Review of Prerequisites and Arrangements for Impoundment of Mohale Reservoir
LOAN 4339
Prerequisites for Impoundment
Recognizing that any significant loss of revenue resulting from delayed impoundment may affect the Government of Lesotho's ability to finance poverty-targeted programs, the Bank and the Government have agreed on the following course of action. On meeting certain prerequisites for impoundment described below, and confirmation of the arrangements described in paragraph 9, impoundment could proceed. Pending fulfilment of all impoundment prerequisites, a higher level of releases
would be made during this initial impoundment period and would continue until the Bank's supervision team verified fulfilment of those prerequisites.Completion of the following actions are agreed preconditions for the impoundment of Mohale Reservoir.
- Agreement on the main elements of the IFR policy, viz. Initial bulk IFR release levels, the agreed number of years of monitoring prior to review of impacts and revised IFR releases; a monitoring plan; operating procedures for the system; mitigation and compensation policy detailed.
- Agreed target river health condition in each river reach.
- All outstanding compensation payments made to "Stage 2 impoundment area" resettlees, an acceptable matrix of communal assets compensation schedule submitted, and project compensation policy amendments adopted and announced.
- Approved policy and action plan for Maloti minnow posted to LHWP website.
The following are agreed preconditions to reducing compensation releases to the agreed levels referred to in paragraph 9, subject to prior Bank verification:
- Approved IFR policy posted to LHWP website;
- Detailed implementation procedures for programs of mitigation, compensation defined;
- Governance Issues relating to the appointment of the LHDA Chief Executive and LHDA Board.