The South African National Roads Agency Limited (Sanral) will raise R12 billion in 2010 through bond auctions and ensure e-tolling is a reality in 2011.
Sanral CEO, Nazir Alli, says the agency aims to raise the funding in the current financial year to complete the Gauteng Freeway Improvement Project (GFIP) on schedule.
Last year, Sanral raised R14.05 billion in funding, which will be used to complete the GFIP. The agency needs a total of R22 billion in debt finance to fund the first phase of its upgrade project, R20 billion of which will be allocated to the GFIP.
The GFIP aims to provide an interconnected network of inner and outer ring roads as a solution to the traffic congestion experienced in Gauteng. The 185km of new toll infrastructure will see the N1 to Pretoria, Johannesburg ring roads and the R21 to Pretoria, become electronic tolling zones. Roads will be operated on the user-pays principle after October 2011.
The agency recently awarded its R1.16 billion electronic tolling contract to the Electronic Toll Collection joint venture - a consortium led by intelligent road traffic telematics company Kapsch Sweden. The system will be installed over a period of 18 months.
Sanral also needs to raise R25 billion for the second phase of its upgrade project and an additional R20 billion for the third phase, which will see e-tolling being introduced to road networks in other provinces.
Alli said while funding for the GFIP is being raised through the Domestic Medium-Term Note (DMTN), the agency would still explore alternative sources of funding. The DMTN will allow Sanral to issue notes covered by a government guarantee, on an ongoing basis.
A recent assessment of the improvement project by the roads agency revealed that 85% of its programmes were on schedule, while 93% of its construction projects would be completed by November.
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