Pre-qualification and procurement of contracts to build the Polihali dam and Polihali transfer tunnel for the Lesotho Highlands Water Project Phase II in southern Africa is to restart. The process initiated in 2019 that identified a shortlist of six groups from 12 prequalified applicants for the transfer tunnel and eight for the 165m high Polihali dam and appurtenant works, was cancelled in July 2020 after institutions to secure funding for the works were engaged.

LHDA, the implementing and management authority of the Lesotho Highlands Water Project on behalf of the Government of Lesotho, cancelled the 2019 prequalifications and shortlist processes following extensive consultation with key project authorities and the lenders, after it was established that some of the lenders’ requirements had not been adequately addressed in the prequalification process. The principal lenders are the New Development Bank and the African Development Bank.

The 2019 process shortlisted groups from around the world that included contractors from South Africa, Lesotho, many from China and others from France, Italy, Brazil and Portugal. The shortlisted teams for the dam and the tunnel included groups led by Salini Impregilo of Italy, the lead of the group that is currently excavating and constructing the two diversion tunnels around the Polihali dam construction site on the Senqu River (Fig 1).

Masilo Phakoe, Public Relations Manager of LHDA explained that the Authority will start a new open tender process shortly for the two contracts of the main Phase II works. The call for new interested proponents in the two contracts will be advertised in local, regional and international media and on the websites of the LHDA and the project lenders. “All interested parties are invited and encouraged to participate,” said Phakoe.

LHDA is in the process of procuring professional services of an independent Probity Auditor to provide independent scrutiny of the Phase II contract procurement processes. "This is in line with the LHDA Procurement Policies that requires all procurement processes to foster competitiveness, transparency, cost effectiveness and quality," said Phakoe. Between them the Governments of Lesotho and South Africa are the owners of the bi-national treaty that governs the delivery of water from the Lesotho highlands to the Gauteng region of South Africa through the infrastructure of the existing Phases 1A and 1B of the scheme to the Ash River outlet to flow eventually to the Vaal Dam water reservoir near Johannesburg, and to generating hydropower on the scheme for Lesotho.

After attracting a high level of interest for prequalification, six groups have been shortlisted to bid for the Polihali dam and the transfer tunnel contracts of the Lesotho Highlands Water Project Phase II. The shortlists for both contracts are dominated by construction companies from China.

From the 12 applicants that prequalified for Contract 4021 for the 38km long x 5m diameter gravity transfer tunnel that will connect the new reservoir at Polihali with the existing Phase I project reservoir at Katse (Fig 1), the following six have been shortlisted:

• Sinohydro Corporation (China)
• UMSO Construction (South Africa)
• Nthane Brothers (Lesotho)

• Sinohydro Bureau 6 (China)

• China Communications Construction (China)
• China Gezhouba Group (China)
• Raubex Construction (South Africa)
• ENZA Construction (South Africa)

• Champ Construction (Lesotho)
• Mafeteng Concrete Blocks & Building Construction (Lesotho)
• NM Khojane Construction (Lesotho)
• SB Construction (Lesotho)

• Murray and Roberts Cementation (South Africa)
• Hunan Nanling Civil Explosion Engineering (China)
• Zhejiang Tunnel Engineering Group (China)

• Mota-Engil Construction South Africa (South Africa)
• Mota-Engil Engenharia Construcão (Portugal)
• Vinci Construction Grands Projects (France)
• RAZEL - BEC (France)

• Ferreira Investments (Lesotho)
• Tim Plant Hire (Lesotho)
• Main Street 699 (South Africa)

• Redpath Mining South Africa (South Africa)
• Redpath USA Corporation (USA)

• Shanxi Hydraulic Engineering Construction Bureau (China)
• Shanxi Yellow River Water Industry Group Corporation (China)
• Setheo Engineering (South Africa)

• Nthonyana Building Construction Company (Lesotho)

• China Railway International Group (China)
• China Railway Tunnel Group (China)
• Odebrecht Engenharia e Construção (Brazil)
• Concor Construction (South Africa)

• EXR Construction (Lesotho)
• Concor Construction (South Africa)
• KR Holdings Company (Lesotho)
• Maru-a-Pula Mining and Construction (Lesotho)

• Hubei Haosheng Blasting Engineering (China)
• Norconsult (Norway)
• Murray & Roberts Cementation (South Africa)
• Shaft Sinkers Mining (South Africa)

• Salini Impregilo (Italy)
• Stefanutti Stocks (South Africa)
• AXSYS Projects (South Africa)
• LLSM Joint Venture of
  • Lephema Executive Transport (Lesotho)
  • LSP Construction (Lesotho)
  • Matekane Mining Investment Co (Lesotho)

Of the eight applicants that participated in the prequalification exercise for construction of the 165m high concrete-faced rockfill Polihali dam and appurtenant works under Contract 4020, the following six have been shortlisted:

1. Senqu River Joint Venture Gezhouba Group (China) China Communications Construction Company (CCCC) (China) RAUBEX Construction (South Africa) ENZA Construction (South Africa) Subcontractors (Tier 2) SB Construction (Pty) Ltd Champ Construction Mafeteng Concrete Blocks & Building Construction NM Khojane Construction	2. Mota – Engil Polihali Dam Joint Venture Mota – Engil Engenharia Construção (Portugal) Mota – Engil Construction South Africa (South Africa) Subcontractors (Tier 2) Southern Lesotho Construction Ferreira Investments (Lesotho) Main Street 699 (South Africa) ANDRITZ (Germany)
3. Sinohydro-UMSO-Nthane Joint Venture Sinohydro Corporation (China) UMSO Construction (South Africa) Nthane Brothers (Lesotho)	4. CWE-SCIG-VUMANI Joint Venture China International Water and Electric Corp (China) SHANXI Construction Investment Group (China) VUMANI Civils CC (South Africa) Subcontractors (Tier 2) HUBEI Energy Group (China) Bafani Construction (Lesotho)
5. CBSL Dam Joint Venture Odebrecht Engenharia e Construção (Brazil) Concor Construction (South Africa) China Railway International Group China Railway No2 Engineering Group Subcontractors (Tier 2) EXR Construction (Lesotho) KR Holdings Company (Lesotho) MARU-A-PULA Mining & Construction (Lesotho)	6. Sunshine Tunnel Joint Venture Salini Impregilo (Italy) Stefanutti Stocks (South Africa) LLSM Joint Venture of Lephema Executive Transport (Lesotho) LSP Construction (Lesotho) Matekane Mining Investment Co (Lesotho) AXSYS Projects (South Africa)

In the meantime, drill+blast excavation of the Polihali dam diversion tunnels is progressing following award of the Maluti 517 million contract in early 2019 to the SCLC Polihali Diversion JV of Salini Impregilo and CMC di Ravenna of Italy with LSP Construction of Lesotho and CMI Infrastructure of South Africa. The twin 1km long tunnels, one of 7m in diameter and the other of 9m diameter, will divert the river flow around the dam construction site and provide capacity to carry flood waters as well as the flexibility to work in one tunnel while the river flows in the other.

Also currently in procurement is award of the geotechnical investigation drilling programmes for the proposed lake tap connection of the transfer tunnel into the existing Katse reservoir and for along the alignment of the Polihali transfer tunnel. Four groups of companies all from South Africa have submitted bids for the contracts.