The Democratic Alliance (DA) has raised serious concerns over the skyrocketing costs and mismanagement of the Lesotho Highlands Water Project Phase 2—a key infrastructure project meant to secure Gauteng’s future water supply. According to a statement issued by the party on 6 May 2025, the DA is now demanding a formal investigation by the Auditor-General.
Here are five key takeaways from the unfolding issue:
1. Costs Have Exploded by R9 Billion
Originally projected at R17 billion, the cost of Phase 2 of the project has now ballooned to R26 billion. This massive overrun comes before the tunnel boring has even begun, raising alarms over fiscal accountability.
2. DA MP Calls for Immediate AG Investigation
DA MP Emma Louise Powell has written to Water and Sanitation Portfolio Chairperson Pemmy Majodina, urging her to request a special audit from the Auditor-General into the project’s financials and procurement processes.
3. Concerns Over Tender Irregularities
The DA alleges that tender mismanagement and scope changes have added to the costs. There is suspicion that delays and budget escalations could be linked to irregular or corrupt procurement practices, which warrant further scrutiny.
4. Potential Impact on Taxpayers and Water Supply
The DA warned that cost overruns could lead to:
- Higher taxes or service fees for South Africans.
- Delays in water delivery to key metros like Johannesburg and Pretoria.
- A knock-on effect on infrastructure trust and future public-private partnerships.
5. Call for Transparency and Accountability
The party insists that the project must not go the way of Eskom and PRASA. If not urgently addressed, it could become another state-led infrastructure failure, adding pressure to an already strained public purse.
The Lesotho Highlands Water Project is a bi-national agreement between Lesotho and South Africa to transfer water from the Orange-Senqu River system to South Africa’s economic heartland. Phase 2 includes the construction of a major dam and a 38km water transfer tunnel to Gauteng.
