Work on feasibility studies for the hydropower aspect of the Lesotho Highlands Water Project (LHWP) Phase II is expected to start in the second quarter of this year, says LHWP implementation body the Lesotho Highlands Development Authority (LHDA) CE Refiloe Tlali.

The feasibility studies are expected to take about two years to complete.

Tlali explains that the Phase II Agreement on the LHWP, which was signed in August 2011, required that the hydropower generation component of the project comprise the Kobong pumped-storage scheme – comprising a hydropower station, the existing Katse reservoir as the lower reservoir and a new upper reservoir in the Kobong valley – or any other similar scheme subject to agreement on the outcome of a joint feasibility study between the LHDA and South Africa’s Trans-Caledon Tunnel Authority.

“The initial technical and economic feasibility studies recommended that further studies be undertaken,” Tlali notes, adding that the studies will include a market study, an integration study, geotechnical investigations, as well as legal and commercial arrangements.

“These further feasibility studies will also explore alternative viable hydropower generation schemes that will increase the electricity generation capacity in Lesotho.”

In April 2015, the World Bank approved a grant for the LHDA to conduct further feasibility studies and, in July that same year, the LHDA solicited expressions of interest from several consultants.

“A total of 24 proposals were received and following an evaluation process, six consultants were shortlisted to participate in a competitive bidding process,” she states.

Towards the end of October 2015, the six consultants were provided with the terms of reference, as part of the full request for proposals pack, for the feasibility studies. The closing date for proposals was January 8. All six shortlisted companies submitted technical and financial bids.

“The technical bids were evaluated . . . and the recommendations of the evaluation panel were submitted to the technical subcommittee and the LHDA board for review before their submission to the World Bank,” Tlali notes.

The LHDA recently received a letter of no objection to proceed with the opening of the financial proposals from the World Bank.