{"id":93038,"date":"2015-07-13T20:30:17","date_gmt":"2015-07-13T18:30:17","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=93038"},"modified":"2015-07-13T17:42:51","modified_gmt":"2015-07-13T15:42:51","slug":"gauteng-road-project-cost-r7-billion-more-than-it-should-have-outa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/93038\/gauteng-road-project-cost-r7-billion-more-than-it-should-have-outa\/","title":{"rendered":"Gauteng road project cost R7 billion more than it should have: Outa"},"content":{"rendered":"<p>E-toll opposition group Outa has crunched some numbers, detailing how much the\u00a0upgrade to 185kms of Joburg&#8217;s roads should have cost, according to experts it consulted.<\/p>\n<p>&#8220;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,&#8221; <a href=\"http:\/\/www.polity.org.za\/article\/why-the-odious-debt-of-gfip-construction-will-not-abate-2015-07-13\" target=\"_blank\">said Outa chariman, Wayne Duvenage<\/a>.<\/p>\n<p>&#8220;Government&#8217;s lack of clarity on the matter has opened up conjecture about what it is that they are not telling the public.&#8221;<\/p>\n<p>According to Duvenage, the final price of the GFIP upgrades &#8211; excluding the e-toll infrastructure &#8211; totalled R17.9 billion, which was a massive leap from Sanral&#8217;s original estimates of R6.4 billion in 2006.<\/p>\n<p>On top of the road construction costs, the project incurred\u00a0a further R2.7 billion for e-tolling related infrastructure, taking the\u00a0total to R20.6 billion.<\/p>\n<p>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&#8217;s roads.<\/p>\n<p>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.<\/p>\n<p>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:<\/p>\n<ul>\n<li>185km of freeway, plus an additional 30km for interchange work;<\/li>\n<li>185km of concrete barriers;<\/li>\n<li>185km of median lighting, with masts 50m apart;<\/li>\n<li>Two new 2-lane flyovers, of one kilometer each;<\/li>\n<li>The equivalent of 5,000 square meters of overhead bridge construction and 7,000 sqaure meters of underpass bridge work.<\/li>\n<\/ul>\n<p>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%).<\/p>\n<p>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.<\/p>\n<p>&#8220;Had the GFIP come in at around our estimated R10.8 billion&#8230;.and had the minister of transport (Jeff Radebe) known e-toll collection costs (would be) over R1 billion per annum &#8211; what might his rational conclusion to the e-toll decision as a funding mechanism have been?&#8221;<\/p>\n<p>The Outa chair said that it is &#8220;inconceivable&#8221; that the public be required to settle a large and unwanted debt incurred by the authorities.<\/p>\n<p>&#8220;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,&#8221; Duvenage said.<\/p>\n<h3 class=\"my-4\">More on e-tolls<\/h3>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/general\/91256\/new-e-tolls-coming-in-july\/\">New e-tolls coming in July<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/columns\/90494\/how-government-can-spy-on-you-through-e-tolls\/\">How government can spy on you through e-tolls<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/general\/90356\/thousands-of-motorists-asking-e-toll-discounts-ramaphosa\/\" target=\"_blank\">Thousands of motorists asking for e-toll discounts: Ramaphosa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>E-toll opposition group Outa has crunched some numbers, detailing how much the upgrade to 185kms of Joburg&#8217;s roads should have cost, according to experts it consulted.<\/p>\n","protected":false},"author":10,"featured_media":70473,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[427,2316,26,1988,429],"class_list":["post-93038","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-e-toll","tag-gfip","tag-headline","tag-outa","tag-sanral"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/93038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=93038"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/93038\/revisions"}],"predecessor-version":[{"id":93094,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/93038\/revisions\/93094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/70473"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=93038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=93038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=93038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}