The Lesotho Highlands Water Project Phase 2 is one of the largest water infrastructure projects in Southern Africa, consisting of the Polihali Dam on the Senqu River and a 38km transfer tunnel connecting the Polihali Reservoir to the Katse Dam (Phase 1 infrastructure). The project delivers water to South Africa’s Gauteng province (population ~16 million) and generates hydropower for Lesotho. The Polihali Dam is under active construction. The project is jointly managed by the Trans-Caledon Tunnel Authority (TCTA) of South Africa and the Lesotho Highlands Development Authority (LHDA).
Project Details
Key Issues / Risks
South Africa's ongoing water scarcity crisis in Gauteng makes delivery timeline critical. The tunnelling component is technically complex — 38km through mountain terrain. Cost overruns on Phase 1 (completed 1996) are a precedent risk.
Latest Development (Detail)
Polihali Dam under active construction; tunnel boring has commenced. The project is proceeding under strong bilateral political support from both governments given Gauteng's water supply urgency.
What Happens Next
Completion of tunnel boring; Polihali Dam wall reaching design crest level (2027-2028 window).
Commercial Opportunity
A $3.5bn construction programme in a landlocked Southern African country — significant for civil and dam engineering contractors, tunnel boring specialists and water infrastructure consultants.