Water project costs rise by R45bn

Political and administrative delays, treaty complications and changes in government leadership contributed to the jump

- Sechaba Mokhethi

The cost of the second phase of the Lesotho Highlands Water Project to deliver water to South Africa’s industrial heartland and generate hydropower for Lesotho has increased by R45 billion.

In 2008, phase two 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 two of the [Lesotho Highlands Water Project] would be conducted, no further details have been shared with parliament or the public,” Democratic Alliance deputy spokesperson on water and sanitation Stephen Moore said last week.

Moore has filed a Promotion of Access to Information Act application to the department of water and sanitation. This follows two unanswered letters, the first sent on 8 May.

The department’s spokesperson Wisane Mavasa said the May letter had not been 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”.

The department says the escalation is the result of various factors, including years of delays, treaty complications and market fluctuations.

Oversight gaps

South Africa’s portfolio committee on water and sanitation raised concerns about the cost of the project with the auditor general at a sitting on 6 May.

The meeting flagged weaknesses in governance created by the dual-implementation model between the Trans-Caledon Tunnel Authority 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.