Gauteng road project cost R7 billion more than it should have: Outa
E-toll opposition group Outa has crunched some numbers, detailing how much the upgrade to 185kms of Joburg’s roads should have cost, according to experts it consulted.
“To date, (Sanral) has not provided a detailed insight to the cost of the Gauteng Greeway Improvement Project (GFIP), thereby giving society another reason to shun the e-toll system,” said Outa chariman, Wayne Duvenage.
“Government’s lack of clarity on the matter has opened up conjecture about what it is that they are not telling the public.”
According to Duvenage, the final price of the GFIP upgrades – excluding the e-toll infrastructure – totalled R17.9 billion, which was a massive leap from Sanral’s original estimates of R6.4 billion in 2006.
On top of the road construction costs, the project incurred a further R2.7 billion for e-tolling related infrastructure, taking the total to R20.6 billion.
It was later revealed by the Competition Commission that collusion had taken place by construction companies, in which inflated costs were charged in the upgrades of the province’s roads.
Outa argued that, had the upgrade cost been lower, government would not have approved e-tolling as a means of funding, as the cost would have been proportionally too large.
To find out how much figures were inflated, Outa contacted quantity surveyors, project and civil engineers and other professionals to do a cost analysis on the GFIP, specifically looking at:
- 185km of freeway, plus an additional 30km for interchange work;
- 185km of concrete barriers;
- 185km of median lighting, with masts 50m apart;
- Two new 2-lane flyovers, of one kilometer each;
- The equivalent of 5,000 square meters of overhead bridge construction and 7,000 sqaure meters of underpass bridge work.
The group came to a total of R10.8 billion, in 2010 prices, showing that the final project was overcharged by around R7.1 billion (65%).
Duvenage said that it was doubtful that the full amount could be chalked up to tender collusion, alone, and noted that maladministration, fraud and incompetence could have been at play.
“Had the GFIP come in at around our estimated R10.8 billion….and had the minister of transport (Jeff Radebe) known e-toll collection costs (would be) over R1 billion per annum – what might his rational conclusion to the e-toll decision as a funding mechanism have been?”
The Outa chair said that it is “inconceivable” that the public be required to settle a large and unwanted debt incurred by the authorities.
“Aside from the other issues of meaningless public consultation, the onerus conditions and unworkability of the scheme, it is clear that society has every reason to reject the e-toll decision, simply because it is an odious debt,” Duvenage said.
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