Government clears up what’s happening with e-tolls – and you’re not going to like it

Until a notice is gazetted that says otherwise, the South African National Roads Agency (Sanral) has a statutory obligation to collect any toll fees due to them, says finance minister Enoch Godongwana.

This is the case until the Gauteng provincial government seeks an alternative long-term method to collect revenue from users who have been paying their toll fees and/or those who have not paid, said the Treasury. The method of financing is yet to be determined, but until then, it is business as usual for the tolling system.

The option to continue using the existing toll mechanism remains open for the provincial government that is now in charge and would result in the toll network proclamation remaining in place, said Godongwna.

He added that the national government believes that road user charges are still the most effective and equitable way to finance road infrastructure. “It is also a mechanism to manage transport demand, impacting on modal choice and spatial inequality.”

However, if the province is to finance the maintenance and pay off its debt through other revenue streams – the process of undeclaring the toll network will take place.

In a media statement released on 3 November, the head of the National Treasury clarified the next steps facing the government in the first phase of the Gauteng Freeway Improvement Programme (GFIP).

Godognwana said that government would take on a portion of the existing debt and associated obligations of the road agency. The obligation of the agency will be shared between national and provincial governments.

According to the minister, Sanral’s total debt as of 31 March 2022 was R45.9 billion. The debt of GFIP Phase 1, which was not a ringfenced project, amounts to R43 billion. The national government has committed to pay R23.7 billion through a Special Appropriation Bill.

The next step is for 30% of the debt and interest obligations of GFIP to fall onto the provincial government of Gauteng, alongside the duty to pay for maintenance costs.

The Treasury said the national government would make arrangements for the rest of the funds related to its share of the debt obligation at the appropriate time, in line with the conditions and obligations related to the process, and in a manner that does not negatively affect the overall fiscal trajectory as outlined in the 2022 Medium Term Budget Policy Statement.

An agreed way forward on the obligations of each party is expected to be concluded by 31 December 2022.

The Gauteng provincial government is seeking an alternative long-term method to collect revenue from users who have been paying their toll fees and/or those who have not paid, Treasury said.

The Treasury noted that the 201 kilometres of the national roads on the GFIP network will remain as national roads and can only be reassigned to other spheres of government by notice in a Government Gazette, with the concurrence of Sanral debt holders.

Read: 16 foods you’re paying way more for in South Africa right now