Gauteng residents, and society, need absolute clarity and transparency from Sanral and the Treasury on how they arrived at their numbers, writes wayneduv.
Despite finance minister Enoch Godongwana’s confirmation two weeks ago that the e-toll scheme would finally be scrapped, there are some who still argue that this was the best way to finance the Gauteng Freeway Improvement Project .
In 2005, Sanral’s own “statement of intent” document presented a price tag of R4.6bn for a 340km freeway upgrade and development project. Of this, the 200km for phase 1 of the GFIP was about R2.8bn. It chose the e-toll option, which would slap roughly R1bn per year onto society just to cover the costs of collecting the e-toll feesThere were always two options for Sanral to finance the GFIP.
That administration cost of about R1bn per year was based on the original five-year tender of R6.22bn, which Sanral said had been secured by the Electronic Tolling Company . The actual contracted figure was massively inflated to R9.9bn, which escalated the annual e-toll operations services component to R1.64bn per year over five years.iniquitous as a funding mechanism for a bond to cover an R11.8bn freeway upgrade project — which would work out to R811m per year over 20 years, at 10% interest.
Furthermore, a thorough and independent adviser might have also informed them that the e-toll scheme’s functionality relied heavily on the country’s vehicle registry system , as well as an efficient postal services system. Yet neither could even remotely be described as efficient.
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