07.05.2013 Views

INFORMATION DOCUMENT - DWA Home Page

INFORMATION DOCUMENT - DWA Home Page

INFORMATION DOCUMENT - DWA Home Page

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

RECORDED IMPACTS<br />

Metsi Consultants did their baseline study<br />

field work during 1999, when Katse Dam<br />

was being operated at close to Treaty<br />

minimum releases, so the results gave a<br />

good indication of the kinds of conditions<br />

which might prevail under the Treaty<br />

scenario:<br />

❏ The state of both the instream and<br />

riparian habitat (“habitat integrity”) at site<br />

2 (below Katse) was rated to be less than<br />

50% (of the ‘pristine’ condition). Other<br />

sites – not affected by a dam – got scores<br />

of between 80% and 95%.<br />

❏ Water quality at site 2 was poor, there<br />

were abundant algae in the water<br />

(mountain rivers usually flow clean) and<br />

very few fish.<br />

Monitoring downstream of Katse Dam<br />

(IFR sites 2 and 3) in summer 2000/01<br />

and summer 2001/02 has shown<br />

❏ A reduction in instream river health<br />

indicators at site 2, much less so at site 3,<br />

largely due to the absence at site 2 of<br />

sensitive groups of macro- invertebrates<br />

(only tolerant groups were recorded)<br />

❏ A lack of clear geomorphologic trends<br />

(an important prediction of the IFR studies<br />

was major changes in river<br />

geomorphology), although sedimentation<br />

in some pools was observed;<br />

❏ Woody plant species have increased in<br />

number and distribution, having colonised<br />

boulder beds and sandbars, which would<br />

previously have been often covered with<br />

water. This appears to contradict the study<br />

findings, but it does not mean that the<br />

pattern will not change in the long term.<br />

❏ During summer 2002, however, river<br />

flow was very high and fish were reported<br />

to be abundant below Katse Dam.<br />

Metsi’s pilot community surveys,<br />

conducted in April and May 2002, show<br />

some communities already suffering fuel<br />

wood shortages that are not due to the<br />

project, that is, fuel wood resources are<br />

already depleted in some areas.<br />

They also report on the experience of<br />

communities regarding both reduced flows<br />

and flood conditions. Reduced flows allow<br />

their stock to cross the river, where<br />

previously they couldn’t, and encroach<br />

into other villages’ grazing lands. High<br />

flows, on the other hand, wash away trees<br />

planted by individuals.<br />

The Economics of IFRS<br />

Losses To Downstream Communities<br />

❏ The IFR study finds sizeable economic losses (in terms of use values and<br />

necessary compensation costs) to downstream communities ranging from a total<br />

of M2,9 million to M8 million annually depending on the IFR scenario chosen.<br />

It should be kept in mind, however, that the figures are estimates only, based on<br />

certain biophysical predictions, and are primarily for the purposes of scenario<br />

comparison.<br />

❏ The IFR study also finds that small increases in releases will only have a modest<br />

impact on these losses, although there are differences between the various resources<br />

and sites. Only considerable increases in IFR releases will succeed in sharply<br />

reducing the losses to downstream communities. Even in the Minimum Degradation<br />

Scenario, downstream communities do face losses for which, according to Treaty<br />

rules, they should be entitled to compensation of some form.<br />

❏ A recent pilot consultation process amongst downstream communities revealed<br />

very realistic and clear preferences for mitigation and compensation amongst<br />

potentially affected communities, from programs of assistance to replace lost<br />

resources, to flow releases, to assistance with broader development needs as<br />

mitigation for losses which would be difficult to replace directly.<br />

Revenue and Other Losses<br />

❏ While increasing IFR releases for Lesotho would reduce downstream losses,<br />

Lesotho would also lose variable water royalties and hydropower revenues, which<br />

would have a negative impact on Lesotho’s economy as a whole. For example, if<br />

the Fourth Scenario were to be adopted, the loss to the Lesotho economy would<br />

be some M17,5 million per annum at 1999 prices, or about 6% of the total revenues<br />

from the LHWP. In addition the original objective that Muela HEP would make<br />

Lesotho self sufficient in electricity, would be compromised.<br />

❏ The Klasen study of the economic impacts of the different IFR release scenarios<br />

shows that, from an economic point of view, the economic costs to Lesotho and<br />

South Africa of increasing downstream releases beyond the Treaty minimum level<br />

always outweigh the benefits for downstream communities (and, thus, the costs<br />

of compensation for losses). This is the case from the point of view of the project,<br />

of RSA and of Lesotho.<br />

❏ In other words, the lost royalty and hydropower revenues would always be<br />

greater than the economic losses to downstream communities.<br />

❏ Notwithstanding this, the overall project benefits, over the life of this project,<br />

are so large that the viability of the project is not affected by including these<br />

downstream losses, that previously had not been considered in the economic<br />

assessment of the project.<br />

❏ While the water transfer benefits of the project would be sharply reduced under<br />

the three scenarios with releases in excess of the Treaty Minimum, as would the<br />

already low rate of return of the hydropower component, they remain sizeable<br />

enough that LHWP as a whole remains viable even if IFR releases were increased.<br />

❏ Therefore in setting the IFR policy some difficult decisions and trade-offs have<br />

to be considered, and public consultation is an essential element in this process.<br />

9

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!