NGO Letter to World Bank on Lesotho Dam

Date: 
Thursday, November 5, 1998

This letter from EDF and International Rivers to the World Bank requests immediate action on urgent compensation problems at Lesotho Highlands Water Project.

Mr. Jean–Louis Sarbib
Vice President
Africa Region
The World Bank
1818 H St., NW
Washington, D.C. 20433

Re: Lesotho Highlands Water Project

Dear Mr. Sarbib,

We are writing to you about two issues regarding the Lesotho Highlands Water Project (LHWP). The first is an urgent matter related to the compensation of project–affected people which requires immediate World Bank action. The second is to request that the World Bank undertake a thorough analysis of the development strategy it pursued through support of the LHWP, the project’s sustainable development impacts on the ground and its possible role in leading to the recent tragic events in the country. We consider an in–depth and independent analysis to be an indispensable input into any deliberations about future phases of the LHWP.

(1) Project–Affected People

It has come to our attention that communities affected by Katse Dam have recently written the project authorities (LHDA) and the World Bank because they have not yet received compensation due them for loss of communal lands. The situation is apparently dire: cattle are dying because fodder deliveries have stopped, and the petitioners have asked that either fodder or cash compensation be given them immediately. We urge you to use your authority to press for a quick resolution to this situation.

It is clear that the communal assets compensation program is not working for affected communities, and is even contributing to local hostility toward the project. We understand that people are confused as to why they are no longer receiving fodder, and also do not understand how to access the compensation money that is supposed to replace it. Local NGOs inform us that communities are expected to submit village development plans to receive these compensation funds, but that some villages submitted plans months ago and have not yet received a response from LHDA. There is reportedly confusion at LHDA as well, and the program seems to be stuck in a bureaucratic mire. Field staff are said to be reluctant to meet with communities about communal assets because they sense rising hostility to the new plan.

Given its tarnished image and inability to deliver, we believe the communal assets compensation program should undergo a thorough assessment by independent monitors, and with input from affected people. In the interim, a generous and prompt method of compensating these villagers should be devised.

We would like to add that this troubled program reinforces our belief that land–for–land compensation programs for projects such as this one are the most effective way to restore people’s livelihoods after undergoing the trauma of resettlement or the loss of productive assets. Cash compensation programs such as this one have failed nearly everywhere they have been tried, and it appears that the LHWP’s attempts to solve social disruption with cash payments will just add to that record.

The lack of a timely response to affected people by LHDA and the World Bank on this recent issue may indicate that the full monitoring and evaluation of compensation and livelihood restoration activities is not being implemented as planned. It is critical that this problem be thoroughly examined.

The fact that the more high profile social aspects of the project are undergoing considerable problems leads us to be concerned about the presently less prominent environmental aspects, which are nonetheless key to both the sustainability of local livelihoods and to the project itself. We are particularly concerned about progress on the erosion and watershed management plan, the systematic monitoring of the implementation of the Environmental Action Plan and work being undertaken on the Instream Flow Requirements Study.

2) The LHWP and Sustainable Development

World Bank support has been critical in catalysing funding of about $3.6 billion for Phases 1A and 1B of the LHWP. Construction–related activities have led to impressive statistics about the country’s GDP growth. The government is pressing for the building of project phases 2–4 because it rightfully fears a sharp drop in government revenues the moment construction activities cease.

But what have been the project’s concrete results in reducing poverty, promoting sustainable development and protecting a fragile and unique environment in the Lesotho Highlands?

In addition to what appears to be a growing and long–term impoverishment of the directly affected Highlands people, it is doubtful that there will be sustainable economic benefits in the temporary construction–related jobs. Construction activities have been faced with considerable labor unrest given the low pay and harsh working conditions of the Basotho work force. In 1996, numerous workers were shot dead and many others sought refuge in churches. To our knowledge, the Bank’s request that an independent and open inquiry into the killings be carried out was never fully complied with –– at least, the information was never made public if action was taken.

The lack of democratic reforms and deteriorating social well–being lie at the heart of Lesotho’s current situation, which was further aggravated by the invasion and occupation by South African military forces. Not surprisingly, given the import of the LHWP to South Africa and the growing anti–South African sentiment in Lesotho, protection of the dam sites was a top military priority.

A thorough analysis of the social, environmental, political and even geo–political ramifications of the LHWP is likely to provide valuable insights into what constitutes concrete praxis of sustainable development and what does not.

We thank you for your attention to the urgent matter of compensation and would very much appreciate a quick reply on your part.

Sincerely,

Lori Pottinger
International Rivers Korinna Horta
Environmental Defense Fund

cc:
Moea Ramokoatsi (HCSAC)
Mawinnie Kanetsi (TRC– NGO Cluster Chairperson)
Melanie Marlett (U.S. Executive Director’s Office)
Michael Colby (U.S. Treasury Department)
Willie Croucamp (DWAF–RSA)
Thayer Scudder (Environmental Expert Panel) 

For further information, please contact:

Korinna Horta, Environmental Defense Fund
1875 Connecticut Ave., Suite 1016
Washington, D.C. 20009
E–mail: korinna_horta@edf.org
Phone: 202–387–3500
Fax: 202–234–6049

Lori Pottinger, International Rivers
E–mail: lori@internationalrivers.org'
Phone: +1 510–848–1155