Hydropower and Pumped-Storage Projects Developed for Lesotho-South Africa Water Scheme

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Africa's largest cross-border water transfer scheme, the $2.2 billion Lesotho Highlands Water Project (LHWP), is moving into its second phase of development.

The LHWP dams the runoff from Lesotho's mountainous terrain and feeds it through tunnels and pipes into the water supply system of South Africa. The majority of the water is used to supplement the requirements of Gauteng province, which is home to the heavy industrial and commercial heartland of the country, including Pretoria, the administrative capital; Johannesburg, the commercial capital; and the Vaal Triangle industrial conurbation.

Covering only 1.4% of South Africa's land area, the province contains about 25% of the country's population (12 million of 49 million) and contributes 33% to the national economy and 10% to the GDP of the entire African continent. The middle-class portion of the population is growing rapidly, and there is intense pressure on the supply of water, power and urban services generally.

The governments of the two countries have agreed to sign a memorandum of understanding to build a hydropower station as part of Phase II. The plant will have a capacity of between 1,000 megawatts (MW) and 1,200 MW and is scheduled to come into operation in 2018. Lesotho will receive 200 MW of the output, and the balance of the power will go to the South African grid. The second phase also includes the 1,000-MW Kobong pumped-storage power project and associated transmission lines. The two countries will also look at cooperation on renewable power projects, including wind and solar.

The LHWP already has the 72-MW Muela hydropower plant operating in the north of the scheme, as well as the two major dams Katze and Mohale, which were completed in Phase I.

Draft agreements are now ready after approval by both governments, which see the LHWP strengthening regional integration, with water as a catalyst for socioeconomic development and advancing economic links with key African partners.

Phase II will see the development of a water delivery system to augment supplies to South Africa from landlocked Lesotho, which is completely surrounded by its neighbor. The system includes the Polihali reservoir on the Senqu River and a water conveyance tunnel connecting Polihali reservoir with the Katse Dam. Key infrastructure will be put in place including access roads to the project sites and camps. Power transmission lines, and administration centers, including social and environmental projects and programs, are also part of the project plan.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.