News24.com | Gauteng's e-toll bill is R12.9bn, says Lesufi

3 years ago 1

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Panyaza Lesufi, premier of Gauteng.

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Gauteng Premier Panyaza Lesufi announced on Tuesday that the province and its residents would contribute R12.9 billion to pay off the debt accumulated by the SA National Roads Agency (Sanral) in the construction of the Gauteng Freeway Improvement Project.

The debt ballooned from an initial cost of R17.4 billion to R43 billion after road users refused to pay e-tolls. In his medium-term budget policy statement last month, Finance Minister Enoch Godongwana said that the national government would repay 70% of the debt and the province 30%.

READ | EXPLAINER | The life and death of e-tolls

Lesufi said that the province would use "different revenue streams in the form of a hybrid model" to raise the necessary funds. He announced earlier this month that e-tolls would be scrapped but that Gauteng residents, as users of the roads, would need to make payment towards the costs of GFIP.

He said:

The provincial government will undergo a consultative process with Gauteng residents on the hybrid model.

The provincial government will negotiate a long-term repayment period on the 30% debt, with the time frames to be advised by a technical team.

"A long-term repayment period will ensure that we relieve the pressure on the provincial government fiscus while maintaining the delivery of social services and other imperatives such as fighting crime," said Lesufi.

The R12.9 billion does not include the costs of maintaining the system, which, in terms of the deal with Godongwana, will now fall to Gauteng province. The maintenance costs are estimated to be around R2 billion a year for the next three years.

Maintenance funding is still under discussion, said Lesufi.

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