The Gauteng government will decide what to do with e-tolls after agreeing with a National Treasury proposal to cover 30% of the R47 billion debt road agency Sanral incurred as a result of the Gauteng Freeway Improvement Project (GFIP).
E-tolls are the electronic toll collection processes employed by South Africa’s road agency Sanral on selected toll roads or toll lanes, subject to the Sanral Act of 1998.
Speaking at the tabling of his medium-budget policy statement, finance minister Enoch Godongwana said to help settle its e-toll debt, Sanral would receive R23.7bnthis financial year and the rest of next year.
Godongwana said Sanral’s GIFP debt “as of today is R47 billion”.
“Gauteng will also cover the costs of maintaining the 201km and associated interchanges of the roads and any additional investment in roads will be funded through either the existing electronic toll infrastructure or new toll plaza’s, or any other revenue source within their Gauteng provincial government area of responsibility.
“Government proposes to make initial allocation of R23.7 billion from the national fiscus, which will be disbursed with strict conditions,” he said.
During his speech, Godongwana said the uncertainty surrounding the GIFP continued to have negative implications for road construction around the country.
“To resolve the funding impasse, the Gauteng provincial government has agreed to contribute 30% to settling Sanral’s debt and interest obligations while the national government covers 70%,” sais Godongwana.
National Treasury official Mampho Modise said the allocation was about giving Sanral financial stability and certainty until future phases of the GPIF are handed over from Sanral to the Gauteng government, where the provincial government will decide how to fund the GFIP.
The annexure said of the R145.8 billion that public entities will spend on infrastructure in the medium-term expenditure framework, Sanral would spend R61.8 billion to build new road infrastructure and rehabilitate key transport routes serving the economy.
Source: News24, Times Live, The Citizen, Moneyweb, image fromTwitter: @Our_DA