The second phase was officially launched on 27 March 2014 and the project's water transfer and hydropower components were initially scheduled for commissioning by 2027.

The Katse Dam, one of the two feeder dams of the Lesotho Highlands Water Project. Picture: Lesotho Highlands Development Authority
The completion date of the second phase of the Lesotho Highlands Water Project (LHWP) has been postponed again.
The portfolio committee on water and sanitation conducted an oversight visit in Lesotho from 23 to 28 February 2025.
The LHWP is a bi-national water transfer and hydroelectricity generation project between Lesotho and South Africa.
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The second phase was officially launched on 27 March 2014. The project’s water transfer and hydropower components were initially scheduled for commissioning by 2027.
“This was already a year later than the initial plan,” said the committee.
The new completion date is 2029.
The overall budget for the Lesotho Highlands Water Project’s second phase is R53.3 billion.
The committee said delays due to poor performance do not increase the project’s cost. The delays are provided for through penalties, which the contractors should pay.
Ultimately, the Lesotho Highlands Water Project will involve building five dams, about 200km of tunnels, and water transfer works between the two countries.
The project will transfer about 2 000 million m³ of water from Lesotho to South Africa every year.
The committee heard on Tuesday that the second phase’s overall progress was 48%. This is 8% less than the planned progress as of February 2025.
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All components of the second phase are delayed. These include progress on the construction of the Sengu Bridge, which was at 74% instead of the planned 83%, and construction of the Polihali Dam, which was at 24% compared to the planned 30%.
The transfer tunnel was 35% instead of the planned progress of 42%.
“The progress for Phase II is a cause for concern,” the committee heard.
Lesotho Highlands Water Project resolutions
The committee has requested the Department of Water and Sanitation provide a report on the Lesotho Highlands Water Commission (LHWC) ‘s role, specifically addressing South African delegates’ reporting lines and responsibilities.
This after the department could not share a presentation with the committee because the presentation “contained issues that are still under consideration by the LHWC”.
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The committee also learned that the Auditor General of South Africa (AGSA) has no jurisdictional authority to audit financial transfers to the Lesotho Highlands Development Authority to finance the second phase.
The committee said it “considers this a grey area that should be addressed through the review and/or amendment of the Treaty to allow AGSA to collaborate with the Lesotho Auditors in auditing the LHWP Phase II”.
The Lesotho Highlands Development Authority provided the committee with a redacted presentation on the project.
“Some of the critical slides deleted contained financial information such as the cost or budgetary plan,” said the committee.
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It called on Minister of Water and Sanitation Pemmy Majodina, in consultation with the Lesotho Highlands Water Commission (LHWC), to provide a report on the rationality for redacting the presentation and the integrity of the remaining information.
The department was given 30 days to provide the reports.
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