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Makhura: new e-tolls funding model in Feb

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 15 Jan 2015
The current user-pay funding model for e-tolls in Gauteng must be reviewed, says premier David Makhura.
The current user-pay funding model for e-tolls in Gauteng must be reviewed, says premier David Makhura.

Government will make an announcement about the future of e-tolling and a new funding model for the Gauteng Freeway Improvement Project (GFIP) before the end of February, Gauteng premier David Makhura stated this afternoon.

Makhura was speaking at the release of the e-toll advisory panel's report. The panel was appointed in July last year to assess the socio-economic impact of e-tolling on the province.

The two primary findings of the panel are:

* That the implementation of the GFIP has benefited the economy and the people of the province in various ways, namely a better quality road system; reduced travel time; improved fuel efficiency; reduced operating costs; and improved logistics efficiencies for business.

* That while there is general acceptance of the user pay principle and willingness to pay for current and future upgrades of roads and public transport infrastructure, in its current form, the e-toll system is unaffordable and inequitable, and places a disproportionate burden on low and middle income households. It is also administratively too cumbersome.

Makhura noted the main recommendation contained in the report is the current e-toll system must be reviewed to address the questions of affordability, equity, fairness, administrative simplicity and sustainability.

He stated the panel made more than 50 recommendations that address the socio-economic impact of the GFIP and e-tolls, including issues of public transport infrastructure, environmental sustainability and spatial integration of the Gauteng province.

"The provincial government is working with national government and affected municipalities to consider all the recommendations and their full implications, including the best funding model for the GFIP. This process is being led by deputy president Cyril Ramaphosa," he explained.

Makhura stated he would convene a consultative meeting in February with all the stakeholders that made submissions, to consider all the recommendations and their full implications, including the best funding model. "Having concluded the consultation processes, government will make an announcement on the recommendations thereafter."

While he would not pre-empt the consultations that will be held next month, Makhura noted the current user-pay funding model must be reviewed, and the panel has recommended that a hybrid funding model should be adopted. This, he said, would include a contribution by motorists, as well as other additional sources of revenue, such as contributions from government.

In the meantime, he advised motorists to continue paying e-tolls.

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