Gauteng ‘on track’ to settle its e-toll debt | Business

Gauteng Finance MEC Lebogang Maile. (Gallo Images/Sharon Seretlo).

• A first payment of R4.1 billion for infrastructure and maintenance backlogs for e-tolls will be made next month, Gauteng Finance MEC Lebogang Maile has said. 
• Meanwhile, a commercial loan to finance the province’s portion of debt for the Gauteng Freeway Improvement Project (GFIP) is still not finalised. 
• Maile said that despite this, the province “has everything sorted out.”
• For more financial news, go to the News24 Business front page.

Newly appointed Gauteng MEC for Finance and Economic Development Lebogang Maile has said the provincial government is “on track” to pay the first installment of its debt obligations to the South African National Roads Agency Limited (Sanral) in September. 

This first payment of R4.1 billion for infrastructure and maintenance backlogs, is part of an agreement it reached with National Treasury earlier this year.

Maile said at a briefing on Sunday that while the province was on track for the backlog payments, a loan had not been finalised or secured for the province’s entire debt obligation. 

News24 previously reported that Gauteng agreed to pay 30% of the Gauteng Freeway Improvement Project (GFIP) debt to compensate for scrapping e-tolls, in addition to its payments for maintenance backlogs. 

Former Finance MEC Jason Mamabolo said in March that the province would look towards a commercial loan to finance the R12.9 billion GFIP debt payment, with R2.3 billion pencilled in for the next three years from the province’s revenue streams for the loan. National Treasury is expected to pay 70% of the GFIP debt. 

READ | e-Toll payback: Gauteng plan to use loans, car licences and gambling blasted

According to the province’s budget, R500 million had also been allocated for the backlog payment. 

Maile said at the briefing:

Meanwhile, the future of motorists’ historical e-toll debt payments is still unknown.  

Former Transport Minister Sindisiwe Chikunga previously said motorists would be held liable for the historical debt, which has amounted to more than R60 billion. 

Despite shutting down the e-tolls this year, the government has yet to make an announcement about how it will enforce payment.  

Sanral told News24 that while it could not comment on how the government would enforce the payments, the R60 billion debt had been “ring-fenced.” 

The agency also said processes are also under way to repurpose the gantries in the future.

“With regard to repurposing the infrastructure, several processes are underway to ensure we develop solutions to the collective benefit of all road users.”