R2.1bn set aside to fund e-tolls – Mbaks

Transport Minister Fikile Mbalula says just over R2 billion has been allocated towards the Gauteng Freeway Improvement Project (GFIP).

Mbalula delivered his budget during parliament’s mini-plenary vote meeting yesterday, saying the department of transport’s expenditure will increase at an average annual rate of 7.7% over the medium term.

“This means an increase from R69.1 billion in 2022-2023 to R81.6 billion in 2024-2025,” he said.

The minister said R76.4 billion has been set aside for South African National Road Agency Limited (Sanral), adding that R45.3 billion of the total allocated amount will go towards upgrading the national non-toll roads network.

Sanral is expected to receive an additional R9.9 billion for maintaining the non-toll road network for the 2022-2023 fiscal year, as announced by Finance Minister Enoch Godongwana during his budget speech in February.

While R2.8 billion has been budgeted for Moloto Road (R573), the department, Mbalula said, has allocated R3.7 billion for the N2 Wild Coast project.

He also provided an update on e-tolls, saying R2.1 billion has been allocated to fund reduced tariffs for the GFIP.

“We have been working with the minister of finance to finalise outstanding matters that will enable the finalisation by Cabinet on the funding of e-tolls,” he said.

Mablula said Cabinet was “seized” with e-tolls, as impulsive decisions on the matter can affect the country’s finances.

“We are alive to the adverse impact that the delay in making the final decision on e-tolls has on Sanral’s balance sheet and it’s ability to raise capital for its catalytic projects,” the minister said.

“A pronouncement will be made once a final decision has been made.”

Godongwana was expected to make a pronouncement on the e-tolls saga during his budget speech, but did not do so.

Mbalula had previously said in November 2021 that Cabinet had finally decided to end the scheme. He, however, pointed out that the National Treasury stopped the implementation of the decision.

Last month, the minister indicated that government hopes to finalise e-tolls before June.

Mbalula bemoaned the fact that some people were not paying for e-tolls, so government needed to resolve this.

Just before Godongwana’s budget, Stefanie Fick, executive director of the accountability division at the Organisation Undoing Tax Abuse, told The Citizen that government should accept that the e-tolls project was unsuccessful, as the compliance rate stood at 15%.