Once phase two of the Lesotho highlands water project is completed, it will pump 400-million cubic metres of water annually from the Senqu River in Lesotho through existing infrastructure to the Vaal Dam in Gauteng.

This is what President Cyril Ramaphosa told those gathered at the sod-turning event of the phase two of the project in Lesotho on Tuesday.

He is on a working visit to Lesotho.

The project, he said, comprises the Polihali Dam and the transfer tunnel. While the project was delayed for a few years, he said, the project is the biggest infrastructure investment outside South Africa in which the country has participated.

“This project is a good example of public-private collaboration to build key public infrastructure. Most of the about R40bn in capital required for phase two will be raised in South Africa’s financial markets by the Trans Caledon Tunnel Authority,” he said.

The private sector, he said, is playing a similar role in many other major water resource infrastructure projects in South Africa. He said the water South Africa receives from Lesotho augments the Integrated Vaal river System, which supplies water to Gauteng and its surrounding areas.

“We are determined that this huge transborder project should equally benefit the peoples of Lesotho and South Africa.”

In addition to the royalties, Ramaphosa said, jobs have been created and new roads have been built in Lesotho.

“Both phase one and two included the construction of hydropower facilities to provide electricity for Lesotho.”

He said it was important for communities affected by the project to be properly consulted and that there is fair compensation for the relocation and alternative housing nearby.

“As African countries, all our water resources are interconnected. South Africa shares 60% of its fresh water resources with its neighbours.

“We are therefore committed to multilateral transborder collaboration to ensure that shared water resources are used for the benefit of all.”

He said South Africa is working with Namibia on the joint planning of additional dam infrastructure on the lower Orange River. This is to ensure that the Lesotho Highlands Water Project does not harm the lower Orange River system.