World Bank Lesotho - Maseru Mazenod Reservoir

By Marianne Buenaventura Goldman and Reitumetse Nkoti Mabula
MASERU, Lesotho, Apr 3 2024 (IPS)

In the journey towards gender equality and justice, recent decades have seen strides made, yet the road ahead remains treacherous. In the race to achieve the Sustainable Development Goals (SDGs) by 2030, attention is turning to the role that over five hundred public development banks worldwide could play.

Public development banks are increasingly exploring how to promote financial inclusion more effectively, as an important vehicle for women’s economic empowerment. Financial inclusion transcends mere access to capital; it is a radical shift of social norms, addressing social issues that hinder women’s advancement.

However, in many projects funded by PDBs, women are not only excluded and left behind, but are put in a position of harm. One such case is the Lesotho Highlands Water Project (LHWP) where there is growing evidence of a wide range of negative gender impacts within the affected communities.

The objective of the Lesotho Highlands Water Project (LHWP) is to provide water to the Gauteng region of South Africa and to generate hydroelectricity for Lesotho by harnessing the waters of the Senqu/Orange River in the Lesotho highlands through the construction of a series of dams.

Hailed as a remarkable engineering feat with anticipated economic benefits, it has instead garnered international notoriety for its severe socioeconomic and environmental repercussions on communities. Phase I of the project led to the displacement of thousands without fair compensation, submerging arable and grazing land, exacerbating erosion, creating impoverishment, “social disintegration”, and limiting access to water resources.

Despite long-standing concerns and documented impacts on communities, including increased HIV/AIDS risk, the project proceeds with Phase II without adequately addressing residual issues.

The project’s impacts disproportionately affect women, exacerbating vulnerabilities through increased risks of displacement, lack of access to water and healthcare, and heightened instances of sexual exploitation, contributing to a cycle of socio-economic marginalization and health disparities.

Gender inequality in Lesotho remains a problem despite progressive legal strides in recent years. Implementation and enforcement of laws, especially in rural communities, continues to be a problem. Outdated cultural practices and stereotypes continue to create barriers to ownership of land, denying women the resources needed to secure livelihoods and increasing their economic vulnerability and susceptibility to gender-based violence.

Seinoli Legal Centre (Seinoli) is a Lesotho based public interest law centre that has been working directly with the affected communities in the Mokhotlong district where LHWP Phase II is being implemented, since the signing of the Agreement on Phase II in 2011.

Increased incidents of gender-based violations have been reported within the project affected communities which should come as no surprise; projects of this nature and scale, including the resultant forced displacement often amplify the risks of gender-based violence.

Furthermore, there are thousands of migrant workers from Lesotho itself and South Africa, who have come to work on LHWP. Migrant workers should be accommodated in designated camps, in healthy accommodations and living conditions in accordance with best practices. The situation on the ground stands in complete contrast to this; there are contractors living and renting accommodation within the communities of Masakong, Ha Ramonakalali, and Tloha-re-Bue. In the case of Ha Ramonakalali, there is also a temporary camp belonging to one of the private companies contracted to work on LHWP which is located within the communities – having profound impacts.

Cases of transactional sex between migrant workers and young women and girls have increased, including cases of abortion and concealment of birth, human trafficking, sexual exploitation, and high school drop-outs.

Seinoli was recently alerted to the predicament of the fifteen-year-old Lineo (name changed to protect the victim and her family) and her parents. This young girl was impregnated by one of the migrant laborers working for an LHWP contractor. Lineo decided to have an illegal abortion – as abortion is prohibited in the country -in fear of her parents. The abortion led to health complications, which necessitated informing her parents about the events. Lineo’s parents made a complaint to the police. Seinoli received a report that the police were not able to make charges against the perpetrator as they could not locate him after he was moved to another camp by his employers. Consequently, the young girl has been left with the scourge and stigma of having had an abortion and lives in shame within her community. She has also been forced to drop out of school, which will have severe repercussions on her future and ability to earn an income.

The LHWP receives substantial funds from PDBs such as the Development Bank of Southern Africa (DBSA), the New Development Bank (NDB) and the African Development Bank (AfDB). While these banks do indicate concern for gender equality, more needs to be done for the development and strengthening of their gender strategies to ensure that the projects they fund do not violate women’s safety or security.

Currently, the Lesotho Highlands Development (LHDA), the project’s implementing authority, does not have a safeguarding policy to protect communities against sexual exploitation, abuse, and harassment risk to ensure accountability.

Communities need to be better informed about their rights and have access to reporting mechanisms which can lead to expedited support for victims whilst holding the perpetrator and their employers accountable.

It has been five years since LHWP Phase II commenced, with advanced infrastructure works since January 2019. However, there has not been any shift towards protecting the rights of vulnerable women and girls since the project begun.

The role of international financial institutions and PDBs in fostering gender equality has been discussed extensively in many quarters, including the academic and research communities. However, many questions remain on the commitment of PDBs to promote gender equality and women’s empowerment.

In practice, concerning some of the public financiers of the LHWP, the NDB still does not have a gender strategy or policy in place despite having been fully operational for close to 10 years. The DBSA and the AfDB represent financiers of the LHWP with a gender policy or strategy, however, the effectiveness of their gender frameworks is questionable considering the challenges that women are now being exposed to in projects such as the LHWP Phase II.

Basotho women faced similar difficulties during the first phase of the LHWP when women, including female-headed households were excluded from families who received some limited minimal compensation for resettlement. Women were extremely vulnerable to gender-based violence, not only physical but also economic violence. During that time, the World Bank was a major financier involved in the construction of the Katse Dam.

The World Bank gender framework has evolved, providing finance to the LHWP Phase I. The World Bank has now integrated safeguard policies against sexual exploitation and abuse in its Environmental and Social Framework as well as Procurement Framework.

These frameworks ensure that development projects take measures to reduce the risk of sexual exploitation, abuse, and harassment, especially within communities. After civil society groups raised complaints about gender-based violence associated with a World Bank-financed road project in Uganda, the World Bank took several measures to address this issue.

In 2020, the World Bank introduced a mechanism that can disqualify contractors for failing to comply with obligations related to the prevention of gender-based violence. The World Bank will also soon launch their World Bank Gender Strategy 2024 – 2030: Accelerate Gender Equality for a Sustainable, Resilient and Inclusive Future, which recognizes gender equality as central to sustainable development. The strategy emphasizes gender outcomes in project implementation, including eradication of gender-based violence.

All PDBs should ensure that such measures (policies and practice) are put in place to avoid the ongoing violations against women that put young girls such as Lineo at high risk.

There is a growing dialogue among PDBs and United Nations Agencies such as UN Women, including those engaging in the Finance in Common movement, on the importance of financial inclusion, which places emphasis on improving women’s access to finance. PDBs must take stronger leadership in ensuring that financial inclusion addresses social issues that are an obstacle to women’s advancement. This includes removing outdated cultural practices and stereotypes that continue to create barriers to land ownership. Women in as much as half the countries of the world are unable to assert equal land and property rights despite legal protections.

PDBs often provide substantial funds to mega-infrastructure projects such as the LHWP II in which communities are often exposed to high levels of vulnerability, including worsening levels of poverty, inequality and GBV. One way that PDBs can contribute to making real progress on the Agenda 2030, is through addressing the root causes of poverty and inequality and integrating SDG 5, “achieving gender equality” a necessary foundation for a peaceful, prosperous and sustainable world. There has been progress over the last decades, but the world is not on track to achieve gender equality by 2030.

In doing so, PDBs (national, regional and international) must have robust gender policies and practice in place that support projects centred on gender equality, justice and women’s empowerment.

All PDB funded projects should have gender equality imperatives at the onset of the project cycle through rigorous impact assessment processes that involve women and their communities.

The human rights costs are high in second phase of the LHWP with hundreds of families at risk of involuntarily resettlement and displacement from their homes and lands. Achieving the SDGs will require transformative action that can deliver real impact and change for women and young girls such as in Lesotho. The DBSA, AfDB, NDB and other PDBs involved in LHWP II can play an important role in ensuring that the second phase does not repeat the same mistakes made in LHWP I and in so many other development projects.

This article has been written as part of the Forus March With Us campaign for gender justice – a full month dedicated to the stories of activists and civil society organisations at the forefront of gender equality and justice.

Marianne Buenaventura Goldman is co-Chair, Civil Society Forum of the NDB (Africa) & Project Coordinator for Financing for Sustainable Development, Forus
Reitumetse Nkoti Mabula is Executive Director, Seinoli Legal Centre

IPS UN Bureau

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Farmer in Lesotho. Credit: Angelo Moleele

By Marianne Buenaventura Goldman and Reitumetse Nkoti Mabula
MASERU, Lesotho , Sep 5 2023 (IPS)

The Role of the New Development Bank in Monitoring Project Impacts on Communities

The 15th BRICS Summit held in Johannesburg, South Africa this month has once again put the spotlight on the Lesotho Highlands Water Project (LHWP) as a shining example of multilateralism and the New Development Bank’s (NDB)commitment to financing sustainable development projects within BRICS countries and other developing countries. During the 2023 BRICS Summit, the New Development Bank and the Trans-Caledon Tunnel Authority (TCTA) signed a 3.2 billion Rands loan agreement for the implementation of Phase Two of the Lesotho Highlands Water Project (LHWP) in Lesotho. This funding complements contributions by other financiers, notably the African Development Bank (AfDB) and the Development Bank of Southern Africa (DBSA).

LHWP is a multi-phased water infrastructure project which involves construction of a number of dams in Lesotho to transfer water to South Africa, while generating hydropower for Lesotho. The entity that is responsible for implementation of LHWP in Lesotho is the Lesotho Highlands Development Authority (LHDA). The TCTA, a state-owned entity charged with financing bulk raw water infrastructure in South Africa, is responsible for financing and building the LHWP.

News of the signing of this agreement was received with some interest and enthusiasm in many quarters in Lesotho, partly because of the participation of Prime Minister Matekane during the Summit, as an observer, and largely due to the perceived benefits of this loan for Basotho. On the other hand, the news was also viewed with skepticism by civil society organisations working with communities directly affected by LHWP in light of the adverse social, economic, environmental and gender impact which communities continue to experience daily. The truth is, whilst it is laudable and important for both Lesotho and South Africa that the NDB provided this crucial financing for socio-economic development of their peoples, it is equality imperative that this development should not come at a cost to vulnerable and marginalised communities who have been forced to host this project.

The benefits for communities in South Africa are straightforward; according to the media release issued by the NDB on the 21st of August 2023, LHWP Phase II will increase the water yield of the Vaal River Basin by almost 15%, supporting economic growth and livelihoods of approximately 15 million people living in Gauteng Province, including communities in three other provinces which also stand to benefit from increased water supply. However, these benefits are not guaranteed for thousands of people and communities directly affected by this project in Lesotho.

LHWP Phase II has garnered its fair share of criticism and controversy recently, for its operations and impact on the people of Polihali, Mokhotlong. These include heavy handed police intervention against people who rightfully express dissent and protest to some aspects of the project or how it is implemented. There are also complaints about the project’s implementing authority, the Lesotho Highlands Development Authority (LHDA)’s compensation policy. These include unfair compensation amounts to communities which were based on unilaterally determined compensation rates and periods, non-payment of communal compensation which has prevented communities from developing income generating projects, and lack of developments such as provision of water and sanitation for communities.

Implementation of LHWP requires acquisition of land from local communities; it is estimated that 5,000 hectares of land will be flooded by the Polihali Dam.¹ This acquisition of land will result in significant negative impacts on the livelihoods and socio-economic status of the local populations. Communities are going to lose arable land, grazing ranges for livestock which is the main store of wealth for communities in the area, medicinal plants, useful grasses and wild vegetables which form the basis of livelihoods for communities.

Another challenge of the construction of this Dam is the required resettlement and / or relocation of communities. It is currently estimated that 270 households and 21 business enterprises will need to be relocated, mainly due to the impoundment of Polihali reservoir.² About 12 communities will be relocated, and an additional 5 communities will be required to resettle entirely, a process that will have great economic and socio-economic and cultural implications for generations to come. Regrettably, there is no livelihood restoration strategy that has been developed by the LHDA to ameliorate the plight of these communities or at least no such strategy has been shared and/or discussed with communities and their representatives.

Negative gender impacts have also been noted; women within LHWP Phase II project area are already marginalised because of cultural stereotypes and practices which prevent them from owning land. The LHWP Phase II Compensation Policy has only served to solidify and exacerbate the problem of gender inequality through its gender biased payout of compensation procedure which deprives women of compensation for land previously managed or shared. This increases their economic vulnerability and susceptibility to gender-based violence. In fact, there have been concerning news reports in recent months, of increasing number of gender-based violence cases including teenage pregnancies and girl-child school dropouts, sex work/transactional sex, sexual violation especially of young girls, and increased HIV infection prevalence. These have been linked directly to the influx of immigrant contractors and labour workers who have come to work on the LHWP, continuing a trend which was first observed during implementation of the previous phases of this project. It is worrying to note, that at this point in the of implementation LHWP Phase II, there is still no gender policy, and the implementing authority still insists on turning a blind eye to the vulnerability of women as a result of this project.

The news of the NDB providing a loan for Phase 2 of the LHWP, totaling an amount of 3.2 billion Rands (US $ 171.5 million) raises further questions on the NDB’s policies and practices concerning transparency, accountability and its environmental and social safeguards, including gender. The NDB has indicated its plans to further strengthen gender mainstreaming in all its projects in its second five year General Strategy (2022-2027). As called by BRICS civil society organisations since the start of NDB operations, the NDB needs to urgently put in place a gender policy, with support of gender specialists at the NDB to oversee that gender is integrated in all aspects of its projects, in strong partnerships with its clients such as the TCTA and the LHDA.

All eyes are on the former Brazil President, Dilma Rousseff, new President of the NDB on her ability to transform the NDB from a multilateral development bank whose track record appears to be gender neutral towards one can proactively empower women and delivering on gender equality as part of New General Strategy and operations. In a recent statement, Rousseff explained that a priority of the NDB will be to “…promote social inclusion at every opportunity we have. The NDB needs to support projects that help to reduce inequalities and that improve the standard of living of the vast communities of the poor and excluded in our countries.”

The NDB has now grown beyond the BRICS countries, and recently included new member countries such as the United Arab Emirates, Bangladesh, Egypt and Uruguay and has greater aspirations to add many more countries. Given the NDB’s expansion, it is critical that the NDB begin to live its vision of being an accountable institution for the South, by the South. The NDB should urgently put into practice its policies such as on Information Disclosure. By doing so, the NDB will enable communities to access information on projects that directly affect their lives and livelihoods. The NDB also needs to work more closely with its clients to follow through on the NDB guidelines provided in its Environmental and Social Framework. The Civil Society Forum of the NDB (South Africa / Africa), including Lesotho community-based organisations calls on the NDB to learn from past mistakes experienced during the implementation of Phase 1 of the LHWP. During Phase II of the project, the NDB and other development finance institutions such as the DBSA and AfDB should ensure that the LHDA convenes effective and timely community consultations, provide basic services such as clean water, and ensure adequate and fair compensation to all affected communities – especially women who have in the past been left behind.

During the 2023 BRICS Summit, which took place on 22-24 August, Minister Naledi Pandor of South Africa’s Department of International Relations and Cooperation underscored the need for the NDB to do outreach at the local level in terms of sharing information on the projects the NDB funds, including vital project information, including the $3 billion the NDB plans to invest in South Africa. All eyes are now on South Africa and Brazil with leadership from NDB President Rousseff and Minister Pandor to push for stronger and more inclusive development outcomes of the NDB, with women front and centre of all future NDB projects.

The LHWP Phase II is an example of the challenges faced by communities affected by large infrastructure projects with funding from Public Development Banks (PDBs) such as the NDB, AfDB and the DBSA. As the hundreds of PDBs convene at the 4th Finance in Common Summit (FICS) in Cartegena, Colombia on 4-6 September to join forces to transform the financial system towards climate and sustainability, it will be important that PDBs transform their models to be more effective in promoting positive development outcomes for communities. PDBs have been advocating to increase volumes of finance for development. Civil society across the globe are in solidarity, making their voices heard at the FICS expressing concerns that limited attention is being given to the need to shift the quality of that finance to ensure it does not exacerbate the current crises and to ensure it shifts the power in decision making. Such attention is even more needed as the current financial architecture hinders the ability of governments to protect people and the planet.

¹ https://www.lhda.org.ls : accessed on the 11th July 2023
² Ibid

Marianne Buenaventura Goldman is co-Chair, Civil Society Forum of the NDB (Africa) & Project Coordinator, Forus
Reitumetse Nkoti Mabula is Executive Director, Seinoli Legal Centre

IPS UN Bureau

Follow @IPSNewsUNBureau