A dense fog still hangs over freeway e-tolls
They are not a sight for sore eyes, those gantries on Gauteng freeways. They were meant to be cutting edge that didn’t require a stop but still took your money. The Gauteng Freeway Improvement Plan looked good on paper. The government would upgrade highways to reduce congestion and make a journey quick and without too much stress. The cost, however, would be high: an initial R20bn borrowed by the South African National Roads Agency (Sanral). The amount would rise when interest and maintenance costs were added. Revenue from tolls would fund this on a user-pay principle.
The problem was that freeway improvements did not ease congestion. The M1 between Johannesburg and Pretoria remains the busiest highway in SA, if not the continent. Even a high-speed train between the two cities failed to have a meaningful impact on road congestion.
Gauteng motorists did not buy into the project, rejecting the notion of paying for something that they had been using for free. They voted with their pocket and refused to pay. In greater numbers, they rejected e-tolls in the face of threats by Sanral to charge offenders in court.
Tolling also became a political issue. The Gauteng government, aware of its precarious position with voters, has been agitating for e-tolls to be scrapped.
This week the Gauteng infrastructure MEC Jacob Mamabolo announced on radio that e-tolls would be scrapped. The jubilation was shortlived. The cabinet and transport minister Fikile Mbalula said no decision had been taken on the future of e-tolls.
The truth is that a decision to scrap e-tolls cannot be taken until the government reassures lenders, who advanced the money for the plan on the basis of the user-pay principle, that is has an acceptable alternative.
Estimates are that our debt on this project is just under R50bn. How will the National Treasury ensure that we continue meeting obligations to lenders?
In the meantime, uncertainty and confusion reign. A decision on the future of e-tolls is long overdue.