Communities in Lesotho’s Mokhotlong District have filed a formal complaint with the African Development Bank (AfDB), raising concerns over the second phase of the Lesotho Highlands Water Project (LHWP), including the construction of the Polihali Dam.

The complaint, lodged with the AfDB’s Independent Redress Mechanism and supported by the Seinoli Legal Centre and Accountability Counsel, alleges that the project has caused serious harm to local people’s homes, livelihoods, and environment.

Villagers say blasting from construction has damaged homes and water pipes, while streams have been polluted, forcing long walks to access clean water. They report inadequate compensation, delays in resettlement, and loss of access to land and natural resources vital for grazing, farming, and traditional medicine. Women and vulnerable groups are said to be disproportionately affected, with claims that some young women face heightened risks of exploitation.

The communities argue they are not asking for the project to be cancelled but for their rights to be respected. They want adequate compensation, protection of their water sources, and meaningful consultation going forward.

LHDA response

The Lesotho Highlands Development Authority (LHDA), the implementing agency for LHWP, has rejected the allegations, saying they “do not reflect the realities of how the project is being implemented.”

On resettlement and compensation, LHDA said that “no household is relocated without comprehensive consultation” and that over 93% of private asset compensation has been completed, with more than LSL154 million already paid to affected households. The authority added that compensation delays are largely due to family disputes, absentee beneficiaries, or missing documents.

Addressing environmental concerns, LHDA pointed to mitigation measures such as dust and noise suppression, erosion control, and biodiversity monitoring. It said independent audits confirm that “air and water quality levels remain within acceptable standards” and noted ongoing efforts to protect species such as the Southern Bald Ibis.

The authority also denied accusations of intimidation, stating: “LHDA strongly refutes allegations of coercion, intimidation, or unlawful treatment of community members,” and stressed that it has no mandate over policing or security operations.

On community engagement, LHDA said it has conducted hundreds of consultations since 2012, established formal grievance mechanisms, and is expanding dialogue with civil society organizations, including the Seinoli Legal Centre.

The Polihali Dam project, part of a $2.1 billion expansion of LHWP, is expected to transfer additional water to South Africa while generating hydropower for Lesotho. Financed by international development banks, the project is presented by investors as a driver of economic growth and energy security.

The AfDB’s Independent Redress Mechanism will now consider the communities’ complaint.

In parallel with the dispute, construction is progressing at the Polihali dam site. On 5 September, the project marked a milestone with the breakthrough of the bottom outlet tunnel into the upstream piece. The tunnel, measuring 9.25m high, 6m wide, and nearly 500m long, will carry compensation water downstream and contribute to hydropower generation. Excavation began in early 2025 using a drill-and-blast method, with the top and bottom sections dug separately to stabilise the rock and manage construction risks.