[2] The hydro-electric power has enabled Lesotho to become self-sufficient in electricity production, however criticisms have included loss of livelihoods for displaced people and ecological impacts.
This discharged water flows to the Senqu (Orange) and while preserving the ecological status quo benefits only those communities along the rivers.
[8] Since its inception, the project has been dogged by corruption which has resulted in a number of court cases involving both individuals and multinational corporations.
Stemming from the Muela Reservoir is a 37-kilometre (23 mi) delivery tunnel to the outfall at the As River from where water flows to the Vaal Dam.
Although the Katse Dam has power generation capability for local use, the primary purpose is as the storage reservoir for Phase IA, and to provide discharge into the transfer tunnel.
To mitigate loss of habitat, the Katse Botanical Gardens was established to house plants that were rescued from the area to be flooded.
The CEO of the LHWP implementing body of the Lesotho Highlands Development Authority (LHDA), Refiloe Tlali, said: "the 2.3-billion cubic metre Polihali dam will be built downstream of the confluence of the Senqu and Khubelu rivers.
[12] In August 2023, the Trans-Caledon Tunnel Authority (TCTA) secured funding from the New Development Bank amounting to 3.2 billion South African rand (approx.
[18] As initially conceived, three further dams were proposed further downstream after the Malibamatso joins the Senqu river, at Mashai, Tsoelike, and Ntoahae.