M960m solar deal sparks battle

Local businessman challenges award of Ha Ramarothole Solar Project to Chinese firm 

 
TEBOHO KHATEBE MOLEFI and

MOTSAMAI MOKOTJO 

MASERU – A prominent local businessman is mounting a challenge against government’s decision to award the Ha Ramarothole Solar PV and Energy Storage Project to China’s Beijing Jingyuntong Co Limited (BJT), calling for the immediate cancellation of the deal over alleged irregularities.

Teboho Tlokotsi, director and shareholder of Silverstone, a Basotho-owned energy firm, has formally petitioned finance minister, Dr Retšelisitsoe Matlanyane, to revoke the Build-Operate-Transfer (BOT) agreement signed with the Chinese company.

In a strongly worded letter dated July 10, Tlokotsi accuses government of bypassing fair and open competitive bidding, raising concerns over transparency and value for money. 

“I am writing in protest of the alleged agreement between the government of Lesotho and Beijing Jingyuntong,” Tlokotsi stated.

“This deal appears to have been awarded without a competitive tendering process, denying local and international firms a fair opportunity to bid.” 

He argues that the technology offered by the Chinese firm is not unique enough to justify single-source procurement, especially as global demand for clean energy solutions grows.

“Lesotho deserves a transparent process that ensures the best possible deal for its people,” he added. 

Tlokotsi has given the finance ministry 30 working days to resolve the matter amicably, failing which he threatens legal action to nullify the contract and compel a new, open tender. 

Speaking to Public Eye, Tlokotsi reiterated his stance: “This is about fairness and accountability. If the government believes in local participation and economic empowerment, then this project must be reopened to competitive bidding.” 

Tlokotsi emphasized that the business community is not fighting the Matekane administration itself.

However, they are deeply concerned that government practices are undermining the essential role of local businesses as middlemen.

He alleges ministers routinely award government tenders in violation of explicit procurement regulations, often for personal gain.

“All we want,” Tlokotsi stated, “is a level and open playing field.”

He revealed this fight isn’t new, tracing his opposition back to the previous Motsoahae Thabane-led government.

Specifically targeting the current Ha Ramarothole agreement, he demanded: “We want this agreement nullified. BJT should also be required to tender. There may be alternative companies capable of offering the service at a significantly lower price.”

Tlokotsi issued a direct challenge to the government, urging them to “come to their senses” and resolve the matter amicably. He warned that “this is a fight the government cannot win.”

Attempts to seek confirmation of this letter to Matlanyane from the Ministry of Finance’s information office drew a blank as phones of relevant officers rang unanswered.

Contacted yesterday, Principal Secretary Nthatoeng Lebona, declined to respond to questions, stating that the approach was unfair.

“Please understand, I am currently at His Majesty’s birthday celebrations… you know that’s not how we operate,” Lebona said.

The controversy raises fresh questions about procurement practices in Lesotho’s energy sector, with industry players calling for greater scrutiny of high-value contracts. 

In this significant infrastructure initiative, government has controversially signed a Build-Operate-Transfer (BOT) agreement with BJT for the development of a 40MWp solar photovoltaic (PV) plant and a 20MWh battery energy storage system (BESS).

Under the 15-year agreement, BJT will design, construct, finance, operate, and maintain the project. Upon completion of the term, all project assets will transfer to the government.

Key provisions include a mandatory offtake that sees the Lesotho Electricity Company (LEC), a wholly state-owned utility, contractually obligated to purchase all net electrical output and ancillary services generated by the project.

The LEC is prohibited from engaging, authorizing, or permitting any other entity to develop, construct, or operate a project at the Ha Ramarothole site, in Mafeteng, during the agreement period. This ensures BJT retains sole authority and responsibility for the project.

BJT will receive all revenue from electricity sales and retain all associated rights and benefits throughout the 15-year operational phase, with the project timeline broken into 12 months for construction; 30 days testing period and commissioning ahead of the 15 years of operation by BJT.

The total project investment is M960 million – approximately US$53 million.

Phase I chaos

The Ha Ramarothole Solar Project faced intense scrutiny from the Public Accounts Committee (PAC) in recent weeks. The committee uncovered serious concerns regarding the project’s tender process and its award to BJT.

Significantly, the PAC and public raised alarm about fundamental flaws in Phase I, particularly the commencement of construction without the legally required ESIA report – a point strongly criticized by both.

To investigate further, the PAC conducted a site visit to Ha Ramarothole on Monday.

Construction Supervisor, Tšolo Lesia, assured the PAC that area rehabilitation efforts were ongoing, stating, “We are a technical team which includes a construction supervisor, a soil conservation advisor, and a health safety expert.”

He mentioned they had conducted tests on the duplex soil supporting the solar panels, which he described as susceptible to erosion from natural elements like rain.

However, legislator Thabiso Lekitla interrupted, questioning the necessity of building in such an area.

He asked, “There was supposed to have been an Environmental Impact Assessment (EIA) before anything started here. Wasn’t the erection of these panels informed by a proper expert assessment? Furthermore, what is guiding the rehabilitation improvements you mention?”

Lesia responded that the guiding document should be an EIA, but conceded, “I don’t have it and have never seen it.”

Chief Konyana Ramarothole confirmed this, indicating in an interview that any ESIA-like activity occurred only after project completion.

He scornfully questioned, “Everything here was done hastily, and I always wondered… why the rush to implement while related environmental and social concerns remained unaddressed?”

Several sources told this publication the ESIA was conducted only after commissioning “just to tick the boxes.”

The PAC further discovered the M1 billion Ha Ramarothole Solar Plant Phase I does not produce the 30MW electricity officially claimed by authorities.

Plant Manager, Sebajoa Tau, admitted this during the committee’s visit. He stated the 30MW expectation was a misconception due to inherent energy losses.

“The highest peak we have reached is 25.6MW. We have never attained 30MW, and it will never be reached,” he clarified, adding that while 28MW might be possible, 30MW was unachievable.

When PAC member, Dr Tšeliso Moroke, pressed him on potentially misleading statements about capacity, Tau initially responded, “30 is the amount we expect at maximum capacity.”

However, questioned directly if claiming 30MW generation was a mistake, he confessed: “The truth is this plant has never and can never reach 30MW.”

During the visit, PAC members were also astonished to find the M1 billion national key point guarded by only two under-equipped security personnel stationed in a shabby, corrugated sheet guardhouse lacking basic amenities like electricity and water.

“Is this how we are protecting our investment?” committee chairperson, ‘Machabana Lemphane Letsie, remarked.

Another PAC member, Lekitla, echoed security concerns, questioning management.

Tau, caught off-guard, acknowledged that M26 million allocated for land rehabilitation did not address security issues.