MEDIA

Echoes from the field

The kingdom of Lesotho strengthens its capacity to structure and negotiate Power projects with ALSF support

Maseru, The Kingdom of Lesotho, 06 August 2026

The African Legal Support Facility (“ALSF”), in collaboration with Trinity International LLP, successfully delivered a four-day capacity-building workshop (“Workshop”), between 03-06 August 2026 in Maseru, the Government of the Kingdom of Lesotho (“Government”), aimed at strengthening institutional and technical capacity in the structuring, negotiation and implementation of power projects.

The Workshop brought together representatives from key public institutions involved in the Kingdom of Lesotho’s energy sector, including the Attorney General’s Chambers; the Ministry of Energy and Mining, through its Department of Energy and Rural Electrification Unit (REU); the Ministry of Finance; as well as the main entities in the electricity sector, namely the Lesotho Electricity Company (LEC), the Lesotho Electricity and Water Authority (LEWA) and the Lesotho Electricity Generation Company (LEGCO).

The Workshop,builds on the ALSF’s longstanding support to the Kingdom of Lesotho’s power sector. ALSF’s support towards the Government began in 2019 following an official request from the Government for advisory and capacity-building services towards the negotiation of the country’s first independent power project;  a 20 MW solar PV project located in Mafeteng district, to be developed by NEO 1 SPV (Pty) Limited. The assistance included the structure and negotiation of key project documents for the solar project and capacity building services to the Government. The ALSF support materialized for the project, achieving commercial close in November 2021. 

Over the four-day duration of the Workshop, participants explored the key legal, commercial, and financial considerations involved in developing power projects. Sessions covered the (i) specific issues relating to the anatomy, structuring, drafting, and negotiation of PPAs; (ii) the parties' contractual commitments during the different phases of a project; (iii) the role of Government; (iv) project risk analysis; (v) various government guarantees that may be issued in the context of power sector projects; (vi) tariff structuring; and (vii) fiscal strategies and solutions in the context of the Kingdom of Lesotho’s power sector.

Through the practical and interactive approach, the Workshop sought to strengthen the capacity of the Kingdom of Lesotho’s public-sector institutions to better understand, structure and negotiate power projects, while supporting more effective management of the legal, commercial and financial issues that underpin successful project development.

 

About the ALSF

Established by the African Development Bank in 2008, the ALSF assists African governments in negotiating complex commercial transactions, providing legal and technical assistance and developing capacity building tools in the key sectors of infrastructure and public-private partnerships, energy, natural resources and extractive industries, as well as on sovereign debt and creditor disputes.

 

Contact us

Eve Ehoura, Communication Officer : e.ehoura@afdb.org

ALSF Website : https://www.alsf.int