Georg Caspary of Institut d'Etudes Politiques de Paris which is the research institute of Groupe d'Economie Mondiale and also  a leading French public policy economic think tank, has fielded a number of questions for the LHDA’s attention. The research focuses on the integration of social and environmental safeguards in the financing of large dam projects.

Question 2 : What is done with royalties from the project?

 Answer  2 :  The Royalties are deposited with Government treasury. The Lesotho Fund for Community Development (LFCD) was established to oversee employment of the funds into development initiatives at the 80 Constituency levels throughout the country. This ensures that other parts of the country also benefit from the capital injection brought through the LHWP such that all Basotho can truly enjoy the benefits of the Project. Constituencies are requested to submit their community development projects to the authority for appraisal and funding. Often these include access roads and foot bridges, construction of small conservation cum irrigation cum water points for animals, potable water supplies etc.

Question 3 : Were downstream and cumulative impacts considered during the environmental and social assessments?

 Answer   3   : Yes, they were. The Treaty governing the implementation of the LHWP has provided for consideration of downstream impacts. It specified Phase 1 downstream compensation releases of not less than 500 litres / second and 300 litres /second from Katse and Mohale dams respectively. A total annual flow of Nqoe river was also allowed to pass through the ‘Muela tailpond.

 Experience on the ground has over the years, led to undertaking studies in in-stream flow requirements (IFR) of the riverine and social needs of the natural environment and communities as a result of reduced and modified river regimes. This happened in 1997. The result is an IFR policy and regulation document that was produced in 2002, which  lays the rules for sustaining the downstream collective ecosystems. The document is displayed on the LHWP website;  www.lhwp.org.ls and we would suggest that you access the website to inform yourself further.

 Communities downstream of Katse and Mohale dams have received compensation for loss of access to natural resources that otherwise would be provided through normal riverine hydraulics. They have organized into Local Legal Entities (LLEs)  to enable them access to the compensation fund. Some M27 million  was paid in May, 2004  as compensation for the first tranche of 10 years.

 Use of the compensation fund is governed  by a signed Memorandum of Understanding (MOU) between the LHDA and the LLEs and utilization of the fund focuses  on projects that will allow for resource  replacement as well as new development initiatives for the communities.  The LLEs drafted business proposals in the areas that they wish to invest their compensation fund in.  The LHDA provides the necessary training in skills of their choice. This strategy ensures a paradigm shift in addressing the demands and new challenges brought by changing livelihoods.

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