Completed Development AidData Chinese Aid

China Eximbank provides RMB 481.5 million government concessional loan for Phase 1 of 70MW Ramarothole Solar Generation Project

¥481.5M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Lesotho
Country	Lesotho
Start Date	Jan 01, 2020
End Date	Feb 20, 2029
Duration	3,338 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`55896`

Grant Description

China Eximbank provides RMB 481.5 million government concessional loan for Phase 1 of 70MW Ramarothole Solar Generation Project In 2020, China Eximbank and the Government of Lesotho signed an RMB 481.5 million ($69,818,683.80) government concessional loan (GCL) agreement for Phase 1 of the 70MW Ramarothole Solar Generation Project.

📋 Loan / Grant Terms

💰 Loan Amountare as follows: a 20-year maturity

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

However, it is known that the borrower was to use the loan proceeds to finance a commercial contract between the Government of Lesotho and a consortium consisting of Sinoma International Engineering Co., Ltd. and TBEA Xinjiang New Energy.

The purpose of the project was to construct a 30MW photovoltaic solar power plant — in the locality of Ha-Ramarothole within the district of Mafeteng — on a 220-hectare plot of land.

It also involved the upgrading of the Ramarothole Sub-Station and installation of the high-voltage transmission line back to Masianokeng Sub-Station from where power was to be distributed nationwide.

Sinoma International Engineering Co., Ltd. and TBEA Xinjiang New Energy were the contractors responsible for project implementation. A formal groundbreaking (sod-turning) ceremony took place on December 16, 2020.

However, the ceremony was almost aborted in the 11th hour as angry villagers demanded a stop to the project until they had been compensated for the loss of their land which would be the site of the project.

The ceremony only went ahead after a senior representative from the Government of Lesotho (Mohapi Mohapinyane, the Minister of Energy and Meteorology) met with Principal Chief Seeiso and promised to compensate the villagers in the next two weeks. The project was also been plagued by controversy and accusations of corruption and artificially inflated pricing.

The Directorate on Corruption and Economic Offences (DCEO) launched an investigation to establish how the tender was awarded by the Government of Lesotho to Sinoma International Engineering Co., Ltd. and TBEA Xinjiang New Energy.

In a December 2020 interview with the Lesotho Times, Finance Minister Thabo Sophonea said that the government was forging ahead with the project because there were baseless allegations and no compelling evidence of any irregularities in the awarding of the tender.

More specifically, he said “On our side we do not have any solid evidence of anything untoward, there are just allegations. […] There is nothing concrete. The DCEO and other departments have not written to us to indicate that there is a corruption behind this project.

Yes, the allegations are there but you cannot stop acting unless you have a direct order or evidence stopping you. […] It is their (DCEO) duty to investigate but then again we have to continue with the development of the country until the DCEO has something tangible to act on.

It is their duty to investigate whatever they think has not been properly done but unless something solid can be brought to us, we cannot stop.

We are happy they are continuing with the investigations but now we have to go ahead because we are already late in starting this project.” The DCEO began probing the deal in the wake of an exposé by the Lesotho Times of a massive scandal in which some senior officials in the Thabane administration, including former Energy Minister Mokoto Hloaele, reportedly agreed to the bloated deal with Sinoma International Engineering Co., Ltd. and TBEA Xinjiang New Energy in exchange for bribes.

Former Energy Minister Mokoto Hloaele is alleged to have received a sizeable bribe along with former First Lady Maesaiah Thabane and others to facilitate the deal. Hloaele has since denied receiving any bribes.

He has instead challenged current Development Planning Minister Selibe Mochoboroane to explain how the Government of Lesotho agreed to the deal, saying it was Mochoboroane and not him who signed a cooperation agreement for the project with Sinoma International Engineering Co., Ltd. and TBEA Xinjiang New Energy.

The project was ultimately completed on June 12, 2023. Between April 2024 and January 2025, the power plant injected 45,797.50 MWh into the national grid.

However, a feasibility study for power storage identified a need for 171MWh, and the project encountered soil degradation challenges.

In response, the Government of Lesotho Government implemented soil conservation activities, employing about 80 local laborers.

In 2025, a potential $79 million China Eximbank loan for Phase 2 of the 70MW Ramarothole Solar Generation Project Plant was under evaluation by the China International Development Corporation Agency (CIDCA).

📋 Staff Comments

This project is also known as the 30MW Mafeiteng Photovoltaic Power Plant Phase I Project, Phase 1 of the Mafeteng Photovoltaic Power Plant Project, and the Ramarothole Solar Power Project. The Chinese project title is 莱索托马费腾光伏电站一期30MW项目.
Attendees of the groundbreaking (sod-turning) ceremony included Government of Lesotho Ministers Mohapi Mohapinyane (Energy and Meteorology), Thabo Sophonea (Finance), Professor Nqosa Mahao (Law and Justice), Nkaku Kabi (Water), Selibe Mochoboroane (Development Planning), Likeleli Tampane (Gender and Youth), Motlohi Maliehe (Forestry), Keketso Rantšo (Labour) and Maimane Maphathe (Deputy Public Works), as well as Chinese ambassador Lei Kezhong, Likhoele Principal Chief Lerotholi Seeiso and Member of Parliament Molefi Phamotse, area chief Fako Seeiso and Councilor Sebofi Moeketsi.
The second phase of the Ramarothole 70MW Solar Generation Project is expected to involve the construction of a 40MW photovoltaic solar power plant in the locality of Ha-Ramarothole within the district of Mafeteng. Lesotho’s Ministry of Finance plans to finance the second phase with a $79 million China Eximbank loan (see https://www.dropbox.com/s/9x4ixmb6siuhphu/Public%20Debt%20Management%20Report.pdf?dl=0).
Well-placed sources in the solar power generation industry told the Lesotho Times that it costs $1 million to build infrastructure to produce 1MW of solar power. However, the Government of Lesotho agreed to an inflated cost of $2.5 million per 1MW.
$69,818,683.80 is the China Eximbank loan commitment value that the Government of Lesotho voluntarily disclosed to the Debtor Reporting System (see https://www.dropbox.com/s/kwxk7hpv0dyicpi/DRS%20Official%20Commitments%20from%20China%20through%202020.csv?dl=0).
According to a Public Debt Management report published by Lesotho’s Ministry of Finance in June 2022 (https://www.dropbox.com/s/9x4ixmb6siuhphu/Public%20Debt%20Management%20Report.pdf?dl=0), it borrows from China Eximbank on the following terms: 20-year maturity, 5-year grace period, 2% interest rate, and 0.50% commitment fee. For the time being, AidData assumes that these borrowing terms apply to the China Eximbank loan for Phase 1 of the Ramarothole 70MW Solar Generation Project.

📚 Sources & References

SADC_2018 RENEWABLE ENERGY AND ENERGY EFFICIENCY STATUS REPORT
Lesotho
China negotiate loan for Mafeteng solar project
Move Forward China-Lesotho Cooperation With FOCAC Beijing Summit
PUBLIC DEBT SUSTAINABILITY ANALYSIS REPORT FOR LESOTHO
Govt seeks loan to finance solar power project, 70 MW Mafeteng Solar PV Power Plant Project
进出口银行一季度海外贷款的6大项目非洲为主, 【特变电工沈变公司莱索托马费滕光伏电站一期30MWp工程施工项目】TBEA-SB-SBSCZB-SG-2020-001-招标公告, [中材科技]集团领导拜会莱索托王国首相塔巴内并参加70兆瓦光伏项目签约仪式
CITIZEN’S GUIDE TO THE 2020/21 BUDGET
The ambassador to Lesotho and Lesotho Prime Minister Maggioro attended the groundbreaking ceremony of the Mafeteng photovoltaic power plant project
PM LEADS RAMAROTHOLE SOLAR POWER SOD TURNING
PUBLIC DEBT SUSTAINABILITY ANALYSIS REPORT FOR LESOTHO
Work on Mafeteng solar power plant to commence soon
Mafeteng solar PV power plant in Lesotho set to begin construction in five months, 21220-lesotho-energy-programme
Construction of Mafeteng solar power plant to begin soon
中方融资和承建莱索托将开建70MW光伏电站
我援莱索托马费腾光伏电站项目一期举行开工仪式
驻莱索托大使雷克中与莱首相马乔罗共同出席马费腾光伏电站项目开工仪式
Construction of Mafeteng solar power plant in Lesotho to begin soon
PM LEADS RAMAROTHOLE SOLAR POWER SOD TURNING, 2020_2021 Budget Speech
Kingdom of Lesotho Total for Ministries Budget summary - 2020/2021, 2020/21 MID-TERM BUDGET REVIEW
Govt Forges Ahead With Controversial Solar Project
Lesotho: Inflated Deals Create Debt Trap for Future Generations - Analysts
Kingdom of Lesotho BUDGET ESTIMATES FOR THE FINANCIAL YEAR 2021/2022
THE LANGUAGE OF HON'BLE PRESIDENT-GENERAL
DR. ADDITIONAL MAJORO ON THE LAUNCHING OF THE PROJECT OF SOLAR ELECTRICITY – AT RAMAROTHOLE
MARRIAGE
进出口银行新疆分行立足主责主业全力稳住外贸基本盘
China’s Global Energy Finance in the Era of COVID-19
China helps deliver solar energy to power-starved Lesotho
LESOTHO: construction of the Mafeteng solar power plant will begin in 2021
Construction of Mafeteng solar power plant in Lesotho to begin soon
Lesotho will start construction of 70MW photovoltaic power station
Mafeteng solar PV power plant in Lesotho set to begin construction in five months
Mafeteng Villagers Block M2,8 Billion Solar Project
Exposed: Massive Solar Rip-Off, 2020 Data on Chinese Official MLT Export and Trade-related Programs
Community stalls solar power project
IDS_Average interest on new external debt commitments
口行一季度海外贷款的6大项目非洲为主
驻莱索托大使雷克中出席马费腾光伏电站竣工交接仪式
刘鑫出席中材节能承建的莱索托光伏工程投运仪式
RAMAROTHOLE SOLAR POWER GENERATION TO BENEFIT BASOTHO- PM
Power plant profile: Mafeteng Ha Ramarothole Solar PV Park
Lesotho
United States Charge d’affaires a.i Mr. Thomas Hines, and Dr. Matt Orosz
Managing Director of One Power, to the Ramarothole Solar Power Plant
PHASE II OF RAMAROTHOLE SOLAR AGREEMENT INCOMPLETE – MOLELEKI
PARLIAMENT OF THE KINGDOM OF LESOTHO BUDGET SPEECH TO THE PARLIAMENT OF THE KINGDOM OF LESOTHO FOR THE 2025/2026 FISCAL YEAR “Building Strategies for Inclusive Growth” Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.