Sanral: ‘It’s not a bail out’

South African National Roads Agency Limited (SANRAL) responded in a press release that this was not a bail out, because it is not necessary.

“The opposite impression has been created in some media reports, but seems to be based on a misunderstanding,” states the release.

The R12.5-b allocated is merely the annual budget for the national roads agency, in the previous financial year the budget allocation was R10.5-b.

The funds will be used for the 85% of the road network that the national roads agency controls and is not tolled.

The other 15% is made up of toll roads, which have to be self-funded.

There is no cross-subsidisation between the funding of tolled roads and non-tolled roads.

“Sanral is not bankrupt and does not need a bail out and did not get one. There is a difference between an annual allocation and a bail out,” says spokesman of Sanral, Vusi Mona.

SANRAL is a state-owned entity (SOE) and is not allowed to make a profit.

It is responsible for a national road network of 21 403 km of which only 15% or 3 120km is tolled.

This network is gradually expanding as a growing number of provinces request the agency to also take over the management of their primary roads.

“Sanral’s role is to be an implementing agency for road planning, construction and maintenance on behalf of the Department of Transport,” he says.

During the budget vote, Sanral was given its annual allocation of R12.5-b for non-tolled roads for the 2015/16 year.

“Toll roads must be self-funded and no allocation is made by government, meaning that none of the R12.5-b is allocated to tolled roads.

These roads are then serviced by the revenue it generates which will pay for operations, maintenance of the road and the repayment of the debt and interest.

“We have cancelled the scheduled May auction pending the imminent announcement expected from the deputy president (Cyril Ramaphosa). We have sufficient cash for the next few months.”