SA firm sues Lesotho group over tunnel project

SA’s Esor Construction has launched a High Court case to claim more than M165m ($10.3m) for work on the Polihali Transfer Tunnel, part of the Lesotho Highlands Water Project. Esor is suing the Kopano Ke Matla joint venture and its three partners, who it says accepted its tender for a M365m subcontract. However, Kopano Ke Matla has rejected Esor’s claim, saying there is no valid agreement between the parties. The Polihali Transfer Tunnel, part of phase two of the Lesotho Highlands Water Project, will transfer water from the Polihali Dam, which is under construction, to the existing Katse Dam. GroundUp reports that the water will then be channelled to SA. The project is expected to gradually increase annual water transfers from 780m to more than 1.27bn cubic metres. The Lesotho Highlands Development Authority announced in November 2022 that Kopano Ke Matla, comprising China’s Yellow River Company, Sinohydro Bureau 3 and SA’s Unik Civil Engineering, had been awarded the approximately M9.2bn contract for construction of the Polihali Transfer Tunnel. The dispute with Esor centres on whether Esor and Kopano Ke Matla concluded a binding subcontract. Esor’s papers say the claim for lost overheads and profit was calculated with the assistance of quantity surveyor and construction claims expert Dave Mark Buchanan Stuart. Esor wants the court to order Kopano Ke Matla and its three partners to pay the amounts claimed jointly and severally, together with interest and legal costs. On 10 August, Kopano Ke Matla, Yellow River Company, Sinohydro Bureau 3 and Unik Civil Engineering, through their lawyer Zurayda Mayet of Mayet and Associates Attorneys, gave notice that they intend to answer Esor’s application.

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