The Polihali Dam project in Lesotho’s highlands is finally moving forward after years of delays, with roughly 30 % of the main work now complete. The dam forms part of Phase II of the Lesotho Highlands Water Project and is intended to increase water supplies to South Africa’s Gauteng region. By the end of July 2025, about R18 billion of the R53 billion budget had been spent, according to the Lesotho Highlands Development Authority.
When finished, the Polihali Dam will create a reservoir covering more than 5 000 hectares and holding 2 325 million cubic metres of water. Annual water transfers to Gauteng are expected to rise from 780 million to 1 270 million cubic metres, while electricity generation at Lesotho’s Muela hydropower plant should increase from 500 GWh to 800 GWh per year. The construction has created jobs for roughly 14 000 people, although this is unlikely to make a substantial dent in Lesotho’s 30 % unemployment rate.
The development has had a major impact on the local community. Over 7 200 community assets have been expropriated, with M154 million paid in compensation for nearly 5 600 of them. However, outstanding payments have been delayed, often because of problems with identification and ownership documentation, family disputes, or the lack of bank accounts. Environmental concerns have also been raised, with residents complaining about dust, noise, air pollution and water‑quality issues. Contractors have generated large quantities of waste, including 20 500 litres of waste oil, almost 9 000 kg of hazardous waste and more than 34 000 m³ of wastewater. Although 40 environmental incidents have been reported, none are considered significant, and project supervisors continue to monitor the situation.
Construction of three major bridges, including the Senqu Bridge, is underway to maintain road access across the future reservoir. The Senqu Bridge, the largest and most complex, is now expected to be completed in February next year after initial delays caused by design changes, operational problems and labour strikes. Work is also progressing on the 38‑kilometre transfer tunnel that will link Polihali to the Katse Dam, enabling greater water transfers to South Africa.
The project’s overall completion is now projected for August–September 2029, with water impoundment slated for November 2026. The Polihali Dam is significant for its potential to enhance water security and electricity production in the region, making it a crucial infrastructure development for both Lesotho and South Africa. As construction continues, the impact on the local community and the environment will remain a key focus for developers and authorities.
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