South Africa and Lesotho have signed an implementation agreement for the second phase of the R15-billion Lesotho Highlands Water Project (LHWP) and committed to building a hydropower station with an installed capacity of between 1,000 MW and 1,200 MW. The hydropower plant would be operational in 2018, and would see some 200 MW supplied for Lesotho’s power needs, with the remaining power transmitted to South Africa.