The Gauteng Provincial Government (GPG) has proposed a hybrid funding model to finance its e-tolls debt and Gauteng Freeway Improvement Project (GFIP) obligations.
So said finance MEC Jacob Mamabolo, presenting the 2022 Gauteng Medium-Term Budget Policy Statement (MTBPS) yesterday.
Mamabolo’s pronouncements follow National Treasury’s conditional allocation of funds to the South African National Roads Agency (Sanral) towards settling the e-tolls debt.
Last month, Treasury indicated the debt of R47 billion will be split 70/30 between national government and the GPG. It said it will allocate R23.7 billion from the national fiscus to Sanral, on condition it meets certain requirements regarding the GFIP.
Presenting the province’s 2022/23 MTBPS, the MEC said premier Panyaza Lesufi directed the provincial Treasury to prioritise a number of tasks, including ensuring alternative funding for e-tolls debt.
As a result, Mamabolo reaffirmed the GPG’s commitment to the repayment of the 30% share of debt, which amounts to R12.9 billion.
He stated: “Considering the absorption of the debt by government, and that e-tolls gantries will not be part of the future GPG revenue generation model, this therefore closes the chapter on e-tolls.”
Mamabolo revealed that Lesufi this week met with finance minister Enoch Godongwana and Sanral’s technical team, to finalise a memorandum of agreement that would address the GPG’s proposal of a hybrid financing model for its e-tolls and GFIP obligations.
The hybrid model, he noted, is to have multiple funding sources that will come from Gauteng, as well as those that are administered by national government. It also looks to spread the period for the payment of the 30% contribution by Gauteng.
In addition, the agreement proposes the switch-off date of the gantries and repurposing them for crime-fighting.
“With respect to the introduction of the hybrid funding model that excludes e-tolls, let me emphasise this will be underpinned by wider consultations with the people of Gauteng.
“It is in this context that we would like to assure residents of Gauteng that we will not compromise our priorities in social services, such as health and education.
“I am also pleased to announce that in the current financial year, there will be no specific allocation that is required for the repayment of e-tolls.”
Mamabolo said the Department of Community Safety will receive an additional R173 million for its crime-fighting efforts, which includes deployment of tech-driven solutions.
As part of a series of departmental visits last month, Lesufi tasked Gauteng’s e-government department to come up with smart technology solutions to help fight crime in the province.
Lesufi indicated the crime fight will be underpinned by a move to e-security, which will entail introduction of e-panic buttons, facial recognition CCTV, as well as high-quality drones in the province.
In relation to the additional funding, Mamabolo said the provincial government is “confident the money will be well spent” in the battle against crime, corruption, vandalism and lawlessness in the province.
“These funds will go towards the recruitment and training of peace wardens, tools of trade, procurement of 10 drones, 50 vehicles and 500 000 panic buttons.
“We say to the criminals ‘your days are numbered’; the drones will be moving around…we are going to give the criminals a run in this province.”
The MEC did not say when these measures would be deployed in the province.
Share