E-tolls: Gauteng government to make first debt payment in September – Maile

Gauteng Finance and Economic Development MEC, Lebogang Maile, says the provincial government is committed to settling its portion of the e-toll debt.

Maile addressed the media on Sunday, on the state of the Gauteng province’s economy and finances.

The MEC also touched on the key focus areas of the provincial government in the seventh administration.

Gauteng’s e-toll debt

During the briefing, Maile said the Gauteng government needed to pay the e-toll debt the South African National Roads Agency (Sanral) incurred to build the road infrastructure as well as dealing with the backlog of maintenance and rehabilitation of the network.

“It’s actually… R12 billion, which is the debt and then there’s R4.1 billion, which is about infrastructure maintenance [because] there’s a backlog.

“The roads have to be maintained, otherwise they will regress. People who don’t want to pay and where we are now, we have agreed that government must take that debt so R4.1 billion is for infrastructure.

“And then there’s interest as I have said so when you add all those it gives just over or around R20 billion,” he told journalists on Sunday.

ALSO READ: E-tolls scrapped, but gantries will remain operational – Chikunga

Maile said the provincial government plans make its first e-tolls debt payment in September should it secured external funding.

“We will keep the public updated in terms of how much we are paying.

“We are speaking to various financial institutions and discussions are at an advanced stage even in that regard, we will make an announcement once one of the institutions agrees especially to finance the R4.1 billion of maintenance.

“We will get to that, but we have got everything sorted out.”

Maile further revealed that the Gauteng government had “different options on our table that we re looking at”.

Watch the briefing below, courtesy of the SABC:

E-tolls scrapped

E-tolls system in Gauteng was officially scrapped by the provincial government on 11 April.

This meant road users will no longer be charged for use of the controversial Gauteng Freeway Improvement Project (GFIP) electronic tolling gantries.

However, the gantries and its cameras will remain operational and be repurposed to assist road safety and crime-fighting initiatives.

In addition, motorists will still have to pay their historic debts as required by law.

READ MORE: E-tag credits now exclusively for toll plazas, not debt repayment

The Gauteng government has committed to pay R12.9 billion towards settling Sanral’s GFIP loan debt, which accounts for 30% of the total bill.

The National Treasury will foot the remaining 70% of R43 billion.

Alternative funding solutions for the GFIP debt repayment and deal with the backlog of maintenance and rehabilitation costs were agreed upon in a memorandum of understanding signed by Chikunga, Lesufi and Finance Minister Enoch Godongwana in March.

Gauteng premier, Panyaza Lesufi previously indicated that the provincial government will have to borrow funds to pay Sanral.

Gauteng state-owned bank

Meanwhile, Maile revealed that his department would push ahead with plans to establish a provincial state-owned bank.

The MEC said the Gauteng government would look at the possibility of buying out an already existing bank.

“We will intensify efforts to finalise the establishment of a provincial state-bank.

“One of the key objectives of this bank will be investing in projects characterised by low private sector investment and high social return,” Maile said.

NOW READ: A provincial state-owned bank for Gauteng?