Pretoria: The Gauteng Provincial Government (GPG) is set to pay R3.3 billion as part of its commitment to service the outstanding e-tolls debt, as announced by Gauteng MEC for Finance and Economic Development, Lebogang Maile, during a media briefing on Sunday.
According to South African Government News Agency, the e-tolls system was abolished last year due to widespread dissatisfaction among road users, following an agreement between the provincial government and National Treasury. The GPG agreed to cover 30% of the historical debt.
Maile stated, “The amount due, based on the Memorandum of Agreement, is R3.3 billion in terms of the historic debt. This is the amount that we will be paying to National Treasury as part of our 30% contribution.” This payment marks the provincial government’s second instalment towards the debt.
On September 30, 2024, the Gauteng government made an initial payment of R3.8 billion, covering R3.2 billion of historic debt and a maintenance portion of R546 million. The total allocated for the provincial government’s payment responsibility is at least R12 billion, with interest bringing the total to R15.9 billion. This amount will be settled over five equal annual payments at the government five-year interest rate.
Additionally, the GPG has committed to contributing towards the rehabilitation of nine projects under the Gauteng Freeway Improvement Project 1, which aims to enhance the Gauteng freeway network. These projects will cost the provincial government a total of R4.1 billion. The commitment to servicing the debt will be included in the 2024 fiscal framework, as assured by Maile, who emphasized the importance of maintaining fiscal discipline to adhere to this commitment.