Lesotho - Urban Distribution Rehabilitation and Transmission Expansion Additional Financing

The Urban Electricity Distribution Network Rehabilitation and Expansion Project – Additional Financing in Lesotho is a supplementary financing operation for the ongoing urban electricity distribution rehabilitation project. The additional financing is intended both to modify and scale up the original project in order to improve transmission and distribution reliability and prepare the network for future renewable energy integration. The project includes the upgrade of the Khukhune 88/33 kV substation through the addition of two 30 MVA transformers, the construction of 8 km of 132 kV transmission line from the Muela hydropower plant to connect to the South Africa 88 kV transmission line at Khukhune, feasibility studies for future 132 kV transmission lines from Khukhune to Letseng/Mokhotlong and from Mofoka to Thetsane/Maseru, and project management, supervision, and ESMP implementation. The additional financing amounts to UA 6.130 million from the African Development Fund, with UA 0.326 million in Government counterpart contribution, for a total additional financing cost of UA 6.456 million. The overall project cost, including the original operation, is estimated at UA 15.991 million. The executing agency is the Lesotho Electricity Company (Pty) Ltd.