form a complex and reinforcing cycle that affects local communities. In Lesotho, competition over water and land use has led to disputes between people affected by resettlement and those adjacent to project areas. Displacement has disrupted social fabrics, creating grievances that can escalate into conflict if unaddressed. Traditional conflict resolution mechanisms remain vital in Lesotho. Chiefs, elders and community councils mediate disputes arising from resource use and projects. These customary processes emphasise consensus-building and restoration of social harmony. But the integration of these local mechanisms with LHWP governance is limited. Strengthening participatory decision-making and recognising local institutions in project planning could reduce conflicts and increase legitimacy. Water scarcity driven by climate change heightens competition among people and sectors, exacerbating social tensions. Political dynamics also influence how water stress is managed. Unequal power relations, weak governance and lack of transparent resource allocation can deepen grievances. Enhancing transparency, accountability and multi-level coordination is crucial. Policies must ensure equitable distribution of benefits and risks, recognise local rights and foster adaptive management responsive to climate variability. Kgomotso Komane is a PhD candidate and writes on behalf of at the University of Pretoria.
Eyewitness News
26-05-2025
- Climate
- Eyewitness News
Water and Sanitation Dept says not responsible for delays in Lesotho Highlands Water Project
JOHANNESBURG - The Department of Water and Sanitation says it is not responsible for the delays in reactivating the Lesotho Highlands Water Project (LHWP). The tunnel, which had been undergoing maintenance since October last year, was not restored to operation by its scheduled deadline at the end of March. Its main function is to transport over 700 million cubic meters of water annually from Lesotho to at least five South African provinces to ensure water security in the region. The tunnel was finally brought back online on Sunday. Over the past seven months, the department, in collaboration with its Lesotho counterpart, has been meticulously carrying out maintenance on the LHWP. READ: Water from Lesotho gushes into SA's conduits 7 months after shutdown The 38-kilometre-long tunnel required a thorough inspection for surface cracks and corrosion. It was recoated using 43,000 litres of paint. Water and Sanitation Minister Pemmy Majodina said the work on the South African side was completed before the end of March, with delays occurring primarily on the Lesotho side. "On the Lesotho side, they were not done. Their delays were caused by inclement weather and they requested an additional three weeks. We were patient with them because we also received heavy rain, so we had to allow them to do things in the correct manner." The tunnel is now back in operation, transporting water from Lesotho into South Africa's Vaal River integrated system.
IOL News
25-05-2025
- IOL News
Lesotho Highlands Water Project (LHWP) reopens, easing water security concerns
The 38-kilometre tunnel, Ash River that runs from Lesotho to South Africa via the Free State, has been officially opened on Sunday. Image: Kamogelo Moichela/IOL The Department of Water and Sanitation has officially reopened the 38km Ash River Tunnel in Clarens, Free State, expressing satisfaction that South Africa did feel a pinch of water shortages during the shutdown of the Lesotho Highlands Water Project (LHWP). The shutdown, which began in October 2023, was necessary to conduct essential upgrades and inspections both within the tunnel and on external infrastructure. The process faced unexpected delays, primarily due to incomplete work on the Lesotho side of the project and further compounded by heavy rainfall in the region. Water Minister Pemmy Majodina, the department team, the Free State government led by Premier Maqueen Letsoha-Mathae, and also the Trans Caledon Tunnel Authority (TCTA) oversaw the opening. 'A fihlile meetsi, a fihlile, (The water has arrived, it has arrived),' Majodina said at the reopening. Addressing the issue of delays and shortages, Majodina said, 'There was no day zero; the challenge of water supply has nothing to do with bulk water supply.' 'The water that you see running down the streets, it is the water that comes from the bulk water supply, but the challenge is provision, which is not our not our mandate," Majodina said. 'We will keep working with our municipalities to close the leaks because what makes water run down the streets is leaks.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The Lesotho Highlands Water Project (LHWP) is a landmark binational initiative between Lesotho and SA. This strategic infrastructure project is designed to achieve two primary objectives: supplying water to South Africa's Gauteng region — the country's economic hub — and generating hydroelectric power to meet Lesotho's domestic energy needs. The project encompasses the construction of an integrated system of dams, transfer tunnels, and hydroelectric power stations. These components work together to facilitate the transfer of water from the highlands of Lesotho to the Vaal River System in South Africa, while simultaneously enhancing Lesotho's energy security through sustainable power generation. IOL
