Project Benefits

The LHWP has brought a number of benefits for both countries

LHWP Benefits to Lesotho

  • GDP rose from 3% per annum in pre-project period to 5.5% per annum during Phase IA construction.
  • Industry benefits from increased power generation – industry growth
  • Water transfer royalties and hydropower sales are the main permanent benefits. To date Lesotho has collected
  • over M5.2 billion in royalties revenue (January 1998 to October, 2013). Money from sale of electricity amounts to over M807 million. (January 1998 to August, 2012)
  • More than 16,000 jobs were created during Phase IA and 1B of the Project
  • Basotho contractors and consultants companies were contracted or subcontracted for different activities of the Project
  • Construction of high quality roads has improved access and reduced travelling time to the highlands areas.
  • Development of two large scale trout farms (Katse Fish Farms and Highlands Trout)
  • Eleven (11) bridges were built
  • Improved electricity supply network through installation of 300 km of power lines including substations
  • Work camps and staff houses at Katse, Mohale and Liking were constructed
  • 133km of roads were rehabilitated to Grade I standard
  • 400km of grade 1 gravel roads and 300km of tarred roads were constructed
  • Clinics were built and upgraded
  • Community halls were built
  • Telecommunication systems network

LHWP Benefits to South Africa

  • High quality water is transferred to South Africa with reduced water treatment costs
  • A secure and cost effective water supply for Mining, Industrial, Agricultural and Households
  • South African contractors and consultants participated in all major contracts
  • Employment opportunities were created during construction of the Delivery Tunnel
  • Improved infrastructure at the South African towns of Clarens, Fouriesburg and Ficksburg.
  • Border posts were upgraded and new ones established
  • Community halls and residential houses were constructed
  • Clinics were upgraded
  • Railway facilities were improved at Ficksburg