South Africa - Lesotho Highlands Water Project (LHWP), Phase II

About this project

The proposed project fits with the objective to deepen regional integration and promote industrialization in South Africa. It also realizes the GoKL’s aspiration to boost benefits from its natural resources and develop its infrastructure to create the necessary enabling conditions for private sector development. Both South Africa and Lesotho are inextricably linked socially and economically, and the project is further cementing their relationship for mutual development. The Project is one of the Southern Africa Development Community (SADC) priority water infrastructure projects for promoting regional integration. The Project is estimated to cost ZAR 32.562 billion (UA 1.576 billion), net of taxes and duties. The AfDB loan of ZAR 1.3 billion and NDB loan of ZAR 3.2 billion will finance, on pari-pasu basis, part of component B – Main works covering Polihali Dam and Polihali Transfer Tunnel works. The Project will provide secure and sustainable water sources to the population living in the Gauteng Region covering five provinces (Guateng, Freestate, Mpumalanga, North West and Northern Cape Provinces) of South Africa with a combined population of 26 million and 60% of South Africa’s economy. The water delivered and transferred to the Vaal River System will ensure water availability for domestic consumption, irrigation, industries and mining. On the Lesotho side, more than 85,000 people will benefit upon completion of the project, which is bound to impact positively on community d…

Published by

African Development Bank · Multilateral

Countries

South Africa

Sectors

Water sector policy and administrative management

Places

Emfuleni, City of Tshwane Metropolitan Municipality, Gauteng, Johannesburg

Funded by

African Development Bank

Implemented by

Lesotho Highlands Development Authority

Published by African Development Bank to the International Aid Transparency Initiative (IATI), last updated 24 Sept 2026 and imported automatically. IATI identifier: 46002-P-ZA-EA0-004.

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