Jul 12, 2012
Two contracts awarded for Phase 2 of Lesotho Highlands projectBack
BKS|Hydropower|Lesotho|South Africa|Polihali Dam|Advance Infrastructure|Senqu River|Edna Molewa|Gareth Morgan|Pravin Gordhan|R7
© Reuse this
In a response to a Parliamentary question posed by the Democratic Alliance’s Gareth Morgan, the Minister said the first contract, which was awarded to Lesotho-based Mops Civil, was for the construction of a 3.8 km access road to the measuring weir downstream of the Polihali dam. The road was completed by the end of November.
The second contract was awarded to South African company BKS for the construction of the measuring weir, located on the Senqu river. The measuring weir was still under construction and wasexpected to reach completion by September.
Molewa reported that the Lesotho Highlands Development Authority had completed negotiations with the preferred bidder for the project management contract. The contract is expected to start by the end of July.
She added that requests of proposals for baseline studies had been advertised and that the closing date was June 29. The contract was likely to be awarded in August, with some studies anticipated to take 24 months to be completed.
The environment and social development baseline studies and planning would be undertaken between August 2012 and July 2020. The environmental-impact assessments would also be conducted during this time.
Commenting on the rest of timeline for Phase 2, Molewa said that consultants, as well as design and issue construction tenders would start in November and continue to January 2015, the construction of advance infrastructure would run from July 2014 to December 2015 and the construction of the Polihali dam and the tunnel were expected to start in January 2016 and end in March 2020.
Impounding to 2 000 m above sea level would be realised in August 2018 and the first water should be delivered to South Africa by August 2020.
The agreement on the implementation of LHWP Phase 2 was signed in August between the governments of Lesotho and South Africa.
The Phase 2 agreement would open the way for additional water and power to flow to South Africa from the mountain kingdom. The water aspects of the project were likely to cost around R7.8-billion, including R2.4-billion for development of the Polihali dam. The government of Lesotho was also preparing to pursue a R7.6-billion hydropower project directly linked to the Phase 2 developments.
Molewa said that the pump storage scheme’s feasibility study was expected to reach completion in August, while provisional construction of the pump storage facility was planned to run from January 2013 to December 2017.
Meanwhile, the Minister said that the loan capital for the building of the dam had not been secured yet.
“This will be informed by the outcome of the guarantee request, which is currently under consideration by the National Treasury,” she noted.
The outcome of the decision was expected by the end of July, once the Fiscus Liability Committee of the National Treasury made its recommendation to Finance Minister Pravin Gordhan.
Molewa indicated that the necessary offtake and implementation agreements would be entered into once the loan capital was in place.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...