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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 />

79

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