Normal

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Lesotho Highlands Water Distribution
Normal Emergency
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Phase 1A Project Cost R9.3 bil
R 13.9 Billion
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Phase 1B Project Cost
R 6.5 Billion Estimated Cost to March 2003
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Funding Sources
Export Credit Loans
Forex Market
Commercial Loans
Funding Sources
Bond market
Other Loans
Local Market
Commercial Paper Programme
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Phase 1A Sources of Funding
R 9.6 Billion
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Phase 1B Sources of Funding
R 6.5 Billion
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Composition of Liabilities
R 14 Billion
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Debt Maturity Profile Liability Curve
Forecast
30
Current
25
20
15
Rand Billions
WS04 other
10
WS03
WS01
5
WS02
CPP
01
02
03
04
05
06
07
08
09
10
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13
14
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March
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LHWP Water Flow and Cost Recovery Arrangements
TCTA
Payment of
Delivers LHWP
levy/tariff
water
DWAF
DWAF
Raw water tariff
Raw water
Delivers raw water
Tariff

Other Large Users (Eskom, Sasol,etc)
OTHER LARGE
Water Boards
WATER
CONSUMERS
BOARDS
(Eskom, Sasol)
Purified water
delivered
Local Authorities
MUNICIPALITIES
End User
END
USER
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Timing of New Schemes
Lower Demand
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Comparison of Growth in Demand between 1997/98
and 2000
Period 2000 - 2030

1997/98 2000 3.64 2.18 2.89
1.72
Most Probable demand scenario
Low demand scenario
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Saleable Water Curves
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Tariff Scenarios Lower Demand
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Example of tariff
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Example of tariff (free water)
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Royalties

• Constitutes of cost savings between LHWP and OVTS
  (70 m3/s scheme)
• Sharing of benefit
• 56 Lesotho vs 44 RSA
• Lesotho Royalties paid
• RSA Lower cost of Project

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Royalties

• Fixed royalty Capital cost saving
• (paid over 50 years)
• Variable royalty Lower OM and electricity cost
• (based on volume of water delivered)