LESOTHO HIGHLANDS WATER PROJECT PHASE II. Progress Update. 02 March Tente Tente
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1 LESOTHO HIGHLANDS WATER PROJECT PHASE II Progress Update 02 March 2018 Tente Tente
2 CONTENTS Scope of Phase II Progress Update WT Progress Update - HP Legal Instruments Procurement Guidelines Participation by Basotho Corruption & Conflict of Interest Opportunities Concluding Remarks
3 PHASE II SCOPE THREE KEY COMPONENTS Water Transfer Hydropower Generation Ancillary Developments
4 PROGRESS UPDATE WATER TRANSFER
5 PROGRESS TO DATE Procurement commenced April 2014 Community Consultations Reservoir Demarcation Asset Registration commenced Geotechnical Investigation Stage 1 Polihali Basin and PWAC ESIAs Engineering Designs in progress
6 AWARDED CONTRACTS - ENGINEERING (10) 3004 Main Access Road 3006 Polihali Dam and Appurtenant Structures 3007 Polihal-Katse Transfer Tunnels 3008 Bulk Power & Telecoms 3009 Project Housing & Camps 3013 Aerial Photography and Lidar Survey 3014 PNEAR (Mapholaneng to Dam Site) 3015 Geotechnical Investigations 3017 Reservoir Demarcation 3022 Diversion Tunnel LHDA Briefing - 16th April Katse 6
7 AWARDED CONTRACTS ENVIRONMENT & SAFETY (8) 6004 ESIA Main Access Corridor 6006 RAP Main Access Corridor 6010 SHEQ Framework 6013 RAP - PNEAR (In-house) 6014 ESIA - Dam Basin 6015 RAP Dam Basin 6017 RAP Katse Side 6025 Development & Implementation of Cultural Heritage Plan LHDA Briefing - 16th April Katse 7
8 AWARDED CONTRACTS OTHER CONTRACTS (3) 2223 Project Management Unit 9004 Insurance Broker Services 4016 Geotechnical Drilling Works A TOTAL OF 21 CONTRACTS AWARDED WT COMPONENT Procurement of Construction Contracts has commenced LHDA Briefing - 16th April Katse 8
9 PROGRESS UPDATE HYDROPOWER COMPONENT
10 Further Feasibility Studies Scope Hydropower Generation Desired Outcome - Bankable Feasible Project Investigated Options Pump Storage Scheme (PSS) Conventional Hydropower Assessment of Existing LHWP Installations (Mini- Hydro, Revamping of Muela Hydro)
11 CURRENT STATUS Pump Storage Feasibility - Complete to Gate 1 Conventional Hydropower - Complete to Gate 1 - Screening from 53 to 4 credible Options Way Forward - Outcome to be presented to Project Authorities - Selected option to be taken to bankable feasibility (Gate 2) - Geotechnical Investigation LHDA Briefing - 16th April Katse 11
12 AWARDED CONTRACTS HYDROPOWER FEASIBILITY 3021 Project Management Services 3010 Hydropower Feasibility Further Studies 2 CONTRACTS AWARDED HP COMPONENT LHDA Briefing - 16th April Katse 12
13 PHASE II PROGRAME WT- COMPONENT - Feasibility to Design Main Works to Construction Main Works to Commissioning HP COMPONENT - Further Feasibility studies to 2018 PSS OPTION - Design of Works to Construction of Main Works to Commissioning CONVENTIONAL OPTION - Design Main Works to Construction Main Works to Commissioning LHDA Briefing - 16th April Katse 13
14 LEGAL INSTRUMENTS
15 LHWP TREATY The Treaty commits the two Governments to the implementation of Phase 1 and subjects other phases to negotiations Provisions of the 1986 Treaty & its Protocols remain valid unless otherwise amended by the Phase II Agreement
16 LHWP TREATY REVIEW Article 18 Reviews at intervals of 12yrs Or as the Parties may agree. - 6 Protocols = Indication of On-going review process - Phase II Agreement = Another evidence Review process has started at Ministry Level and the Term of Reference will be presented to Cabinet Soon. LHDA Briefing - 16th April Katse 16
17 PROCUREMENT GUIDELINES
18 PROCUREMENT PRINCIPLE - PHASE II AGREEMENT ARTICLE (a) Competitiveness, Transparency, Cost Effectiveness & Quality Subject to 10(a) being met, the following shall apply 10 (b) Preference Order Lesotho, RSA, SADC then Other 10 (c) Firms from Lesotho and RSA shall share value of all infrastructure work equally on monetary basis, taking into account shareholding, operational experience, etc LHDA Briefing - 16th April Katse 18
19 BENEFITS FOR LESOTHO
20 BENEFITS TO LESOTHO Royalty Revenue: Approx. M840 Million in 2016 Infrastructure: Roads, Bridges, Power lines and Telecom networks, Hospital, Clinics. Skills Transfer to Basotho: Both blue and white collar jobs Job opportunities: During Construction (22,000 person years of employment) Tourism potential as visitors come to see the water reservoirs, the nature reserves and other features associated with the Project.
21 PHASE II: PROJECTED IMPACT ON GDP Constant 1995 Prices, M illions M aloti Growth with Phase II % Growth without Phase II % With Phase II Without Phase II Years
22 PARTICIPATION BY BASOTHO
23 DEALING WITH 50:50 (Infrastructure) Article 10 (c) Equal on monetary basis Minimum Threshold Specified Percentage allocation on the basis of complexity and operational experience Aim to achieve the objective eventually 10 (c) Must be read with 10 (a) and 10 (b)
24 PREFERENCE SCORING OWNERSHIP/JV PARTICIPATION EMPLOYMENT Lesotho & RSA Registered Companies (Including Black Owned) Basotho and RSA Black People As % of Total Man Hours/days/months PROCUREMENT Goods & Services from Lesotho & RSA Black Owned Companies As % of Procurement Budget ENTERPRISE DEVELOPMENT Training of Lesotho & RSA Black Owned Companies As % of Tendered Sum SKILLS DEVELOPMENT Training of Basotho and RSA Black People As % of Tendered Sum
25 ACHIEVED PARTICIPATION GOALS As at January Unaudited Participation Goals for the awarded consultancy service contracts were as follows: Fees to Lesotho Nationals = 38 Fees to RSA Nationals = 58 Fees to Other Nationalities = 4 The above is monitored and assessed on monthly basis The contracts make provision for these to be audited
26 CORRUPTION AND CONFLICT OF INTEREST
27 Anti Corruption Policy LHWP Anti-Corruption Policy included in tender Documents 100% Compliance creates better chances of success Zero Tolerance on unscrupulous dealings/activities
28 Conflict of Interest (CoI) Declare any real or perceived Conflict of Interest Declaration does not affect chances of success Use the LHDA whistleblowing Policy
29 OPPORTUNITIES
30 FINANCIAL SERVICES PROVIDERS Support - Guarantees/Securities Tender Security Performance Guarantee Advance Payment Guarantee Retention Guarantee.
31 CLEANING SERVICES
32 GARDENING SERVICES
33 LEGAL SERVICES Permit Application Employment Contracts Tax Matters Legal Opinions
34 TRANSPORT SERVICES
35 ACCOMMODATION
36 CATERING SERVICES AND FOOD SUPPLY
37 KEY CONTACTS LHDA Website LHDA Information Office 1 st Floor, Tower Building LHDA Offices Tlokoeng Mokhotlong
38 CONCLUDING REMARKS Transparency, Quality, Competitiveness & Cost Effectiveness are Key Profile and sell your businesses to potential Partners Magnitude of work require joint efforts Readiness by the Local Business Sector Challenges (Complexity, Regulatory Processes, etc)& Honesty
39 THANK YOU
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