Gauteng premier Panyaza Lesufi has met with Finance Minister Enoch Godongwana and the SA National Roads Agency’s (Sanral) technical team to conclude outstanding matters pertaining to the decommissioning of the controversial e-tolls.
The meeting on Tuesday included determining the 30% contribution by the provincial government towards settling the e-toll debt, as well as the funding model of the Gauteng Freeway Improvement Project (GFIP).
It was concluded that the provincial government will settle R12.9-billion using different revenue streams in the form of a hybrid model. Lesufi’s administration will also undergo a consultative process with Gauteng residents on the hybrid model.
“A long-term repayment period will ensure that we relieve the pressure on the provincial government fiscus, whilst maintaining the delivery of social services and other imperatives such as fighting crime,” Lesufi said.
The technical team was further mandated to thrash out the maintenance part of the deal, as well as the process to decommission the e-tolls.
“More work still needs to be done jointly by the Gauteng government, national Department of Transport, Sanral and Treasury to clarify the maintenance and decommissioning of e-tolls,” he added.
Godonwana used the medium-term budget policy statement in October to indicate that the e-tolls in Gauteng will soon be a thing of the past.
“Uncertainty surrounding the Gauteng Freeway Improvement Project continues to have a major negative implication for road construction in the country. We need to move on from the debates of previous years and find solutions to this challenge,” Godongwana said at the time.
“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%.
“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 plazas, or any other revenue source within their area of responsibility.
“Government proposes to make an initial allocation of R23.7-billion from the national fiscus, which will be disbursed on strict conditions.”
However, Godongwana did not indicate when the agreement between the national and the Gauteng provincial government will kick in. The e-tolls have been unpopular since they were launched more than a decade ago.
Sanral is sitting with R47-billion debt relating to GFIP.
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