Initially in 1989 MBB Consulting Engineers for the Malelane Irrigation Board prepared a pre-feasibility study for the Krokodilpoort site. This pre-feasibility showed that the proposal was highly feasible. However due to financial constraints and political uncertainty at the time, the proposers decided not to take the project further. The site is situated at a weir where a 70-m fall is encountered over a distance of 3 - 3.5 km. This delivers an effective head of 62 m and allows a generating capacity of 5060 kW consisting of four 1265 kW units to be installed. The flow in the river is a stable 10 m³/s average per year. The site is close to two major black towns Kanyamazane and Matsulu. These towns are at present purchasing their power from Eskom and have indicated their willingness to purchase the power from the hydro stations if the price is competitive. The project pre-feasibility has been obtained by assuming a purchase price by these towns of Eskom - 10%.

The project shows an Internal Rate of return of 16,6% with a Return on Equity of 17,2%. These figures are based on a very rough escalation of the 1989 figures and are therefore merely an indicatioin. It is proposed to develop the project as a BOO (Build, Own, Operate).