Sanral has outlined its plans to fix and upgrade the country’s roads to the year 2030.
The draft strategic plan – titled Horizon 2030 – states that the agency plans to limit road transfers from the provincial road system to Sanral, as it does not have the money or worker capacity to take over the management of such a large network of roads.
This will see the agency control 25,000 km of roads by 2030, instead of the originally planned 35,000 km, which it promises will be developed faster and will receive better maintenance over the coming years.
Instead of relying on government funding, it will now also be able to raise funds largely through tolls and tolls concessions. This will include an evaluation of its internal toll division as well as the possible establishment of a separate toll subsidiary, it said.
“This new approach is of critical importance because previous road transfers were often done without the necessary budget transfers from the relevant road authorities,” Sanral said.
“Sanral will promote an integrated funding model that includes public tax-based funding, toll revenue, own revenue and private capital for public roads, while constantly seeking new funding streams.”
Key focus areas of this funding model will include:
- The promotion of an integrated funding policy;
- Enhancing revenue generation;
- Pursuing own revenue through the development of a Business Development Strategy;
- Developing a business growth strategy;
- Pursuing further toll/useor-pay projects and increased public tax funding;
- Developing road infrastructure funding partnerships.
In a separate document released by Sanral, it explained that in developing these new toll projects, it would only do business with companies which were community-based and at least 51% black-owned. It will also limit the number of tenders it gives to a specific company so as to avoid abuses.
“Sanral is now at a place where opportunities for own revenue generation warrant serious consideration given the existing demands and constraints.
“Our own revenue generation logically forms part of this final pillar of an integrated funding strategy that would seek to diversify funding sources and apply innovative funding solutions.”
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