LESOTHO HIGHLANDS WATER PROJECT by apl17614

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									Report prepared for Lesotho Highlands Development Authority




   LESOTHO HIGHLANDS
     WATER PROJECT




                REPORT 46

   Report prepared by Panel of Environmental Experts

     R Hitchcock, A Inambao, J Ledger & M Mentis

                        Revision 2
                        May 2007
PoE Report 46, May 2007 – Overview                                                 Page 2 of 62




OVERVIEW
1. The Panel of Environmental Experts (PoE) for the Lesotho Highlands Water
   Project (LHWP) undertook a mission from 18 to 24 May 2007.

2. The purpose of the mission was to help develop and implement critical projects
   being undertaken by the Lesotho Highlands Development Authority (LHDA).

3. The critical projects addressed during the mission, and the way forward on each,
   were briefly as follows.

Community assets cash payments & investments
27 co-operatives have been established upstream in Phase 1A, 22 LLEs and 1 co-operative
have been established downstream and have received community assets cash payments; 43
co-operatives are planned for Phase 1B upstream, 13 of which have been paid community
compensation. At least 8 types of enterprises have been planned or initiated by communities
with the funds received. It is recommended that the service provider for the TAU be
contracted as a matter of urgency and work enhanced on business plan development and
implementation.

Household lump sum investments
At least 214 households in Phase 1B have opted for lump sum payments and many of these
have implemented development projects and invested in unit trust funds; some of these
activities have been relatively successful in generating income, while others have faced
constraints. It is recommended that the provision of lump sums be expedited and the process
of reviewing business plans be enhanced in light of best practices.

Instream flow requirements
The IFR audit final report’s main findings include an overly complex IFR and insufficient
monitoring methods. It is recommended that an IFR risk assessment be undertaken to identify
the chief risks to downstream environment and communities. The IFR Policy warrants being
condensed into a 1-pager and the Procedures developed in matrix comprising 1-liners that
address the main risks. The revised Policy and matrix of Procedure should be the reference
for future audits conducted at least annually. The IFR release regime should be simplified.
Adopt an IFR bulk allocation (eg 15% of MAR). Let the instantaneous rate of release from a
dam equal 15% instantaneous rate of inflow into the dam, as closely as feasible.
IFR biophysical monitoring has made big strides but the monitoring methods and quality of
data are insufficient to permit the decision rules to be applied. It is recommended that the
scope of monitoring be reduced to the essentials – flow releases, water quality, riverine
vegetation and fish – and the monitoring methods be strengthened to permit strong inference
to be drawn.
The intangibles study has been completed. Its limited time and scope did not permit detection
of change in net Total Economic Value. It is recommended that LHDA, top management
especially, be proactive in advertising the offsets that LHDA has undertaken including
provision of nature reserves infrastructure and M9 million seed funding for the Lesotho
Biodiversity Trust.
Revised draft IFR procedures are to hand. These are written in the old paradigm. In the new
paradigm – post IFR audit – the Procedures need to be simplified, in particular the strategy of
release regime (see above). A complete overhaul is recommended. The IFR Policy should be
condensed to a 1-pager. The Procedures should be risk-based, focused on containment of
the main downstream risks, written in the form of 1-liners in a matrix, and audited, reviewed
and revised at least annually in line with contemporary best practice in environmental
management.
The IFR 2004-5 annual report is still not finalised. This is a poor reflection on LHDA. The
annual report should be simple concise and factual. The ‘recommendations’ should be the



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approved corporate action plan for the next year (ie report for 2004-5 gives plan for 2005-6).
The 2005-6 annual report is also overdue.

LHDA Contract 1204 (Population & Epidemiology Impact Study)
The Social and Economic and Epidemiological study implemented as Contract 1204 was still
not completed nine months after the initial stated completion date of August 2006. A four
months extension to complete the remaining work was requested by the consultant and
granted by LHDA authorities and has since been extended to June 15th 2007 at the request of
the consultant.

The deliverables that were expected from the consultant are:
   • Inception Report which was done and submitted
   • The technical reports on the following thematic areas
            o Volume 1: Summary of the Study
            o Volume 2: Social Economic and Related Issues in both Phase 1A and 1B
            o Volume 3: Public Health and Nutrition Findings in both Phase 1A & B
            o Volume 4: Community Services
            o Down Stream Reports and Draft Socio Economic and Health Monitoring
                protocols and costed implementation plan.

Currently the reports available are mainly on the analysis of the phase 1B data (Mohale
cluster) and do not have the epidemiology section. The findings on the phase 1A and the
down stream study have not been submitted yet. The consultant has however reassured
LHDA that he will be able to deliver all the remaining work by June 15th 2007.

The quality of the reports submitted so far is varied in quality and structure. There is too much
emphasis on the background information and the analysis has tended to be mainly binominal
without statements of the level of confidence assigned to the analysis tables. The reports are
not incisive and have tended not to contrast the findings with national figures so as to give an
indication of the impact of local factors on the observed phenomena.

LHDA should ensure that the consultant delivers on the schedule and measures have to be
undertaken to ensure that all the raw data and any information that was collected should be
deposited in LHDA.

Public health
Public Health programs in LHDA have been declining since the change in operational policy
that emphasizes the centrality of socio economic interventions at the Field Office level. The
decision to phase out public health unit and its merging into the Monitoring Branch where the
priorities are towards bio physical monitoring has further eroded the impetus to address public
health issues more effectively. Furthermore the absence of the institutional policy on public
health has not provided a platform to further develop public health interventions in LHDA.

There has been some limited activities related to increasing the participation of youths in
HIV/AIDS by the creation of the Youth Centre in Katse which has assisted in the training of
peer counsellors and so far 110 youths in both areas have been trained and capacitated to
participate in youth education on the HIV/AIDS in schools and out of school.

The efforts to develop partnerships with other partners in managing HIV and AIDS have been
limited by the slowness in authorizing a study to determine needs and gaps before a joint
strategic planning workshop to determine strategic areas of cooperation.

LHDA support to development of capacity to manage HIV/AIDS in the highlands can only be
realized if a definitive policy on public health and especially HIV/AIDS is developed.

The decision made by the authorities to phase out public health posts at the central level and
the plan to utilize external consultants will make it difficult for LHDA to identify areas that need
public health intervention. In order to guide public health there is a need to have continuity
and an occasional consultant will certainly not be able to keep LHDA public health activities
on track. A review of the decision may need to be undertaken given the fact that public health

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is a long term concern for LHDA social economic support to the communities in the high
lands.

LHDA Contract 1044 (ICM)
The vision for the Pilot Catchment Areas (PCAs) is ‘show & tell’ cases of enhanced
sustainable livelihoods & resource conservation. The stage has been reached where ‘show &
tell’ are being developed on the ground. The vision for Catchment Management Authorities
(CMAs) is self-sustaining institutional infrastructure that coordinates & facilitates access to
know-how, inputs, government services, markets, etc to improve the sustainability of rural
livelihoods & the conservation of natural resources. Currently stakeholders (communities,
local government, Ministries) are being engaged on setting up CMAs, & 90% of stakeholders
want CMAs embedded in local government rather than as autonomous structures or LHWP
institutions. Critical issues are resolving Project Management leadership, and executing the
project through active participation of the stakeholders so they take ownership. This is a high-
risk/high-reward project. The key success factor is intangible – winning people’s hearts &
minds. Good progress is being made by a competent and enthusiastic team.

Lesotho Biodiversity Trust & Maloti Minnow
The LBT is in a state of disorganisation and no audited financial statements have been
produced, putting the Trust in breach of the Lesotho Deeds Registry Act. A consultant has
been appointed to assist the LBT. A window of opportunity exists for the Trust to have
accounts audited and make changes to its institutional management arrangements by the end
of June 2007.
The LBT Maloti Minnow project has done excellent work in monitoring the status of the fish in
the Mohale catchment and reintroduction sites. Smallmouth Yellowfish are breeding in
Mohale. To date no other alien fish have been recorded in the catchment. The issue of a
barrier on the Senqunyane River is critically urgent. A full EIA will be required that will prolong
the process of barrier implementation. The commitment of LBT Trustees to devote the Trust’s
resources to barrier construction is essential.

Residual Resettlement and Community Complaints
The Residual Resettlement Policy has been submitted to the LHWC and is in the process of
being reviewed; the Mohale Field Operations Branch has assessed the land left behind by
resettlers along with principal and area chiefs and the Land Survey and Physical Planning
Office and other Lesotho government and district officials. It is anticipated that the Ministry of
Local Government will declare these areas as Selected Development Areas and then the
fields can be allocated to eligible Stage III households. It is recommended that the process of
land survey and allocation, the dissemination of information on the Residual Resettlement
Policy, the holding of pitsos, and the planning for resettlement of those households that
choose this option be carried out in the next two years. A monitoring system will need to be in
place for this activity. The compensation verification exercise was completed in LHDA in
April, 2007; follow-up on individual cases is necessary, as is resolution of the outstanding
cases identified by the Lesotho Ombudsman in Mohale.

Katse pilot trout production
Katse Fish Farms has not yet complied with the requirement to report their water quality
sampling results with the standards set by LHDA. This requires firm insistence by LHDA that
KFF must comply.




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PoE Report 46, May 2007 – Contents                                     Page 5 of 62



CONTENTS

                                                                      Page


OVERVIEW                                                                         2

INTRODUCTION                                                                     6

CRITICAL PROJECTS                                                                8
 1. Community assets cash payments & investments                                 8
 2. Household lump sum investments                                               9
 3. Instream flow requirements                                                  10
    3.1 IFR audit                                                               10
    3.2 Intangibles study                                                       12
    3.3 Biophysical monitoring                                                  14
    3.4 IFR procedures                                                          15
    3.5 Draft IFR annual report 2004-5                                          16
 4. LHDA Contract 1204                                                          16
 5. Public health                                                               19
    5.1 HIV/AIDS partnerships                                                   19
    5.2 HIV/AIDS strategies                                                     20
    5.3 Capacity building                                                       20
 6. LHDA Contract                                                               20
    6.1 Pilot Catchment Areas (PCAs)                                            20
    6.2 Catchment Management Authorities/Committees (CMAs)                      21
    6.3 Project objective & attainment                                          21
 7. Lesotho Biodiversity Trust & Maloti Minnow                                  22
    7.1 LBT viability                                                           22
    7.2 Maloti Minnow monitoring                                                24
    7.3 Impacts of barriers                                                     24
 8. Phase 1B residual resettlement                                              26
 9. Community complaints management & Ombudsman issues                          27
 10. Pilot trout production                                                     27

     Appendix 1      Comment on IFR audit main findings                        29
     Appendix 2      Review of Contract 1204 reporting                         34
     Appendix 3      Public health comment on Contract 1204 reports            40
     Appendix 4      The viability of the Lesotho Biodiversity Trust           43
     Appendix 5      Review & assessment of Maloti Minnow Monitoring reports   53
     Appendix 6      LHDA Comments on POE Report 46                            59




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INTRODUCTION
The Panel of Environmental Experts (PoE) for the Lesotho Highlands Water Project
(LHWP) undertook a mission from 18 to 24 May 2007. The mission was attended by
Professor Bob Hitchcock and Drs Amusaa Inambao, John Ledger and Mike Mentis.

Terms of reference (ToRs) for the Mission were as follows.
No.           Critical Projects                                    Action
1         Community assets cash          • Review current strategy and progress on
          payments & investments           investment of community funds and recommend
                                           improvements for effective implementation.
2         Household lump sum             • Review current household lump sum investment
          investments                      strategy and progress.
                                         • Review systems employed in reviewing business
                                           proposals and advise accordingly on best practices
                                           (structures, systems, process, etc) for individual
                                           households.
3         Instream flow requirements     • Critically review the findings & recommendations
                                           documented in the IFR Audit Report & advise
                                           LHDA Management on how best to address them
                                           in order to improve IFR implementation.
                                         • Review and advise way forward on the findings
                                           and recommendations of the presently completed
                                           studies of the Intangibles (C1244) and Biophysical
                                           Monitoring (C1237).
                                         • Critically review & advise LHDA on the
                                           completeness of the revised draft IFR procedures.
                                         • Critically review & provide comments on the draft
                                           2004/05 IFR Annual Report.
4         LHDA Contract 1204             • Critically review & comment on the C1204
          (Population & Epidemiology       submitted reports & progress made towards
          Impact Study)                    completion of the study.
5         Public health                  • Review & comment on the processes & strategies
                                           of establishing & strengthening HIV/AIDS
                                           partnerships.
                                         • Advise on further strategies for strengthening the
                                           HIV/AIDS program in LHWP areas.
                                         • Review progress on the proposed development
                                           plan for the capacity building program with
                                           MOHSW & advise.
6         LHDA Contract 1044 (ICM)       • Review progress & implementation of pilot
                                           schemes (PCAs) within ICM.
                                         • Review & comment on the progress made in
                                           establishing Catchment Management Authorities
                                           (CMA) within selected catchments.
                                         • Review the ICM contract as a whole & assess the
                                           likelihood of attaining original project objectives
                                           given its current resource allocations.
7         Lesotho Biodiversity Trust     • Review & comment on the viability of the Lesotho
          (LBT)/Maloti Minnow              Biodiversity Trust.
                                         • Review & provide critical assessment of the current
                                           Maloti Minnow monitoring reports.
                                         • Provide professional advice on the potential
                                           ecological impacts of the barriers.




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Each of the items of TOR is dealt with in more detail in the matrix that follows.

PoE thanks LHDA, consultants and the Lesotho Highlands Water Commission (LHWC) for
help and hospitality.




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CRITICAL PROJECTS
Critical projects        Present situation                                                                                 Recommended action           Finish
                                                                                                                                                        date
1. Community assets      • Discussions were held with Katse and Mohale FOB personnel and Technical Assistance Unit         • Efforts should be          31 Jul
cash payments &            (TAU) personnel                                                                                   made to assist in the      07
investments                                                                                                                  upgrading of
                                                                                                                             transportation access
                                                                                                                             for FOB and TAU
                                                                                                                             personnel
                         • The TAU Business Plan for 2006/07 was completed and reviewed by the Panel                       • The external service       15 Jun
                                                                                                                             provider to assist TAU     07
                                                                                                                             in working with LLE
                                                                                                                             business planning
                                                                                                                             should be engaged
                         • 23 co-operatives in the Katse Local Catchment were paid M11 million in communal                 • A review of the            30
                           compensation; most co-operatives have initiated business enterprises and development              effectiveness of           Sep
                           projects; 4 co-operatives in Butha-Bothe were paid M1.1 million and all are engaged in            hammer mills and           07
                           projects including electrification, hammer mills, domestic toiletry products manufacturing,       electrification should
                           retailing, and fueling stations                                                                   be conducted and
                                                                                                                             lessons disseminated
                         • A review was done of some of the conflicts that have affected LLE viability; several of these   • Resolution of the          30 Jun
                           conflicts have been resolved                                                                      outstanding conflict       07
                                                                                                                             case, Tsiu, needs to be
                                                                                                                             done as a matter of
                                                                                                                             urgency
                         • 22 Local Legal Entities (associations) and 1 co-operative downstream of Katse were paid M27     • An assessment should       31
                           million; many of these LLEs have invested in unit trust accounts in Lesotho Banks and one         be done of the returns     Aug
                           LLE has ventured into a roller mill with an output of 500 kg/hr                                   on the various unit        07
                                                                                                                             trusts and
                                                                                                                             recommendations



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                                                                                                                        made to LLEs
                         • 13 LLEs in Mohale (Phase 1B) were paid communal compensation; 30 have yet to be paid;      • The training and           31
                           training and registration is on-going                                                        registration process       Aug
                                                                                                                        should be enhanced so      07
                                                                                                                        that more communal
                                                                                                                        compensation can be
                                                                                                                        provided to additional
                                                                                                                        co-operatives
                         • The biophysical monitoring under C1237 is complete and a report written (see 6.3); this    • An assessment should       30
                           monitoring has relevance to the compensation issues for downstream LLEs                      be done of the             Sep
                                                                                                                        monitoring results on      07
                                                                                                                        riverine vegetation
                                                                                                                        and fish to determine
                                                                                                                        whether the second
                                                                                                                        tranche of
                                                                                                                        compensation for
                                                                                                                        proximal reach
                                                                                                                        communities should
                                                                                                                        be triggered
2. Household lump        • The payments of lump sums to project-affected households was reviewed; some households     • Lump sum payments          30
sum investments            have opted to receive annual cash payments or payments in kind (grain, pulses); some 214     for 2007 should be         Sep
                           households in 1B had received lump sum payments by March, 2007                               made and any               07
                                                                                                                        outstanding payments
                                                                                                                        from 2006 should be
                                                                                                                        taken care of
                         • Constraints on lump sum payments include the business planning process; nevertheless,      • Lessons learned from       30
                           households opting for lump sum payments is on the increase in both Phase 1A and 1B           the service provider       Nov
                                                                                                                        who will be working        07
                                                                                                                        with the TAU should
                                                                                                                        be made available to
                                                                                                                        households as well as
                                                                                                                        associations



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                         • Types of businesses invested in range from agricultural ones to taxis, cafes, grocery stores,   • The viability of these   30
                           malaene, shoe repair, private schools, vaseline making, coffin making, milling equipment, and     businesses should be     Nov
                           financial markets; rental properties (malaene) topped the list (N=70)                             reviewed by the TAU      07
                                                                                                                             service provider and
                                                                                                                             lessons disseminated
                                                                                                                             to individuals, co-
                                                                                                                             operatives, LLEs, and
                                                                                                                             non-government
                                                                                                                             organizations
                         • A review was done of the systems in place for reviewing business Proposals; business            • The system for           31
                           planning at the household and community level is on-going but could be improved through           reviewing business       Dec
                           knowledge of best practices drawn from Lesotho, southern Africa, and globally                     proposals should be      07
                                                                                                                             assessed by the TAU
                                                                                                                             service provider and
                                                                                                                             advice provided to
                                                                                                                             LHDA, the
                                                                                                                             department of Co-
                                                                                                                             operatives, and LLEs
3. Instream flow         3.1 IFR audit                                                                                     Seek & implement
requirements             • A comprehensive audit was undertaken, and final report submitted, of the implementation of      measures to simplify
                           IFR Policy & Procedures. There are some 31 main findings of the audit distilled from            IFR before revising
                           assessing a checklist of 246 questions for each of which there are one or more improvement      Policy & Procedure
                           actions recommended. In response, LHDA has drafted an IFR action plan including some 60         document & before
                           proposed actions.                                                                               addressing 60 LHDA
                                                                                                                           actions, as follows
                                                                                                                           • Undertake an IFR risk    31
                                                                                                                             assessment to identify   Aug
                                                                                                                             the main flow-related    07
                                                                                                                             threats to downstream
                                                                                                                             people’s health &
                                                                                                                             well-being & the
                                                                                                                             riverine environment



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                         • PoE has already commented on the draft audit report.                                            • Devise measures to          31
                                                                                                                             contain the main risks      Aug
                                                                                                                                                         07
                         • Among the main audit findings is that ‘IFR implementation is too complicated…preventing         • Simplify the flow           31
                           proper implementation’. The plethora of audit findings, recommendations and remedial              release system (eg          Aug
                           actions bear testimony to this. How can the complexity be reduced to improve                      from the IFR bulk           07
                           implementation?                                                                                   allocation such as
                                                                                                                             15% MAR, let
                                                                                                                             instantaneous rate of
                                                                                                                             release = 15% of
                                                                                                                             instantaneous rate of
                                                                                                                             inflow, as closely as
                                                                                                                             possible
                         • State-of-the-art environmental management is risk management. A risk analysis usually           • Revise IFR Policy &         30
                           reveals a huge number of risks. It is not economic (= make at least one person better off but     Procedures,                 Nov
                           none worse off) nor even feasible to manage all or most of the risks. The challenge is to         condensing Policy to a      07
                           identify the main risks, and then the cost-effective interventions to contain them?               1-pager, & structuring
                                                                                                                             Procedures in matrix
                                                                                                                             format stipulating
                                                                                                                             DOs & DON’Ts
                                                                                                                             focused on containing
                                                                                                                             the specific main risks
                                                                                                                             identified, &
                                                                                                                             constituting the
                                                                                                                             checklist for
                                                                                                                             environmental audit
                         • The evolution of environmental risk assessment (ERA) post-dates IFR. But LHDA IFR has           • Implement the revised       1 Jan
                           not taken ERA on board. LHDA IFR implementation is trying to manage all or most risks.            Policy & Procedures         08
                           Many of the recommended improvement actions are liable to complicate, rather than simplify,       with annual external
                           LHDA IFR implementation.                                                                          audit, review &
                                                                                                                             revision (procure an
                                                                                                                             experienced



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                                                                                                                                environmental auditor
                                                                                                                                assisted by a couple of
                                                                                                                                specialists to complete
                                                                                                                                audit in ~ 1 week)
                         • Simplifying the IFR would include review & revision of the IFR objective. Implicit in the          • Review & revise the     31
                           present objective is preserving the profile of the unregulated river. Rive profile is shaped by      IFR objective. It is    Aug
                           the flows. If the flows are reduced it is a natural consequence for the river channel to shrink,     suggested that an       07
                           for as long as there are sediment inputs. With bulk IFR only 15-20% the aim of preserving the        objective along the
                           pristine is unrealistic.                                                                             following lines is
                                                                                                                                warranted. Manage for
                                                                                                                                rivers smaller than
                                                                                                                                under the unregulated
                                                                                                                                condition, consistent
                                                                                                                                with the bulk IFR, &
                                                                                                                                to attain [specified]
                                                                                                                                river condition
                                                                                                                                classes.
                         • PoE comment on the main findings of IFR audit are given in Appendix 1 to this report.
                         3.2 Intangibles study
                         • The study has been completed & the submitted final report is an improvement on the draft           • Without a clearly        On-
                           reviewed during the previous mission (PoE Report 44).                                                demonstrated             going
                                                                                                                                individual intangible
                                                                                                                                losses, or loss in net
                                                                                                                                Total Economic
                                                                                                                                Value, there is no
                                                                                                                                obvious need beyond
                                                                                                                                existing mitigation
                                                                                                                                (viz compensation,
                                                                                                                                resettlement,
                                                                                                                                development, TAU,
                                                                                                                                IFR management) &
                                                                                                                                existing offsets (eg



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                                                                                                                                  nature reserves
                                                                                                                                  infrastructure, ICM,
                                                                                                                                  LBT) for LHDA to
                                                                                                                                  engage in new
                                                                                                                                  initiatives
                         • The study was limited in time & scope and strong inference should not be expected. In the            • LHDA, top               On-
                           exact science of hindsight the study scope was too narrow (eg study was confined to Lesotho            management in           going
                           yet bequest & existence values attached by foreigners to Lesotho natural resources are                 particular, should be
                           probably high). The study therefore does not give perspective on how LHWP has affected                 proactive in seizing
                           Total Economic Value.                                                                                  every opportunity to
                                                                                                                                  explain & advertise
                                                                                                                                  how LHDA has
                                                                                                                                  mitigated & offset
                                                                                                                                  tangible & intangible
                                                                                                                                  costs of LHWP.
                         • Identified losses include complete river amenity loss in inundation areas (washing, leisure,
                           cultural/spiritual/religious activities), partial losses downstream, and existence value loss of
                           unregulated rivers. Identified gains include livestock watering in inundation areas.
                         • The reader is left with uncertainties illustrated as follows. Obstructed movement across
                           inundated valleys is mentioned but this is not juxtaposed with the increased accessibility of
                           Highlands effected by main and feeder roads. The estimated high existence value of
                           unregulated rivers (M26 million) is not compared with the option value we might infer from
                           the widespread virtually unanimous support among Highland communities for Phase II.
                           Carbon sequestration through woody invasion in the riparian zones with reduced river flows is
                           rejected on the belief that major floods will clear the bushes. Yet while the Nov 2006 1-in-50-
                           year flood scoured out saplings in Reaches 1, 2 & 3 most of the mature bushes remained. In
                           any case, this whole matter of carbon sequestration is trite in relation to southern Africa’s tiny
                           contribution to global carbon fluxes. The provision of water on tap has caused the loss of the
                           social element of this chore, yet this is not juxtaposed with the freeing up of time for income-
                           earning and social activities.
                         • Though the title of the study includes losses and gains, gains including offsets have a low
                           profile in the report. LHDA has already made huge investment in offsets including



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                           infrastructure at Liphofung, Bokong and Ts’ehlanyane, the M25 million ICM project, and M9
                           million as seed money for the Lesotho Biodiversity Trust. The study did not have the scope to
                           estimate net change in Total Economic Value.
                         • Report recommendations include construction of sites to make up loss of river amenities,
                           additional footbridges, subsidized transport, setting up an organization dedicated to training
                           new traditional healers, provision of monetary compensation or employment opportunity, and
                           further research.
                         3.3 Biophysical monitoring
                         • PoE reviewed a draft monitoring report (PoE Report 46). The final monitoring report is to            • Reduce the scope of         31
                           hand.                                                                                                  biophysical                 May
                                                                                                                                  monitoring to include       07
                                                                                                                                  flow releases, water
                                                                                                                                  quality, riverine
                                                                                                                                  vegetation & fish.
                         • The IFR audit finds ‘The monitoring programme is not appropriate in terms of the design, the         • Develop monitoring          31
                           use of auditable and replicable techniques and the frequency of monitoring. Better monitoring          techniques of riverine      Aug
                           is needed and more regular and certain data should be collected in order to make strong                vegetation & fish to        07
                           conclusions.’ This echoes PoE over many years: monitoring must enable strong inference to              provide data of known
                           be drawn. This is explained in PoE Report 46. While PoE has not seen the revised monitoring            confidence.
                           protocol, PoE believes that the monitoring design is flawed – unknown precision, lack of
                           sample independence, unstated & probably poor representativeness of sample, etc.
                         • Capacitation of IFR functions including monitoring is a perennial issue. Contemporary                • Monitor all IFR sites       From
                           practice is to have in-house expertise for all core functions, & to outsource other expertise if &     to obtain quality data      31
                           when it is needed. The core IFR functions include release management & recording, reporting,           on flow releases,           Aug
                           project management & coordination, data & report archiving, & driving Policy & Procedure               water quality,              07
                           audit, review & revision. Commitment to life-long learning is required from the individuals &          vegetation & fish.
                           corporation. Nothing drives service delivery from outsourced expertise like a competitive
                           bidding environment.
                                                                                                                                • Have core IFR               On-
                                                                                                                                  functions staffed in-       going
                                                                                                                                  house (release
                                                                                                                                  management &


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                                                                                                                              recording, project
                                                                                                                              management &
                                                                                                                              coordination,
                                                                                                                              reporting, data &
                                                                                                                              report archiving, &
                                                                                                                              driving Policy &
                                                                                                                              Procedure audit,
                                                                                                                              review & revision).
                                                                                                                              Outsource for
                                                                                                                              occasional functions
                                                                                                                              as & when needed., on
                                                                                                                              a competitive basis.
                                                                                                                              Spur on capacity
                                                                                                                              building by rewarding
                                                                                                                              relevant private study
                                                                                                                              & qualification, on-
                                                                                                                              the-job training &
                                                                                                                              focused intensive
                                                                                                                              courses.
                         3.4 IFR procedures
                         • Final IFR Procedures Edition 2 April 2007 is to hand.
                         • The recent edition of IFR Procedures is written under the original IFR paradigm which is now      • Stop fiddling with      24
                           obsolete for the following reasons                                                                  current IFR             May
                                                                                                                               Procedures              07
                              IFR audit finding that IFR is too complicated (section 3.1 above)                              • See recommendations     24
                              IFR Procedures are catch-all rather than based on state-of-the-art formal risk assessment, &     under 3.1               May
                              they attempt to address all/most risks instead of focussing on high-leveraged intervention                               07
                              on a few critical risks (section 3.1 above)
                              IFR Procedures are written in long-winded prose that is hard to audit, instead of 1-liner DO
                              or DON’T statements conformance with which is easy to judge
                              The IFR 5-year review & revise cycle is too ponderous to keep pace with the global
                              gathering pace of change & knowledge advancement, & the ISO 14001 spirit of continuous



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PoE Report 46, May 2007 – Critical projects                                                                                                   Page 16 of 62




                             improvement
                         3.5 Draft IFR annual report 2004-5                                                                    • Expedite completion        30 Jun
                         • The fact that this report is not finalized nearly 2 years down the road virtually defeats the         of 2004-5 report           07
                           purpose of such a report, & reflects badly on LHDA                                                       Adopt simple
                                                                                                                                    concise factual style
                                                                                                                                    ‘Recommendations’
                                                                                                                                    should capture
                                                                                                                                    LHDA’s action
                                                                                                                                    plan for the
                                                                                                                                    forthcoming year,
                                                                                                                                    derived from annual
                                                                                                                                    audit, review &
                                                                                                                                    revision of IFR
                                                                                                                                    Policy &
                                                                                                                                    Procedures
                         • PoE, and the World Bank, reviewed the draft report at the previous mission in October 2006,         • Expedite completion        31 Jul
                           yet the current draft has defects as follows                                                          of the 2005-6 annual       07
                             verbose                                                                                             report
                             too much author opinion & speculation rather than factual reporting
                             poor English usage & communication
                         • PoE has marked up the draft to illustrate the kind of defects that warrant attention (but this is
                           not a comprehensive editing lest PoE do LHDA’s job for it)
4. LHDA Contract         Anthropologist report
1204
                         • The Socioeconomic and Related Findings Phase 1B Mohale Survey, Volume II by the Human               • The balance of the         15 Jun
                           Sciences Research Council was reviewed (see Appendix 2); the data and analysis were found             reports (Volume I and      07
                           to be sound but the conclusions could be strengthened with comparative assessment                     the Epidemiological
                                                                                                                                 Study) should be
                                                                                                                                 provided to the LHDA
                                                                                                                                 as a matter of urgency
                         • A conference call was held with the HSRC C1204 management to ascertain the status and               • The contractor needs       15 Jun
                           plans regarding completion of the contract                                                            to provide all of the      07


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                                                                                                                                 outstanding reports
                                                                                                                                 and a full set of data
                                                                                                                                 from both upstream
                                                                                                                                 and downstream areas
                                                                                                                                 to LHDA
                         • As agreed with LHDA, data on some of the proposed Catchment Management Areas (CMAs)                 • These data should be      15 Jun
                           were to be obtained by C1204                                                                          made available to         07
                                                                                                                                 SMEC for
                                                                                                                                 socioeconomic
                                                                                                                                 analysis as part of
                                                                                                                                 Contract 1044
                         Public health report (see also Appendix 3)
                         • Only three drafts out of the expected five volumes of the study have been submitted. Some of        • LHDA should prevail       1 Jun
                           the volumes are incomplete as some critical chapters have not been incorporated. A through            on the consultant to      07
                           review of the Socio economic and related findings, Nutrition Report on Phase 1B (Mohale               complete the
                           Cluster) and Perceptions and Attitudes of Households in the Katse, 'Muela and Matsoku                 remaining drafts for
                           Areas. The epidemiology section and analysis of the down stream have not been submitted               peer review as soon as
                                                                                                                                 possible. Further
                                                                                                                                 delays will render the
                                                                                                                                 data obsolete
                         General Observations                                                                                  • LHDA should request       20 Jun
                         • The study design and data collection methodologies described in the reports appear to have            the consultant to         07
                           been standard and quality of data collected is assumed to be of quality.                              provide all the
                         • Analysis of data appear to be limited to a simplistic binominal analysis framework and                processed and raw
                           inadequate attempts to carry out multi variate and or multiple regression analysis to determine       data sets on CDs as
                           impact of various variables on the observed variable                                                  well as the completed
                         • In the methodology it has not been stated on how data quality checks were carried out                 questionnaires for safe
                         • The response rates were relatively low for each sample frame                                          keeping
                         Report Format and Structure                                                                           • The consultant should     15 Jun
                         • The structure and format of the reports are unsatisfactory in that the separate analysis of the       be asked to make a        07
                           data fails to capture the full impact of variables under investigation. eg. Analysing nutritional     presentation of the
                           data without considering epidemiological factors may lead to incorrect inferences.                    study findings to a


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                         • There should be a summary of the analysis of the background information to enable the reader          technical team to help
                           to understand the rationale and justification of the study design and sampling methodology            improve the report
                         • A summary of the respondent sample framework                                                          before the results are
                         • An analysis plan and expected data manipulation limitations                                           presented to the
                         • Data collection constraints likely to affect the quality of data                                      general stakeholders’
                                                                                                                                 workshop
                         • Quality of the Reports                                                                              • A technical team          Before
                         • The quality of the reports need some improvements, with the fuller explanations for analysis          should meet with the      15 Jun
                           tables as well as the stating of the confidence levels for the various figures given that there       consultant to agree on    07
                           was a significant variation in the sample sizes                                                       the format of the
                         • There are a number of assertions and conclusions made on the impact of certain variables              report based on the
                           without the benefit of supporting evidence.                                                           LHDA analysis
                         • The absence of comparison data from the national indices makes it difficult to determine              framework
                           whether the observed impact is local, national or global trend.                                       requirements. (POE
                         • Although the results point out to the generally positive impact of the project on the affected        Public Health is
                           population, the reports are almost ambivalent & not specific in the quantification of the overall     available to help in
                           impact of the LHWP on the highland population (have they or have they not been significantly          this respect)
                           affected by the project after EAP interventions?).                                                  • A clearly outlined        Before
                                                                                                                                 analysis framework        15 Jun
                                                                                                                                 needs to be developed     07
                                                                                                                                 for the analysis to
                                                                                                                                 address the issues
                                                                                                                                 fully
                                                                                                                               • Consultant must           15 Jun
                                                                                                                                 present reports on all    07
                                                                                                                                 aspects of the study on
                                                                                                                                 the 15 June to a
                                                                                                                                 technical team in 2
                                                                                                                                 day workshop to
                                                                                                                                 enable full appraisal
                                                                                                                                 of study findings &
                                                                                                                                 prepare for



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                                                                                                                              presentation to a wider
                                                                                                                              stakeholder workshop
                                                                                                                              later in the year
                                                                                                                            • Prepare summarised      15
                                                                                                                              corporate versions of   Sep
                                                                                                                              final reports for       07
                                                                                                                              distribution and
                                                                                                                              dissemination to the
                                                                                                                              LHWP stakeholders
                                                                                                                              and general public.
5. Public health         5.1 HIV/AIDS partnerships
                         • A limited number of activities have been carried out on the one year sponsorship from the        • Develop a program to      15 Jul
                           ADB through the HNRRIEP Project and these include the following                                    strengthen HIV/AIDS       07
                               Establishment of the Youth Centre at Katse in conjunction with the Ministry of Health and      education activities
                               Social Welfare as well as the Lesotho Red Cross                                                carried out by MOH
                               Mohale youth training supported by Mohale Public Health budget                                 & others in the
                               Initiation of Youth Life Skills Training and Peer Education Training                           Highlands
                                        o Katse             40                                                              • Develop a plan to
                                        o 'Muela             40                                                               strengthen treatment
                                        o Mohale            30                                                                and care services at
                         • Development of partnerships in HIV/AIDS has been limited by a number of internal and               the clinics in the area
                           external factors and there had not been significant establishment of such links to effectively   • Provision technical
                           strengthen LHDA’s contribution to management of HIV/AIDS in the Highlands                          assistance to training
                                                                                                                              of peer counsellors
                                                                                                                            • Develop a capacity
                                                                                                                              building program for
                                                                                                                              local community
                                                                                                                              based home-based
                                                                                                                              care groups through
                                                                                                                              support to income
                                                                                                                              generating project (tie
                                                                                                                              these to current



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                                                                                                                                 LHDA agriculture and
                                                                                                                                 social development
                                                                                                                                 interventions)
                         5.2 HIV/AIDS strategies
                         • There are currently no other strategies planned to strengthen HIV /AIDS program in the               • LHDA needs to             31
                           LHWP areas.                                                                                            develop a Public          Aug
                         • Future plans are further jeopardised by the decision not to engage a public health person but          Health Policy             07
                           opt to utilise external consultants in a situation where there are no relevantly qualified persons
                           to clearly identify and define public health issues in the organization
                         5.3 Capacity building
                         • A needs assessment study is planned to determine needs and gaps to guide the development of          • The needs and gaps        30 Jun
                           appropriate and effective partnerships.                                                                study does not seem to    07
                                                                                                                                  be needed as there is
                                                                                                                                  ample information on
                                                                                                                                  this from the
                                                                                                                                  MOHSW capacity
                                                                                                                                  assessment study
                                                                                                                                  carried out to
                                                                                                                                  determine the service
                                                                                                                                  needs. (Review the
                                                                                                                                  consultancy TOR to
                                                                                                                                  ensure that it does not
                                                                                                                                  collect data on issues
                                                                                                                                  that are already
                                                                                                                                  available from
                                                                                                                                  secondary data
                                                                                                                                  sources)

6. LHDA Contract         6.1 Pilot Catchment Areas (PCAs)                                                                       • Resolve the Project       31
1044 (ICM)                                                                                                                        Management                May
                                                                                                                                  leadership issue.         07
                         • The vision for PCAs is ‘show & tell’ cases of improved & sustainable rural livelihoods. 5            • LHDA: Spare nothing       On-



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                           PCAs have been set up & are in various stages of business planning & implementation,               with this project.         going
                           demonstration home gardens, catchment conservation development, etc. Task completion is
                           Task 2 (resource inventory) 91%, Task 3 (development) 46%, Task 4 (implementation) 9%
                         • What stands between now & realizing the PCA vision is continuing hard work to have rural          • SMEC: Drive this          On-
                           folk take ownership of techniques for improving sustainability.                                     project through the       going
                                                                                                                               active participation of
                                                                                                                               the stakeholders to get
                                                                                                                               their buy-in
                         6.2 Catchment Management Authorities/Committees (CMAs)                                              • Mistakes & failures       On-
                                                                                                                               are inevitable. Do not    going
                                                                                                                               bury. Try to spot
                                                                                                                               early, take corrective
                                                                                                                               action quickly, & use
                                                                                                                               as learning
                                                                                                                               opportunities.
                         • The vision for CMAs is for ICM to set up, for Highland communities, institutional
                           infrastructure that (a) coordinates & facilitates access to know-how, inputs, government
                           services, markets, etc to improve the sustainability of rural livelihoods & the conservation of
                           natural resources, (b) develops self momentum & is driven by the communities after ICM
                           withdraws.
                         • ICM is engaging stakeholders in obtaining their buy-in into the vision & the practicalities of
                           fitting in with legislation & local government, representation, modus operandi, etc. 90% of
                           stakeholders want CMAs embedded in local government rather than as autonomous structures
                           or LHWP institutions. This is a challenging component of the program. ICM is on a knife-
                           edge. On the one side is doing it for the communities in which case the CMAs will collapse as
                           soon as ICM withdraws. On the other side, if ICM does not drive the initiative with
                           determination & tact the vision will not materialize. The work schedule here is 26% complete.
                           There are evidently no insurmountables to success, just thoughtful work & dedication.
                         6.3 Project objective & attainment
                         • ICM is the most ambitious, challenging, even daunting, of projects undertaken by LHDA. It is
                           a people project involving households, communities, local government, Ministries, the rigidity
                           of Ntate Mosotho Law & the cussedness of Mme Mother Nature. The key success factor is


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PoE Report 46, May 2007 – Critical projects                                                                                                 Page 22 of 62




                           intangible – winning the hearts & minds of the stakeholders.
                         • According to the February 2007 Monthly Report 21 & presentation made to PoE, the ICM is
                           reasonably on track & within budget. It is being executed better than other social &
                           environmental projects undertaken by LHDA. There is, though, an issue of Project
                           Management leadership that is understood to terminate in October 2007. A project of this
                           nature depends critically on leadership. Though there are many challenges, this seems to be
                           the outstanding obstacle to successful project execution.
                         • The ICM team is to be congratulated not just for its performance but, very important in this
                           project, its dedication, enthusiasm & positive can-do attitude.
7. Lesotho               7.1 LBT viability
Biodiversity Trust &
Maloti Minnow
                         • The viability of the LBT has been compromised by the lack of progress during 2006/7. It has        • LHDA auditors will        30 Jun
                           been difficult to get Trustees together for meetings. No audited financial statements or reports     be in Lesotho in June     07
                           of the Trustees have been produced, placing the LBT in breach of the Deeds Registry Act              2007 & have agreed to
                           (1967). As the LBT has to play an active role in the next steps towards construction of a            audit the LBT
                           barrier in the Senqunyane River, the Trust needs to be reactivated as an urgent priority.            accounts on a pro
                           Further details and remedial suggestions are made in Appendix 4.                                     bono basis. LBT must
                                                                                                                                furnish the necessary
                                                                                                                                letters authorising the
                                                                                                                                auditors to have
                                                                                                                                access to LHDA
                                                                                                                                accounts.
                                                                                                                              • LBT Trustees must         31
                                                                                                                                prepare a report to       May
                                                                                                                                accompany the             07
                                                                                                                                audited financial
                                                                                                                                statements. Where
                                                                                                                                Trustees find it
                                                                                                                                difficult to attend
                                                                                                                                meetings, approvals
                                                                                                                                can be sought through



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                                                                                                                       Round Robin
                                                                                                                       messaging.

                                                                                                                      The financial year of    30 Jun
                                                                                                                      LBT should be changed    07
                                                                                                                      from 1 Jan – 31 Dec to
                                                                                                                      1 Apr – 30 Mar to
                                                                                                                      coincide with LHDA
                                                                                                                      financial year &
                                                                                                                      Lesotho tax year.

                         • LBT appointed a consultant for 6 months from 1 May 2007, with the following brief.         • Consultant to revisit & 30 Jun
                                                                                                                        update the LBT          07
                               Establish and advise on a Fund Raising Plan for the LBT and raise funds for the LBT.     Strategic Plan (Nov
                               Finalise a Strategic Plan for the LBT                                                    2004) & LBT
                               Advise on & establish interim institutional arrangements for the LBT                     Fundraising Strategies
                               Propose appropriate institutional arrangements for the home of the Katse Botanical       & Options (May
                               Garden & the possible role of the LBT in such institutional arrangements                 2004).
                                                                                                                      • Consultant to visit
                                                                                                                        Lesotho & present to
                                                                                                                        LHDA Board (on 28
                                                                                                                        June), meet with LBT
                                                                                                                        Trustees, & attend to
                                                                                                                        other LBT business.
                                                                                                                        Thereafter regular
                                                                                                                        visits at approximately
                                                                                                                        monthly intervals are
                                                                                                                        to be conducted.
                                                                                                                      • LBT Trustees to meet
                                                                                                                        on 27 or 29 June to
                                                                                                                        address important
                                                                                                                        issues & make the



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                                                                                                                               necessary decisions.
                                                                                                                               Consultant to attend
                         7.2 Maloti Minnow monitoring
                         • Since PoE’s last visit in Oct 06, monitoring was conducted by both Conservation Officer (CO)       • Monitoring for            On-
                           & Dr J. Rall. PoE had sight of the CO’s second report (Dec 06) & Quarterly Report (Jan-Mar           predators of Maloti       going
                           2007). Results of monitoring for success of transplanted populations reveal 3 of 4 populations       Minnow (yellowfish
                           are reproducing & transplantation appears successful. Monitoring of minnows in Senqunyane            and trout) to be
                           and Bokong rivers indicate strong populations. Minnows have not been found in inundated              continued diligently in
                           parts of both rivers. Monitoring for Smallmouth Yellowfish in Mohale Dam reveals a stable            Mohale Dam. It is
                           population which is now breeding. No yellowfish have been recorded in rivers, nor in the gill        critically important
                           nets set at the mouths of rivers. Fishing intensity has been increased from setting 12 nets once     that the high intensity
                           a month to setting 6 nets every day. No trout have yet been recorded in Mohale Dam. See              of netting is
                           Appendix 5.                                                                                          continued. As the
                                                                                                                                population of
                                                                                                                                yellowfish increases
                                                                                                                                & nutrient levels in
                                                                                                                                the dam decrease,
                                                                                                                                there will be pressure
                                                                                                                                on the yellowfish to
                                                                                                                                invade the river
                                                                                                                                systems.
                                                                                                                              • No aquaculture            On-
                                                                                                                                initiatives to be         going
                                                                                                                                allowed on Mohale
                                                                                                                                Dam until a barrier is
                                                                                                                                in place.
                                                                                                                              • Construction of a         On-
                                                                                                                                barrier on the            going
                                                                                                                                Senqunyane River to
                                                                                                                                be pursued as a high
                                                                                                                                priority
                         7.3 Impacts of barriers



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                         • Two alternative barrier configurations have been conceived for the Senqunyane River: a rock-            Undertake EIA on            31
                           filled weir with a central spillway, 50 m long by 14 m high, & a meander cut to create a                barrier alternatives &      Aug
                           waterfall 12-14 m high, across a length of 250-300m.                                                    access roads, & prepare     07
                                                                                                                                   EMP to mitigate
                                                                                                                                   construction &
                                                                                                                                   operation impacts.
                         • The meander cut could be described as an event that would take place naturally, albeit over a           Subject to EIA              asap
                           long period. The weir is an artificial obstruction to normal river flow; it is intended that the        approval, finalize design
                           weir would be porous to allow as much seepage through the wall as possible. The purpose of              & construct barrier.
                           both these structures is to prevent the upstream migration of predatory fish, in particular the
                           Rainbow Trout.
                         • Either structure will cause disturbance to the environment through construction activities, &
                           the need for an access road (2 km to the weir and 10 km to the waterfall). A full
                           Environmental Impact Assessment (EIA) will be required for the preferred structure & its
                           access road.
                         • A team is working in-house in LHDA to handle the barrier construction. The preference is
                           apparently for the weir structure, which would be built in stages to allow silt to build up
                           behind the barrier. This option has the shorter road connection, & would apparently be
                           considerably less costly than the meander cut. The alternatives should be carried through the
                           EIA.
                         • The Maloti Minnow is the only fish present in the upper reaches of the Senqunyane, and the
                           effect of the barrier will be to reduce the size of its available habitat. There will also be loss of
                           fish that are swept over the barrier during floods and cannot return. As long as this rate of loss
                           does not exceed the rate of recruitment (highly unlikely), the impact will not be significant.
                           The impact of not building the barrier will be the likely extinction of the Maloti Minnow.




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8. Phase 1B residual     • An assessment was done of the progress on Phase 1B Stage III residual resettlement through       • The LHWC should           30 Jun
resettlement               discussions with FOB personnel and review of reports; assessment (‘loco inspection’) was           review and finalize the   07
                           done by LHDA and the LSPP of the fields left behind by resettled households and meetings           Residual Resettlement
                           were held with principal and area chiefs and Lesotho government officials                          Policy and the
                                                                                                                              decisions of the Land
                                                                                                                              Redistribution
                                                                                                                              Executive Committee
                         • The visit by LHDA, district officials, and principal and area chiefs to Ha Nthakane and          • Finalization of the       31 Jul
                           Takatso was carried out on 13 April, 2007 and follow-up discussions were done on 14 May,           Special Development       07
                           2007                                                                                               Areas (SDAs) should
                                                                                                                              be done in conjunction
                                                                                                                              with LHDA and the
                                                                                                                              Ministry of Local
                                                                                                                              Government
                         • A final plan for re-allocating land to Residual Resettlement households is in the process of     • The plan should be        31
                           being developed, based on the findings of the field visits and the Land Survey and Physical        reviewed by LHWC          Aug
                           Planning (LSPP) office                                                                             and then should be        07
                                                                                                                              implemented
                         • The Residual Resettlement Implementation program time line was reviewed                          • The Residual              31 Oct
                                                                                                                              Resettlement Plan         07
                                                                                                                              should be
                                                                                                                              disseminated to
                                                                                                                              eligible households
                                                                                                                              and villages and
                                                                                                                              preparations made for
                                                                                                                              resettlement of those
                                                                                                                              households that opt to
                                                                                                                              do so
                         • A monitoring system needs to be put in place for tracking the eligible households and villages   • This monitoring           31
                           under the Residual Resettlement Program                                                            system should build       Mar
                                                                                                                              on the work of LHDA,      08
                                                                                                                              the FOB, C1012, and



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                                                                                                                               C1204
9. Community             • A review was done of the compensation verification exercise and of the status of the              • A meeting should be       31
complaints                 community complaints and the work of the Lesotho Ombudsman; the compensation                        held with the             Aug
management &               verification exercise was completed in April 2007; LHDA met with the Ombudsman; 242                 Ombudsman to              07
Ombudsman issues           cases were addressed to date, 126 cases were found not to have LHDA liability by the                resolve outstanding
                           Ombudsman, 74 are being verified, 43 challenge the policy and are outstanding, many of              policy issues and
                           which relate to feeder roads                                                                        cases; verification of
                                                                                                                               compensation cases
                                                                                                                               should continue and
                                                                                                                               files updated in light
                                                                                                                               of new information
                                                                                                                               obtained
10. Pilot trout          • PoE reviewed the KFF monthly compliance and progress reports for October, November and            • LHDA to monitor           30 Jun
production                 December 2006/ January 2007. PoE had sight of three water analysis certificates from Erwat          KFF monthly reports       7
                           Laboratory Services for samples received by them on 19.01.07 (18.01.07); 01.03.07                   for compliance. If the
                           (26.02.07); and 25.04.07 (30.03.2007). Dates in parentheses are sampling dates.                     next monthly report
                                                                                                                               received does not
                                                                                                                               make the necessary
                                                                                                                               comparisons with
                                                                                                                               LHDA’s water quality
                                                                                                                               standards, KFF must
                                                                                                                               be sent a very strong
                                                                                                                               message that the
                                                                                                                               project could be
                                                                                                                               jeopardised by
                                                                                                                               continued non-
                                                                                                                               compliance with the
                                                                                                                               ROD.

                         • Although KFF claims it is compliant with water monitoring requirements, NES (and LHDA)            • KFF complains in its      30 Jun
                           are still unhappy that the reports do not compare current results with water quality standards.     reports that it has not   07
                           LHDA has worked with Rand Water and median values for water quality standards were                  received any response



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                           forwarded to KFF via the Katse Branch Manager in October 2006.   or acknowledgement
                                                                                            of receipt from any of
                                                                                            the agencies to which
                                                                                            its monthly reports
                                                                                            have been sent. This
                                                                                            seems discourteous
                                                                                            towards KFF, which
                                                                                            LHDA regards as a
                                                                                            partner for future
                                                                                            expansion and income
                                                                                            generation in the
                                                                                            project area. PoE
                                                                                            recommends that
                                                                                            LHDA responds &
                                                                                            acknowledges receipt
                                                                                            of KFF monthly
                                                                                            reports. It’s just the
                                                                                            right thing to do.




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Appendix 1 Comment on IFR audit main findings. Audit findings are in black
Times New Roman and PoE comment in blue Arial


Noteworthy Findings in Relation to the IFR Policy and Procedures

1. The DRIFT method describes four Scenarios illustrating the consequences of
management of the river but there is no clear linking of these scenarios to the
management of sites. This should be explicit. The knowledge to do this does not exist.
More than 50% of initial IFR predictions turned out to be mistaken.
2. The Policy inadequately defines the River Condition Classes (Table 4.1 in the
Policy). The descriptions of some of the indicators are such that there is no means of
objectively determining if the Policy and targets as described in Table 4.2 are being
met. This is a serious issue as it invalidates the targets for many of the components
and thus invalidates the overall Target River Condition Classes as in Table 4.2 of the
Policy. Endorsed. The river condition classes need refinement so that they are relevant to
Lesotho rivers (big diurnal temperature fluctuations) and are easily & cheaply measured.
3. The use of the term "Compensation" in the Policy and all documents thereafter has
set an unfortunate perspective in the minds of downstream communities, who should
rather have been encouraged to "share in the development of the LHWP". This has
created a mercenary attitude which is leading to some difficulties in implementation.
It also obscures the fact that there are undoubted benefits to the presence of the
LHWP being accrued by these same communities. Endorsed. We might invent a term.
‘Aid’ ‘Investment’ ‘Seed funds’ ‘Sponsorship’
4. The introduction of "compensation" for loss of resources has brought about a
disruption of the social capital and an unfortunate degree of dependence on the funds,
in many communities. There are many negative impacts emanating from this.
Endorsed.
5. The implementation of the IFR and the release of floods in an "unnatural" way e.g.
blue-sky flood releases, has had a negative impact on downstream society. It is
strongly recommended that the IFR floods be released as described in the procedures
(e.g. in response to natural cues) Endorsed and that the LHDA consider suspending the
need to notify downstream communities who would revert to their natural intelligence
of managing floods when they occur. We should expect downstream folk to use their
intelligence, but a flood warning system is best practice & it is warranted for emergencies. A
good flooding warning system will depend on good radio or phone communications that
downstream communities could benefit from in other ways.
6. Floods are extremely important components of the hydrological regime with great
variability in magnitude and spatial and temporal distribution. Therefore, the
management of dams to meet flood IFRs is an extremely difficult undertaking. To
successfully manage for floods requires that the management systems in place are
dynamic and adaptive. Unfortunately, the rigid management approach adopted by the




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LHDA means that meeting the IFR flood requirements is extremely problematic.
There is a driving commitment to manage the dams so that they can capture floods
which may otherwise do "damage" downstream through the release of "uncontrolled
flows". This thinking is contradictory with the philosophy of environmental flows,
which requires that downstream flows should be as natural as possible, including the
floods that pass unimpeded by the dams. Agree. A main problem is the current intention to
maintain the pristine river profile, by releasing big floods periodically. This has proved
unrealistic and fighting Nature. The channel is determined by the flows down it. If the flows
decrease the channel will close in, for as long as there exist sediment inputs. With bulk IFR
releases only 15-20% of MAR the rivers HAVE closed in. We should manage to let the river
get smaller – adjust naturally to the size floods down it. The occasional big flood will occur
and partially and temporarily reverse this, as we saw from the Nov 2006 1-in-30 year flood
down the Malibamatso. We might change our release strategy. Suppose our IFR bulk release
is 15% of MAR, then the instantaneous rate of release equals 15% of the instantaneous rate
of inflow, as close as we can manage.
7. The Policy accepts a lower target for reaches proximal to the dams acknowledging
that these will be more stressed than distal reaches, but it does not recognize the
possibility of a "sacrificial zone" in the river environment immediately below the
dams. This would be an acknowledgement that there will be a short distance (5 - 10
km) below the dam where conditions are extremely stressed, while the true proximal
reach would begin below this reach and may still have lower targets than the distal
reaches which are at a much greater distance (not defined). This approach would
render Site 2 below Katse Dam redundant as it falls within this zone. Disagree.
Immediately downstream of Katse is special – clean water, scenic, wild ducks, crabs, otters
and trout – could become a trout fisherman’s time share run by local community. Between
Mohale and the waterfall there are Maloti Minnow – we might aim to maintain this as a
Minnow reserve.
8. The Procedures manual stipulates the need for Reference Sites against which the
downstream sites are measured. There has been a poor uptake of this need with
insufficient sites selected and little monitoring of those existing. Support the ideal, but
the priority is to monitor the existing IFR sites adequately to enable the decision rules to be
applied. We are not yet meeting this priority.
9. There is a need for a Methods Manual which would be a "one stop shop" describing
in detail all aspects of the implementation of the Policy and Procedures. Another ideal.
The priority is to get right the essentials – achieve flow release program, monitoring water
quality, vegetation and fish. Let’s get this minimum right before lofty ideals.
10. There is a lack of control over versions of authorized documents. This has opened
up the possibility of non-compliance to these documents. The LHDA should consider
embracing a quality control and management system such as ISO (International
Standards Organisation) which would put in place systems for implementation of best
practice. Endorsed.
11. The Procedures do not make any active link between the quality of the water in
the dams and the day to day management of the downstream releases. This is
necessary to manage the quality of the water released downstream. This is debatable if
not mistaken. Temperature is probably the most critical factor. The absolute temperature is
not critical. Rather it is the rate of change of temperature (temperature shock) that matters
most. Lesotho rivers and especially streams and stream biota endure large diurnal
fluctuations in temperature. Big fluctuation might weed out alien trout that are intolerant of
rapid temperature change and high water temperatures – this might be a key issue in
managing immediately downstream of Mohale for Maloti Minnow. Experimental low level
outlet releases from Katse showed that river water temperature changes slowly. Let’s get right
the essentials first and concern ourselves with these smaller issues later, if we have to.


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12. It is planned that biophysical monitoring will provide sufficient information at the
distal and proximal reaches for decisions to be made in relation to the flow related
impacts on resources available to communities. It is considered that these linkages are
tenuous in particular for those issues where there is no clear link e.g. the presence of
biting insects and the resulting health impacts on society. These linkages need to be
quantified if compensation is going to be based on the outcomes. Pie in the sky. More
than 50% of the predictions that the IFR consultant made at the outset turned out, after
monitoring, to be mistaken. We simply do not have the knowledge to link details of flows and
impacts. We can expect to make linkeages only with gross issues – and the IFR consultant
got even some of those wrong (eg riverine bush growth). We should focus on the essentials –
releases, and detecting trend in water quality, vegetation and fish.

Findings in Relation to IFR Implementation and Operation

1. The implementation of the IFR is too complicated which is preventing proper
implementation. Endorsed. It needs to be made clear what the IFR is for; "the IFR
refers to the amount, quality and timing of water released through or over dams and
associated structures to meet riverine ecosystem and social needs in the reaches
downstream thereof' (Definition of Key Concepts). The policy is clear that these
needs need to be met first before other demands, which should simplify the decision
making process and thus the entire implementation. We need to simplify.
2. It is important that the IFR is implemented according to the DRIFT model and that
there is no leeway for individuals to override the recommendations in favour of lesser
objectives. Who knows what is in the DRIFT model? Our IFR should be transparent to all.
Alterations should only be accepted via the formal process of review and adaptive
management. Accepted.
3. While the DRIFT method requires that both the bulk volume of water as well as the
variability in its delivery should be managed, there is a strong tendency by the LHDA
to favour only the bulk supply as a measurement of compliance. This is having serious
consequences for the downstream environment. Yes, flow releases are not as variable as
they might be but that is a shortcoming of IFR Policy & Procedures.
4. The LHDA is to be commended for the manner in which they handled the
consultation process, which started as early as 2002. All the villagers interviewed had
been called to at least two meetings where they were informed about the IFR process
and the compensation scheme. There are nevertheless challenges now as some
communities have been compensated but others not. Okay.
5. The criteria that were used to identify eligible households for communal
compensation were applied correctly. However, the issue that has caused some minor
problems was the proviso that members of the same communities had to pay
subscription to become eligible to join LLEs. Although in principle, all community
members were identified adequately, the joining fees set a boundary to becoming full
members. Okay, but nothing in life is free.
6. The downstream communities have clearly been trained in how to form Local
Legal Entities (LLEs) etc. but it did emerge that there were aspects of the IFR that
were poorly understood which is causing conflict and unhappiness and will negatively
impact on the LHDA. There were also mixed reports of the training that had been
received by communities. TAU should try to remedy any serious shortcomings.
7. The team was impressed with the tight controls that the TAU had on the finances of
the LLEs but there were also rumblings of discontent that the TAU is seen as being
too intrusive. Not unexpected. You can’t please everyone.


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8. The choice of some projects undertaken by communities with compensation funds
was inconsistent with the aims of the IFR policy. It is important that communities have a
high degree of choice in investing their money so that they take responsibility and not blame
LHDA if/when things fail.
9. The Emergency Preparedness Plans is not being properly implemented, with large
numbers of uninformed people before flood events. There is also some confusion
when people do receive the notifications. It is common cause that the EPP falls short.
10. Levels of staffing of the IFR Team are borderline. While the allocated human
resources appear acceptable, at times staff are redeployed to do other work. There
appears to be insufficient resources and time in which to carry out all the aspects of
the biophysical monitoring programme as well as to develop the capacity of the staff.
The LHDA has been forced to rely on outsourcing of specialist help which has the
negative consequence of not developing long-term memory in the organisation.
Outsourcing is not inherently wrong. Functions that are not core should not be staffed
permanently for that is simply uneconomic. The notion of doing every task in-house died way
back in the previous millennium. It is unlikely that LHDA will ever have, or should ever have,
the capacity to do all monitoring in-house. The mix of in-house and outsourcing can surely be
adjusted on each monitoring occasion depending on in-house capacities and availability of
competitive outsiders – good business management! What has to reside in LHDA is capacity
to manage projects and contracts (eg annual biophysical monitoring). To deal with the long-
term memory, complexity must be avoided (audit finding says this), data and report archiving
must be of a high standard, and monitoring reports should be cumulative on each occasion
comparing follow-up data with previous monitoring data.
11. There are considerable gaps in the biophysical data that has been collected. Yes.
12. There is very poor distribution of flows despite being required by the IFR model.
The distribution of floods in particular is poorly managed. There is also evidence of
floods that are released which do not appear to be part of the IFR requirement, which
are released in ways that contradict the IFR e.g. in short pulses at night - to avoid
inconveniencing downstream people who need to cross the river. The IFR release
regime policy must be realistic and it must be followed.
13. The DRIFT model requires that released flows mimic the natural hydrograph. This
is unfortunately not the case not only as certain flows are missing, but also as the
shape of the floods is very "abrupt" i.e. rapid increase and decrease in flow. This type
of flow change is potentially damaging to the downstream environment. The
shortcoming here is the complicated release regime. It warrants simplifying.
14. Recent monitoring of the IFR implementation has documented a volume of water
that was NOT released when scheduled in the past which has now accumulated in the
dams - the so-called "deficit" volume. There has been some debate as to what should
happen to this volume, with the WorId Bank suggesting that this must be released
downstream. It is recommended that this should be the case, and that a bonus flood
release from each of the two dams, designed to synchronise with a natural event
during summer, should be made. Disagree. While there have been under-releases in
relation to theoretical requirements, the downstream release of deficits is World Bank politics
not ecology. Whatever the approved IFR release policy, apply this as best possible for the
moment, and do not muddle it with historical shortcomings.
15. The state of the science behind the IFR remains developmental and fraught with
uncertainty. It is recommended that the LHDA stimulate research into the outcomes of
implementing the IFR in Lesotho so that greater certainty can be developed over the
long-term. More knowledge is always helps. But the priority is to adjust the release
management to make it workable and effective. This is more an environmental management
issue than a research one.




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Findings in Relation to the Biophysical and Social Monitoring Programmes

1. The monitoring programme is not appropriate in terms of the design, the use of
auditable and replicable techniques and the frequency of monitoring. Better
monitoring is needed and more regular and certain data should be collected in order to
make strong conclusions. As it is said, ''you can't manage what you don't measure".
Endorsed. Several changes to the monitoring programme have been recommended.
2. At present there is insufficient data to be able to draw meaningful conclusions
about the state of the downstream river. The data do not permit strong inference to be
drawn because of monitoring design shortcomings.
3. Interpretation of some of the biophysical data has been weakened as there is little
understanding of the natural and seasonal variations that take place in the rivers. This
needs to be addressed through a dedicated project. Again, more and better knowledge
helps, but the priority is to get the essentials right (recording releases and monitoring water
quality, vegetation and fish). This priority really requires application of existing knowledge
rather than fresh research.
4. The analysis of all biophysical data is weak, partly due to the deficiency in data
which will hopefully be rectified over the years as the monitoring programme expands
and continues. The scope of monitoring should be to reduce to the essentials (recording flow
releases, water quality, vegetation and fish), and the quality of data improved.

Recommendations for the Next Audit

The Policy requires that an audit be carried out every five years, with this one being
the first. Once in 5 years is too infrequent for adaptive management, and at least annual
audit, review and revise is warranted. This requirement is part of the Adaptive
Management approach adopted for the IFR which is to be commended. Several
recommendations are made to improve the next audit process. These include:

1. This audit was carried out with severe time constraints. It is recommended that
three open months would be sufficient for future audits. 3 months is much too long. IFR
Policy needs to be condensed into a 1-pager. The Procedure requires recasting. Actions
should be based on environmental risk assessment, with high risk areas identified,
mitigation/offset developed, written in the form 1-liners in a matrix readily capable of audit,
and audited at least annually with the audit last about 1 week.
2. To be clear in the TOR about the responsibilities of the audit team to review, or not,
the content of the Policy and Procedures. The auditor must audit against the Policy and
the matrix of the Procedures.
3. The LHDA should prepare for the audit by making documents, reports and staff
available at an early phase of the project. Endorsed.
4. It was of concern that most of the specialists in the audit team were not able to visit
the sites that they were auditing. It is recommended that in future, budget provision is
made for such a visit. An audit team comprising an experienced environmental auditor and
a couple of specialists should suffice. A site visit, sampling IFR sites not visiting all, might be
warranted. Conformance with IFR Policy & Procedures should be documented, and the
documents would represent the auditor’s primary evidence.
5. During this audit, a great deal of attention was given to the survey of downstream
communities. In future, greater reliance should be placed on existing reports with a
smaller number of spot checks in the field in order to verify the reports. An
environmental audit should be focused on issues of current concern and probably sample
rather than try to cover everything (uneconomic) – see Appendix 4 to PoE Report 44.




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Appendix 2 Review of Contract 1204 reporting: Human Sciences Research
Council (2007) Socio-Economic and Related Findings, Phase 1B Mohale Survey,
Volume II. Contract 1204, Lesotho Highlands Development Authority. Maseru,
Lesotho: Lesotho Highlands Development Authority.

1.1. As part of the effort to assess the impacts of the Lesotho Highlands Water
     Project, a contract was let for a study, Contract 1204, ‘Consultancy and
     management services to conduct a socio-economic and epidemiological survey
     upstream of Phase 1 dams, develop socioeconomic and epidemiological impact
     survey downstream of Phase 1 dams.’ This study was carried out by the Human
     Sciences Research Council of Pretoria, South Africa in the 2005-2006 period,
     and the report on the Mohale Project Area (Phase 1B) was completed in April,
     2007. The main objectives of the project were (1) to assess ‘the enduring impact
     of the LHWP on the human population,’ (2) to examine the mitigation and
     enhancement measures as defined in the Environmental Action Plan on the
     economy and living conditions of the population and communities affected by
     the LHWP, including their public health and nutrition status, and (3) to compare
     data collected against baseline and subsequent surveys in the project area,
     including national data (HSRC 2007:iii).

1.1. The methodology of the assessment involved a quantitative and qualitative
     survey in areas upstream and downstream of the Mohale dam, with a focus on (a)
     households in all of the villages close to the Mohale Dam, (b) all households that
     were resettled as a result of the infrastructure and reservoir associated with the
     Mohale Dam, and (3) a sample of households in villages upstream of the Mohale
     Dam. Data collection was done by a field team using a number of questionnaires
     (one for households, a second fore females, a third for males, and a fourth for
     caregivers). Data capture was done in Maseru. It should be noted that the data
     capture and analysis took longer than anticipated, hence the fact that the contract
     had to be extended so that the report could be produced.

1.2. Some of the key findings of the Contract 1204 study are as follows:

    (2) The monitoring and evaluation survey showed that the current cash income of
        households varied by the degree to which the households were affected by the
        project. The households were divided into three categories: (a) severely
        affected, (b) moderately affected, and (c) not directly affected by the project.
        Those households that were severely affected had the highest average annual
        cash incomes: M8748; those households that were moderately affected had an
        average income of M6804; and the households that were not directly affected
        had the lowest incomes: M3948. According to the study, the difference in
        income levels among the various categories of households is a consequence of
        compensation payments by LHDA. The conclusion is drawn that the LHDA
        compensation payments have placed project beneficiaries in a better financial
        situation than those that do not qualify for compensation.

    (3) Mitigation measures ensured that both affected and non-affected households
        benefited from the project, including expanded road infrastructure and access
        to mountain areas, enhanced transportation services, better water and
        sanitation situations, and more services.

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    (4) An important change in the project area is a greater skewing of income (i.e. a
        greater disparity in incomes of people than was the case in the past). Fifteen
        percent of the ‘severely affected’ population is now below the level of US $1
        per day, the poverty datum line. Some of the factors that contributed to this
        pattern, in addition to the project, are (a) changes in the migrant labor
        situation, with a reduction in the number of male labor migrants to the mines
        in South Africa and a reduction in remittances, (b) shifts in the garment
        industry, with an expansion and later a contraction in garment production,
        which, in turn, affected the viability of rental properties (malaene) that were
        constructed by households receiving compensation, (c) an overall decline of
        20% in rural incomes on a national level, (d) high levels of stock theft, and
        (5) low returns in agriculture, with a decline in agricultural production in the
        Mohale area of 25 per cent since 1993.

    (5) Demographic changes included (a) a decline in household size, (b) a sex ratio
        that was more skewed than before, (d) the feminization of household headship
        and of labor migration, and (d) an increase in the number of orphans, due in
        part, apparently, to HIV/AIDS impacts in the project area.

    (6) Perceptions of the project on the part of households varied by degree of impact
        of the dam; those who were ‘severely affected’ and those that chose to move
        into resettlement areas in the foothills and lowlands were the most dissatisfied
        with their living situations; those least affected by the project (e.g. those in the
        upstream areas of the Mohale basin) were most satisfied with their living
        situations. Focus group participants were generally united in the conclusion
        that the LHWP had led to a reduction in grazing and other natural resource
        availability.

    (7) Project-affected persons were, in a number of cases, dissatisfied with the
        compensation provided to people and some of them were confused about the
        procedures, rates, and timing of compensation payments.

2.1. A cost/benefit analysis of the Lesotho Highlands Water Project is implicit in the
     Contract 1204 study. Benefits were not spelled out as explicitly as the costs,
     though the positive impacts of the LHWP are alluded to in various parts of the
     report. Benefits included the increased availability of water to South Africa and
     hydroelectric power to Lesotho, the royalties paid to the government of Lesotho
     for the water, amounting to US$60 million annually at 1983 prices, equivalent to
     14 per cent of Lesotho’s Gross Domestic Product and 28 per cent of the Lesotho
     government’s annual revenues (HSRC 1997:2), expanded infrastructure,
     including roads, power lines, and tunnels, increased services in the mountains
     and foothills, extension advice to project-affected people and host populations,
     and the provision of compensation to people for assets and resources that were
     lost as a result of the project. Costs of the project ranged from social, economic,
     and environmental impacts on the people and habitats of the highlands, health
     and nutrition effects, disruption of communication systems in the river valleys,
     expropriation of household and community assets, relocation of households in
     the river basins, resettlement of households to the foothills and lowlands,
     environmental degradation due to construction activities, and changes in

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     demographic and socioeconomic patterns, some of them leading to reduced
     social integration. In line with the 1986 Treaty between the government of
     Lesotho and the government of South Africa, Article 7, Sub-Section 18 requires
     the Lesotho Highlands Development Authority to ‘effect all measures to ensure
     that members of local communities in the Kingdom of Lesotho who will be
     affected by flooding, construction works, or other similar project related causes
     will be enabled to maintain a standard of living not inferior to that obtaining at
     the time of first disturbance.’ The Legal Order that created the LHDA in 1986
     reaffirmed this position.

2.2. The LHDA is required by the Treaty and Order to ensure that households
     affected by the project are not worse off after the project’s completion than they
     were at the time of the first disturbance. In addition, Environmental Action Plans
     for the project were aimed at mitigating environmental impacts of the project and
     ensuring that rural development activities were in place to enhance the
     socioeconomic well-being of people in the project areas. Baseline data were
     collected on the socio-economics, incomes, and health of households in the
     project areas, both in Katse-HaLejone-’Muela (Phase 1A) and Mohale (Phase
     1B). There were also other surveys undertaken, including the Resettlement and
     Development Study (RDS) in 1995-96 in the Phase 1B area. The Contract 1204
     study built on these studies. An aim of 1204 was to conduct a series of surveys
     to determine, among other objectives, ‘whether or not the communities in the
     project areas have actually suffered deterioration in their standard of living and
     whether the compensation payments have succeeded in redressing their standard
     of living’ (HSRC 2007:7). The 1204 study also investigated the mitigation
     measures implemented by LHDA, including compensation, and was geared
     toward determining how such measures enabled households to cope with losses
     that were incurred as a result of the LHWP. Both quantitative and qualitative
     surveys were undertaken, some of them using participatory appraisal techniques.

2.3. The 1204 study drew on the livelihoods approach in order to understand Lesotho
     households. One useful definition of a livelihood, provided by the Department
     for International Development (DFID 2001) is ‘A livelihood comprises the
     capabilities, assets (including both material and social resources) and activities
     required to make a living.’ An emphasis on livelihoods means that not only on
     economic or financial resources taken into consideration (e.g. income) but also
     human capital (knowledge, skills, labor), physical assets (roads, bridges, water
     infrastructure), natural assets (land, water, vegetation, fish), and social assets
     (kinship linkages, social networks, community institutions (HSRC 2007:10).
     The livelihoods approach has utility as well in its emphasis on vulnerability (e.g.
     to climatic, economic, or demographic shocks), interdependence (e.g. the ways in
     which strategies within and between households are affected by and impact one
     another), and diversity (the fact that many households pursue diverse social and
     economic strategies). The value of this approach is that it does not depend solely
     on one or a few household activities in determining socioeconomic status; for
     example, not only is agriculture considered, but so, too, are remittances from
     mine labor, beer-brewing, working for other people (e.g. weeding, harvesting),
     hiring out livestock, catching and selling fish, taking part in public works
     activities (fato-fato), and transfers (gifts from relatives, friends, and others). The
     contributions of wage labor to incomes in the highlands area, for example, have

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     fallen significantly, as has the degree of dependence on agricultural production.
     Informal sector activity has increased substantially (e.g. an expansion in piece
     work for other people). Stock theft has had significant impact on the well-being
     of some households in the project area, something that has had ramifying effects
     not just on incomes but also on the availability of important livestock products
     (milk, meat) and energy (dung for fuel, transport).

2.4. The Lesotho Highlands Development Authority provided compensation for
     people who lost assets to the project and at the same time planned and
     implemented development projects (for example, agriculture and range
     management projects) and assisted project-affected households with skills
     training (e.g. in sewing, brick-making, and leather work). In a number of cases,
     households used compensation payments to purchase items that they hoped
     would generate income, two examples being taxis and malaene (rental property).
     Some households chose to expend their funds on capital products such as
     bicycles and houses. In a number of cases in the foothills, resettled households
     used compensation funds to purchase tractors or land. Some households
     experienced substantial social and demographic changes over time, including the
     death of productive members or the decision of members to move to other
     places. There is evidence to suggest that the number of female-headed and child-
     headed households increased in the Mohale area and in the foothills and
     lowlands where households from the Mohale basin were resettled.

2.5. The Contract 1204 survey assessed a total of 2,406 households in some 120
     villages in the Mohale area in three survey areas (or strata): 1,872 in areas
     adjacent to the Mohale Dam, 248 resettled households, and 286 households
     upstream from the Mohale Dam. The three survey areas had households that
     were affected differentially by the LHWP Phase 1B. Of those households
     adjacent to the Mohale Dam, 660 (35%) were not directly affected, 780 (42%)
     were moderately affected, and 432 (23%) were severely affected. Of the
     resettled households (those that moved to the foothills and lowlands, none was
     not directly affected, 20 (8%) were moderately affected, and 228 (92%) were
     severely affected. Of the households upstream from Mohale Dam, 225 (79%)
     were not directly affected, 57 (20%) were moderately affected, and 4 (1%) were
     severely affected (SRC 2007:81, Table 4.2). One of a number of interesting
     observations is that the percentage of households now headed by women was
     42% in those cases not directly affected by the dam and 47% in households that
     were severely affected by the dam. Even larger differences are seen in the three
     strata: women-headed households figure at 45% in areas adjacent to the Mohale
     Dam as opposed to 35% of those households upstream of the dam. Taken
     together, these figures suggest that household dynamics were affected
     significantly by the project, with changes in access to transportation networks
     and markets and shifts in income and employment situations bringing about
     changes in the gender composition of households (HSRC 2007:97). Another
     observation was that the number of orphans was on the increase, as mortality
     rates increased in people of reproductive age; this meant that the burden for care-
     giving of family members and others increased, something a pattern that was
     particularly pronounced among poor households (HSRC 2007:99).



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2.6. With respect of the socioeconomic status and livelihoods of households affected
     by the Mohale Dam, Contract 1204 examined the issue of whether households
     affected by the dam and Phase 1B infrastructure projects were better off, worse
     off, or the same as they were at the time of first disturbance. While admitting the
     limitations in the data and the approaches of the various surveys and
     investigations that focused on this issue, including those of the Contract 1204
     surveys themselves, the study concluded that compensation from LHDA was a
     significant source of income for severely affected and moderately affected
     households. Eighteen per cent of the income of those households that were
     severely affected derived from remittances, as opposed to those households not
     affected by the dam, where remittances made up 44% of the total income.
     Livestock husbandry is another important source of income and subsistence for
     those households upstream of the Mohale Dam, something that is very different
     for resettled households, where husbandry returns were M73 per annum. It is
     interesting to note that none of the resettled households claimed to have obtained
     income from businesses, in spite of the fact that a number of these households
     had invested in taxis, tractors, and rental property (malaene) (HSRC 2007:138,
     Table 6.13). As the Contract 1204 Study concludes, ‘Once compensation by the
     LHDA is included, it is apparent that those households severely affected by the
     dam are, on the whole, financially better off than those less affected.” This
     conclusion does not, however, address fully the issue of whether households
     affected by the project are better off, worse off, or the same as they were before
     the project began.

2.7. It is apparent from the findings of the Contract 1204 study that income from
    traditional sources (e.g. agriculture) has dropped markedly. This drop has been
    offset partly by compensation provided by LHDA. It is suggested in the study
    that compensation may have contributed to an undermining of the role of
    agricultural production in project-affected households. The study also addressed
    the issue of the ‘dependency syndrome’ that compensation helped create among
    the project-affected people in the Phase 1B area. Efforts were made by LHDA
    and various projects (e.g. the Integrated Catchment Management Project,
    Contract 1044) as well as by government ministries (e.g. Agriculture) to provide
    development assistance to project affected people in order to help promote
    household and community self-sufficiency. The question remains, has the
    combination of compensation and development initiatives resulted in project-
    affected households being better off, worse off, or the same as they were before
    the time of first disturbance.

2.8. It is evident from the Contract 1012 study that Phase 1B of the Lesotho
    Highlands Water Project has had differential effects on households in the project
    area. Some households are better off, at least in income terms, than they were
    before the project began (e.g. those households that were severely affected, some
    of which include the resettled households). Others are worse off. Some
    households slipped into poverty as a result of a combination of project impacts
    and larger socioeconomic trends in Lesotho and the Southern African region and
    of internal household dynamics (e.g. loss of productive members to disease or
    accidents). The data also indicate that some households in the study areas
    remain the same or have undergone only slight change over the life of the
    project. It is clear that households responded to the project and to the mitigation

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     measures that were attempted by the project authorities in a variety of ways.
     Some of them used their cash compensation in productive pursuits (for example,
     through using cash to rent land to cultivate, as seen, for example, in some of the
     resettled households in the foothills or the construction of rental properties by
     households that moved to Maseru). Others expended their compensation funds
     in less productive ways (some household heads, for example, purchased luxury
     goods for themselves). The Contract 1204 study makes the following important
     point about compensation inputs by LHDA: ‘However, despite the ‘average’
     income level attained by ‘affected’ households which indicate that LHDA has
     fulfilled its obligation in terms of Treaty obligations, the unequal distribution of
     income among households is a cause for concern’ (HSRC 2007:149). The range
     of variation in the well-being of project-affected households reinforces the point
     that there is significant diversity in the impacts of the project. Even those
     households that may appear better off in terms of annual income often have to
     expend greater amounts of their income on items such as processed food, fuel,
     and medicines. The overall conclusion of the Contract 1204 study, that
     compensation has largely offset the costs of the project on individual households
     may well be true in some cases but certainly not in others. As the HSRC
     (2007:150) points out, in order to more fully understand livelihood dynamics, it
     may be necessary to supplement large-scale surveys of this type with detailed
     case studies of selected households.

1.2. It is important to note that this review is related to only part of the Contract 1204
     study, as the full range of reports were not available to the POE at the time of the
     mission in May, 2007. The POE, LHDA, and the LHWC did have a
     teleconference with the Contract 1204 group (Human Sciences Research
     Council) in which they assured the LHDA that they would have the balance of
     the reports available by 30 June.

Reference

Department for International Development (2001) Sustainable Livelihoods Guidance
Sheets. London: DFID.




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Appendix 3      Public health comment on Contract 1204 reports


        LHDA Contract 1204 (Population & Epidemiology Impact Study) LHDA
        Contract 1204 (Population & Epidemiology Impact Study)

The assignment was to critically review and comment on the C1204 submitted
reports and progress made towards completion of the study

LHDA Contract 1204 (Population & Epidemiology Impact Study)

A thorough review of the documents that were available was undertaken with the
objective of assessing the preliminary findings based on the admissibility of the
methodologies used in data collection and analysis as well as the interpretation of the
findings and the readability of the reports.
The Social and Economic and Epidemiological study implemented as Contract 1204 was still
not completed nine months after the initial stated completion date of August 2006. A four
months extension to complete the remaining work was requested by the consultant and
granted by LHDA authorities and has since been extended to June 15th 2007 at the request of
the consultant.

The deliverables that were expected from the consultant are:
   • Inception Report which was done and submitted
   • The technical reports on the following thematic areas
            o Volume 1: Summary of the Study
            o Volume 2: Social Economic and Related Issues in both Phase 1A and 1B
            o Volume 3: Public Health and Nutrition Findings in both Phase 1A & B
            o Volume 4: Community Services
            o Down Stream Reports and Draft Socio Economic and Health Monitoring
                protocols and costed implementation plan.

Currently the reports available are mainly on the analysis of the phase 1B data (Mohale
cluster) and do not have the epidemiology section. The findings on the phase 1A and the
down stream study have not been submitted yet. The consultant has however reassured
LHDA that he will be able to deliver all the remaining work by June 15th 2007.

The quality of the reports submitted so far is varied in quality and structure. There is too much
emphasis on the background information and the analysis has tended to be mainly binominal
without statements of the level of confidence assigned to the analysis tables. The reports are
not incisive and have tended not to contrast the findings with national figures so as to give an
indication of the impact of local factors on the observed phenomena.

LHDA should ensure that the consultant delivers on the schedule and measures have to be
undertaken to ensure that all the raw data and any information that was collected should be
deposited in LHDA.

General observations

The reports are still in the draft form and require extensive structuring and reformatting based
on an agreed analysis template to be defined in the TOR. Some of the chapters are still not
completed. So far the methodologies used in the collection of data, the study design appear to
have followed generally acceptable principles and standards of survey implementation. It is
not clear what measures were undertaken to ensure quality and verifiable data as these have
not been stated.



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The Socio Economic and related findings in Phase 1B is generally complete and well
formatted as compared to the other two reports. The report is appropriately structured.
However the binominal tables used in the analysis has weakened the attempt to determine the
impacts of individual variables on the observed responses.
    • Analysis of data appear to be limited to a simplistic binominal analysis tables and
        there was little attempt to carry out multivariate analysis to determine impact of
        various variables on the observed variable.
    • The types of questions used appear to prompt respondents in a certain way and we
        could not see any measures undertaken except the attempts made in the analysis.

The other reports were found to require a significant level of formatting and structuring
including the addition of the missing chapters before they could be considered as complete.

Epidemiology

Some brief information on the epidemiological findings in both phase 1A & B was
submitted late in the course of writing the report as an analysis sheet rather than a
report. The preliminary findings indicate that the prevalence of HIV to be similar to
the national average with Women having a six percentage difference higher than the
males. In addition there was a worrying trend where young women had a higher
prevalence than their male of similar age. The figures also indicate that behavioural
trends consistent with communities not fully educated on HIV and AIDS. However,
the significance of the findings will need to be validated in the final report by the
determination of the level of significance accorded to the findings.

Recommendations

POE recommend that LHDA should pressurize the consultant to complete the work
on the agreed date, failure to which measures should be undertaken to communicate
with the HSRC high authorities to put more staff to complete the study.

Other measures that need to be undertaken will be to collect all the data and
uncompleted reports and find a technical team to complete the report writing. The cost
of such an exercise would have to be realized from the remaining fees that are still
being with held by LHDA.

Should the consultant be able to complete and submit the remaining reports, he should
be requested to make a presentation of the work done as well as the results in a two
day work shop to an LHDA and other appointed peer review technical team to assist
in the finalization of the reports before they are disseminated to stakeholders.
For this purpose LHDA will have to identify appropriately experienced peer reviewers
to assist in the review of the reports.

Public Health

Public Health programs in LHDA have been declining since the change in operational
policy that emphasizes the centrality of socio economic interventions at the Field
Office level. The decision to phase out public health unit and its merging into the
Monitoring Branch where the priorities are towards bio physical monitoring has
further eroded the impetus to address public health issues more effectively.


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Furthermore the absence of the institutional policy on public health has not provided a
platform to further develop public health interventions in LHDA.

There has been some limited activities related to increasing the participation of youths
in HIV/AIDS by the creation of the Youth Centre in Katse which has assisted in the
training of peer counsellors and so far 110 youths in both areas have been trained and
capacitated to participate in youth education on the HIV/AIDS in schools and out of
school.

The efforts to develop partnerships with other partners in managing HIV and AIDS
have been limited by the slowness in authorizing a study to determine needs and gaps
before a joint strategic planning workshop to determine strategic areas of cooperation.

LHDA support to development of capacity to manage HIV/AIDS in the highlands can
only be realized if a definitive policy on public health and especially HIV/AIDS is
developed.

The decision made by the authorities to phase out public health posts at the central
level and the plan to utilize external consultants will make it difficult for LHDA to
identify areas that need public health intervention. In order to guide public health
there is a need to have continuity and an occasional consultant will certainly not be
able to keep LHDA public health activities on track. A review of the decision may
need to be undertaken given the fact that public health is a long term concern for
LHDA social economic support to the communities in the high lands.

Recommendations

LHDA needs to develop a policy on public health that will enable the organization to
rationalize its interventions and provide for appropriate organizational arrangements
to support public health activities.

The policy needs to be developed as soon as possible before the departure of the
Public Health Specialist at the end of June. Technical assistance can be sought from
POE to workshop this in a one or two day session.
Partnerships should be strengthened in the management of HIV/AIDS in the LHWP
areas given the high prevalence levels and nature of the drivers of the epidemic that
indicate the need to increase community education on HIV/AIDS. As LHDA is
supporting several socio development programs in the areas, HIV/AIDS education
should be mainstreamed in these activities at little cost to the organization.

We recommend that arrangements be made for review of public health issues in
LHDA at six monthly intervals through situational analysis workshops attended by
Field Office Managers and social development personnel.

A public health monitoring framework be developed to guide the Field Office
Branches to regularly collect information on critical epidemiological and public health
data for review in the workshops.




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Appendix 4      The viability of the Lesotho Biodiversity Trust

It would appear that some people at the LHDA have forgotten the history of the
Maloti Minnow and the Lesotho Biodiversity Trust, while others are new to the
organization and lack the institutional memory. The Ministry of Tourism,
Environment and Conservation is seriously thinking about introducing trout into
Maloti Minnow habitat, and the Permanent Secretary has asked for information of the
ecological and environmental value of the minnow. This situation is fraught with
danger of international condemnation from the biodiversity community. The LBT
needs to have a strong and rational voice in defence of the Maloti Minnow.

It is therefore appropriate, at a time when the PoE has been asked to review and
comment on the viability of the LBT, to remind those who read this report that the
LHDA has a Policy on the Maloti Minnow that has been widely publicised and has
been in the public domain for some five years. The Policy and associated
documentation is attached to this appendix for the convenience of readers. Excerpts
are reproduced below to remind LHDA of its commitment to the Maloti Minnow,
entrenched in its Policy. It is also worth mentioning that no fisheries or aquaculture
initiatives in the waters of Mohale will be acceptable to donors or the international
scientific community until the Policy is implemented, and that the funding of Phase 2
of the LHWP will be vulnerable to negative reaction and active opposition if LHDA
does not implement its own Maloti Minnow Policy in Phase 1.

1. Policy Statement

The Lesotho Highlands Development Authority, as the implementing agent of the
LHWP, will make such reasonable interventions as are necessary to conserve the relict
population of the Maloti Minnow (Pseudobarbus quathlambae) in the Mohale catchment.

2. Policy Objective

1.0.    The overall objective is to conserve a viable in situ population of the Maloti Minnow
        in the Mohale catchment, coupled with the establishment of several ex situ
        populations as an additional safeguard for the survival of the species.

4. Maloti Minnow Action Plan

4.1. Provide funding for ongoing work on the Maloti Minnow, including translocation,
monitoring and conservation planning through LHDA Project 1041, and ensure continuity
and overlap with new initiatives described below.

4.2. Establish the Lesotho Biodiversity Trust that shall as its first priority investigate the
feasibility of an in situ sanctuary in the Senqunyane river, with the possibility of a second
sanctuary in the Bokong river. These sanctuaries will require protection from invasive fish
species, by whatever means are best applied.

A number of Trustees will be appointed in addition to the original Donor and Trustee.
Trustees will be selected on the basis of their good standing in society, their credentials and
integrity, and for their specialised skills in the financial, business, technical and management
areas. Strict codes of conduct and governance will be required of Trustees, and impeccable
financial management will be ensured through the appointment of independent auditors. A
financial advisory committee will be appointed, comprising both Trustees and independent


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experts, to manage the finances of the Trust for growth, and to seek donations, grants and
other income to enhance the operational capacity of the Trust.

The Trustees will elect a Management Committee, with a Chairperson and Honorary
Treasurer, to manage the day to day affairs of the Trust. The Trustees will appoint a Scientific
Advisory Committee to provide input on technical matters, and to screen projects before any
funds are committed. The Trustees will have the discretion to appoint staff, consultants and
project executants as they see fit.

What went wrong?

At the time of writing this towards the end of May 2007, the LBT is in a rather
disorganised state. No audited accounts have yet been produced, placing the Trust in
breach of the Lesotho Deeds Registry Act (1967). Turnover of Trustees has been high,
and current incumbents apparently have difficulties in attending meetings. As a last
resort a sitting fee has been approved for future meetings of Trustees. No additional
funds have been raised, and it is unlikely that any donor would consider the LBT in its
current state as a worthy recipient of corporate generosity.

Before addressing more negative aspects, let us consider the positives. The LBT has
initiated the Maloti Minnow project, established a Project Steering Committee, and
appointed a Conservation Officer who has done excellent work in monitoring the
Maloti Minnow and the fish colonisation of the Mohale Dam. He has established a
base at Mohale and has competently managed the vehicle, boats, gill nets, and electro-
fishing equipment for sampling in his care, and he has travelled into remote areas in
execution of his responsibilities. His progress and achievements have been
documented in several good reports. It is therefore of great concern to find that the
Conservation Officer is demoralised, frustrated and ready to quit. This would be a
blow to the LBT’s only success story.

Historically, successful NGOs were set up by passionate individuals or a small group
of passionate friends, totally dedicated to a cause. This was the case with Greenpeace,
Wilderness Leadership School, WWF International, Endangered Wildlife Trust, and
many others.

The LBT was “invented” as a solution to the Maloti Minnow problem, funds were
allocated, and then “passionate” individuals were sought. The criteria for potential
LBT Trustees were preconceived, and their standing in society was considered
important in order to give the LBT credibility. However, several of the Trustees found
they were simply too busy to give their time to the running of the LBT.

The close relationship between the LBT and the LHDA is also paradoxical. The
LHDA is the Founding Donor, and retains control over the LBT through the Deed of
Trust. In the early years it was deemed prudent for LHDA to provide goods and
services free of charge to the LBT in order to assist the latter with its cash flow. The
institutional environment of LHDA resulted in the LBT being perceived by most
LHDA staff as part of the larger organization. When the Conservation Officer was
appointed his reporting lines were to LHDA Managers instead of to the Board of
Trustees. Such Managers did not, and some still do not, understand the reason for
running the LBT as a NGO. Procurement of materials and payment of the CO’s salary
were inexcusably delayed. The CO was treated as a junior member of the LHDA staff

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and assigned tasks unrelated to the critical issue of addressing threats to the Maloti
Minnow. Some of these issues were successfully addressed in 2006, but it appears that
problems are again arising.

Management of the Board of Trustees has been problematic. During the first term of
office by the former Chief Executive, spirits ran high for a while and the Trustees
were quite enthusiastic. As he came under increasing pressure, so the CE’s time for
the LBT evaporated and things were allowed to slip.

The LBT Strategic Plan (November 2004) and the LBT Fundraising Strategies &
Options (May 2004) were never implemented. The employment of the CO in 2005
and the prolonged process of getting him equipped and operational in the field took
far longer than anticipated. The valuable equipment from the LHDA Katse Fisheries
Project, intended for use by the LBT Maloti Minnow Project, was stolen from the
project offices at Ha Lejone. Monitoring of fish in Mohale Dam was seriously
delayed, and it is only due to good fortune that the extinction of the Maloti Minnow in
the Mohale catchment has not yet been initiated. However, yellowfish are steadily
multiplying in the reservoir, and the threat of catastrophe is always present – this will
be when the first trout are detected in Mohale waters. It could happen tomorrow. The
construction of a barrier on the Senqunyane is becoming more important with each
passing day. Given that a full EIA procedure will be required by the National
Environmental Secretariat, time is not on our side.

The current Acting Chief Executive has many more important responsibilities than to
worry about the day to day running of the LBT, so it would be unfair to blame him for
the state of affairs in which we find the LBT today. After all, he is in a situation not of
his own making, and the LBT Trust Deed commits him to lead the LBT by default, by
virtue of his position within LHDA. The Trustees are not taking their fiduciary duties
seriously, they are not making the time to attend meetings, and above all, they are not
recognizing that the organization for which they are responsible is not functioning
properly, and proactively doing something about it.

In its October 2006 report the PoE recommended that the LBT be given until June
2007 to improve its performance. That suggestion was based on the notion that the
LBT would appoint a consultant to help with institutional and fundraising plans from
1 January 2007. In fact the appointment was only made effective from 1 May, so it
seems more reasonable to expect that the LBT should be functioning more effectively
by the end of 2007.

The role of the consultant is defined as follows in his contract:

SCOPE OF SERVICE

The Contractor serves as a Consultant to the Lesotho Biodiversity Trust (LBT):

2.1 To establish and advise on a Fund Raising Plan for the LBT and raise funds for
the LBT.

2.2 To finalise a Strategic Plan for the LBT


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2.3 To advise on and establish interim institutional arrangements for the LBT

2.4 To propose appropriate institutional arrangements for the home of the Katse
Botanical Garden and the possible role of the LBT in such institutional arrangements

A way forward

Following are a few suggestions to address some of the current defects in the LBT.

1. Compliance with Deeds Registry Act (1967)

There is a window of opportunity for the LBT to have its accounts audited at no
charge when the LHDA audit is done in June 2007. The necessary letters of
authorization must be provided by the LBT Chairperson. This does not require a full
meeting of Trustees, and approval by the LBT Management Committee would suffice.
At the same time, a Trustee’s Report covering activities to the end of June 2007 is
required. If Trustees are unable to attend meetings, a “Round Robin” mechanism for
consensus can be used. A resolution is circulated to all Trustees by e-mail or fax, and
they are requested to affix their signature for approval or rejection to the document
and return it within a stated time period. Non-return of the signed document within the
stipulated time is taken as approval, and the matter will be carried forward on this
basis. It is recommended that LBT adopt this method of consensus to resolve issues
without having to call meetings of the Trustees.

2. Compliance with LHDA and Lesotho financial year-end

For unknown reasons the financial year-end of the LBT as enshrined in the Deed of
Trust is 31 December. The LHDA has the same financial year end as the Lesotho tax
year-end: 31 March. It would make sense to align the LBT year-end with that of
LHDA, and to change the Deed of Trust accordingly.

3. Review composition of LBT Trustees

The following extracts from the Deed of Trust are relevant here:

6.      TRUSTEES



6.1     Number

        The Trust will be administered by six (6) trustees, three (3) representing the

        Kingdom of Lesotho and three (3) representing the Republic of South Africa

        and an alternate who will be appointed by the Founder and hold office for a

        period of three years, the first being: -




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6.2       Rotation of Trustees



          After the initial three years, the Trustees will, with the approval of the

          Founder, implement a mechanism to rotate Trustees to ensure that new

          Trustees are recruited on a regular basis, while maintaining continuity in the

          running of the trust.



Three years have passed since the registration of the Trust, and now is an opportune
time to ask for the total commitment of the existing Trustees to a further term of
office during which they will make a much greater contribution than in the past, or
request their resignation so that others may offer their service.

It is also recommended that the Trustees be requested to debate the merits of clause
6.1 – is it of real benefit to retain the bilateral representation of Trustees from Lesotho
and South Africa? Is a Trustee body of six persons adequate? How do we appoint
Trustees who are passionate about the LBT? Would it not be better to appoint
“passionate people” as Trustees, irrespective of their perceived standing in society or
their country of citizenship?

4. Call a meeting of the LBT Trustees in June 2007

The consultant will be in Maseru on Thursday 28 June to make a presentation to the
LHDA Board on the LBT and the Maloti Minnow. A meeting of the Trustees should
be called for 27 or 29 June at which the consultant can make input. The agenda for the
meeting must include the following items:

      •   Compliance with Deeds Registry Act in respect of audited financial statements
      •   Report of Trustees to 30 June 2007
      •   Compliance with LHDA and Lesotho financial year-end
      •   Composition of LBT in respect of number and rotation of Trustees
      •   Resolutions on the above for submission to the Registrar of Trusts
      •   Board decisions on Maloti Minnow project
      •   Board decisions on institutional arrangements
      •   Any other business

The output from this meeting will comprise the audited financial statements, the
report of the Trustees, and changes to the Deed of Trust, for submission to the
Registrar of Deeds.

5. Review the institutional arrangements of the LBT

At the meeting of Trustees in June, a decision should be made on the role of the Chief
Executive of LHDA as Chairperson of the LBT. There is no reason why the CE
should not delegate this function to someone who has the time to manage the Trustees
and ensure that the day to day operations of the LBT are executed.

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6. Other activities

The activities of the consultant as listed in the Scope of Service will result in further
interventions that should improve the organisational strength of the LBT. The revised
strategic plan and fundraising plan will be tabled at the June meeting of Trustees.




                               Lesotho Highlands Development Authority

                              Maloti Minnow Policy & Action Plan (V4)


3.     Introduction

1.0.      The Maloti Minnow (Pseudobarbus quathlambae) is endemic to Lesotho, and is regarded as
          being critically endangered. The decline of this species began over 70 years ago, when trout
          were introduced into Lesotho’s rivers to provide sport angling. The predatory trout have
          subsequently eradicated the minnow as they spread into more of its habitat, and it is estimated
          that the species has lost 90% of its original numbers.
2.0.      Genetic studies have revealed two distinct groups within the Maloti Minnow population,
          known as ESUs (Evolutionary Significant Units). One comprises the “Mohale ESU” from the
          Senqunyane, Bokong and Jordane rivers, while the rest fall into the “Eastern ESU”. The
          Mohale ESU comprises 77% of the total extent of occurrence of the Maloti Minnow.
3.0.      The Mohale Dam development of the Lesotho Highlands Water Project (LHWP) will affect
          97% of the Mohale ESU (if there is no mitigation), mainly resulting from the inevitable
          introduction of trout and yellowfish into the system.
4.0.      The dam will inundate approximately 58 km river length of minnow habitat in the Senqunyane
          catchment, possibly containing 7000 fish. Without intervention, it has been estimated that
          more than 80% of the Mohale ESU could be lost within the next ten years.
5.0.      The LHDA has already invested significant funds on studies to determine the distribution,
          status and conservation measures required to prevent the extinction of the minnow.
6.0.      The Government of Lesotho is a signatory to the Convention on Biological Diversity (CBD),
          and is mindful of the international concerns of the biodiversity community regarding the
          extinction of species.

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7.0.       As an agency of the Government of Lesotho, the LHDA is expected to take reasonable steps
           to conserve the relict Maloti Minnow population in the Mohale project area.

4.     Policy Statement

The Lesotho Highlands Development Authority, as the implementing agent of the LHWP, will
make such reasonable interventions as are necessary to conserve the relict population of the
Maloti Minnow (Pseudobarbus quathlambae) in the Mohale catchment.

5.     Policy Objective

1.0.       The overall objective is to conserve a viable in situ population of the Maloti Minnow in the
           Mohale catchment, coupled with the establishment of several ex situ populations as an
           additional safeguard for the survival of the species.


2.0.       The specific objectives shall be:

•      Establishment of an in situ sanctuary in the Senqunyane river, and possibly another in the Bokong
       river, that shall be protected from invasive fish species, and gazetted as “protected natural
       environments” (Lesotho Environment Act 2001, section 73(1)).
•      Establishment of an ex situ sanctuary in the Jordane river above the Pampiri waterfall.
•      Establishment of ex situ populations in the Makhaleng, Quthing and Maletsunyane rivers.
•      Monitoring of in situ and ex situ populations.
•      Building local capacity for long-term conservation of the species.




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4. Maloti Minnow Action Plan

4.1. Provide funding for ongoing work on the Maloti Minnow, including translocation, monitoring
and conservation planning through LHDA Project 1041, and ensure continuity and overlap with
new initiatives described below.

Project 1041 has established an extremely sound basis for decision-making on the conservation of the
Maloti Minnow. It is vitally important that this work be continued, and that the services of the Maloti
Minnow Specialist, Dr Johan Rall, are available to LHDA to provide guidance and direction to the
future conservation action plan to manage the species as the Mohale reservoir is impounded.

4.2. Establish the Lesotho Biodiversity Trust that shall as its first priority investigate the feasibility of
an in situ sanctuary in the Senqunyane river, with the possibility of a second sanctuary in the
Bokong river. These sanctuaries will require protection from invasive fish species, by whatever
means are best applied.

An amount of approximately 8 million Maloti will be contributed by LHDA to provide the seed money
for the establishment of the Lesotho Biodiversity Trust (Appendix 1).

Specialist studies have recommended that the core population of the minnow in the Senqunyane and
Bokong rivers be conserved in sanctuaries, protected from the introduction of predatory fish through
the construction of suitable barriers. A number of engineering studies have been carried out, and the
feasibility established of constructing barriers such as a dam on the Bokong, and an artificial waterfall
on the Senqunyane river.

Such drastic interventions in the rivers for the protection of a single species cannot be taken lightly.
Many other species may be adversely affected by the construction of artificial barriers. Adopting the
precautionary principle, it will in any case be mandatory to conduct an Environmental Impact
Assessment before contemplating the construction of barriers on the rivers. There may be alternatives
to barriers to keep predatory fish out of the Senqunyane and Bokong rivers.

An analytical decision-making procedure, such as the Population and Habitat Viability Analysis
(PHVA), developed by the Conservation Breeding Specialist Group (CBSG) of the IUCN (World
Conservation Union), would be a useful exercise to perform before embarking on major engineering
works in the rivers to conserve the Maloti Minnow. The proposed Lesotho Biodiversity Trust will be
the best vehicle to drive such activities.

The Lesotho Biodiversity Trust will also negotiate with the Lesotho Environment Authority to have
designated reaches of the Senqunyane and Bokong rivers gazetted as a “protected natural
environments”, with specific legislation put in place to make the malicious introduction of predatory
fish into the river a criminal offence.

4.3. Establish an ex situ sanctuary in the Jordane river above the Pampiri waterfall.

As part of a translocation exercise that has already commenced, 300 fish have been captured in the
Jordane river, and transferred to the reaches above the Pampiri waterfall, which constitutes a natural
barrier to predatory fish.

4.4. Establish ex situ populations in the Makhaleng, Quthing and Maletsunyane rivers.

As part of a translocation exercise that has already begun, 1,300 fish had been moved into the above
rivers by August 2002.




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PoE Report 46, May 2007 – LBT                                                               Page 51 of 62


4.5. Monitor in situ and ex situ populations.

As part of the ongoing project LHDA 1041, monitoring of all the populations will continue on a regular
and standardised basis. Depending on the outcome of monitoring, additional fish may be moved to ex
situ sanctuaries.

4.6. Build local capacity for long-term conservation of the species.

LHDA will, by formal resolution (Appendix 2), establish the Lesotho Biodiversity Trust (Appendix 1)
by registering a Deed of Trust (Appendix 3), to provide ongoing funding for conservation, research and
monitoring programmes on the Maloti Minnow, for the training of Basotho biodiversity scientists, and
for developing public education and awareness programmes and materials. The Trust will also actively
seek income from foundations and other donors to enhance its effectiveness.

Definitions

Biological diversity means the variability among living organisms from all sources including
terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they
are part; this includes diversity within species, between species and of ecosystems.

Habitat means the place or type of site where an organism or population naturally occurs

In situ conservation means the conservation of ecosystems and natural habits and the maintenance and
recovery of viable populations of species in their natural surroundings where they have developed their
distinctive properties.

Ex situ conservation means the conservation of components of biological diversity outside their natural
habitats.

                                                Appendix 1

                                    The Lesotho Biodiversity Trust

The LHDA will transfer and donate an amount of around M8 million for the establishment of the
Lesotho Biodiversity Trust in accordance with standard legal procedure for the creation of such a Trust
in Lesotho (see Appendix 3 for the wording of an illustrative Trust Deed).

A number of Trustees will be appointed in addition to the original Donor and Trustee. Trustees will be
selected on the basis of their good standing in society, their credentials and integrity, and for their
specialised skills in the financial, business, technical and management areas. Strict codes of conduct
and governance will be required of Trustees, and impeccable financial management will be ensured
through the appointment of independent auditors. A financial advisory committee will be appointed,
comprising both Trustees and independent experts, to manage the finances of the Trust for growth, and
to seek donations, grants and other income to enhance the operational capacity of the Trust.

The Trustees will elect a Management Committee, with a Chairperson and Honorary Treasurer, to
manage the day to day affairs of the Trust. The Trustees will appoint a Scientific Advisory Committee
to provide input on technical matters, and to screen projects before any funds are committed. The
Trustees will have the discretion to appoint staff, consultants and project executants as they see fit.

A Workshop will be organised by LHDA before the end of 2002, to obtain the best advice and inputs
for the wording of the Trust Deed, and to discuss the objectives of the Trust. As a starting point for the
Maloti Minnow Action Plan, the first priority and interventions of the Lesotho Biodiversity Trust will
be the following:

•   Organise a PHVA workshop on the Maloti Minnow to establish clear priorities for intervention,
    and the impacts of different interventions on the extinction prospects of the species.
•   If the construction of one or more barriers is identified as a priority intervention, commission a full
    EIA study to guide the activity.
•   Proceed with barrier construction, or other appropriate actions identified.

Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                                       Revision 2
PoE Report 46, May 2007 – LBT                                                           Page 52 of 62



•   Monitor the Maloti Minnow populations and provide annual progress reports.
•   Implement public education and awareness programmes around the minnow, and educate Basotho
    about biodiversity.

Once the Maloti Minnow is considered to be in a satisfactory state of conservation, the Trust will
commence with training programmes to build capacity in Lesotho in the field of biodiversity
conservation science. The Trust will hopefully develop into a viable and sustainable force for
biodiversity conservation in Lesotho, and in due course will be able to make interventions for other
endangered flora and fauna in the country, as well as being a public voice, an educator, and a watchdog
for endangered species in Lesotho.




Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                                   Revision 2
PoE Report 46, May 2007 – Maloti Minnow                                                     Page 53 of 62



Appendix 5                       Review and assessment of current Maloti Minnow Monitoring
reports

PoE had sight of the Conservation Officer’s Report No 2, December 2006, and his
Quarterly Report for January – March 2007. The following overview and graphic
material is from these reports, with some additional historical records. The status of
the Maloti Minnow in the Matsoku catchment has been deliberately omitted –
monitoring there has been done only as part of IFR monitoring, and this population is
irrelevant to the priority of conserving a representative population of the Mohale
population.

Monitoring of the Maloti Minnow in the Mohale Catchment

Sampling of the Senqunyane and Bokong rivers by electrofishing was carried out in
October and November 2006. Catches increased in linear fashion from the lower
reaches to the upper reaches, as depicted below:


                                   Distribution of the Maloti Minnow for the Bokong River

                           120                                                     107
   Number of individuals




                           100
                                                                                                      76
                           80                                                  y = 9.1714x + 24.733

                           60    52          48
                                                                       41
                           40
                                                          17
                           20

                            0
                                 B3          B4           B5           B6          B7                 B8
                                                               Sites




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PoE Report 46, May 2007 – Maloti Minnow                                                                              Page 54 of 62




                                 Dsitribution of the Maloti Minnow in the Senqunyane River

                           80                                                                     74
   Number of individuals   70                                                                                      63
                                                                                                               y = 5.4x + 10
                           60                                                      54                                           52
                           50                                         45
                                                            40
                           40
                                                                                                         29
                           30
                           20   13                    16
                                            11
                           10
                           0
                                S6          S7        S8    S9    S10            S11              S12    S13         S14       S15
                                                                           Sites




The Senqunyane has the lowest densities of Maloti Minnow in the Mohale catchment,
but holds about 53% of the whole population and is therefore significant in the
conservation of the species. This is the reason for the priority of a barrier on the
Senqunyane. The length frequency distribution for the different collections sites was
as follows:


                                     Length frequency distribution for the Maloti Minnow for
                                                         Bokong River

                           50
   Number of individuals




                           40
                           30
                           20
                           10
                            0
                                10     20        30    40   50   60         70          80        90    100    110     120      130
                                                                  Length group

                                                            B3   B4        B5    B6          B7    B8




Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                                                                  Revision 2
PoE Report 46, May 2007 – Maloti Minnow                                                     Page 55 of 62




                                Length frequency distribution for the Maloti Minnow for the
                                                   Senqunyane River

   Number of individuals   40
                           35
                           30
                           25
                           20
                           15
                           10
                            5
                            0
                                  10        20    30   40    50    60    70    80     90    100       110
                                                             Length groups

                                       S6    S7   S8   S9   S10   S11   S12   S13   S14    S15     S16



Monitoring minnow predators in Mohale Reservoir

Fixed gillnets were used to monitor the colonisation of the reservoir by potential
predators. The first Smallmouth Yellowfish appeared in December 2005. During 2006
the numbers increased; by October 2006 the first spawning fish were netted.

The PoE recommended that gillnetting of the population be intensified to put pressure
on the yellowfish. Sampling sites in the reservoir were accordingly reduced from 12
sampling sites per month to 6 sampling sites per month. Instead of setting gillnets on
12 sites every month, 6 sites were sampled/fished every day.

Netting site selection is based on the number of rivers that flow into the Mohale dam,
Senqunyane, Bokong, Jordan, Bokoaneng and Likalaneng, as well as the Mohale inlet
tunnel. Thus there is one netting site at the river/dam interface of each river. The
tunnel site is to determine the immigration rate from the Katse dam. The purpose of
putting gillnets at the river mouths is to minimize the movement of the Smallmouth
Yellowfish into the upstream reaches.

By December 2006, the breeding status of the yellowfish population was as depicted
below:




Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                                        Revision 2
PoE Report 46, May 2007 – Maloti Minnow                                                   Page 56 of 62




                      Gonad development for the smallmouth yellowfish in Mohale
                                                dam


                                                 22%               25%




                                                 30%               23%




                                  UNSEXED        RIPE   SPAWNING(RR)       SPENT (SP)




The length frequency distribution of Smallmouth Yellowish up to the end of March
2007 was as follows:

                       Length frequency dsitribution for samllmouth yellowfish in the Mohale dam


                 80

                 60
   individuals
    Number of




                 40

                 20

                 0
                        50-100       100-115       115-200    200-300       300-400      >400
                                                             Fork length

                                 Dec-05(n=0)       Jan-06 (n=0)     Feb-06 (n=0)        Mar-06(n=52)
                                 Apr-06 (n=64)     May-06(n=100)    Jun-06(n=4)         Jul-06(n=10)
                                 Aug-06(n=3)       Sep-06 (n=43)    Oct-06 (n=103)      Nov-06(n=0)
                                 Dec-06 (n=103)    Jan-07(n=89)     Feb-07(n=101        Mar-07(n=98


The monthly catch rate of yellowfish per unit effort during 2006 and the first three
months of 2007 was as follows:




Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                                     Revision 2
PoE Report 46, May 2007 – Maloti Minnow                                                               Page 57 of 62




                  25
                                                                                                                            2
                                                                                                                          28
                                                                                                                        .3
                  20
                                                                                                                  x   -1
                                                                                                               23
                                                                                                             09
                                                                                                          1.
                  15
                                                                                                     y=
  CPUE (Number/




                  10



                  5



                  0
                       D      J    F      M    A      M   J     J      A     S     O     N   D   J        F     M

                  -5
                                                                       Month




No Smallmouth Yellowfish (or any fish other than Maloti Minnow) were recorded
above the full supply level of the reservoir. The Conservation Officer is of the opinion
that as long as the Mohale dam is rich in nutrients, the yellowfish will stay in the body
of the reservoir for the meantime. As nutrients are depleted, they will enter the river
systems. The yellowfish is not a particularly fierce predator of Maloti Minnow, but
both species share the same habitat preferences and the larger yellowfish will out-
compete the minnows for resources.

Monitoring of transplanted Maloti Minnow populations

By August 2002, the following numbers of minnows had been moved to four
sanctuary rivers outside the Phase 1B project affected area:

                                       Sanctuary river                     No. Transplanted
                                        Maletsunyane                              628
                                          Quthing                                 418
                                         Makhaleng                                300
                                           Jordan                                365
                                              Total                              1711

After one hydrological cycle, sampling was carried out at the transplantation sites,
with the following results:

                           Sanctuary river                    Adults             Juveniles       Young of Yr
                            Maletsunyane                       36                   7               134
                              Quthing                           3                   1                2
                             Makhaleng                         21                   5                70
                               Jordan                          12
                                  Total                        72                   13                206



Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                                                     Revision 2
PoE Report 46, May 2007 – Maloti Minnow                                                        Page 58 of 62



The Conservation Officer conducted a third survey of the sanctuary rivers in
November 2006, with the following results:

                                            Length groups per recipient stream


                  160

                  140

                  120
    Length grou




                  100

                  80

                  60

                  40

                  20

                   0
                        Quthing             Maletsunyane               Jorodane         Makhaleng
                                                             Stream
                                  25   35     45   55   65     75     85   95     105




Except for the Quthing River, almost all the length groups of the Maloti Minnow were
present in the rivers sampled, showing a good spread of age classes, indicating a
healthy population structure. It seems therefore that the transplantation operation has
been 75% successful to date, which is five years after the fish were moved.

Discussion

This short overview and the data presented bear testimony to the commitment and
talent of the Lesotho Biodiversity Trust’s Conservation Officer. His dedication and
ability to conduct fieldwork in remote areas is exemplary. The difficulties of reaching
the Maloti Minnow transplantation areas are phenomenal, yet we have the data and
information about the survival of the translocated populations in easily understood
form.

The daily monitoring of gillnets set in the Mohale reservoir to track the invasion of
this water body by fish that have never been here before has required dedication far
beyond the call of duty. Working alone on a small boat out on the water, with the
threat of unexpected storms or unforeseen accidents that could prove life-threatening,
are a measure of the character and commitment of the Conservation Officer.

The PoE salutes his efforts and contribution. We hope that the LHDA and the LBT
will recognise his worth.




Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                                           Revision 2
PoE Report 46, May 2007 – Maloti Minnow                                    Page 59 of 62



Appendix 5      LHDA Comments on POE Report 46

OVERVIEW
Instream flow requirements
Page 2, last sentence under IFR Audit “dam equal instantaneous rate of inflow 1
to….” the 1 should be removed.

Page 3, 1st sentence ending “approved corporate action plan for the forthcoming year’.
Which is the forthcoming year, is it 2008/09?

Residual Resettlement & Community Complaints

Page 4, 1st sentence – Land Survey and Political Planning Office should be changed to
read ‘Land Survey and Physical Planning Office’.

Katse Pilot trout production

Page 4, 1st sentence – Replace the word “measure” with report or Revise sentence to
read: ‘Katse Fish Farm has been sampling and testing water in designated points
inline with the guidelines provided by LHDA, however, they have not been
consistently reporting on monthly basis, which rendered them in non-compliance’.


Introduction

Page 7, last sentence – Revise sentence to read – ‘POE thanks LHDA, consultants and
the Lesotho Highlands Water Commission (LHWC) for their help and hospitality’.

POE Report No. 46 Action Matrix.

1. Community assets cash payments & investments

        Page 8, 1st bullet on Recommended action – ‘please note that LHDA has
        included in its budget for 2007/08 funds for supplementary vehicles.’

        Page 8, 2nd bullet on Recommended action – ‘It is worth noting that LHWC
        has approved in principle the engagement of external service provider in May.
        Subject to negotiations, the external service provider will effectively be
        engaged in July 2007.’

        Page 8, 3rd bullet on Present situation – There are 23 cooperatives in Katse
        Local Catchment not 27.

        Page 8, 3rd bullet on Present situation – Bothe-Bothe should be changed to
        read – ‘Butha-Bothe’.

        Pages 8, 3rd bullet on Present situation – Other enterprises to be mentioned are
        ‘domestic toiletry products manufacturing, retailing, and fuelling stations’.



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PoE Report 46, May 2007 – Maloti Minnow                                     Page 60 of 62



        Page 8, 4th bullet on Present situation – this sentence is too brief; it does not
        extend to tell the nature of conflicts and what possible resolutions are being
        considered.

        Page 8, 5th bullet on Present situation – this sentence does not provide current
        information, what are the new developments because the M27 million was
        paid years back in 2003, and the second part of this sentence should read -
        …many of these LLEs have invested in unit trust accounts in Lesotho Bank
        and ‘one LLE has ventured into roller mill with an output of 500kg/hr’.

        Page 9, 2nd part of the sentence on Present situation - lacks time frame, when
        were they paid?

        Page 9, 2nd bullet on Present situation – this task has already been done; the
        consultant has issued a report regarding the application of the decision rule.

2. Household lump sum investment

        Page 9, second bullet on Present situation – please elaborate on the constraints,
        where exactly are these constraints?

        Page 10, last bullet on Present situation – what are the findings in relation to
        the system in place for reviewing business proposal?

3. Instream flow requirements

        Page 10, on Present situation, 3.1, IFR audit – Text that goes with the first
        recommendation is missing.

        Page 11. 4th bullet on Finish date – Please revise the date of 1st January 2007,
        because the POE visit took place in May 2007.

3.3 Biophysical Monitoring

        Page 14, last bullet on Present situation – the text is missing.

        Page 15, 1st bullet on Present situation – the text is missing.

3.4 IFR Procedures

        Page 15, the last two rows should be merged.

        Page 16, the last bullet on Present situation – the sentence starting “POE has
        marked up the draft to illustrate the kind of defects….” should be deleted. The
        sentence has no relevance.

4. LHDA Contract 1204

        Page 16, delete the bullet in the Recommended action column.


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PoE Report 46, May 2007 – Maloti Minnow                                     Page 61 of 62



        Page 17, 2nd bullet on Recommended action – the word “Sechaba” should be
        deleted since LHDA is not working with Sechaba Consultants, but SMEC.

        Page 18, last bullet on Present situation - PoE states: “Although the results
        point out to the generally positive impact of the project on the affected
        population, the reports are almost ambivalent & not specific in the
        quantification of the overall impact of the LHWP on the highland population
        (have they or have they not been significantly affected by the project). The
        study question is not to assess the "overall impact" of LHWP. We already
        know that LHWP has impacted negatively on the population hence the huge
        expenditure of EAP and compensation. The study question is whether these
        interventions have restored the socio-economic and health status of the
        communities to that before the project or better. It is an appraisal of the
        effectiveness of the impact mitigation.

        Page 18, last two rows have to be merged to the ones with related findings or
        the text has to be added on Present situation column.

        The PoE should address/have not addressed the issue of preparedness for a
        possible failure of HSRC to deliver quality reports and data analysis to the
        satisfaction of LHDA. This issue was raised and discussed in order for LHDA
        to be prepared to take swift remedial action.

5. Public Health.
5.1 HIV/AIDS partnerships

        Page 19, 1st bullet Present situation – The British Red Cross should be deleted
        and replaced with ADB through the HNRRIEP Project. Mohale youth training
        was supported by the Mohale Public Health budget.

5.2. HIV/AIDS Strategies

        Page 20, 1st bullet on Recommended action - The PoE recommendation that:
        "LHDA authorities need to review the decision not to have a public health
        officer to advice on public health issues" does not go far enough to express the
        need to develop a Public Health Policy for LHDA as the basis for such a
        review of that decision. This was the conclusion at the wrap-up discussions.


APPENDIX 2

Review of Contract 1204 Reporting

        Page 35, bullet 1.1, the sentence should read - ‘The main objectives of the
        project were (1) to access….’

        Page 35, bullet 1.3 (1), the sentence should be corrected to read – ‘those
        households that were moderately affected had an average income of M6804’
        and not M68-4.


Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                      Revision 2
PoE Report 46, May 2007 – Maloti Minnow                                  Page 62 of 62



GENERAL COMMENTS

        There are a number of gaps in the PoE Matrix either on Present situation
        and/or on Recommended action. These gaps need to be filled up.

        The PoE has to be specific on the Recommended action as to what exactly
        they want LHDA to do to address a specific issue. This will help to implement
        the recommendation and to monitor progress during implementation.

        In a number of instances, the PoE have documented outdated status under
        Present situation. It is important that the PoE document the updated
        current/present situation based on the ToRs and the various reports that are
        usually provided to them during their missions.

        On the Finish date column, the proposed dates to complete a specific
        recommendation on the POE Matrix are not realistic. We recommend that all
        the dates in the matrix be reviewed and extended/brought forward by at least
        one (1) month.




Prepared by Prof Hitchcock & Drs Inambao, Ledger & Mentis                   Revision 2

								
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