By Lehlohonolo Lehana.
The Gauteng provincial government has made the first payment of R3.8 billion to SANRAL (South African National Roads Agency) towards its E-toll debt.
In a media briefing on Monday, Gauteng Finance MEC Lebogang Maile said that the provincial government had made the first step to servicing the R12.9 billion debt.
Of the first R3.8 billion paid to National Treasury, R3.2-billion was allocated to historical debt and R546-million towards the R4-billion maintenance, according to Maile.
Subsequent payments will be made every June until the debt is paid.
The province will need to allocate a substantial amount of funds each year for the next five years to meet the repayment obligations,” Maile said.
“We are working with revenue collecting departments to identify alternative sources of revenue to ensure frontline services remain uncompromised while safeguarding essential social services for vulnerable members of society and maintaining the provision of basic services.”
In spite of the challenges and financial strain, Maile assured Gauteng residents that the finances of the province are in good hands, adding that he and his team have things under control to weather the storms caused by this debt.
The scrapping of the e-toll service came into effect in April this year, with Gauteng Premier Panyaza Lesufi overseeing the process following many years of promises to Gauteng motorists.
At the end of March, through a proclamation in the Government Gazette, the national and provincial government officially scrapped e-tolls.
The gazette, signed by then transport minister Sindisiwe Chikunga, scrapped the much-maligned system with the switching off of gantries on April 11.
In a statement issued by Sanral, the national roads agency had said the gantries used to toll road users “will officially be disconnected from the e-tolls network from 11.59pm on 11 April 2024”.
However, not everyone accepted and welcomed the relief that came with the end of the e-tolls as well as other financial challenges facing the province.
The GFIP was the first of three phases to improve Gauteng’s freeways and there is still a need to fund the second and third phase of the project to improve the roads and prevent gridlocks.