Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Water transfer project from Lesotho to South Africa, providing water supply and hydropower generation.
Objectives
Project Objectives:
- Generate revenue through water transfer
- Increase water supply assurance for South Africa
- Generate hydropower for Lesotho
- Support irrigation development
- Provide potable water supply
- Promote regional development
- Develop remote mountain regions
Strategic Importance
Key strategic project for regional water security and economic development
Technical Specifications
Technology & Design
Construction Parameters:
- 2,325 MCM storage
- 165m dam wall
- 921m crest length
- 45m saddle dam
- 211MW power generation
Capacity & Size
Water transfer to increase to over 1,270MCM/year
Technical Details
Technical Features:
- Polihali Dam construction
- 38km transfer tunnel
- Power infrastructure
- Advanced infrastructure
Development, Implementation & Financial Details
Latest Implementation Updates
UPDATED2025-09-01: Project owner confirms steady progress; water delivery still targeted FY 2028/29; Polihali hydropower to follow ~1 year after water commissioning; impoundment level expected end-2026/early-2027. — https://iol.co.za/business-report/economy/2025-09-01-lesotho-highlands-water-project-phase-ii-makes-steady-progress-despite-delays/
2025-07-11: Tunnel Boring Machine components arrive at Polihali—major logistics milestone for the 38-km transfer tunnel works. — https://www.waterpowermagazine.com/news/tbm-components-arrive-at-polihali-site-in-major-milestone-for-lesotho-highlands-water-project/
2025-08-20: Technical brief details TBM methods and safety systems for the Polihali transfer tunnel; owner’s team update on construction approach. — https://www.waterpowermagazine.com/analysis/innovations-and-challenges-in-lesotho-highlands-water-project-phase-ii/
Project Timeline
Project Status History
Status 2020
Structuring
Status 2022
Implementation
Status 2024
Implementation
Market Analysis
Market Demand
17,000 people directly affected, populations of Lesotho and Gauteng
Key Stakeholders
Project Sponsor
Governments of Lesotho and South Africa
Key Parties
ZRA, Governments of Lesotho and South Africa
Risk Assessment
General Risk Assessment
Implementation and technical risks
Regulatory Risks
Regulatory frameworks in place
Impact Assessment
Environmental Impact
Environmental assessment required
Social Impact
Over 8 million beneficiaries across both countries
