Gauteng wants to milk Gautrain to pay off a R12.9-billion loan need to foot the bill for its part in the e-toll shutdown.
The Gauteng provincial government wants to use revenue from Gautrain — a partially tax-funded service that is not yet self-sustaining — to pay off a R12.9-billion loan it needs to foot the bill for its part in the e-toll shutdown.to be part of a “revenue enhancement strategy” announced by Gauteng Finance and Economic Development MEC Lebogang Maile in his 2024/2025 budget speech.
While it is unclear how the government plans to collect the billions of rand in e-toll debts, the GPG previously said it would fund its R12.9-billion contribution to the e-toll shutdown with a loan or loans from financial institutions.Maile has told Moneyweb the GPG had revised its strategy to rather obtain a loan to invest in new infrastructure — including the Gautrain Phase 2 expansion.
Shange also defended the expansion and said the Gautrain would generate more revenue as it will be a fully paid-for asset once it is handed over to the GPG by the Bombela Concession Company in 2026. “Its most lucrative opportunities lie in its links between Joburg to Tshwane and the OR Tambo airport, which have not generated profits to the province,” said Duvenage.“If the cost of undertaking such projects is anything to go by, this expansion will be overpriced, take longer to build than it should, and will introduce more debt around the neck of future provincial leaders.”
Duvenage is also sceptical about some of these enhancements, arguing that improved service delivery would not bring in more money unless paired with increased fees.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Senior Angular Developer - Gauteng GautengIT Industry News. Daily.
Read more »
.NET Tech Lead - Gauteng GautengIT Industry News. Daily.
Read more »
Lead Java Developer with Camunda BPM at Reverside - Gauteng GautengIT Industry News. Daily.
Read more »
X2 Senior Solution Architects - Gauteng GautengIT Industry News. Daily.
Read more »
Gauteng doubles down on new state-owned bankThe Gauteng Provincial Government is looking to go full steam ahead to establish a state-owned provincial bank in partnership with the private sector.
Read more »
Gauteng opens training facility at Sterkfontein Psychiatric HospitalGauteng's healthcare facilities get an upgrade with a new training centre on the West Rand.
Read more »