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Report No 678-F-001<br />
METSI CONSULTANTS: SUMMARY OF MAIN FINDINGS FOR PHASE 1 DEVELOPMENT<br />
14.1. RELATIONSHIP OF THE IFR TO LHWP DEVELOPMENT<br />
SECTION 14. THE NEXT STEPS<br />
The purpose of this section is to present salient information, observations and some aspects that have to be<br />
considered pertinently if a credible and broadly acceptable decision on IFRs is to be reached.<br />
This study has been charged with establishing appropriate IFRs for river courses downstream of LHWP<br />
structures and for planning and initiating the monitoring programme. The contract is also required to provide<br />
recommendations for mitigation against, and compensation for, significant impacts linked with the various projects<br />
and to advise on the costs or benefits of meeting, or not meeting, the IFR in the context of current Treaty<br />
requirements.<br />
The study has provided the following information:<br />
detailed descriptions of four possible scenarios for flow release regimes, including information on<br />
physical, ecological and economic consequences;<br />
costs of mitigation and estimates of resource losses associated with each of the four scenarios;<br />
estimates of system water yields for Phases 1 of the LHWP for each of the four scenarios.<br />
In order for the IFR information from this study to be used in this process, the following revenue-related<br />
information needs to be developed by the parties in Lesotho and RSA for comparison to the environmental and<br />
economic impacts of the four scenarios:<br />
the values of the royalties to Lesotho associated with the yields of each of the four scenarios;<br />
the values of hydro-generated power to Lesotho associated with each of the four scenarios;<br />
the costs to the RSA of reductions in yields from that available under the Treaty Scenario.<br />
The POE 4 have proposed a basic three-step process in moving to a consensus and decision on the IFR's to be<br />
implemented for the LHWP namely:<br />
Step 1: Identifying the range of an acceptable IFR<br />
The aim of this step is to identify a rough estimate of the bulk water allocation to be made available for IFR. This<br />
will be based on the information provided by this study and determination of other costs to RSA and Lesotho<br />
specified above. These costs would be computed using models currently available to the two parties or may be<br />
assisted by outside sources. At this stage decisions are to be made by parties involved on a broad basis<br />
considering tradeoffs between economics and environmental impacts.<br />
4 POE. Mission report. October 1999.<br />
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