Lesotho Highlands Development Authority

Lesotho Highlands Development Authority P.O. Box 7332, Maseru 100, Lesotho. Telephone: 311280 Fax: 00266- 22 310632

REQUEST FOR QUOTATIONS FOR

PROVISION OF PROFESSIONAL SERVICES FOR THE DEVELOPMENT OF A MANAGEMENT AND BUSINESS PLAN FOR SMALL SCALE

COMMERCIAL FISHERY IN THE LHWP DAMS (LHDA CONTRACT NO. 1193)

THE LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY REQUESTS QUOTATIONS FROM ELIGIBLE CONSULTANTS FOR TO PROVIDE PROFESSIONAL SERVICES FOR THE DEVELOPMENT OF A MANAGEMENT AND BUSINESS PLAN FOR SMALL SCALE COMMERCIAL FISHERY IN THE LHWP DAMS. TENDER DOCUMENTS ARE AVAILABLE FOR COLLECTION AT LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY, PROCUREMENT OFFICE, 7TH FLOOR, LESOTHO BANK TOWER, KINGSWAY; MASERU AT A FEE OF M1000.00 OR CAN BE DOWNLOADED AT www.lhwp.org.ls DEADLINE FOR SUBMISSION: 14H00 ON TUESDAY, 21ST JULY, 2020

KINGDOM OF LESOTHO

LESOTHO HIGHLANDS WATER PROJECT THE LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY

http://www.lhwp.org.ls/

LESOTHO HIGHLANDS WATER PROJECT

REQUEST FOR QUOTATION FOR

CONTRACT LHDA NO. 1193

PROVISION OF PROFESSIONAL SERVICES FOR THE

DEVELOMENT OF A MANAGEMENT AND BUSINESS PLAN FOR SMALL SCALE COMMERCIAL FISHERY IN THE LHWP DAMS

LHDA Lesotho Bank Tower Kingsway Maseru, Lesotho

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1. Background

Awareness of fishing as a livelihood option was first introduced in the Lesotho Highlands Water Project (LHWP) catchments during the era of Lesotho Fisheries Project. During this period, fishing groups were established, capacitated through provision of fishing gear and trained on gillnetting. Implementation of this programme did not go through, however skills acquired by the community members led to development of illegal gillnetting and dependence on fisheries resources in the Katse catchment. The activity has become unregulated and this has the potential to result in resource depletion.

Historical and recent fish stock assessments in the Katse and Mohale catchments have shown that the two dams have a potential to support a gillnet based small-scale commercial fishery based on native fish in the dams. Studies done in Katse indicate that there is a potential for fisheries development based on three species (Labeobarbus aeneus smallmouth yellow fish, Labeo capensis Orange River mudfish and Oncorhynchus mykiss, Rainbow trout). A sustainable small-scale commercial fishery with fish production not exceeding 25 tonnes per annum can be initiated, and developed gradually based on limited mesh size range and subjected to close monitoring for observation of its sustainability and economic viability.

Mohale dam demonstrates an even greater fishery potential than Katse due to its high fish stock, however, the fish production potential of the dam has not been modelled to determine sustainable harvest levels. In addition, subsistence fishery activity in the Mohale catchment is minimal compared to the Katse catchment and introducing fishing activities in the Mohale catchment would first require promotion of the activity and arousing interest in the community.

Currently neither the national fisheries legislation, nor the LHWP fishing regulations support establishment of a commercial fishery. However, results of recent monitoring assessments undertaken from 2017 - 2019 support the historical studies in terms of the feasibility of a small-scale commercial fishery initiative in the LHWP dams. The LHDA therefore wishes to develop small-scale commercial fishing in the LHWP dams.

2. Objective of the study

The overall objective of the exercise is to engage a Consultant to provide professional services for the development of a management and business plan for a small-scale gillnet based commercial fishery in the LHWP dams whilst ensuring sustainable use of the fisheries resources in these dams.

3. Contract Conditions

The conditions of contract wil be the Client/Consultant Model Services Agreement, General Conditions, Fourth Edition, 2006, published by the Federation Internationale des Ingenieurs Conseils (FIDIC).

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4. General Scope of Services to be provided

In carrying out the Scope of Services for this Contract, the Consultant will be required to undertake the following tasks, however the detailed Scope of Services are given in Annexure 1, which is attached:

a. Evaluate the fisheries potential of the LHWP Dams b. Develop a small-scale gillnet based commercial fishing business model in

consultation with the communities c. Review the current LHWP Reservoirs Fishing Regulations of 1999 in consultation

with the communities d. Demarcate the fishing grounds that will sustain the fishery in both Katse and

Mohale Dam catchments e. Outline measures for resource protection f. Develop a training programme for different role players in consultation with the

communities

5. Deliverables

The following deliverables are to be provided in two (2) printed copies and one (1) electronic copy.

a. Inception report: Review of available literature b. Fishery potential of the Katse and Mohale dams c. Review of the LHWP Fishing Regulations of 1999 – Produce draft amendments d. Demarcate fishing grounds that will sustain the fishery and outline measures for

resource protection e. Develop a training programme f. Develop the Implementation Plan g. Final report made up of an Executive Summary report Report and Technical

Components Reports h. Structure of Quotation

The response to this Request for Quotations (RFQ) should be comprised of a detailed financial proposal (quotation) which should be exclusive of VAT, CVs of the proposed team members and a technical proposal brief detailing the methodology and resources to be used in the executing this assignment. The brief should be clear and concise and demonstrate the Consultant’s relevant experience and clear understanding of the assignment. The Consultant will be required to perform all aspects of the assignment to acceptable professional standards. The deliverables at each stage of the exercise shall be subject to LHDA’s approval. The Consultant is expected to engage with the LHDA throughout the duration of the exercise. Timelines for each task/deliverable and the proposed duration of the assignment should be included and the quotation should be valid for 90 calendar days.

6. Evaluation Criteria

The evaluation shall be based on the criterion given in the table below which entails a technical assessment (Items 1 - 3) and a financial assessment (Item 4) where each account, for 50% of the total evaluation score.

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In order for Bidders to have their financial proposal evaluated, they must obtain minimum technical score of 30 marks (60%). It should be noted that the financial component of the proposal will be evaluated using the equation below:

Fs = P x 50 Po

Where Fs = Score for Financial Component P = Lowest Priced Bid Po= Price of the Bid being evaluated

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Proposals should be submitted on or before 14H00 on the 21st July at the ground floor of the LHDA Tower Building (formerly Lesotho Bank Tower Building) OR via email at [email protected]

CRITERION POINTS

Technical Component

1 Tender Presentation

Proposal that is clear, complete and conforms with the instructions to tenderers

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2 Qualifications and experience

2.1 Qualifications The minimum qualifications for the Consultant should be post graduate degree in a field relevant to fish biology and inland fisheries management.

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2.2 Experience At least 10 years’ experience in fish assessments, community based inland subsistence and commercial fisheries development and management, small-scale fisheries livelihoods and other related topics (e.g. catch methods, preservation, distribution, marketing etc). Demonstrate experience in projects of similar nature and magnitude. A minimum of two projects.

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2.3 References A letter of reference for each of the projects listed under 2.2

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3 Approach and Methodology

3.1 Technical Approach and Methodology A proposal that demonstrates a clear understanding of the project requirements, draws attention to the issues related to the assignment, raises important issues in relation to the assignment, and provide means of solving all issues by using advanced and innovative measures will be awarded maximum points. (Provide not more than 5 typed pages)

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3.2 Work Programme This evaluation will consider whether the timing and duration of all activities is appropriate and consistent with the required output, and whether relationships between activities are realistic and consistent with the proposed approach and methodology. Proposal that include a well-developed programme and measures for expediting completion of the work will be awarded maximum points.

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Financial Component

4. Financial Component Include a schedule of costs detailing fees and disbursements for the project.

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TOTAL 100

mailto:[email protected]

KINGDOM OF LESOTHO LESOTHO HIGHLANDS WATER PROJECT

THE LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY






ANNEXURE 1: DETAILED SCOPE OF SERVICES

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DETAILED SCOPE OF SERVICES

Contract LHDA No.: 1193 Contract Name: PROVISION OF PROFESSIONAL SERVICES FOR DEVELOPMENT OF A

MANAGEMENT AND BUSINESS PLAN FOR SMALL SCALE COMMERCIAL FISHERY IN THE LHWP DAMS

1. Background Whilst fish is an important source of animal protein in many African communities, fishing has never been prevalent in Lesotho. This may be attributed to the fact that the rivers and the communities were not sufficiently large enough to establish enduring fishing activities. It was with the introduction of the LHWP dams in the country that a notable increase in fishing activities was observed within the Katse Dam catchment. After almost two decades of fishing in the Katse Dam, some of the fishing community members have established livelihoods on fishing either as a source of protein for their families, as a main source of revenue through capture and sale of fish or a combination thereof. Introduction of fishing regulations in Lesotho was premised on a precautionary approach to fisheries management that restricts fishing activities to artisanal subsistence level. This precautionary fisheries management was adopted due to lack of substantiating scientific data that would justify development of sustainable commercial fishery. As artisanal fishery became established in the Lesotho highlands, it was evident that it does not meet either the subsistence or socio-economic needs of the fishers. Some of its limiting factors were the strict regulations that prescribed low daily quota of four fish, provided limited fishing gear options and the fact that fishing permits were unaffordable and inaccessible to most fishers.

Fishery activities were first initiated in the LHWP Katse dam in the mid-nineties as one of the potential rural development projects. The Lesotho Fisheries Project introduced subsistence fishery at Ha Lejone in the Katse Dam with the aim of developing a long-term sustainable community-based fishery in the Katse Dam. Fish stock assessment studies done under the project determined that the Katse dam has a potential for a small-scale gillnetting commercial fishery based on the three principal fish species; Labeobarbus aeneus smallmouth yellow fish, Labeo capensis Orange River mudfish and Oncorhynchus mykiss, Rainbow trout, with fish production not exceeding 25 tonnes per annum.

Currently neither the national fisheries legislation, nor the LHWP fishing regulations support establishment of a commercial fishery. However, results of recent monitoring assessments undertaken from 2017 - 2019 support the historical studies in terms of the feasibility of a small-scale commercial fishery initiative in the LHWP dams.

2. Rationale and objectives of the Study

2.1 Rationale for the study Based on feedback and observations made during fisheries conservation awareness campaigns, fisheries patrols and subsistence fisheries surveys, communities around LHWP dams, Katse in particular, have established livelihoods on commercial fishing despite its illegal status. Awareness of fishing as a livelihood option was first introduced in the Katse catchment during the era of Lesotho Fisheries Project. During this period, fishing groups were established, capacitated through provision of fishing gear and trained on gillnetting. Implementation of this programme did not go through, however skills acquired by the community members led to development of illegal gillnetting and dependence on fisheries resources in the Katse catchment. The activity has become unregulated and this has the potential to result in resource depletion.

Historical and recent fish stock assessments in the Katse and Mohale catchments have shown that the two dams have a potential to support a gillnet based small-scale commercial fishery based on native fish in the dams. Studies done in Katse indicate that there is a potential for fisheries development based on three species (smallmouth yellow fish, mudfish and rainbow trout). A sustainable small-scale commercial fishery can be initiated, and developed gradually based on limited mesh size range and subjected to close monitoring for observation of its sustainability and economic viability.

Mohale dam has demonstrated an even greater fishery potential than Katse due to its high fish stock, however, the fish production potential of the dam has not been modelled to determine sustainable harvest levels. In addition, subsistence fishery activity in the Mohale catchment is minimal compared to the Katse catchment and introducing fishing activities in the Mohale catchment would first require promotion of the activity and arousing interest in the community. 2.2 Objective of the study The overall objective of the exercise is to develop a management and business plan for a small-scale gillnet based commercial fishery in the LHWP dams to ensure sustainable use of the fisheries resources in the LHWP dams. This shall be achieved through undertaking the following specific tasks: 2.2.1 Evaluate the fisheries potential of the LHWP Dams.

2.2.2 Develop a small-scale gillnet based commercial fishing business model in

consultation with the communities.

2.2.3 Review the current LHWP Reservoirs Fishing Regulations of 1999 in consultation with the communities.

2.2.4 Demarcate fishing grounds that will sustain the fishery in both Katse and Mohale Dam catchments.

2.2.5 Outline measures for resource protection.

2.2.6 Develop a training programme for different role players in consultation with the

communities.

3. Detailed Tasks for the Assignment The approach to the Scope of Services should address at least the following key areas as listed below. During execution of the activities listed below, so far as is reasonably practicable and given the risks associated with the work to be carried out, the Consultant shall ensure the safety, health and welfare of the team at work. The Consultant will be required to undertake the following tasks:

3.1. Evaluate the fisheries potential of the LHWP Dams

• Use the available relevant secondary data and literature to estimate the fisheries potential of the Katse and Mohale Dams using appropriate models.

• Determine the sustainable yield and fishing effort for the dams.

3.2. Develop a small-scale gillnet based commercial fishing business model in consultation with the communities

• Review available literature on existing small-scale fishing models and propose options of the most applicable business models that will be simple, cost effective and of benefit to the local communities.

• Analyze the resource utilization options and apply suitable measures to address the fisheries management, processing and Marketing and the livelihood development.

• Develop business regulations, including but not limited to Co-management and regulation framework and Market prices in consultation with the communities.

3.3. Review the current LHWP Reservoirs Fishing Regulations of 1999 in consultation with the communities

• Identify gaps in the current legislation in relation to subsistence and recreational fishing.

• Include regulations for gillnet based small-scale commercial fishing.

• Draft amendments to the regulations.

3.4. Demarcate the fishing grounds that will sustain the fishery

• Demarcate subsistence, recreational and commercial fishing grounds within the fishing zones.

• Propose measures for an adaptive management system that is responsive to the results of the fish stock monitoring programme and dam drawdown levels as a result of drought.

3.5. Outline measures for resource protection

• Define spawning habitats for the fish.

• Propose measures for protection bearing in mind the spawning season for each species and dam level fluctuations as a result of drought

• Design resource use monitoring programmes for subsistence, recreational and commercial fishing

3.6. Develop a training programme for different role players in consultation with the communities

• Identify different role players (and their roles) that include but are not limited to fishers, resource managers, community leaders.

• Identify training needs for each of the different role players and develop a training programme.

4. Deliverables and Payment Schedules

4.1. Deliverables All deliverables shall be submitted to the LHDA in five (5) hard copies and in electronic form Microsoft Word format. The reports shall be considered as “drafts” upon initial submission until accepted by the LHDA. Any concerns and comments on the reports will be provided within two (2) weeks of submission.

Table 1: Deliverables

No Deliverable

4.1.1 Inception report: Review of available literature

4.1.2 Fishery potential of the Katse and Mohale dams

4.1.3 Review of the LHWP Fishing Regulations of 1999 – Produce draft amendments

No Deliverable

4.1.4 Demarcate fishing grounds that will sustain the fishery and outline measures for resource protection

4.1.5 Develop a training programme

4.1.6 Develop the Implementation Plan

4.1.7 Final report made up of an Executive Summary report and technical Components Reports

4.2. Payment Schedule The Consultant shall provide a fixed price cost proposal for each task assuming a level of effort of the specialists involved. Payment shall be made in accordance with the schedule below.

Table 2: Payment Schedule No. Deliverable Payment

proportion (%)

4.2.1 Inception report: Review of available literature 10

4.2.2 Fishery potential of the Katse and Mohale dams 15

4.2.3 Review of the LHWP Fishing Regulations of 1999 – Produce draft amendments

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4.2.4 Demarcate fishing grounds that will sustain the fishery and outline measures for resource protection

4.2.5 Develop a training programme 10

4.2.6 Develop the Implementation Plan

4.2.7 Final Report made up of an Executive Summary Report and Technical Components Reports

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5. Coordination The Consultant will be required to consult with the LHDA during execution of the project through regular coordination and progress meetings. A minimum of four meetings will be held following commencement of the project and the consultant is expected to undertake oral presentations on each deliverable for review by the Client before the final document is approved. The Consultant is expected to coordinate with other on-going assignments within LHDA that might have influence on the project. LHDA will assign staff to work closely with the Consultant and skills transfer will be part of the assignment.

6. LHWP Anti-Corruption Policy The Consultant will be required to comply with the provisions of the LHWP Anti-Corruption Policy, which is given in Annexure 2.

7. Assistance to the Consultant Where applicable, the Client will provide written confirmation of Consultant’s participation in the project for purposes of obtaining work permits as required by the laws of Lesotho. While the Client may assist where possible, it is solely the Consultant’s responsibility to comply with the laws of Lesotho.

8. Costs Associated with Project The cost of all activities and items described in the scope of services, shall be assumed to be included in the Consultant’s financial proposal.

9. Timeframe The study will be carried out over a period of Six (6) months.

10. Reference Documents The consultant will be allowed to access, review and refer to some of the technical documents that bear relevance to mapping and zoning. Apart from the reference materials listed below, the consultant may decide to include other relevant literature that would help to successfully complete this study.

List of selected documents to serve as Reference include the following:

1. The 1986 Treaty on Lesotho Highlands Water Project. 2. M. Nthimo, 2000: The biology of commercially important fish species and a

preliminary assessment of the fisheries potential of Katse Dam, Lesotho. Unpublished Masters’ thesis.

3. Lesotho Highlands Development Authority, 2001. Contract LHDA 625A: Development of Fisheries in Phase 1A of the LHWP. JLB Smith Institute of Ichthyology. Grahamstown. South Africa. Final Report.

4. The Conservation Consultancy of the KwaZulu Natal Nature Conservation Service, 1999. A Fisheries zonation plan for the Katse Dam Lesotho.

5. Lesotho Highlands Development Authority, 1990. Fisheries Biology Aquatic Communities. Lesotho Highlands Water Project Environmental Study. Environmental Resources Limited. London.

6. Technical Reports on Fish stock assessment in the Katse and Mohale Dams, 2017, 2018 and 2019.

11. Key Personnel and Qualifications Required The key personnel, qualifications and expected experience for the Consultant’s team are listed below in Table 3. The project shall be implemented in collaboration with the Fisheries team of the LHDA and the GOL Department of Livestock Services (Fisheries Section). The consultant shall provide the project oversight and day-to-day planning and management of the deliverables and should have substantial experience in inland subsistence and commercial fishery development in developing countries. Table 3: Key Personnel and Expertise Required Personnel Required

Personnel Qualifications

Project Consultant

Post graduate degree in a field relevant fish biology and inland fisheries management. At least 10 years’ experience in community based inland subsistence and commercial fisheries development and management, small-scale fisheries livelihoods and other related topics (e.g. catch methods, preservation, distribution, marketing etc). Demonstrated ability in the management of fisheries development projects/programmes in developing countries.

KINGDOM OF LESOTHO LESOTHO HIGHLANDS WATER PROJECT

THE LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY






ANNEXURE 2: LHWP ANTI-CORRUPTION POLICY

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LHWP ANTI-CORRUPTION POLICY - 2019 Adopted by the Lesotho Highlands Water Commission in April 2019

1. This Policy has been adopted pursuant to Article 16 of the Agreement on

Phase II of the Lesotho Highlands Water Project between the Government of the Kingdom of Lesotho and the Government of the Republic of South Africa.

Definitions:

2. In this Policy:

2.1. the Lesotho Highlands Water Project will be referred to as the Project and

includes Phases IA, IB and II thereof;

2.2. the Project Authority includes the Lesotho Highlands Water Commission (“the LHWC”) and the Lesotho Highlands Development Authority (“the LHDA”);

2.3. employees of the Project Authority include employees and board

members of the LHDA and employees of and delegates to the LHWC;

2.4. in the context of this Policy, an agent is not a bona fide business, practice or individual which provides facilitation services to consultants and contractors for the purposes of registration with government authorities and for obtaining the necessary licences, permits and clearances to practise within the Kingdom of Lesotho (e.g. Income tax clearance, trading licence, work permits, etc.). In the context of this Policy, such facilitators are legitimate service providers for purposes of assisting consultants and contractors to comply with the legal requirements for permitting, licencing and registration.

Background:

3. Phases IA and IB of the Project were tainted by corruption which caused the

integrity of the Project to be undermined and questioned.

4. Despite the best efforts of the Lesotho prosecuting authorities, working in conjunction with the Project Authority, and by reason of the insidious nature of corruption, the full extent of the corruption in connection with these Phases is not known, nor is the identity of each and every entity or individual involved.

5. In the light of these experiences the Phase II Agreement provides in Article 16

for the development and adoption of an Anti-Corruption Policy for the Project. Principles:

6. All persons or entities involved in the Project must observe the highest

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standards of compliance and ethics. The Project Authority shall take all appropriate measures to combat corruption in all its forms.

7. All contracting parties or entities, and persons otherwise involved in the

Project, shall take all appropriate measures to prevent and combat corruption and to refrain from engaging in corruption in connection with their involvement in the Project.

Application of Policy:

8. The provisions of this Policy shall apply to all contractors and consultants

involved in the Project, including the pre-qualification of bidders and tenderers (where applicable), the evaluation of bids and tenders and the award of contracts.

9. Henceforth every contract entered into under the Project shall provide for the

incorporation of this Policy into such contract.

10. The provisions of this Policy shall apply to the employment and the conduct of employees of the Project Authority.

11. The provisions of this Policy shall apply to recipients of compensation in terms

of the Project.

12. For the purposes of this Policy corruption shall include the following:

12.1. A “corrupt practice”, such being the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of any person or entity in connection with the Project.

12.2. A “fraudulent practice”, such being any act or omission, including a

misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, any person or entity in connection with the Project, to obtain a financial or other benefit or to avoid an obligation.

12.3. A “collusive practice”, such being an arrangement between two or more

parties designed to achieve an improper purpose, including to influence improperly the actions of any person or entity in connection with the Project. Such practices may include: 12.3.1. Corporate conflict of interest, where two or more firms are

engaged in joint pursuits elsewhere with a common business goal such that the firm or its employees “have the potential or ability to influence or be influenced in their judgement or evaluation of an offer, bid or tender of one of the firms engaged with them elsewhere such that the evaluation/assessment cannot be completely impartial/unbiased and objective”; or

12.3.2. Perceived conflict of interest, defined as “when a third party observing the procurement process considers the process to be influenced or biased based on the perception of business or other

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relationships between the corporate entities”.

12.4. Bias when dealing with claims and variation orders during administration of the contract. A “coercive practice”, such being impairing or harming, or threatening to impair or harm, directly or indirectly, or to influence improperly, any person or entity in connection with the Project.

12.5. An “obstructive practice”, such being:

12.5.1. the destroying, falsifying, altering or concealing of evidential material relevant to an investigation, as referred to in paragraphs 28 and 29 hereunder, or the making of false statements to investigators in order to materially impede such investigation; and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to such investigation or from pursuing such investigation; or

12.5.2. acts intended to materially impede the exercise of the Project Authority’s right to access to information, as referred to in paragraphs 28 and 29 hereunder.

Participation in Contracts:

13. Where a contractor or consultant, or any employee or former employee of such contractor or consultant, or any individual, was previously involved or implicated in corruption, such contractor, consultant or individual may be excluded from any involvement in the Project. Such exclusion will be at the sole discretion of the Project Authority based on a reasonable assessment of all the facts at its disposal.

14. Any contract awarded in relation to the Project will commit the contractor,

consultant or individual concerned not to involve itself or himself/herself in corruption, whether relating to the specific contract or not, concerning any employee of the Project Authority or any other entity or person having an interest in the Project.

15. The Project Authority in dealing with the pre-qualification of bidders and

tenderers, the evaluation of bids and tenders, as well as the award of contracts, will have regard to the use of agents by contractors or consultants, both in the procurement or execution of previous contracts as well as their intended involvement in the Project. Here the Project Authority will be entitled to assume, unless shown otherwise, that such use or intended use of agents involved or will involve corruption.

Confidential Business Information/Client Privilege

16. Confidential Business Information (CBI) shall include all forms of client

privilege information pertaining to fees, cost estimates, engineering design,

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specifications, method statements, reports, prototypes, bid and tender evaluation reports, etc. All CBI shall be protected by signed declarations by all individuals engaged on the Project or contracted to the Project Authority for purposes of carrying out consultancy services related to the implementation of LHWP. Such declarations shall take the form of Non-Disclosure Agreements (NDA), which will be signed by the other party and retained by the Project Authority.

Specific Obligations of Prospective Contractors and Consultants:

17. Every prospective contractor or consultant shall at the earliest opportunity in

any bid or tendering process disclose to the Project Authority any prior involvement by it or any of its current or former employees in corruption.

18. Every prospective contractor or consultant shall disclose both its past and

present use of agents in the procurement or execution of contracts and such disclosure will specifically include the contractual arrangement with such agent including the basis upon which such agent was or will be remunerated.

19. Every prospective contractor or consultant shall at the earliest opportunity in

the bidding or tendering processes or at any point during the execution of a contract, disclose to the Project Authority any conflict or potential conflict of interest, whether personal or corporate, whether real or perceived, including but not limited to any employee of the Project having an interest, financial or otherwise, in the contractor or consultant or such contractor’s or consultant’s proposed involvement in the Project.

20. All contractors and consultants, as well as their employees and agents, as well as employees of the Project Authority, involved in the Project, shall commit themselves to taking all appropriate measures to prevent corruption and shall immediately report to the Project Authority any corruption that comes to their attention, and any failure to so report shall be deemed to constitute corruption.

21. The Project Authority shall do everything in its power to protect the identity of

employees who act in terms of their aforesaid obligation to report instances of corruption. In addition, the Project Authority shall seek to ensure that such employees are not victimised or otherwise discriminated against as a result of their so reporting.

22. The Project Authority has implemented a “whistle-blower” policy which shall be available for anonymous reporting of corruption or perceived corruption to ensure early warning and reaction by the Authority. All reports shall be treated as confidential and will provide protection/asylum to any party making a disclosure. The reports from the hotline number go to an independent hotline service provider. After a preliminary investigation, they report to the Chief Executive (CE) if the matter does not involve the CE otherwise the case is reported to the Audit and Risk Chairperson for further investigation.

23. All contractors and consultants, as well as their employees and agents, as well

as employees of the Project Authority, involved in the Project, shall, if called

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upon to do so, fully co-operate with the Project Authority and/or the Lesotho Director of Public Prosecutions or any person designated by him, in any investigation into allegations of corruption, whether against them or their employee or agent, or against any other entity or person.

Sanctions:

24. In addition to any contractual rights in terms of specific contracts, the Project

Authority shall have the right to cancel any contract under the Project in the event that the award of such contract or its execution is shown to have involved corruption. The Project Authority shall be entitled to exercise this right once it is reasonably satisfied on the information at its disposal that such corruption has indeed occurred. It will not however exercise such right without giving the contracting party involved a reasonable opportunity to refute any allegation or evidence of corruption levelled against it.

25. Any breach of this Policy by an employee of the Project Authority shall be

deemed a material breach of his or her conditions of employment.

26. Compliance with this Policy through early disclosure will not necessarily result in punitive action or disqualification but will be subject to the ruling and determination of the Project Authority’s Conflict of Interest Committee or legal counsel.

27. Determination of a Conflict of Interest rests with the Project Authority and not with the respondent.

Investigation and Access to Information:

28. The Project Authority shall have the right, in the event of allegations of

corruption against any contractor or consultant, or any of their employees, former employees or agents, as well as employees of the Project Authority, to investigate such allegations, and such right shall include the right of access to the said entity or person’s records and/or other evidential material which in the opinion of the Project Authority may be relevant to such investigation.

29. The entity or person referred to in paragraph 28 shall be obliged to fully co-

operate with any such investigation and shall make available to the Project Authority any records or other evidential material as the Project Authority may require for purposes of such investigation.

30. The investigation referred to in paragraphs 28 and 29 shall be conducted by

independent investigators appointed by the LHDA Board or the LHWC. Ethics, Training and Compliance:

31. The Project Authority requires that all employees, consultants and contractors

undergo Ethics and Compliance training at the commencement of services and annual refresher courses for as long as the individual/entity is engaged on the Lesotho Highlands Water Project Phase II. The Project Authority will direct

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and cause to be presented appropriate training and will conduct regular audits to ensure compliance by consultants and contractors on the Project.