Briefing on Lesotho Highlands Water Project Phase 2; Briefing on SA National Water Resources Infrastructure Agency SOC Limited A/Bill; with Deputy Ministers

Video The Portfolio Committee on Water and Sanitation met to receive a progress update on Phase Two of the Lesotho Highlands Water Project (LHWP), as well as a briefing on the technical amendment to the South African National Water Resources Infrastructure Agency SOC Limited Amendment Bill [B13–2025]. The meeting formed part of the Committee’s ongoing oversight of national water infrastructure projects and followed a recent oversight visit to the Kingdom of Lesotho. The Department of Water and Sanitation (DWS), led by Deputy Minister David Mahlobo, presented the proposed technical correction to the National Water Resources Infrastructure Agency Act. The Department explained that the amendment sought to correct a legal anomaly concerning powers assigned to the Minister of Finance, ensuring that only Parliament may amend the Public Finance Management Act. The Committee adopted the proposed amendment, with one recorded objection. The Committee then received a detailed update on the LHWP Phase Two. The Department reported that, while progress had been made in recent months, the project continued to face significant delays. The project’s initial timeline and cost estimates had shifted substantially, with the total projected cost now at R53.3 billion. The Department outlined measures to address underperformance, strengthen oversight mechanisms and accelerate delivery. It also reported that a review of the Treaty governing the LHWP was being prepared, with both governments engaging at technical and political levels. Members raised a wide range of concerns. These included inadequate project communication, the environmental impact of pollution incidents, rising water tariffs linked to project costs, and the limited participation of South African professionals in the project workforce. Members also highlighted gaps in compliance with socio-economic development targets and questioned whether sufficient accountability measures were in place. Members called for greater transparency and real-time financial oversight to avoid cost overruns. They further requested that the Department strengthen reporting to Parliament and proactively address communication gaps. The Committee urged the Department to ensure that future Treaty amendments reflected contemporary economic realities and protected the interests of South African water users. The need for targeted interventions to increase South African youth participation in project employment was also strongly emphasised. The Committee resolved to request quarterly updates on project progress and proposed convening a dedicated future session to examine the Treaty, water tariffs and the project’s long-term implications. The Department welcomed the Committee’s oversight role and committed to providing the requested information and further opportunities for engagement.