Gauteng's controversial electronic tolling project will receive a funding boost of R5.8 billion from national government.
The e-tolling project, which will see motorists pay to travel on several of Gauteng's main freeways, was set to come into effect this month, but has now been delayed.
Finance minister Pravin Gordhan, addressing Parliament during his budget speech this afternoon, said: "I am mindful that the introduction of tolling to finance the Gauteng Freeway Improvement Programme has caused considerable public reaction."
Gordhan said National Treasury has "listened carefully to the various suggestions and appreciates the difficulties that might be faced".
The total debt linked to upgrading Gauteng's freeways is R20 billion, which was set to be paid for through the tolls. However, to trim the amount owning, Gordhan proposed a special appropriation of R5.8 billion, which will be included in 2011/12 expenditure.
"This will reduce the debt to be repaid through the toll system, and will make a steeper discount possible for regular road users," said Gordhan.
Gordhan said government will, in future, carefully evaluate road infrastructure funding. In addition, the Department of Transport will urgently focus on developing efficient and cost-effective transport.
"It is important to remember that road-user charges also serve an important demand management function on roads that are heavily congested. Users benefit through lower vehicle operating costs, time savings and improved safety. In addition, improved maintenance of regional and provincial roads is made possible by the additional revenue that our toll roads generate," noted Gordhan.
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