Gauteng to contribute R12.9 billion towards the decommissioning of e-tolls

The Gauteng government has committed R12.9 billion towards the decommissioning of e-tolls, which is a 30% contribution of the outstanding R43 billion.

Meeting

Gauteng premier, Panyaza Lesufi had an engagement with Finance Minister, Enoch Godongwana, and the South African National Roads Agency Ltd’s (Sanral) technical team on Tuesday.

Finance MEC, Jacob Mamabolo, and Transport and Logistics MEC, Kedibone Diale-Tlabela, were also present in the meeting.

The purpose of the meeting was to conclude outstanding matters pertaining to the decommissioning of e-tolls, 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).

30% debt settlement

“The meeting resolved that the total amount to be paid by the provincial government is R12,9 billion (30% of R43 billion) using different revenue streams in the form of a hybrid model. The provincial government will undergo a consultative process with Gauteng residents on the hybrid model,” read a statement.

The provincial government also said that it will negotiate a long-term repayment period on the 30% debt, and the timeframes to be advised by the technical team.

“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,” said Lesufi.

A lot of work still needs to be done

“More work still needs to be done jointly by the Gauteng government, national Department of Transport, Sanral and Treasury to clarify maintenance, and decommissioning of e-tolls.”

Last month, Transport Minister Fikile Mbalula’s spokesperson Lwaphesheya Khoza said he, the provincial government and Sanral would provide a detailed account of the implementation plan.

“It will discuss what will happen with those who paid their e-tolls and those who did not,” she said at the time.

Godongwana mentioned this during the media briefing prior to delivering the Mid Term Budget Policy Statement, where he said that national government would be assuming 70% of Sanral’s debt, while the Gauteng provincial government would be assuming 30%.

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