Polihali Dam will be a rockfill dam. It will link up with Katse Dam through a 38.2km tunnel. The dam will be a 163.5m high rock fill dam and 49.5m Saddle dam. The dam will have a capacity of 2322 million m3.
The Department of Water and Sanitation (DWS) has approved the contract to kick-start the project of the Diversion Tunnel for Lesotho Highlands Water Project Phase II. Lesotho Highlands Water Project (LHWP) is a Bi-National project between the Government of the Kingdom of Lesotho and the Republic of South Africa. Phase II of the LHWP which is estimated to cost R22.913 billion will be implemented in two distinct systems, namely a water delivery system to augment the delivery of water to South Africa and a hydro-electric power generation system. The water delivery system comprises of Polihali Reservoir on the Senqu River and a water conveyance tunnel connecting Polihali Reservoir with Katse Reservoir. This water tunnel will also provide access roads to the project sites, camps, power transmission lines and administration centres.