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

Project narrative

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. The estimated borrowing terms of the loan are as follows: a 20-year maturity, a 5-year grace period, a 2% interest rate, a 1% management fee, and a 0.5% commitment fee. 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).