New Development Bank urged to address Lesotho water project complaints

Civil society organizations are calling on the New Development Bank (NDB) to address grievances from communities affected by the second phase of the Lesotho Highlands Water Project (LHWP II). In a letter addressed to NDB President Dilma Rousseff and the bank’s board, the Seiloli Legal Centre and Accountability Counsel reported that affected populations have faced unresolved issues regarding relocation, livelihoods, environmental conditions, labor, and gender-based violence.

The organizations noted that while they have engaged with other financiers—including the African Development Bank (AfDB) and the Development Bank of Southern Africa—the NDB has not participated in formal dispute-resolution processes. This lack of involvement is attributed to the NDB not having an independent accountability mechanism comparable to the AfDB’s. The groups are urging the NDB to establish direct dialogue with affected communities and disclose a draft accountability mechanism for public consultation.

The LHWP is a major binational infrastructure project between Lesotho and South Africa designed to transfer water to South Africa’s Vaal River system while generating hydroelectric power for Lesotho.