The Gauteng Provincial Government has agreed to contribute 30% to settling SANRAL’s debt and interest obligations on the province’s lingering Freeway Improvement Project, Finance Minister Enoch Godongwana announced on Wednesday.
The bulk of the bill in this regard – 70% – would be footed by the national government.
This development was announced by the Minister while delivering the 2022 Medium Term Budget Policy Statement (MTBPS).
Addressing Members of Parliament at the Cape Town City Hall, Godongwana said the uncertainty surrounding the Gauteng Freeway Improvement Project, better known as the e-tolls, continued to have a major negative implication for road construction in the country.
He said: “We need to move on from the debates of previous years and find solutions to this challenge. To resolve the funding impasse the Gauteng provincial government has agreed to contribute 30% to settling SANRAL’s [South African National Roads Agency] debt and interest obligations, while the national government covers 70%.”
Gauteng, he said, would also cover the costs of maintaining the 201 kilometres 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.
In the MTBPS, the Treasury allocated R23.7 billion to settle maturing debt and debt-related obligations.