Pretoria: The South African National Roads Agency SOC Limited (SANRAL) has outlined the funding model for the Gauteng Freeway Improvement Project (GFIP), commonly known as e-tolls, in response to claims of financial opacity by the Organisation Undoing Tax Abuse (OUTA). This comes after the government deactivated e-toll gantries in April, ceasing charges for road users on the GFIP network.

According to South African Government News Agency, SANRAL began borrowing funds in 2008 for the construction of the GFIP, which was completed in time for the 2010 World Cup. The initial cost was estimated at R21 billion, but revenue from tolls was insufficient to cover operational expenses and interest, leading to increased debt. To manage this, SANRAL had to borrow funds to pay interest or refinance existing debt, with occasional support from National Treasury to cover shortfalls.

When the memorandum of agreement to end e-tolls was signed in April between the national government, National Treasury, the Department of Trans
port, and the Gauteng Provincial Government, the GFIP-related nominal debt stood at R29.031 billion. The estimated interest on this debt until the last bond is redeemed in 2036 is R20.011 billion, subject to fluctuations due to the Consumer Price Index for CPI-linked bonds.

Before the October 2022 announcement by the Minister of Finance to end e-tolls, treasury grants were used solely for operational shortfalls and interest payments, not for repaying maturing debt. However, in October 2022, R23.756 billion was allocated, with R20.557 billion used for bond settlements and interest.

The R5.1 billion allocated by National Treasury in October 2024 is designated for settling maturing bonds and backlog road maintenance for 2024/25, as per the agreement with the Gauteng Provincial Government and the National Department of Transport. SANRAL plans to use these funds for a maturing bond in December 2024 and interest payments until March 2025, with R546 million set aside for road maintenance.

SANRAL emphasizes its ri
gorous oversight framework for infrastructure funding across all projects, ensuring accountability and transparency. The agency’s audited reports are publicly accessible, providing comprehensive insights into its financial management since inception.

Furthermore, SANRAL’s Marketing and Communications Unit plays a crucial role in enhancing public engagement and trust, which aids in smoother project implementation. Stakeholder engagement through various platforms, including digital and social media, is crucial for collaboration with communities, government entities, contractors, and international partners, contributing significantly to the marketing and communications budget.

SANRAL reports that its communication efforts are instrumental in minimizing project disruptions, even from groups like the so-called construction mafia, highlighting the return on investment in these areas.