The South African National Roads Agency (Sanral) attributes the success of its first bond auction in 2011 to e-tolling and government's debt management.
In a statement released yesterday, the agency says its first bond auction for 2011 had total bids to the value of R2.118 billion, but it issued R750 million as anticipated.
The auction was almost three times oversubscribed and Sanral says all six bonds that were on offer were issued at market spreads or better.
Three bonds were issued under the guaranteed domestic medium-term note programme and there were three non-guaranteed bonds.
“Sanral appreciates the confidence shown by investors in the toll road programme, as well as government's ability to manage debt in a prudent manner. This will also ensure continuous economic growth and job creation.”
E-tolling forms part of the Gauteng Freeway Improvement Project (GFIP). The 185km of new toll infrastructure will see the N1 to Pretoria, Johannesburg ring roads and the R21 to Pretoria become electronic tolling zones.
Tandem solution
The fees were set at 66c/km for standard motor vehicles, but this initial tariff structure was soon suspended for further consultation, after public outrage.
However, MEC for finance in Gauteng Mandla Nkomfe said at a post-budget address yesterday that the tolling system is very important and will be continued.
“That's how we're going to address the issue of congestion. The discussions at the moment are about how to make it more affordable.
“Tolling, I'm told, alone, is not helping. It must be in tandem with a reliable public transport system. Final implementation of the system will occur on 23 June.”
Murky costs
Apart from the rejection of the fees that were considered too high by the public, trade unions and business, there have also been calls for greater transparency in the project.
Democratic Alliance (DA) spokesperson for transport in Gauteng Neil Campbell recently mentioned an “apparent clandestine agreement between Sanral and the Gauteng Department of Roads and Transport (GDRT) to share the spoils of the toll road fees”.
He said that apart from government taking a 14% VAT cut on the 66c/km toll fee, “it now seems that 30c/km is earmarked for the Gauteng coffers. This means that about 9c would be siphoned to national government in VAT and 30c to the GDRT, meaning that Sanral would only receive slightly less than 30c/km”.
Campbell says discounts are still applicable to this figure, so the actual cost of the construction and maintenance of the Gauteng highway improvement is probably in the ballpark of 25-27c/km.
“It is unacceptable that the motoring public is kept in the dark as to the actual costs of the highway upgrades. When scandals such as this are exposed, it compels the public to wonder why the powers that be take them to be nothing more than 'stupid' milk cows.”
The Road Freight Association says cars should be charged a toll fee of about 5c/km since this is the figure it got from road construction businesses, which indicated this is roughly the cost per kilometre.
“The public uproar that resulted in [transport] minister [Sibusiso] Ndebele suspending the costing of the toll will seem like a gentle wave of dissention compared to the tsunami that will be forthcoming if the minister does not come clean on the actual costs, profits, incentives, overseas profits and government's 'cut' of the profits,” says Campbell.
However, Sanral communications project manager Wanda Cloete says Sanral has not entered into any agreement with the GDRT relating to the sharing of toll fee revenue.
The GDRT says it cannot comment on the matter.
Temporary reprieve
The DA staged a protest against e-tolling in shopping centres and at street intersections last weekend.
It distributed pamphlets as part of its “Stop Highway Robbery” campaign, which includes an online petition.
“Although the gazetted toll prices have been put on hold, this is not the end of the battle. The DA believes that all the existing taxes and levies paid by road users should be properly acknowledged,” says Gauteng provincial leader Janet Semple.
She says motorists are already hard-pressed, including the added 10c/l fuel levy announced by finance minister Pravin Gordhan.
“The public mustn't be fooled by this suspension. It has only gone away temporarily and then it's coming back.”
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