Name and Location
Lesotho Highlands Power Project (LHPP), Lesotho to South Africa.

Project Description
The aim of the project is to develop and integrate 6 000 MW of wind power with 4 000 MW of pumped-storage hydroelectric power to provide power to Lesotho and South Africa.

The LHPP is the largest renewable power project in Africa. The project is expected to reduce the required capital expenditure for electricity and will contribute to supporting economic integration and political stability in the region. It is also expected to balance trade accounts between the two countries.

The project is envisaged to operate using 20 000 wind turbines and will be constructed in phases.

Phase 1 will consist of a 150 MW wind farm, and will harness water from Lesotho’s Maluti mountains to produce power. Phase 2 will consist of a 300 MW wind farm and Phase 3 will consist of a 600 MW wind farm.

Value
The project is estimated at R110-billion.

The project will be funded through a combination of debt and equity, with the major debt partners including Chinese financial institutions.

Duration
The project will be constructed in phases over a period of 10 to 15 years.

The financial close of Phase 1 is planned for 2012 and the facility is expected to be operational by the end of 2013.

Feasibility studies for Phase 2 are planned for 2012 to 2013 and financial close is expected in 2013. Transmission permitting and upgrade in South Africa are planned for 2012 to 2014.

The feasibility studies for Phase 3 will start as soon as Phase 1 is operational in 2013.

The facility is likely to be operational by 2016.

Client
Breeze Power (a joint venture between Harrison & White and the Lesotho government).

Key Contracts and Suppliers
Ming Yang Wind Power (wind turbine supplier).

Latest Developments
A memorandum of understanding (MoU) between the Lesotho government and Harrison & White has been signed. The signing of the MoU signifies the launch of the LHPP.

Meanwhile, Harrison & White and its technology partner Ming Yang Wind Power, which is based in China, have concluded an agreement to build wind turbine component factories in South Africa and Lesotho early next year.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Harrison & White, tel +27 16 986 1248, fax +27 16 986 0856 or email hwv@iafrica.com.
Lesotho government director of information Teboho Malisebo Mokela,
tel +266 223 11 000 or fax +266 223 10 102.
Ming Yang Wind Power investor relations director Calvin Lau, tel +86 760 2813 8898 or email ir@mywind.com.cn.